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Dec 31, 2023

Linde Q4 2023 Earnings Report

Linde's Q4 2023 results reflected YoY sales growth and increased operating profit.

Key Takeaways

Linde reported a 5% increase in sales and a 14% increase in adjusted operating profit for the fourth quarter of 2023. The company's adjusted EPS grew by 14%, driven by higher price and productivity initiatives.

Sales increased by 5% year-over-year, with underlying sales up 4%.

Adjusted operating profit rose by 14% compared to the prior year.

Adjusted operating profit margin increased by 210 basis points year-over-year.

Adjusted EPS increased by 14% year-over-year.

Total Revenue
$8.3B
Previous year: $7.9B
+5.1%
EPS
$3.59
Previous year: $3.16
+13.6%
Gross Profit
$8.3B
Previous year: $3.47B
+139.1%
Cash and Equivalents
$4.66B
Previous year: $5.44B
-14.2%
Free Cash Flow
$1.58B
Previous year: $1.16B
+36.0%
Total Assets
$80.8B
Previous year: $79.7B
+1.4%

Linde

Linde

Linde Revenue by Segment

Forward Guidance

Linde anticipates adjusted EPS for Q1 2024 to be between $3.58 and $3.68, and full-year 2024 adjusted EPS to be in the range of $15.25 to $15.65.

Positive Outlook

  • First-quarter 2024 adjusted EPS guidance represents 6%-9% growth ex. FX
  • Full-year 2024 adjusted EPS guidance represents 8%-11% growth ex. FX
  • Well positioned to win more than our fair share of high-quality projects
  • Create shareholder value by leveraging all of the opportunities that lie ahead
  • Strong balance sheet and a high-quality project backlog of $8.5 billion which will contribute earnings growth for years to come

Challenges Ahead

  • Geopolitical and macro environment remain uncertain
  • First-quarter 2024 adjusted EPS guidance assumes 1% unfavorable currency
  • Full-year capital expenditures are expected to range between $4.5 billion and $5.0 billion
  • Challenging environment in 2023
  • Underlying sales decreased 1% lower volumes for full year 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income