Linde (Nasdaq: LIN) posts strong Q1 2026 results with 10% EPS growth and higher cash returns

Rhea-AI Filing Summary

Linde plc reported strong first-quarter 2026 results with net income of $1.86 billion and diluted EPS of $3.98, up 11% and 13% from a year ago. Adjusted net income was $2.02 billion and adjusted EPS reached $4.33, 10% higher than prior year.

Sales were $8.78 billion, up 8%, driven by 2% pricing, 1% volume growth and 5% favorable currency, plus 1% from acquisitions. Adjusted operating profit rose 8% to $2.63 billion, yielding a 30.0% adjusted operating margin.

Operating cash flow was $2.24 billion, up 4%, with free cash flow of $898 million after $1.34 billion of capital expenditures. Linde returned $1.55 billion to shareholders through dividends and buybacks. The company reaffirmed an efficiency-focused model with a 24% adjusted after-tax return on capital and guided 2026 adjusted EPS to $17.60–$17.90, implying 7–9% growth.

Positive

• Strong earnings growth and margins: Adjusted EPS rose 10% to $4.33 on 8% sales growth, with a robust 30.0% adjusted operating margin and adjusted after-tax return on capital of 23.8%, indicating efficient, high-return operations.

Negative

• None.

Insights

Equity research analyst

Linde delivered double-digit EPS growth, high margins and solid cash returns while guiding to continued 2026 earnings expansion.

Linde posted Q1 2026 adjusted EPS of $4.33, up 10% year over year, on sales of $8.78B growing 8%. Pricing, modest volume growth and favorable currency all contributed. Adjusted operating margin held at a strong 30.0%, demonstrating disciplined cost control and productivity.

Cash generation remained robust with operating cash flow of $2.24B and free cash flow of $898M after $1.34B of capital expenditures. Management returned $1.55B to shareholders via dividends and repurchases, while maintaining an adjusted after-tax return on capital of 23.8%.

Guidance calls for Q2 2026 adjusted EPS of $4.40–$4.50 and full-year 2026 adjusted EPS of $17.60–$17.90, representing 7–9% growth, including about 1% currency tailwind. The outlook, combined with elevated margins and a sizeable capex plan of $5.0–$5.5B, ties near-term performance to executing the $7.1B sale-of-gas project backlog.

Key Figures

Sales: $8.78B Net income: $1.86B Adjusted EPS: $4.33 +5 more

8 metrics

Sales $8.78B Q1 2026 sales, up 8% year over year

Net income $1.86B Q1 2026 net income, up 11% year over year

Adjusted EPS $4.33 Q1 2026 adjusted diluted EPS, 10% above prior year

Adjusted operating margin 30.0% Q1 2026 adjusted operating profit margin

Operating cash flow $2.24B Q1 2026 operating cash flow, up 4% year over year

Free cash flow $898M Q1 2026 free cash flow after $1.34B capex

2026 adjusted EPS guidance $17.60–$17.90 Full-year 2026 adjusted EPS guidance, 7–9% growth

Adjusted after-tax ROC 23.8% 4-quarter trailing adjusted return on capital as of Q1 2026

Key Terms

Adjusted operating profit, Free cash flow, Adjusted EBITDA, Adjusted diluted EPS, +2 more

6 terms

Adjusted operating profit financial

"Adjusted operating profit of $2,630 million was up 8% versus prior year"

Adjusted operating profit is a measure of a company’s routine profit from its core business activities after removing one‑time events, unusual costs or non‑cash items so the result reflects ongoing operations. Think of it like judging a car’s normal fuel efficiency after ignoring a single visit to the body shop; investors use it to compare underlying profitability across periods or peers and to judge whether the business is sustainably earning money, but the specific exclusions can be subjective.

