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Linde (LIN)
NASDAQ:LIN
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Linde (LIN) AI Stock Analysis

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LIN

Linde

(NASDAQ:LIN)

Rating:77Outperform
Price Target:
$535.00
▲(13.25% Upside)
Linde's overall stock score reflects strong financial performance and a positive earnings call, indicating robust operational execution and strategic positioning. While the technical analysis and valuation suggest some caution due to high expectations, the company's growth prospects and financial flexibility support a favorable outlook.
Positive Factors
Earnings Growth
The company remains one of the few able to deliver earnings growth throughout even the most difficult macro cycles, supported by its defensive business model and deep project backlog.
Low-Carbon Projects
LIN's ability to customize its offerings helped it win major new low-carbon projects.
Project Backlog
LIN highlighted its project backlog as a key driver of long-term growth, with the Sale of Gas backlog doubling over 4 years to $7.1B on $9.2B new projects.
Negative Factors
Deteriorating European Market
Europe remains weak and industrial activity across key sectors is expected to drive volumes negative.
European Market Weakness
Europe remains weak and is expected to deteriorate as industrial activity across metals, manufacturing, chemicals, energy is expected to drive volumes negative.
Global Industrial Demand
Global industrial demand remains weak, with China showing modest growth, Europe facing declines, and the US holding flattish to down.

Linde (LIN) vs. SPDR S&P 500 ETF (SPY)

Linde Business Overview & Revenue Model

Company DescriptionLinde plc operates as an industrial gas and engineering company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as olefin, natural gas, air separation, hydrogen, and synthesis gas plants. It serves a range of industries, including healthcare, energy, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment. The company was founded in 1879 and is based in Woking, the United Kingdom.
How the Company Makes MoneyLinde generates revenue primarily through the sale of industrial gases and related equipment. The company operates in two main segments: Gases and Engineering. The Gases segment, which accounts for the majority of Linde's revenue, includes the supply of atmospheric gases, process gases, and specialty gases, often through long-term contracts with customers. Key revenue streams also include on-site gas production, which involves establishing facilities at customer sites for continuous gas supply. The Engineering segment contributes through large-scale projects, providing technology and equipment for gas production and processing. Significant partnerships with various industries, especially in healthcare and energy, further bolster Linde's earnings, allowing the company to tap into high-demand markets and innovate in areas such as hydrogen energy and carbon capture.

Linde Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Breaks down revenue across different business units, revealing which segments are performing well and contributing most to the company’s top line.
Chart InsightsLinde's revenue from the Americas segment shows robust growth, driven by a strong project backlog in the U.S. targeting electronics and clean energy markets. However, EMEA faces challenges with declining volumes and soft demand, impacting overall performance. APAC is affected by helium pricing pressures, despite positive pricing trends elsewhere. The company remains optimistic with record EPS and operating margins, projecting further EPS growth despite economic uncertainties. Strategic investments in the U.S. space industry and a focus on network density and small on-site projects are expected to support future growth.
Data provided by:Main Street Data

Linde Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The call presented a strong financial performance with record EPS and cash flow growth. However, concerns about economic conditions, especially in Europe, and specific challenges like helium pricing and base volume declines were noted. Linde remains confident in its pricing power and U.S. market opportunities.
Q2-2025 Updates
Positive Updates
Record EPS and Operating Margin
Linde reported an EPS of $4.09 and an operating margin of 30.1%, both representing all-time quarterly highs.
Strong Operating Cash Flow Growth
Operating cash flows grew by 15%, showcasing Linde's financial health and ability to generate cash.
Sale of Gas Project Backlog Growth
The sale of gas project backlog has doubled over the last 4 years to $7.1 billion, with strong turnover and execution.
U.S. Market Confidence
Linde expressed strong confidence in the U.S. market, particularly in the commercial space sector, with significant investments to support future growth.
Positive Pricing Strategy
Linde has maintained positive pricing across regions, aligning with globally weighted inflation despite economic challenges.
Negative Updates
Volume Decline in EMEA
Volumes in EMEA have decreased, driven by weaker industrial demand, especially in Western Europe, with no short-term recovery catalyst.
Helium Pricing Pressure
Helium prices have declined by high single digits, reflecting market oversupply and cooling demand in electronics.
Base Volume Challenges
Base volumes were down 2% year-over-year due to decreased gas usage by existing contractual customers amid economic uncertainty.
Cautious Economic Outlook
Despite strong financial performance, Linde remains cautious about the economic outlook, particularly in Europe, and expects continued volume headwinds.
Company Guidance
In the second quarter of 2025, Linde reported record-breaking financial results despite a challenging macroeconomic environment. The company achieved an all-time high earnings per share (EPS) of $4.09 and an operating margin of 30.1%. Operating cash flows increased by 15%, with a return on capital (ROC) of 25.1%, leading the industry. The sale of gas project backlog reached $7.1 billion, with a notable turnover rate, having doubled in size over four years. Linde's guidance for the third quarter projects EPS in the range of $4.10 to $4.20, reflecting 4% to 7% growth over the previous year. For the full year, the EPS range is set between $16.30 to $16.50, indicating a 5% to 6% increase. Despite economic uncertainties, Linde remains confident in its growth prospects, driven by disciplined project execution, strategic investments, and opportunistic acquisitions. The company continues to prioritize future growth through its robust project backlog and base CapEx investments, while maintaining strong customer and shareholder value.

