Linde plc
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ITEM 1. BUSINESS
General
Linde plc is a public limited company formed under the laws of Ireland with its principal offices in the United Kingdom and United States. Linde is the largest industrial gas company worldwide and is a major technological innovator in the industrial gases industry. Its primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, and rare gases) and process gases (hydrogen, helium, carbon dioxide, carbon monoxide, electronic gases, specialty gases, and acetylene). The company also designs and builds equipment that produces industrial gases and offers customers a wide range of gas production and processing services such as olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants, and other types of plants.
Linde serves a diverse group of industries including healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics.
Linde’s sales were $33,986 million, $33,005 million, and $32,854 million for 2025, 2024, and 2023, respectively. Refer to Item 7, Management's Discussion and Analysis, for a discussion of consolidated sales and Note 18 to the consolidated financial statements for additional information related to Linde’s reportable segments.
Industrial Gases Products and Manufacturing Processes
Atmospheric gases are the highest volume products produced by Linde. Using ambient air as feedstock, Linde produces oxygen, nitrogen and argon through several air separation processes of which cryogenic air separation is the most prevalent. Linde is the market leader in the field of non-cryogenic air separation technologies for the production of industrial gases. As part of this process Linde also produces rare gases, such as krypton, neon, and xenon. As a pioneer and leader in industrial gases, Linde is continuously developing a wide range of proprietary and patented applications and technologies to produce, store, distribute and increase usage of its gases. These technologies open important new markets and provide customers with opportunities to reduce costs, by increasing their operational efficiencies, including vacuum pressure swing adsorption (“VPSA”) and membrane separation technology to produce gaseous oxygen and nitrogen on-site.
Process gases, including hydrogen, helium, carbon dioxide, carbon monoxide, specialty gases and acetylene are produced by other production methods.
Hydrogen is produced from several different feedstocks using a range of technologies. Today, carbon intensity is used to designate and differentiate between the production processes and the respective feedstocks used to produce the molecule. The majority of conventional hydrogen currently produced by Linde is derived from natural gas or methane, using steam methane reformation (SMR) or auto-thermal reforming (ATR) technology. Linde has a range of technologies to produce low-carbon hydrogen from fossil feedstocks, or renewable hydrogen from renewable energy (non-fossil feedstock). Both products are considered sources of clean energy. Low-carbon (blue) hydrogen is produced primarily from methane, by capturing carbon emissions from a hydrogen production plant and sequestering them subsurface for the long term. Renewable (green) hydrogen is produced by electrolysis using renewable energy and water as feedstock. Other sources of low-carbon hydrogen are existing chemical and petrochemical processes, out of which Linde recovers hydrogen for subsequent treatment and cleaning to achieve ultra-high purity levels.
Carbon monoxide can be produced by either SMR or ATR of natural gas or other feedstock such as naphtha, a by-product in the petrochemical industry. Most carbon dioxide comes as an industrial by-product, that is sourced from chemical plants, refineries and other processes or is recovered from natural carbon dioxide sources. Raw carbon dioxide is processed and purified in Linde’s plants to produce commercial and food-grade carbon dioxide. Helium is sourced from certain helium-rich natural gas streams in the United States, with additional supplies being acquired from outside the United States. Acetylene is primarily sourced as a chemical by-product, but may also be produced from calcium carbide and water.
Industrial Gases Distribution
There are three basic distribution methods for industrial gases: (i) on-site or tonnage; (ii) merchant or bulk liquid; and (iii) packaged or cylinder gases. These distribution methods are often integrated, with products from all three supply modes coming from the same plant. The method of supply is generally determined by the lowest cost means of meeting the customer’s needs, depending upon factors such as volume requirements, purity, pattern of usage, and the form in which the product is used (as a gas or as a cryogenic liquid).
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On-site. Customers that require the largest volumes of product (typically oxygen, nitrogen and hydrogen) and that have a relatively constant demand pattern are supplied by cryogenic and process gas on-site plants. Linde constructs plants on or adjacent to these customers’ sites and supplies the product directly to customers by pipeline. On-site product supply contracts generally are total requirement contracts with terms typically ranging from 10-20 years and containing minimum purchase requirements and price escalation provisions. Many of the cryogenic on-site plants also produce liquid products for the merchant market. Therefore, plants are typically not dedicated to a single customer. Air separation technologies also allow on-site delivery to customers with smaller volume requirements.