Free cash flow financial

"After capital expenditures of $1,342 million, free cash flow was $898 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Adjusted EBITDA financial

"Adjusted EBITDA | | $ | 3,449 | | | $ | 3,410"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Adjusted diluted EPS financial

"For the full year 2026, the company expects adjusted diluted earnings per share to be in the range of $17.60 to $17.90"

Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.

Purchase accounting impacts - Linde AG financial

"Purchase accounting impacts - Linde AG (c) | | | 191 |"

After-tax return on capital financial

"Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5- quarter average ending adjusted capital)"

Earnings Snapshot

Sales: $8,781M · Guidance included

Q1 2026

Sales $8,781M +8% YoY

Net income $1,857M +11% YoY

Diluted EPS $3.98 +13% YoY

Adjusted diluted EPS $4.33 +10% YoY

Adjusted operating margin 30.0% -10 bps YoY

Guidance

Q2 2026 adjusted EPS of $4.40–$4.50 (8–10% YoY); full-year 2026 adjusted EPS of $17.60–$17.90 (7–9% growth, including ~1% favorable currency).

Understanding 8-K Material Events →

EXHIBIT 99.1

 

Linde Reports First-Quarter 2026 Results

First-Quarter Highlights

➢ Sales $8.8 billion, up 8% YoY, underlying sales up 3%

	➢	Operating profit $2.4 billion, adjusted operating profit $2.6 billion, up 8%
	➢	Operating profit margin 27.8%; adjusted operating profit margin 30.0%, down 10 basis points YoY
	➢	EPS $3.98, up 13%; adjusted EPS $4.33, up 10% YoY
	➢	First-quarter operating cash flow of $2.2 billion, up 4% YoY
	➢	Full-year 2026 adjusted EPS guidance of $17.60 - $17.90 representing 7% to 9% growth

Woking, UK, May 1, 2026 – Linde plc (Nasdaq: LIN) today reported first-quarter 2026 net income of $1,857 million and diluted earnings per share of $3.98, up 11% and up 13%, respectively. Excluding Linde AG purchase accounting impacts and cost reduction program and other charges, adjusted net income was $2,019 million, up 7% versus prior year. Adjusted earnings per share was $4.33, 10% above prior year.

Linde’s sales for the first quarter were $8,781 million, up 8% versus prior year including 5% favorable currency impact. Compared to prior year, underlying sales increased 3% from 2% price attainment and 1% volumes, primarily from project start-ups. Acquisitions increased sales by 1%.

First-quarter operating profit was $2,439 million. Adjusted operating profit of $2,630 million was up 8% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin was 30.0%.

First-quarter operating cash flow of $2,240 million increased 4% versus prior year. After capital expenditures of $1,342 million, free cash flow was $898 million. During the quarter, the company returned $1,545 million to shareholders through dividends and stock repurchases, net of issuances.

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “Linde employees delivered another solid quarter with 10% EPS growth, 30% operating margin and 24% return on capital under increasingly challenging global conditions. These results underscore the resiliency of our operating model, discipline of capital allocation and perseverance of management actions.”

Lamba continued, “Looking ahead, I’m confident the Linde team will continue to create shareholder value in any environment.”

For the second quarter of 2026, Linde expects adjusted diluted earnings per share in the range of $4.40 to $4.50, up 8% to 10% versus prior-year quarter or 7% to 9% when excluding estimated favorable currency of 1%.

For the full year 2026, the company expects adjusted diluted earnings per share to be in the range of $17.60 to $17.90, up 7% to 9%, assuming favorable currency of 1%. Full-year capital expenditures are expected to be in the range of $5.0 billion to $5.5 billion to support growth and maintenance requirements including the $7.1 billion contractual sale of gas project backlog.

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First-Quarter 2026 Results by Segment

Americas sales of $4,025 million were up 10% versus prior year. Compared with first quarter 2025, underlying sales increased 6%, driven by 4% higher pricing and 2% higher volumes, primarily in the electronics, manufacturing and metals and mining end markets. Operating profit of $1,272 million was 31.6% of sales, 60 basis points above prior year.

