Stock demonstrates a cautious response
In the second quarter of 2025, Linde Plc reported impressive financial results, with revenue reaching $8.5 billion, surpassing the expected $8.39 billion. The company's earnings per share (EPS) also showed a positive trend, ranging between $4.10 to $4.20 for the third quarter.
The strong performance is reflected in the company's net income, which increased by 6% to $1,766 million, and diluted EPS, which rose by 8% to $3.73. Adjusted EPS also saw a 6% year-over-year increase to $4.09. Operating profit margins improved by 80 basis points to 30.1% on an adjusted basis.
Linde's operating cash flow strengthened by 15% compared to the prior year, and the adjusted operating results rose by 5.5% to $2.56 billion for the quarter. However, the operating cash flow for the quarter was lower than expected, at $2.21 billion.
The America region generated $3.81 billion in revenue for the quarter, while the Asia-Pacific region contributed $1.66 billion and the EMEA region added $2.16 billion. The Engineering segment contributed $551 million to the quarter's revenue.
Linde has exceeded analyst expectations for the 26th consecutive quarter in both revenue and profit. The company's capital expenditures for the full year are expected to range between $5.0 to $5.5 billion.
The stock price gained approximately 9.9% year-to-date, outperforming the broader S&P 500's 7.8% gain. The 50-day moving average for Linde's stock is currently at $466.81, and the 200-day moving average provides support at $455.17.
Initial reactions in after-hours trading were positive, with Linde's stock rising 1.4% to $466.74. The current price target for Linde is $540.00.
Linde also secured a new long-term agreement to supply a world-class facility for low-carbon ammonia production on the U.S. Gulf Coast. The current order backlog for the Sale-of-Gas segment stands at $7.1 billion.
The positive Q2 2025 results and solid outlook underpin expectations for moderate stock price appreciation near term. However, recent volume declines on rising prices could indicate some cautiousness among investors.
Overall, Linde Plc maintains a strong position backed by robust financials and steady growth prospects.
[1] Stock Forecast Source [2] Linde Plc Q2 2025 Earnings Release [3] MarketWatch Article on Linde Plc's Q2 2025 Results
Investing in Linde Plc seems promising, given the company's impressive financial growth, demonstrated by a 6% increase in net income and a 8% rise in diluted EPS. The company's strong business performance, as evidenced by its quarterly revenue, operating cash flow, and capital expenditures, has consistently exceeded analyst expectations. This is supported by a positive outlook and the securing of new business agreements, such as the long-term agreement for low-carbon ammonia production. However, recent volume declines on rising prices could indicate some cautiousness among investors.