Merchant. The merchant business is generally associated with distributable liquid oxygen, nitrogen, argon, hydrogen, helium and carbon dioxide. The deliveries generally are made from Linde’s plants by tanker trucks to storage containers at the customer's site which are usually owned and maintained by Linde and leased to the customer. Due to distribution cost, merchant oxygen and nitrogen generally have a relatively small distribution radius from the plants at which they are produced. Merchant argon, hydrogen and helium can be shipped much longer distances. The customer agreements used in the merchant business are usually three to seven-year requirement contracts.
Packaged Gases. Customers requiring small volumes are supplied products in metal containers called cylinders, under medium to high pressure. Packaged gases include atmospheric gases, hydrogen, helium, carbon dioxide, acetylene and related products. Linde also produces and distributes in cylinders a wide range of specialty gases and mixtures. Cylinders may be delivered to the customer’s site or picked up by the customer at a packaging facility or retail store. Packaged gases are generally sold under one to three-year supply contracts and through purchase orders.
Engineering
Linde’s Engineering business has a global presence, with its focus on market segments such as air separation, hydrogen, synthesis, olefin and natural gas plants. The company utilizes its process engineering expertise in the planning, design and construction of efficient plants for the production and processing of gases. Engineering uses sustainable technologies to help customers avoid, capture and utilize carbon dioxide emissions. Its technology portfolio covers the entire value chain for production, liquefaction, storage, distribution and application of hydrogen which supports the transition to clean energy. Its digital services and solutions increase plant efficiency and performance.
Linde's plants are used in a wide variety of fields: in the petrochemical and chemical industries, in refineries and fertilizer plants, to recover air gases, to produce synthesis gases, to treat natural gas and to produce noble gases. The Engineering business either supplies plant components directly to the customer or to the industrial gas business of Linde which operates the plants under long-term gases supply contracts.
Inventories – Linde carries inventories of merchant and cylinder gases and hardgoods to supply products to its customers on a reasonable delivery schedule. On-site plants and pipeline complexes have limited inventory. Inventory obsolescence is not material to Linde’s business.
Customers – Linde is not dependent upon a single customer or a few customers.
International – Linde is a global enterprise with approximately 64% of its 2025 sales outside of the United States. The company also has majority or wholly owned subsidiaries that operate in approximately 50 European, Middle Eastern and African countries (including Germany, the United Kingdom (U.K.), France, Sweden, and the Republic of South Africa); approximately 15 Asian and South Pacific countries (including China, Australia, India and South Korea); and approximately 20 countries in North and South America (including the U.S., Canada, Mexico and Brazil).
The company also has equity method investments operating in Asia, Europe, and the Middle East.
Linde’s non-U.S. business is subject to risks customarily encountered in non-U.S. operations, including fluctuations in foreign currency exchange rates, import and export controls, and other economic, political and regulatory policies of local governments. Also, see Item 1A. “Risk Factors” and Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.”
Seasonality – Linde’s business is generally not subject to seasonal fluctuations to any significant extent.
Research and Development – Linde’s research and development are directed toward development of gas processing, separation and liquefaction technologies, and clean energy technologies; improving distribution of industrial gases and the development of new markets and applications for these gases. This results in the development of new advanced air separation, hydrogen, synthesis gas, natural gas, adsorption and chemical process technologies; novel clean energy and carbon management solutions; as well as the frequent introduction of new industrial gas applications. Research and development is primarily conducted in Pullach, Germany, Tonawanda, New York, Burr Ridge, Illinois and Shanghai, China.
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Patents and Trademarks – Linde owns or licenses a large number of patents that relate to a wide variety of products and processes. Linde’s patents expire at various times over the next 20 years. While these patents and licenses are considered important to its individual businesses, Linde does not consider its business as a whole to be materially dependent upon any one particular patent, or patent license, or family of patents. Linde also owns a large number of trademarks, of which the "Linde" trademark is the most significant.
Raw Materials and Energy Costs – Energy is the single largest cost item in the production and distribution of industrial gases. Most of Linde’s energy requirements are in the form of electricity, natural gas and diesel fuel for distribution. The company mitigates electricity, natural gas, and hydrocarbon price fluctuations contractually through pricing formulas, surcharges, cost pass–through and tolling arrangements.
The supply of energy has not typically been a significant issue in the geographic areas where the company conducts business. However, energy availability and price is unpredictable and may pose future risks.