APAC (Asia Pacific) sales of $1,701 million were up 11% versus prior year. Compared with first quarter 2025, underlying sales increased 6%, driven by 6% volumes primarily in the electronics, and chemicals and energy end markets and project startups. Operating profit of $477 million was 28.0% of sales, 130 basis points below prior year.

EMEA (Europe, Middle East & Africa) sales of $2,171 million were up 7% versus prior year. Compared with first quarter 2025, underlying sales decreased 2%, driven by 1% higher pricing and 3% lower volumes, primarily in the chemicals and energy and manufacturing end markets. Operating profit of $784 million was 36.1% of sales, 60 basis points above prior year.

Linde Engineering sales were $517 million, down 8% versus prior year, and operating profit was $101 million or 19.5% of sales. Order intake for the quarter was $640 million and third-party sale of equipment backlog was $2.8 billion.

Earnings Call

A teleconference on Linde’s first-quarter 2026 results is being held today at 9:00 am EDT.

Live conference call	US Toll-Free Dial-In Number: 1 888 770 7292 UK Toll-Free Dial-In Number: 0800 358 0970 Access code: 6877110
Live webcast (listen-only)	https://www.linde.com/investors/financial-reports

Materials to be used in the teleconference are also available on the website.

About Linde

Linde is a leading global industrial gases and engineering company with 2025 sales of $34 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet. Linde serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases and technologies are used in countless applications, enabling space exploration and launch technologies, delivering ultra-high-purity and specialty gases for semiconductor manufacturing, providing life-saving medical oxygen and enabling clean hydrogen production and carbon capture to reduce greenhouse gas emissions. Linde also delivers state-of-the-art gas processing solutions to support customer growth, efficiency improvements and emissions reductions.

For more information about the company and its products and services, please visit www.linde.com

Adjusted amounts, free cash flow and return on capital are non-GAAP measures.  See the attachments for a summary of non-GAAP reconciliations and calculations for adjusted amounts. 

Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations.

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*Note: We are providing adjusted earnings per share (“EPS”) guidance for 2026. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, and the impact of other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions.  They are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties.  These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics, and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and cybersecurity breaches; and the effectiveness and speed of integrating new acquisitions into the business.  These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estimates or other forward-looking statements.

Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances.  The above listed risks and uncertainties are further described in Item 1A.  Risk Factors in Linde plc’s Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on February 25, 2026 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.

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LINDE PLC AND SUBSIDIARIES

SUMMARY NON-GAAP RECONCILIATIONS

(UNAUDITED)

The following adjusted amounts are Non-GAAP measures and are intended to supplement investors’ understanding of the company’s financial statements by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance. Items which the company does not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the “NON GAAP MEASURES AND RECONCILIATIONS” starting on page 9 for additional details relating to the adjustments.

(Millions of dollars, except per share amounts)		Sales								Operating Profit								Net Income								Diluted EPS
Quarter Ended March 31,		2026				2025				2026				2025				2026				2025				2026				2025
Reported GAAP Amounts		$	8,781			$	8,112			$	2,439			$	2,184			$	1,857			$	1,673			$	3.98			$	3.51
Cost reduction program and other charges (a)			—				—				—				55				—				37				—				0.08
Purchase accounting impacts - Linde AG (b)			—				—				191				199				162				170				0.35				0.36
Total adjustments			—				—				191				254				162				207				0.35				0.44
Adjusted amounts		$	8,781			$	8,112			$	2,630			$	2,438			$	2,019			$	1,880			$	4.33			$	3.95

(a)	2025 cost reduction program and other charges are primarily related to severance.
(b)	To adjust for purchase accounting impacts related to the merger.

