Cramer Calls Linde's Move 'Stupid'; Backlog Hits $10.5B

Jim Cramer called Linde's share price movement "stupid". The comment arrives as Linde (LIN), the world's largest industrial gas company by revenue, works through a mixed second quarter.

Adjusted earnings of $3.94 a share beat the $3.91 consensus compiled by Bloomberg, up from $3.85 a year earlier. Revenue fell 1% to $8.26 billion, short of the $8.33 billion forecast. Currency moves and lower cost pass-through to customers weighed on the top line. Linde's contracts pass energy and raw material costs to clients, so cheaper inputs trim billed revenue without hurting profit. Management also opened a strategic review of the homecare business. For the full report, see Linde Q2 Profit Rises on Record Backlog, Homecare Unit Under Review.

Project backlog stood at a record $10.5 billion at quarter-end, up from $9.8 billion in the first quarter and $8.7 billion a year earlier. Linde said most of the signed projects are expected to convert to sales over the next three to five years and that the backlog gives the company strong visibility into future revenue growth.

"Our backlog continues to grow, driven by demand for our technology in clean energy, electronics, and healthcare," Chief Executive Officer Sanjiv Lamba said in a statement.

Homecare, which provides respiratory therapy and home infusion services to patients at home, generated about $1.5 billion in revenue last year. Linde said it is exploring strategic alternatives for the unit, including a sale or a spin-off, and expects the review to conclude by the end of the year.

"The homecare business has strong fundamentals and attractive growth prospects," Lamba said. "This review is the right step to maximize value for shareholders."

Linde affirmed full-year 2025 adjusted earnings guidance of $15.85 to $16.15 a share, implying growth of 6% to 8% from 2024. The company expects to return $8 billion to shareholders this year through dividends and share buybacks.

Shares rose 1.2% in morning trading after the report. The stock, which carries a market value of about $240 billion, is up about 12% year to date.

Linde supplies oxygen, nitrogen, hydrogen, and other gases to customers in manufacturing, healthcare, electronics, and energy.

JPMorgan analysts called the results "solid" and said the backlog growth and capital return outlook are positives. The homecare review adds a potential catalyst, though the timing and outcome remain uncertain, they said.

AlphaScala's model rates Linde at 47 out of 100, a Mixed label that reflects steady earnings and strong cash generation against exposure to industrial cycles. See the LIN stock page for the full profile.