For hydrogen, helium, carbon dioxide, carbon monoxide, and specialty gases, raw materials are largely purchased from outside sources. Linde has contracts or commitments for, or readily available sources of, most of these raw materials; however, their long-term availability and prices are subject to market conditions.
Competition – Linde participates in highly competitive markets in industrial gases and engineering, which are characterized by a mixture of local, regional and global players, all of which exert competitive pressure on the parties. In locations where Linde has pipeline networks, which enable the company to provide reliable and economic supply of products to larger customers, Linde derives a competitive advantage.
Competitors in the industrial gases industry include global and regional companies such as L’Air Liquide S.A., Air Products and Chemicals, Inc., Messer Group GmbH, Mitsubishi Chemical Holdings Corporation (through Taiyo Nippon Sanso Corporation) as well as an extensive number of small to medium size independent industrial gas companies which compete locally as producers or distributors. In addition, a significant portion of the international gases market relates to customer-owned plants.
Employees – The company sources talent from an ever-changing and competitive environment. The ability to source and retain qualified and committed employees is a prerequisite for the company’s success, and represents a general risk for Linde.
The Board of Directors ("Board") has established a strategic business objective to maintain world-class standards in talent management. Executive variable compensation is assessed annually based on performance in financial measures as well as in several strategic non-financial areas, including talent management. The Human Capital Committee assists the Board in its oversight of Linde’s compensation policies and programs, particularly in regard to reviewing executive compensation for Linde’s executive officers. The Human Capital Committee also annually reviews the company’s management development and succession programs and the associated programs to achieve those objectives. The global head of Human Resources reports to the Chief Executive Officer ("CEO").
Linde has aligned inclusion as a core value with its business strategies and implemented inclusive workforce development planning into business process and performance management. Advancing inclusivity is a line management responsibility and Linde seeks competitive advantage through proactive management of its talent pipeline and recruiting processes. Linde provides equal employment opportunity, and recruits, hires, promotes and compensates people based solely on their performance and ability.
Employees receive a competitive salary and variable compensation components based on performance and job level. Linde has collective bargaining agreements with unions at numerous locations throughout the world. Additional benefits are offered such as occupational pensions and contributions towards health insurance or medical screening, reflecting regional conditions and local competition. Senior managers participate directly in the company’s growth in value through the Long Term Incentive Plan of Linde plc. In addition, annually managers have the ability to grant leadership equity awards under the Long Term Incentive Plan to certain eligible employees. Linde also invests in professional development of its employees through formal and on-the-job training.
As of December 31, 2025, Linde had 65,177 employees worldwide comprised of approximately 28 percent women and 72 percent men.
Environment – Information required by this item is incorporated herein by reference to the section captioned “Management’s Discussion and Analysis – Environmental Matters” in Item 7 of this 10-K.
Available Information – The company makes its periodic and current reports available, free of charge, on or through its website, www.linde.com, as soon as practicable after such material is electronically filed with, or furnished to, the
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Securities and Exchange Commission ("SEC"). Investors may also access from the company website other investor information such as press releases and presentations. Information on the company’s website is not incorporated by reference herein. In addition, the public may read and copy any materials filed with the SEC free of charge at the SEC’s website, www.sec.gov, that contains reports, proxy information statements and other information regarding issuers that file electronically.
Executive Officers – The following Executive Officers have been elected by the Board of Directors.
Sanjiv Lamba, 61, was appointed Chief Executive Officer of Linde effective March 1, 2022 and Chairman of the Board effective January 31, 2026. Prior to being appointed CEO, he was Chief Operating Officer starting in January 2021 and after serving as Executive Vice President, APAC, beginning in October 2018. Previously, Mr. Lamba was appointed a Member of the Executive Board of Linde AG in 2011, responsible for the Asia Pacific segment of the Gases Division, for Global Gases Businesses Helium & Rare Gases, Electronics as well as Asia Joint Venture Management. Mr. Lamba started his career in 1989 with BOC India in Finance where he progressed to become Director of Finance before being appointed as Managing Director for BOC’s India’s business in 2001. Throughout his years with BOC/Linde, he worked in various roles across a number of different geographies including the U.S., Germany, the U.K., Singapore and India.
