Linde Q2 adjusted EPS of $4.50 beat estimates. The gas backlog hit a record $8.1B on a new electronics contract. Full-year guidance calls for EPS of $17.70 to $17.90.
Linde plc posted second-quarter net income of $1,928 million, or $4.15 a share, up 11% from a year earlier. Adjusted earnings per share came in at $4.50, 10% above the year-ago period. Sales hit $9,289 million, up 9%.
The industrial gas giant signed another long-term electronics supply contract during the quarter, pushing the sale of gas backlog to a record $8.1 billion, up from $7.6 billion at the end of the first quarter. Chief Executive Sanjiv Lamba said customer proposal activity remains strong, mostly in electronics. "Regardless of the economic climate, I'm confident the Linde team will continue to secure high-quality future growth projects," he said.
Adjusted operating profit rose 7% to $2,744 million. The margin came in at 29.5%, down 60 basis points from last year as price increases and productivity gains were offset by cost inflation. Return on capital was 23.5%.
Free cash flow was $833 million after capital expenditures of $1,438 million. The company returned $1,590 million to shareholders through dividends and stock buybacks, net of issuances.
By region, the Americas segment generated $4,083 million in sales, up 7%. Underlying sales rose 4% on 2% price and 2% volume, mostly in electronics and manufacturing. Operating margin was 31.2%, down 50 basis points.
Asia Pacific sales jumped 13% to $1,870 million. Underlying sales gained 8%, driven by 6% volume growth, mainly in electronics and chemicals & energy, plus project startups. Pricing added 2%. Operating margin was 28.4%, down 120 basis points.
EMEA sales climbed 7% to $2,303 million. Underlying sales rose just 1% on 2% price, offset by lower volumes in manufacturing. Operating margin of 35.7% was 40 basis points lower.
Linde Engineering posted sales of $625 million, up 13%, with operating profit of $100 million, or 16% of sales. Order intake was $871 million, and the third-party sale of equipment backlog stood at $3.0 billion.
For the third quarter, Linde expects adjusted EPS of $4.45 to $4.55, up 6% to 8%. Full-year adjusted EPS guidance is $17.70 to $17.90, up 8% to 9%. Capital expenditures are expected in the $5.5 billion to $6.0 billion range.
The company's LIN stock page shows an Alpha Score of 44 out of 100, rated Mixed.
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