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LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

		Quarter Ended March 31,
(Millions of dollars, except per share data)		2026				2025
Sales		$	8,781			$	8,112
Cost of sales			4,523				4,157
Selling, general and administrative			893				786
Depreciation and amortization			951				910
Research and development			38				38
Cost reduction program and other charges			—				55
Other income (expense) - net			63				18
Operating Profit			2,439				2,184
Interest expense - net			62				60
Net pension and OPEB cost (benefit), excluding service cost			(54	)			(56	)
Income Before Income Taxes and Equity Investments			2,431				2,180
Income taxes			571				511
Income Before Equity Investments			1,860				1,669
Income from equity investments			40				38
Income (Including Noncontrolling Interests)			1,900				1,707
Less: noncontrolling interests			(43	)			(34	)
Net Income – Linde plc		$	1,857			$	1,673
Per Share Data – Linde plc Shareholders
Basic earnings per share		$	4.00			$	3.53
Diluted earnings per share		$	3.98			$	3.51
Cash dividends per share		$	1.60			$	1.50
Weighted Average Shares Outstanding (000’s):
Basic shares outstanding (000’s)			464,051				473,303
Diluted shares outstanding (000’s)			466,319				476,262
Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP.

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LINDE PLC AND SUBSIDIARIES CONDENSED

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

(Millions of dollars)		March 31, 2026				December 31, 2025
Assets
Cash and cash equivalents		$	3,959			$	5,056
Accounts receivable - net			5,321				4,966
Contract assets			321				269
Inventories			2,079				2,055
Prepaid and other current assets			1,071				979
Total Current Assets			12,751				13,325
Property, plant and equipment - net			28,564				28,260
Goodwill			27,882				27,927
Other intangibles - net			11,673				11,871
Other long-term assets			5,445				5,434
Total Assets		$	86,315			$	86,817
Liabilities and Equity
Accounts payable		$	2,659			$	2,810
Short-term debt			4,822				4,510
Current portion of long-term debt			1,636				1,796
Contract liabilities			1,168				1,231
Other current liabilities			5,106				4,851
Total Current Liabilities			15,391				15,198
Long-term debt			19,859				20,683
Other long-term liabilities			10,973				11,195
Total Liabilities		$	46,223			$	47,076
Redeemable noncontrolling interests			13				13
Linde plc Shareholders’ Equity
Ordinary shares			1				1
Additional paid-in capital			39,177				39,430
Retained earnings			17,639				16,608
Accumulated other comprehensive income (loss)			(6,147	)			(6,233	)
Less: Treasury shares, at cost			(12,104	)			(11,561	)
Total Linde plc Shareholders’ Equity			38,566				38,245
Noncontrolling interests			1,513				1,483
Total Equity		$	40,079			$	39,728
Total Liabilities and Equity		$	86,315			$	86,817

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LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

		Quarter Ended March 31,
(Millions of dollars)		2026				2025
Operations
Net income - Linde plc		$	1,857			$	1,673
Add: Noncontrolling interests			43				34
Net income (including noncontrolling interests)			1,900				1,707
Adjustments to reconcile net income to net cash provided by operating activities:
Cost reduction program and other charges (a)			(44	)			18
Depreciation and amortization			951				910
Accounts receivable			(361	)			(230	)
Contract assets and liabilities, net			(108	)			(65	)
Inventory			(48	)			9
Payables and accruals			35				(209	)
Pension contributions			(7	)			(5	)
Deferred income taxes and other			(78	)			26
Net cash provided by (used for) operating activities			2,240				2,161
Investing
Capital expenditures			(1,342	)			(1,270	)
Acquisitions, net of cash acquired			(153	)			(112	)
Divestitures, net of cash divested and asset sales			112				13
Other investing, net			(1	)			—
Net cash provided by (used for) investing activities			(1,384	)			(1,369	)
Financing
Debt increase (decrease) - net			(336	)			1,493
Issuances of ordinary shares			3				11
Purchases of ordinary shares			(807	)			(1,111	)
Cash dividends - Linde plc shareholders			(741	)			(708	)
Noncontrolling interest transactions and other			(87	)			(73	)
Net cash provided by (used for) financing activities			(1,968	)			(388	)
Effect of exchange rate changes on cash and cash equivalents			15				40
Change in cash and cash equivalents			(1,097	)			444
Cash and cash equivalents, beginning-of-period			5,056				4,850
Cash and cash equivalents, end-of-period		$	3,959			$	5,294

(a) There were no cost reduction program and other charges for the three months ended March 31, 2026. 2025 charges were primarily related to severance. Related cash outflows were $44 million and $37 million for the three months ended March 31, 2026 and 2025, respectively.