Desiree Bacher, 54, was appointed Senior Vice President - Chief Human Resources Officer of Linde effective September 1, 2025. Previously, she served as Senior Vice President of Communications, AI, and Corporate Procurement beginning in 2024 and as Vice President of Financial Planning and Analysis and Corporate Procurement from 2019 to 2024. She joined the company in 1999 as Controller of Linde Philippines and was later appointed Commercial Manager. In 2003, she became Vice President of Finance and held several senior finance roles across the Asia Pacific region.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")
Non-GAAP Measures
Throughout MD&A, the company provides adjusted operating results exclusive of certain items such as Cost reduction program and other charges, purchase accounting impacts of the Linde AG merger, and pension settlement charges. Adjusted amounts are non-GAAP measures which are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management find useful in evaluating the company’s operating performance. Items which the company does not believe to be indicative of on-going business performance are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. In addition, operating results, excluding these items, is important to management's development of annual and long-term employee incentive compensation plans. 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.
The non-GAAP measures and reconciliations are separately included in a later section in the MD&A titled "Non-GAAP Measures and Reconciliations."
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Consolidated Results
The following table provides summary information for the three months ended March 31, 2026 and 2025. The reported amounts are GAAP amounts from the Consolidated Statement of Income. The adjusted amounts are intended to supplement investors' understanding of the company's financial information and are not a substitute for GAAP measures:
| Quarter Ended March 31, | |||||||||||||||||||||||||||||
| (Millions of dollars, except per share data) | 2026 | 2025 | Variance | ||||||||||||||||||||||||||
| Sales | $ | 8,781 | $ | 8,112 | 8 | % | |||||||||||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | $ | 4,523 | $ | 4,157 | 9 | % | |||||||||||||||||||||||
| As a percent of sales | 51.5 | % | 51.2 | % | |||||||||||||||||||||||||
| Selling, general and administrative | $ | 893 | $ | 786 | 14 | % | |||||||||||||||||||||||
| As a percent of sales | 10.2 | % | 9.7 | % | |||||||||||||||||||||||||
| Depreciation and amortization | $ | 951 | $ | 910 | 5 | % | |||||||||||||||||||||||
| Cost reduction program and other charges | $ | — | $ | 55 | (100) | % | |||||||||||||||||||||||
| Other income (expense) - net | $ | 63 | $ | 18 | 250 | % | |||||||||||||||||||||||
| Operating profit | $ | 2,439 | $ | 2,184 | 12 | % | |||||||||||||||||||||||
| Operating margin | 27.8 | % | 26.9 | % | |||||||||||||||||||||||||
| Interest expense - net | $ | 62 | $ | 60 | 3 | % | |||||||||||||||||||||||
| Net pension and OPEB cost (benefit), excluding service cost | $ | (54) | $ | (56) | (4) | % | |||||||||||||||||||||||
| Effective tax rate | 23.5 | % | 23.4 | % | |||||||||||||||||||||||||
| Income from equity investments | $ | 40 | $ | 38 | 5 | % | |||||||||||||||||||||||
| Noncontrolling interests | $ | (43) | $ | (34) | 26 | % | |||||||||||||||||||||||
| Net Income – Linde plc | $ | 1,857 | $ | 1,673 | 11 | % | |||||||||||||||||||||||
| Diluted earnings per share | $ | 3.98 | $ | 3.51 | 13 | % | |||||||||||||||||||||||
| Diluted shares outstanding | 466,319 | 476,262 | (2) | % | |||||||||||||||||||||||||
| Number of employees | 65,034 | 65,069 | — | % | |||||||||||||||||||||||||
| Adjusted Amounts (a) | |||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 760 | $ | 719 | 6 | % | |||||||||||||||||||||||
| Operating profit | $ | 2,630 | $ | 2,438 | 8 | % | |||||||||||||||||||||||
| Operating margin | 30.0 | % | 30.1 | % | |||||||||||||||||||||||||
| Effective tax rate | 23.5 | % | 23.5 | % | |||||||||||||||||||||||||
| Net Income – Linde plc | $ | 2,019 | $ | 1,880 | 7 | % | |||||||||||||||||||||||
| Diluted earnings per share | $ | 4.33 | $ | 3.95 | 10 | % | |||||||||||||||||||||||
| Other Financial Data (a) | |||||||||||||||||||||||||||||
| EBITDA | $ | 3,430 | $ | 3,132 | 10 | % | |||||||||||||||||||||||
| As percent of sales | 39.1 | % | 38.6 | % | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 3,449 | $ | 3,213 | 7 | % | |||||||||||||||||||||||
| As percent of sales | 39.3 | % | 39.6 | % | |||||||||||||||||||||||||
(a)Adjusted amounts and Other Financial Data are non-GAAP performance measures. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Reported
In the first quarter of 2026, Linde's sales were $8,781 million, 8% above the prior year. Currency translation increased sales by 5% in the quarter, largely driven by the strengthening of the Euro against the U.S dollar. Sales grew 2% from higher price attainment. Volumes increased sales by 1% in the quarter versus the 2025 respective period, primarily due to new project start-ups. Acquisitions increased sales by 1% in the quarter. Cost pass-through, representing the contractual billing of energy cost variances primarily to onsite customers, was flat in the quarter. Engineering sales decreased by 1% in the quarter.
