Linde plc

Second-quarter sales were $9.3 billion, up 9% year over year and 6% sequentially. Excluding FX, acquisitions, engineering, and cost pass-through, underlying sales rose 4%, split between higher volume and price. Operating margin was 29.5%, down 60 bps year over year, or 30 bps excluding cost pass-through; EPS was $4.50, up 10% year over year. For Q3, Linde guided EPS to $4.45 to $4.55, implying 6% to 8% growth and a 1% sequential FX headwind. Full-year EPS guidance was raised to $17.70 to $17.90, up 8% to 9%, with the top end unchanged and the bottom end lifted by $0.10.

Sanjiv Lamba emphasized record sales, record EPS, and a record $8.1 billion backlog as evidence that the core business and growth pipeline remain strong. He highlighted electronics as the fastest-growing market, with a $1 billion U.S. electronics win and additional Taiwan JV wins supporting semiconductor capacity expansion. At the same time, he was candid that margins were not acceptable this quarter, pointing to U.S. homecare and some mix effects, while saying actions are underway and sequential improvement is expected in Q3.

Matthew White said sales reached $9.3 billion, with 4% underlying growth driven by both volume and pricing, and noted that operating margin of 29.5% was down 60 bps year over year, or 30 bps excluding pass-through. He said EPS of $4.50 rose 10% year over year and that operating cash flow showed moderate growth, with second-half cash flow typically stepping up seasonally. He also said year-to-date capital deployed was $6 billion, split evenly between business investments and shareholder returns, and that the company expects significant excess cash for growth and distributions. Guidance was set at $4.45 to $4.55 for Q3 and $17.70 to $17.90 for the full year.

Analysts focused on U.S. homecare/Lincare, electronics growth, APAC demand, helium and Middle East disruption, and whether commercial space is driving extra CapEx. Management said the U.S. homecare business is the main margin drag, that aggressive actions are underway, and that strategic options for the business are being evaluated. On electronics, management said the pipeline is healthy in the U.S., Taiwan, Korea, and China; on helium, it said pricing is improving but dislocation costs remain, and normalization likely will take into early next year. On commercial space, management said Linde will participate in both sale-of-gas and sale-of-plant opportunities.