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LINDE PLC AND SUBSIDIARIES

SEGMENT INFORMATION

(UNAUDITED)

		Quarter Ended March 31,
(Millions of dollars)		2026				2025
Sales
Americas		$	4,025			$	3,666
EMEA			2,171				2,031
APAC			1,701				1,539
Engineering			517				565
Other			367				311
Total segment sales		$	8,781			$	8,112
Operating Profit
Americas		$	1,272			$	1,137
EMEA			784				722
APAC			477				451
Engineering			101				114
Other			(4	)			14
Segment operating profit			2,630				2,438
Cost reduction program and other charges			—				(55	)
Purchase accounting impacts - Linde AG			(191	)			(199	)
Total operating profit		$	2,439			$	2,184

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LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(UNAUDITED)

The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance and liquidity. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.

		2026				2025
(Millions of dollars)		Q1				Q4				Q3				Q2				Q1
Adjusted Operating Profit and Operating Margin
Reported operating profit		$	2,439			$	2,018			$	2,367			$	2,354			$	2,184
Add: Cost reduction program and other charges			—				229				(11	)			—				55
Add: Purchase accounting impacts - Linde AG (c)			191				338				202				202				199
Total adjustments			191				567				191				202				254
Adjusted operating profit		$	2,630			$	2,585			$	2,558			$	2,556			$	2,438
Reported percentage change			12	%
Adjusted percentage change			8	%
Reported sales		$	8,781			$	8,764			$	8,615			$	8,495			$	8,112
Reported operating margin			27.8	%			23.0	%			27.5	%			27.7	%			26.9	%
Adjusted operating margin			30.0	%			29.5	%			29.7	%			30.1	%			30.1	%
Adjusted Depreciation and Amortization
Reported depreciation and amortization		$	951			$	950			$	961			$	942			$	910
Less: Purchase accounting impacts - Linde AG (c)			(191	)			(186	)			(202	)			(198	)			(191	)
Adjusted depreciation and amortization		$	760			$	764			$	759			$	744			$	719
Adjusted Other Income (Expense) - net
Reported other income (expense) - net		$	63			$	(105	)		$	14			$	15			$	18
Add: Purchase accounting impacts - Linde AG (c) (e)			—				(152	)			—				(4	)			(8	)
Adjusted other income (expense) - net		$	63			$	47			$	14			$	19			$	26
Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost
Reported net pension and OPEB cost (benefit), excluding service cost		$	(54	)		$	(57	)		$	(57	)		$	(59	)		$	(56	)
Add: Pension settlement charges			—				—				(2	)			—				—
Adjusted Net Pension and OPEB cost (benefit), excluding service costs		$	(54	)		$	(57	)		$	(59	)		$	(59	)		$	(56	)
Adjusted Income Taxes (a)
Reported income taxes		$	571			$	481			$	424			$	573			$	511
Add: Purchase accounting impacts - Linde AG (c)			45				83				155				46				44
Add: Cost reduction program and other charges			—				62				1				—				18
Total adjustments			45				145				156				46				62
Adjusted income taxes		$	616			$	626			$	580			$	619			$	573