Reported operating profit for the first quarter of 2026 was $2,439 million, or 27.8% of sales, 12% above the prior year. The reported year-over-year increase was primarily driven by higher pricing, currency translation and productivity initiatives, which more than offset adverse impacts from cost inflation. The reported effective tax rate ("ETR") was 23.5% in the first quarter
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2026 versus 23.4% in the first quarter 2025. Diluted earnings per share ("EPS") was $3.98, or 13% above EPS of $3.51 in the first quarter of 2025, primarily due to higher net income - Linde plc and lower diluted shares outstanding.
Adjusted
In the first quarter of 2026, adjusted operating profit of $2,630 million, or 30.0% of sales, was 8% higher as compared to 2025, driven by higher pricing, currency translation and productivity initiatives, partially offset by cost inflation. On an adjusted basis, the ETR was 23.5% for the first quarter 2026 and the 2025 respective period. On an adjusted basis, EPS was $4.33, 10% above the 2025 adjusted EPS of $3.95, driven by higher adjusted net income - Linde plc and lower diluted shares outstanding.
Outlook
Linde provides quarterly updates on operating results, material trends that may affect financial performance, and financial guidance via quarterly earnings releases and investor teleconferences. These updates are available on the company’s website, www.linde.com, but are not incorporated herein.
Results of operations
The changes in consolidated sales compared to the prior year are attributable to the following:
| Quarter Ended March 31, 2026 vs. 2025 | |||||||||
| % Change | |||||||||
| Factors Contributing to Changes - Sales | |||||||||
| Volume | 1 | % | |||||||
| Price/Mix | 2 | % | |||||||
| Cost pass-through | — | % | |||||||
| Currency | 5 | % | |||||||
| Acquisitions/divestitures | 1 | % | |||||||
| Engineering | (1) | % | |||||||
| 8 | % | ||||||||
Sales
Sales increased by 8% for the first quarter of 2026, versus the respective 2025 period. Currency translation increased sales by 5% in the quarter, largely driven by the strengthening of the Euro against the U.S. dollar. Higher price attainment increased sales by 2% in the quarter. Volumes increased sales by 1% for the quarter, primarily due to new project start-ups. Acquisitions increased sales by 1% in the quarter. Cost pass-through was flat in the quarter. Engineering sales decreased by 1% in the quarter.
Cost of sales, exclusive of depreciation and amortization
Cost of sales, exclusive of depreciation and amortization, increased $366 million, or 9%, for the first quarter of 2026 primarily due to currency translation, cost inflation, partially offset by productivity gains. Cost of sales, exclusive of depreciation and amortization, was 51.5% of sales for the first quarter, versus 51.2% for the respective 2025 period. The increase as a percentage of sales in the quarter was primarily due to higher costs, partially offset by pricing and productivity gains.
Selling, general and administrative expenses
Selling, general and administrative expense ("SG&A") increased $107 million, or 14%, for the first quarter of 2026. SG&A was 10.2% of sales for the three months ended March 31, 2026 versus 9.7% of sales for the respective 2025 period. Currency impact increased SG&A by approximately $37 million for the first quarter of 2026. Excluding currency impacts, underlying SG&A increased in the first quarter of 2026 driven primarily by higher costs.
Depreciation and amortization
Reported depreciation and amortization expense increased $41 million, or 5%, in the first quarter of 2026. On an adjusted basis, excluding merger-related impact, depreciation and amortization increased $41 million, or 6%, including currency impact of $29
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million. Excluding currency for the quarter, the underlying depreciation and amortization increase was largely driven by new project start-ups.
