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Sep 30, 2023

Linde Q3 2023 Earnings Report

Reported strong results driven by relentless culture to optimize the base business while increasing network density and deploying capital to high-quality growth initiatives.

Key Takeaways

Linde reported third-quarter 2023 net income of $1,565 million and diluted earnings per share of $3.19, up 23% and 26% respectively. Sales for the third quarter were $8,155 million, 7% below prior year but underlying sales increased 3%.

Sales $8.2 billion, down 7% YoY, underlying sales up 3%

Operating profit $2.1 billion; adjusted operating profit $2.3 billion, up 15%

Operating profit margin 25.2%; adjusted operating profit margin 28.3%, up 550 basis points

EPS $3.19 up 26%; adjusted EPS $3.63, up 17% YoY

Total Revenue
$8.16B
Previous year: $8.8B
-7.3%
EPS
$3.63
Previous year: $3.1
+17.1%
Adjusted Operating Margin
28.3%
Previous year: 22.8%
+24.1%
Gross Profit
$3.84B
Previous year: $3.51B
+9.4%
Cash and Equivalents
$3.89B
Previous year: $3.76B
+3.7%
Free Cash Flow
$1.57B
Previous year: $1.87B
-16.1%
Total Assets
$77.8B
Previous year: $74.3B
+4.7%

Linde

Linde

Linde Revenue by Segment

Forward Guidance

For the fourth quarter of 2023, Linde expects adjusted diluted earnings per share in the range of $3.38 to $3.48, up 7% to 10% versus prior-year quarter. For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $14.00 to $14.10, up 14% to 15% versus prior year and assumes no currency impact.

Positive Outlook

  • Adjusted diluted earnings per share in the range of $3.38 to $3.48 for Q4 2023
  • 7% to 10% increase in adjusted diluted earnings per share versus prior-year quarter for Q4 2023
  • Currency tailwind of 1% year-over-year is expected for Q4 2023
  • Adjusted diluted earnings per share to be in the range of $14.00 to $14.10 for full year 2023
  • 14% to 15% increase in adjusted diluted earnings per share versus prior year for full year 2023

Challenges Ahead

  • Currency headwind of 2% sequentially is expected for Q4 2023
  • Sales were down 7% year-over-year
  • Operating cash flow decreased 4% versus prior year
  • Americas sales were 2% lower versus prior year
  • APAC sales were 1% lower versus prior year

Revenue & Expenses

Visualization of income flow from segment revenue to net income