Linde Financial Statement Overview

Summary
Linde exhibits a strong financial profile with solid profitability and effective cost management. The income statement shows stable revenue and high margins, while the balance sheet is well-structured with moderate leverage. Cash flow generation is robust, supporting operational flexibility, though rising debt levels require monitoring.
Income Statement
85
Very Positive
Linde's income statement reflects a strong financial performance with a stable revenue base. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is approximately 55%, indicating efficient cost management. The Net Profit Margin is around 20% for TTM, showcasing solid profitability. EBIT and EBITDA margins are healthy, at 26% and 38% respectively for TTM. Revenue growth is modest but consistent, suggesting a steady business trajectory.
Balance Sheet
78
Positive
The balance sheet reveals a solid financial position with a Debt-to-Equity Ratio of 0.58, indicating moderate leverage. The Return on Equity (ROE) stands at 17.38% for TTM, reflecting effective use of equity capital. The Equity Ratio is approximately 46%, suggesting a balanced capital structure. However, the increase in total debt over the years could pose potential risks if not managed effectively.
Cash Flow
82
Very Positive
Linde demonstrates robust cash flow management. The Operating Cash Flow to Net Income Ratio is 1.46 for TTM, implying strong cash conversion. The Free Cash Flow to Net Income Ratio is 0.74, indicating good free cash flow generation. However, the Free Cash Flow Growth Rate shows slight volatility, which may require attention to sustain long-term liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue33.24B33.01B32.85B33.36B30.79B27.24B
Gross Profit13.32B12.08B11.55B9.71B8.62B7.23B
EBITDA12.88B12.92B12.29B9.94B9.89B8.12B
Net Income6.71B6.57B6.20B4.15B3.83B2.50B
Balance Sheet
Total Assets86.08B80.15B80.81B79.66B81.61B88.23B
Cash, Cash Equivalents and Short-Term Investments4.79B4.85B4.66B5.44B2.82B3.75B
Total Debt25.92B22.61B20.32B18.79B15.22B17.22B
Total Liabilities46.09B40.66B39.72B38.27B36.16B38.65B
Stockholders Equity38.52B38.09B39.72B40.03B44.03B47.32B
Cash Flow
Free Cash Flow5.07B4.93B5.52B5.69B6.64B4.03B
Operating Cash Flow9.91B9.42B9.30B8.86B9.72B7.43B
Investing Cash Flow-5.16B-4.64B-4.67B-3.09B-3.01B-2.99B
Financing Cash Flow-4.64B-4.36B-5.40B-3.09B-7.59B-3.35B

Linde Technical Analysis

Technical Analysis Sentiment
Positive
Last Price472.39
Price Trends
50DMA
470.25
Positive
100DMA
462.71
Positive
200DMA
452.73
Positive
Market Momentum
MACD
1.52
Positive
RSI
48.09
Neutral
STOCH
8.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIN, the sentiment is Positive. The current price of 472.39 is below the 20-day moving average (MA) of 475.72, above the 50-day MA of 470.25, and above the 200-day MA of 452.73, indicating a neutral trend. The MACD of 1.52 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 8.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIN.

Linde Risk Analysis

Linde disclosed 17 risk factors in its most recent earnings report. Linde reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Linde Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$77.94B36.7524.26%0.92%0.57%25.50%
77
Outperform
$222.33B33.7117.51%1.25%1.28%6.91%
72
Outperform
$89.99B35.8462.43%0.84%0.31%2.66%
68
Neutral
$65.03B42.0010.26%2.44%-0.38%-39.53%
67
Neutral
$31.73B40.240.31%2.13%4.55%-130.25%
64
Neutral
$24.73B19.4316.88%2.51%-10.59%-7.79%
61
Neutral
$10.27B6.370.76%2.91%3.10%-36.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LIN
Linde
472.39
12.76
2.78%
APD
Air Products and Chemicals
289.97
23.05
8.64%
ECL
Ecolab
274.94
30.67
12.56%
PPG
PPG Industries
109.19
-13.11
-10.72%
SHW
Sherwin-Williams Company
365.78
8.70
2.44%
DD
DuPont de Nemours
77.15
-2.55
-3.20%

Linde Corporate Events

Executive/Board Changes
Linde Announces New Chief Human Resources Officer
Neutral
Aug 7, 2025

David Strauss, Executive Vice President-Chief Human Resources Officer at Linde, will retire on March 31, 2026, after a 35-year tenure. His executive role will end on September 1, 2025, when Desiree Bacher will succeed him as Senior Vice President-Chief Human Resources Officer.

The most recent analyst rating on (LIN) stock is a Buy with a $525.00 price target. To see the full list of analyst forecasts on Linde stock, see the LIN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Linde’s AGM Approves Key Proposals and Elections
Neutral
Aug 1, 2025

On July 29, 2025, Linde plc held its Annual General Meeting, where shareholders voted on several proposals. All ten director nominees were elected, and PricewaterhouseCoopers was ratified as the independent auditor. Shareholders also approved the compensation of Linde’s executive officers and determined that future votes on executive compensation will occur annually. Additionally, the proposal to set the price range for re-allotting treasury shares was approved. A proposal regarding Linde’s lobbying activities was not acted upon due to the absence of the proponent.

The most recent analyst rating on (LIN) stock is a Buy with a $525.00 price target. To see the full list of analyst forecasts on Linde stock, see the LIN Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Linde Raises ₣498.6 Million in Debt Issuance
Positive
Jun 5, 2025

On May 21, 2025, Linde plc issued ₣225 million of 0.6150% Notes due 2029 and ₣275 million of 1.0629% Notes due 2033, raising approximately ₣498.6 million. These notes were listed on the SIX Swiss Exchange and are part of Linde’s European debt issuance program, which allows for the issuance of up to €20 billion in unsecured notes. The proceeds will be used for general corporate purposes, enhancing Linde’s financial flexibility and supporting its strategic initiatives.

The most recent analyst rating on (LIN) stock is a Buy with a $525.00 price target. To see the full list of analyst forecasts on Linde stock, see the LIN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025