Cost reduction program and other charges
There were no cost reduction program and other charges for the three months ended March 31, 2026. The respective 2025 period primarily included severance charges of $55 million. On an adjusted basis, these costs have been excluded.
Other income (expense) - net
Reported other income (expense) - net was a benefit of $63 million for the first quarter of 2026 primarily driven by a gain on a divestiture in the Americas business. In the respective 2025 period, other income (expense) was a benefit of $18 million.
Operating profit
On a reported basis, operating profit increased $255 million, or 12%, for the first quarter of 2026. The increase was primarily due to higher pricing, currency translation, savings from productivity initiatives and lower cost reduction program and other charges, which more than offset the adverse impacts of cost inflation.
On an adjusted basis, which excludes the impacts of merger-related purchase accounting as well as cost reduction programs and other charges, operating profit increased $192 million, or 8%, for the first quarter of 2026. Operating profit growth was driven by higher pricing, currency translation and productivity initiatives, which more than offset the effects of cost inflation during the first quarter of 2026. A discussion of operating profit by segment is included in the segment discussion that follows.
Interest expense - net
Reported interest expense - net increased $2 million, or 3%, for the first quarter of 2026 versus the respective 2025 period.
Net pension and OPEB cost (benefit), excluding service cost
Reported net pension and OPEB cost (benefit), excluding service cost, was a benefit of $54 million for the quarter, versus $56 million for the respective 2025 period. The decrease was driven by higher interest cost and lower amortization of deferred gains, partially offset by higher expected return on plan assets year-over-year.
Effective tax rate
The reported effective tax rate ("ETR") for the first quarter of 2026 was 23.5%, versus 23.4% for the respective 2025 period.
On an adjusted basis, the ETR was 23.5% for the three months ended March 31, 2026 and the 2025 respective period.
Income from equity investments
Reported income from equity investments for the first quarter of 2026 was $40 million, versus $38 million for the respective 2025 period.
On an adjusted basis, income from equity investments for the first quarter of 2026 was $59 million, versus $56 million for the respective 2025 period.
Noncontrolling interests
At March 31, 2026, noncontrolling interests consisted primarily of non-controlling shareholders' investments in APAC (primarily China). Reported noncontrolling interests income was $43 million for the first quarter of 2026 and $34 million for the respective 2025 period.
Net Income – Linde plc
Reported net income - Linde plc increased $184 million, or 11%, for the first quarter of 2026 versus the respective 2025 period. On an adjusted basis, which excludes the impacts of merger-related purchase accounting and cost reduction program and other charges, net income - Linde plc increased $139 million, or 7%, for the first quarter of 2026 versus the respective 2025 period. On both a reported and adjusted basis, the increase was largely driven by higher operating profit.
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Diluted earnings per share
Reported diluted earnings per share increased $0.47, or 13%, for the first quarter of 2026 versus the respective 2025 period. On an adjusted basis, diluted EPS increased $0.38, or 10%, for the three months ended March 31, 2026, versus the respective 2025 period. On both a reported and adjusted basis, the increase was primarily due to higher net income - Linde plc and lower diluted shares outstanding.
Employees
The number of employees at March 31, 2026 was 65,034, a decrease of 35 employees from March 31, 2025.
Other Financial Data
EBITDA was $3,430 million for the first quarter of 2026 as compared to $3,132 million in the respective 2025 period. Adjusted EBITDA increased to $3,449 million for the first quarter of 2026 from $3,213 million in the respective 2025 period. The increase on both a reported and adjusted basis was driven by higher net income - Linde plc versus prior year.
See the "Non-GAAP Measures and Reconciliations" section for definitions and reconciliations of these adjusted non-GAAP measures to reported GAAP amounts.
Other Comprehensive Income (Loss)
Other comprehensive income was $79 million for the first quarter of 2026. The income in the quarter resulted primarily from currency translation adjustments of $55 million. The translation adjustments reflect the impact of translating local currency foreign subsidiary financial statements to U.S. dollars, and are largely driven by the movement of the U.S. dollar against major currencies, including the Euro and British pound. See the "Currency" section of the MD&A for exchange rates used for translation purposes and Note 10 to the condensed consolidated financial statements for a summary of the currency translation adjustment component of accumulated other comprehensive income (loss) by segment.
