On February 6, 2025, Linde PLC (LIN, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. As the largest industrial gas supplier globally, Linde operates in over 100 countries, providing essential gases and equipment to diverse industries such as chemicals, healthcare, and steelmaking. In 2024, Linde generated approximately $33 billion in revenue.

Quarterly and Annual Performance

For the fourth quarter of 2024, Linde reported sales of $8.3 billion, which remained flat year-over-year but showed a 2% increase when excluding currency impacts. The company's diluted earnings per share (EPS) was $3.60, which fell short of the analyst estimate of $3.64. However, the adjusted EPS was $3.97, surpassing the prior year's performance by 11% and exceeding estimates when excluding currency effects.

Annually, Linde's sales were steady at $33.0 billion, with underlying sales up by 2%. The company's EPS for the year was $13.62, slightly below the estimated $13.76. The adjusted EPS was $15.51, marking a 9% increase from the previous year.

Financial Achievements and Challenges

Linde's operating profit for the fourth quarter was $2.3 billion, with an adjusted operating profit of $2.5 billion, reflecting a 9% increase from the previous year. The adjusted operating profit margin improved by 250 basis points to 29.9%. These achievements underscore Linde's ability to enhance profitability through pricing strategies and productivity initiatives.

Despite these positive results, Linde faces challenges from global macroeconomic conditions, particularly foreign currency translation impacts. The company's resilience and strategic focus on clean energy projects, including a significant product supply agreement, are expected to support future growth.

Key Financial Metrics

In the fourth quarter, Linde's operating cash flow increased by 3% to $2.8 billion. After capital expenditures of $1.25 billion, the free cash flow stood at $1.56 billion. Linde returned $1.99 billion to shareholders through dividends and share repurchases during the quarter.

Segment Performance

In the Americas, sales grew by 1% to $3.6 billion, driven by higher pricing and volumes in key markets. The Asia Pacific region saw a 2% sales increase to $1.67 billion, while the EMEA region experienced a 2% decline in sales to $2.06 billion. Linde Engineering's sales decreased by 5% to $628 million, with an order intake of $880 million.

CEO Commentary

"In 2024, the Linde team once again delivered industry-leading results, including a 25.9% ROC, 29.5% operating margin, and an EPS growth of 10% excluding currency. The results were delivered despite the challenging environment, reflecting the resiliency of our model and the exceptional execution by our employees." - Sanjiv Lamba, CEO

Analysis and Outlook

Linde's performance in 2024 highlights its robust operational capabilities and strategic focus on growth areas such as clean energy. The company's ability to maintain stable sales and improve profitability amidst currency challenges is noteworthy. Looking ahead, Linde's strong project backlog and disciplined capital allocation are expected to drive continued shareholder value.

Explore the complete 8-K earnings release (here) from Linde PLC for further details.