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		2026				2025
(Millions of dollars)		Q1				Q4				Q3				Q2				Q1
Adjusted Effective Tax Rate (a)
Reported income before income taxes and equity investments		$	2,431			$	2,011			$	2,360			$	2,346			$	2,180
Add: Pension settlement charge			—				—				2				—				—
Add: Purchase accounting impacts - Linde AG (c)			191				338				202				202				199
Add: Cost reduction program and other charges			—				229				(11	)			—				55
Total adjustments			191				567				193				202				254
Adjusted income before income taxes and equity investments		$	2,622			$	2,578			$	2,553			$	2,548			$	2,434
Reported Income taxes		$	571			$	481			$	424			$	573			$	511
Reported effective tax rate			23.5	%			23.9	%			18.0	%			24.4	%			23.4	%
Adjusted income taxes		$	616			$	626			$	580			$	619			$	573
Adjusted effective tax rate			23.5	%			24.3	%			22.7	%			24.3	%			23.5	%
Income from Equity Investments
Reported income from equity investments		$	40			$	43			$	36			$	33			$	38
Add: Purchase accounting impacts - Linde AG (c)			19				18				18				18				18
Add: Cost reduction program and other charges			—				—				6				—				—
Total adjustments			19				18				24				18				18
Adjusted income from equity investments		$	59			$	61			$	60			$	51			$	56
Adjusted Noncontrolling Interests
Reported noncontrolling interests		$	(43	)		$	(43	)		$	(43	)		$	(40	)		$	(34	)
Add: Purchase accounting impacts - Linde AG (c)			(3	)			(2	)			(3	)			(3	)			(3	)
Adjusted noncontrolling interests		$	(46	)		$	(45	)		$	(46	)		$	(43	)		$	(37	)
Adjusted Net Income - Linde plc (b)
Reported net income		$	1,857			$	1,530			$	1,929			$	1,766			$	1,673
Add: Pension settlement charge			—				—				2				—				—
Add: Cost reduction program and other charges			—				167				(6	)			—				37
Add: Purchase accounting impacts - Linde AG (c)			162				271				62				171				170
Total adjustments			162				438				58				171				207
Adjusted net income - Linde plc		$	2,019			$	1,968			$	1,987			$	1,937			$	1,880
Adjusted Diluted EPS (b)
Reported diluted EPS		$	3.98			$	3.26			$	4.09			$	3.73			$	3.51
Add: Cost reduction program and other charges			—				0.36				(0.01	)			—				0.08
Add: Purchase accounting impacts - Linde AG (c)			0.35				0.58				0.13				0.36				0.36
Total adjustments			0.35				0.94				0.12				0.36				0.44
Adjusted diluted EPS		$	4.33			$	4.20			$	4.21			$	4.09			$	3.95
Reported percentage change			13	%
Adjusted percentage change			10	%

		Second Quarter 2026												Full Year 2026
Adjusted Diluted EPS Guidance (d)		Low End				High End				Low End				High End
2026 Adjusted Guidance		$	4.40			$	4.50			$	17.60			$	17.90
Adjusted percentage changes versus 2025 adjusted diluted EPS			8	%			10	%			7	%			9	%
Add: Estimated currency headwind/(tailwind)			(1	)%			(1	)%			(1	)%			(1	)%
Adjusted percentage change excluding currency			7	%			9	%			6	%			8	%

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		2026				2025
(Millions of dollars)		Q1				Q4				Q3				Q2				Q1
Adjusted EBITDA and % of Sales
Net Income - Linde plc		$	1,857			$	1,530			$	1,929			$	1,766			$	1,673
Add: Noncontrolling interests			43				43				43				40				34
Add: Net pension and OPEB cost (benefit), excluding service cost			(54	)			(57	)			(57	)			(59	)			(56	)
Add: Interest expense			62				64				64				67				60
Add: Income taxes			571				481				424				573				511
Add: Depreciation and amortization			951				950				961				942				910
EBITDA			3,430				3,011				3,364				3,329				3,132
Add: Cost reduction program and other charges			—				229				(5	)			—				55
Add: Purchase accounting impacts - Linde AG (c)			19				170				18				22				26
Total adjustments			19				399				13				22				81
Adjusted EBITDA		$	3,449			$	3,410			$	3,377			$	3,351			$	3,213
Reported sales		$	8,781			$	8,764			$	8,615			$	8,495			$	8,112
% of sales
EBITDA			39.1	%			34.4	%			39.0	%			39.2	%			38.6	%
Adjusted EBITDA as a % of Sales			39.3	%			38.9	%			39.2	%			39.4	%			39.6	%

(a) The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.