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Segment Discussion
The following summary of sales and operating profit by segment provides a basis for the discussion that follows. Linde plc evaluates the performance of its reportable segments based on operating profit, excluding items not indicative of ongoing business trends. The reported amounts are GAAP amounts from the Consolidated Statement of Income.
| Quarter Ended March 31, | |||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | Variance | ||||||||||||||||
| SALES | |||||||||||||||||||
| Americas | $ | 4,025 | $ | 3,666 | 10 | % | |||||||||||||
| EMEA | 2,171 | 2,031 | 7 | % | |||||||||||||||
| APAC | 1,701 | 1,539 | 11 | % | |||||||||||||||
| Engineering | 517 | 565 | (8) | % | |||||||||||||||
| Other | 367 | 311 | 18 | % | |||||||||||||||
| Total sales | $ | 8,781 | $ | 8,112 | 8 | % | |||||||||||||
| SEGMENT OPERATING PROFIT | |||||||||||||||||||
| Americas | $ | 1,272 | $ | 1,137 | 12 | % | |||||||||||||
| EMEA | 784 | 722 | 9 | % | |||||||||||||||
| APAC | 477 | 451 | 6 | % | |||||||||||||||
| Engineering | 101 | 114 | (11) | % | |||||||||||||||
| Other | (4) | 14 | (129) | % | |||||||||||||||
| Segment operating profit | $ | 2,630 | $ | 2,438 | 8 | % | |||||||||||||
| Reconciliation to reported operating profit: | |||||||||||||||||||
| Cost reduction program and other charges | — | (55) | |||||||||||||||||
| Purchase accounting impacts - Linde AG (a) | (191) | (199) | |||||||||||||||||
| Total operating profit | $ | 2,439 | $ | 2,184 | |||||||||||||||
(a)To adjust for purchase accounting impacts related to the merger.
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Americas
| Quarter Ended March 31, | |||||||||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | Variance | ||||||||||||||||||||||||||
| Sales | $ | 4,025 | $ | 3,666 | 10 | % | |||||||||||||||||||||||
| Operating profit | $ | 1,272 | $ | 1,137 | 12 | % | |||||||||||||||||||||||
| As a percent of sales | 31.6 | % | 31.0 | % | |||||||||||||||||||||||||
| Quarter Ended March 31, 2026 vs. 2025 | |||||||||
| % Change | |||||||||
Factors Contributing to Changes - Sales | |||||||||
| Volume | 2 | % | |||||||
| Price/Mix | 4 | % | |||||||
| Cost pass-through | 2 | % | |||||||
| Currency | 2 | % | |||||||
| Acquisitions/divestitures | — | % | |||||||
| 10 | % | ||||||||
The Americas segment includes Linde's industrial gases operations in approximately 20 countries including the United States, Canada, Mexico, and Brazil.
Sales
Sales for the Americas segment increased $359 million, or 10%, for the first quarter versus the respective 2025 period. Higher pricing contributed 4% to sales in the first quarter. Volumes increased sales by 2% in the quarter, primarily driven by electronics, manufacturing and metals and mining end markets including project start-ups. Cost pass-through increased sales by 2% in the quarter, with minimal impact on operating profit. Currency translation increased sales by 2% in the first quarter, driven primarily by the strengthening of the Mexican peso and Brazilian real against the U.S. dollar. Acquisitions were flat in the quarter.
Operating profit
Operating profit in the Americas segment increased $135 million, or 12%, for the first quarter compared to the respective 2025 period, driven primarily by higher volumes, higher pricing, continued productivity initiatives and a gain on a divestiture, which more than offset cost inflation.
EMEA
| Quarter Ended March 31, | |||||||||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | Variance | ||||||||||||||||||||||||||
| Sales | $ | 2,171 | $ | 2,031 | 7 | % | |||||||||||||||||||||||
| Operating profit | $ | 784 | $ | 722 | 9 | % | |||||||||||||||||||||||
| As a percent of sales | 36.1 | % | 35.5 | % | |||||||||||||||||||||||||
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| Quarter Ended March 31, 2026 vs. 2025 | |||||||||
| % Change | |||||||||
Factors Contributing to Changes - Sales | |||||||||
| Volume | (3) | % | |||||||
| Price/Mix | 1 | % | |||||||
| Cost pass-through | (2) | % | |||||||
| Currency | 10 | % | |||||||
| Acquisitions/divestitures | 1 | % | |||||||
| 7 | % | ||||||||
The EMEA segment includes Linde's industrial gases operations in approximately 50 European, Middle Eastern and African countries including Germany, the United Kingdom, France, the Republic of South Africa and Sweden.