(b) Net of income taxes which are shown separately in “Adjusted Income Taxes and Effective Tax Rate”.

(c) The company believes that its non-GAAP measures excluding merger Purchase accounting impacts - Linde AG are useful to investors because: (i) the 2018 business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii) the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by merger purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of merger purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding merger purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements.

A summary of each of the adjustments made for Purchase accounting impacts - Linde AG are as follows:

Adjusted Operating Profit and Margin: The purchase accounting adjustments for the periods presented relate primarily to depreciation and amortization related to the fair value step up of fixed assets and intangible assets (primarily customer related) acquired in the merger and the allocation of fair value step-up for ongoing Linde AG asset disposals (reflected in Other Income/(Expense)).

Adjusted Interest Expense - Net: Relates to the amortization of the fair value of debt acquired in the merger.

Adjusted Income Taxes and Effective Tax Rate: Relates to the current and deferred income tax impact on the adjustments discussed above. The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.

Adjusted Income from Equity Investments: Represents the amortization of increased fair value on equity investments related to depreciable and amortizable assets.

Adjusted Noncontrolling Interests: Represents the noncontrolling interests’ ownership portion of the adjustments described above determined on an entity by entity basis.

(d) We are providing adjusted earnings per share (“EPS”) guidance for 2026. This is a non-GAAP financial measure that represents diluted earnings per share (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges and the impact of other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

(e) Fourth quarter 2025 Adjusted other income (expense) - net includes a charge associated with Linde AG merger-related purchase accounting.

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LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(UNAUDITED)

2026

2025

(Millions of dollars)

Q1

Q4

Q3

Q2

Q1

Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital expenditures.

Operating Cash Flow		$	2,240			$	3,030			$	2,948			$	2,211			$	2,161
Less: Capital Expenditures			(1,342	)			(1,458	)			(1,276	)			(1,257	)			(1,270	)
Free Cash Flow		$	898			$	1,572			$	1,672			$	954			$	891
Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets.
Debt		$	26,317			$	26,989			$	25,925			$	25,920			$	23,897
Less: Cash and cash equivalents			(3,959	)			(5,056	)			(4,509	)			(4,786	)			(5,294	)
Net debt			22,358				21,933				21,416				21,134				18,603
Less: Purchase accounting impacts - Linde AG			(3	)			(3	)			(4	)			(4	)			(4	)
Adjusted net debt		$	22,355			$	21,930			$	21,412			$	21,130			$	18,599

After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after-tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc shareholders’ equity).

Reported net income - Linde plc		$	1,857			$	1,530			$	1,929			$	1,766			$	1,673
Add: noncontrolling interests			43				43				43				40				34
Add: interest expense - net			62				64				64				67				60
Less: tax benefit on interest expense - net *			(15	)			(16	)			(15	)			(16	)			(14	)
Reported NOPAT		$	1,947			$	1,621			$	2,021			$	1,857			$	1,753
Adjusted net income - Linde plc		$	2,019			$	1,968			$	1,987			$	1,937			$	1,880
Add: adjusted noncontrolling interests			46				45				46				43				37
Add: interest expense - net			62				64				64				67				60
Less: tax benefit on interest expense - net *			(15	)			(16	)			(15	)			(16	)			(14	)
Adjusted NOPAT		$	2,112			$	2,061			$	2,082			$	2,031			$	1,963
*Tax benefit on interest expense - net is generally presented using the reported effective rate.
4-quarter trailing reported NOPAT		$	7,446			$	7,252			$	7,440			$	7,074			$	6,970
4-quarter trailing adjusted NOPAT		$	8,286			$	8,137			$	8,062			$	7,968			$	7,890