Sales
EMEA segment sales increased $140 million, or 7%, for the first quarter, compared to the respective 2025 period. Currency translation increased sales by 10% in the first quarter, driven primarily by the strengthening of the Euro and British pound against the U.S. dollar. Higher price attainment increased sales by 1% in the quarter. Acquisitions increased sales by 1%. Cost pass-through decreased sales by 2% in the quarter with minimal impact on operating profit. Volumes decreased sales by 3% in the quarter, primarily driven by the manufacturing and chemicals and energy end markets.
Operating Profit
Operating profit for the EMEA segment increased by $62 million, or 9%, for the first quarter, compared to the respective 2025 period. The increase in the first quarter was driven primarily by currency translation, higher pricing, and continued productivity initiatives, which more than offset cost inflation and lower volumes.
APAC
| Quarter Ended March 31, | |||||||||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | Variance | ||||||||||||||||||||||||||
| Sales | $ | 1,701 | $ | 1,539 | 11 | % | |||||||||||||||||||||||
| Operating profit | $ | 477 | $ | 451 | 6 | % | |||||||||||||||||||||||
| As a percent of sales | 28.0 | % | 29.3 | % | |||||||||||||||||||||||||
| Quarter Ended March 31, 2026 vs. 2025 | |||||||||
| % Change | |||||||||
Factors Contributing to Changes - Sales | |||||||||
Volume/Equipment | 6 | % | |||||||
| Price/Mix | — | % | |||||||
| Cost pass-through | (1) | % | |||||||
| Currency | 4 | % | |||||||
| Acquisitions/divestitures | 2 | % | |||||||
| 11 | % | ||||||||
The APAC segment includes Linde's industrial gases operations in approximately 15 Asian and South Pacific countries and regions including China, Australia, India, and South Korea.
Sales
Sales for the APAC segment increased $162 million, or 11%, for the first quarter versus the respective 2025 period. Volumes increased sales by 6% in the first quarter, driven by base volumes, new project start-ups and equipment sales. Currency translation increased sales by 4% in the quarter, primarily due to the strengthening of the Australian dollar and Chinese yuan against the U.S. dollar. Acquisitions increased sales by 2% in the quarter. Price was flat in the quarter largely due to helium
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decrease which offset other positive price in the segment. Cost pass-through decreased sales by 1% in the quarter with minimal impact on operating profit.
Operating profit
Operating profit in the APAC segment increased $26 million, or 6%, in the first quarter compared to the respective 2025, driven primarily by higher volumes, continued productivity initiatives, currency translation and acquisitions, which more than offset cost inflation.
Engineering
| Quarter Ended March 31, | |||||||||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | Variance | ||||||||||||||||||||||||||
| Sales | $ | 517 | $ | 565 | (8) | % | |||||||||||||||||||||||
| Operating profit | $ | 101 | $ | 114 | |||||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-05-15 | WOOD ROBERT L | Director | Sell | -4,335 | $506.39 | -$2,195,201 |
| 2026-05-14 | WOOD ROBERT L | Director | Sell | -880 | $508.76 | -$447,709 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-01 10-Q expected by 2026-08-10 (in 42 days)
- ~2026-10-31 10-Q expected by 2026-11-09 (in 133 days)
- ~2027-02-24 10-K expected by 2027-02-25 (in 249 days)
- ~2027-05-01 10-Q expected by 2027-05-10 (in 315 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-13 8-K Other Events; Financial Statements and Exhibits
- 2026-05-05 S-3ASR S-3ASR
- 2026-05-01 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-01 10-Q Quarterly Report
- 2026-04-29 DEF 14A Proxy Statement
- 2026-02-25 10-K Annual Report
- 2026-02-05 8-K Earnings Release; Financial Statements and Exhibits
- 2025-12-03 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2025-11-20 8-K Other Events; Financial Statements and Exhibits
- 2025-10-31 10-Q Quarterly Report
- 2025-10-31 8-K Earnings Release; Financial Statements and Exhibits
- 2025-09-29 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-08-07 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-08-01 10-Q Quarterly Report
- 2025-08-01 8-K Earnings Release; Financial Statements and Exhibits