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		2026				2025
(Millions of dollars)		Q1				Q4				Q3				Q2				Q1
Equity and redeemable noncontrolling interests:
Redeemable noncontrolling interests		$	13			$	13			$	13			$	13			$	13
Linde plc shareholders’ equity			38,566				38,245				38,616				38,515				38,032
Noncontrolling interests			1,513				1,483				1,457				1,458				1,418
Total equity and redeemable noncontrolling interests		$	40,092			$	39,741			$	40,086			$	39,986			$	39,463
Reported capital		$	62,450			$	61,674			$	61,502			$	61,120			$	58,066
Total equity and redeemable noncontrolling interests		$	40,092			$	39,741			$	40,086			$	39,986			$	39,463
Add: Adjusted net debt			22,355				21,930				21,412				21,130				18,599
Less: Linde AG Goodwill (a)			24,256				24,256				24,256				24,256				24,256
Less: Linde AG Indefinite lived intangibles (a)			1,868				1,868				1,868				1,868				1,868
Adjusted capital		$	36,323			$	35,547			$	35,374			$	34,992			$	31,938
(a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger.
Ending capital (see above)		$	62,450			$	61,674			$	61,502			$	61,120			$	58,066
5-quarter average ending capital		$	60,962			$	59,725			$	58,925			$	57,914			$	56,830
Ending adjusted capital (see above)		$	36,323			$	35,547			$	35,374			$	34,992			$	31,938
5-quarter average ending adjusted capital		$	34,835			$	33,597			$	32,797			$	31,786			$	30,701
After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending capital)			12.2	%			12.1	%			12.6	%			12.2	%			12.3	%
Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital)			23.8	%			24.2	%			24.6	%			25.1	%			25.7	%

Page 13/13

FAQ

How did Linde (LIN) perform financially in Q1 2026?

Linde reported net income of $1.86 billion and diluted EPS of $3.98, up 11% and 13% year over year. Adjusted net income was $2.02 billion and adjusted EPS was $4.33, 10% higher, on sales of $8.78 billion, which grew 8% versus Q1 2025.

What were Linde’s revenues and margins in Q1 2026?

Linde generated sales of $8.78 billion in Q1 2026, an 8% increase from the prior year. Adjusted operating profit was $2.63 billion, up 8%, delivering a 30.0% adjusted operating margin, supported by 2% price improvements and productivity initiatives across all segments.

How strong was Linde’s cash flow and shareholder returns in Q1 2026?

Operating cash flow reached $2.24 billion in Q1 2026, up 4% year over year. After $1.34 billion of capital expenditures, free cash flow was $898 million. Linde returned $1.55 billion to shareholders during the quarter through dividends and share repurchases, net of issuances.

What guidance did Linde (LIN) provide for Q2 and full-year 2026 EPS?

For Q2 2026, Linde expects adjusted diluted EPS of $4.40 to $4.50, 8–10% above the prior-year quarter. For full-year 2026, adjusted EPS guidance is $17.60 to $17.90, implying 7–9% growth, including about a 1% favorable currency impact.

How did Linde’s regional segments perform in Q1 2026?

Americas sales were $4.03 billion, up 10%, with a 31.6% operating margin. EMEA sales reached $2.17 billion, up 7%, and APAC sales were $1.70 billion, up 11%. Operating margins were 36.1% in EMEA and 28.0% in APAC, reflecting strong profitability across major regions.

What is Linde’s 2026 capital expenditure plan and project backlog?

For full-year 2026, Linde expects capital expenditures between $5.0 billion and $5.5 billion to support growth and maintenance. This includes investments tied to a $7.1 billion contractual sale-of-gas project backlog, which underpins future revenue and cash flow as projects come online.

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