Linde PLC (NASDAQ:LIN) Reports Mixed Q3 2025 Results, Missing Revenue and EPS Estimates

Linde PLC (NASDAQ:LIN) reported third-quarter financial results that presented a mixed picture for investors, with earnings per share narrowly missing analyst expectations while revenue fell slightly short of consensus estimates. The industrial gases giant demonstrated resilient operational performance amid stagnant industrial demand, though the market reaction appeared to reflect disappointment with the top-line figures.

Quarterly Performance Versus Estimates

The company reported adjusted earnings per share of $4.21 for the third quarter of 2025, representing a 7% increase compared to the same period last year. However, this figure came in just below analyst expectations of $4.22. Revenue performance showed a similar pattern, with the company reporting sales of $8.615 billion versus analyst estimates of $8.694 billion.

Key financial metrics from the quarter include:

• Adjusted EPS: $4.21 (estimated $4.22)
• Quarterly Sales: $8.615 billion (estimated $8.694 billion)
• Sales growth: 3% year-over-year
• Operating profit margin: 29.7%, up 10 basis points
• Free cash flow: $1.672 billion, up 8% year-over-year

Market Reaction and Price Action

Following the earnings release, Linde shares experienced downward pressure in pre-market trading, declining approximately 0.33%. This negative sentiment extends recent weakness in the stock, which has declined 4.4% over the past week and 8.4% over the past month. The market's reaction suggests investors were looking for stronger top-line growth and a clearer beat on earnings estimates, particularly given the company's historical performance standards.

Operational Highlights and Segment Performance

Linde's third-quarter results reflected a challenging industrial environment, with CEO Sanjiv Lamba noting "stagnant industrial activity" across key markets. Despite these headwinds, the company maintained industry-leading margins and delivered record EPS through effective pricing strategies and productivity initiatives.

Segment performance varied across regions:

• Americas demonstrated the strongest growth with sales up 6% year-over-year, driven by 3% higher pricing and 1% volume growth in electronics, manufacturing, and metals and mining
• Asia Pacific sales increased 1%, though underlying sales decreased 1% due to pricing pressure in helium markets
• EMEA region saw sales increase 3% despite a 1% decrease in underlying sales, as 2% higher pricing was offset by 3% lower volumes
• Linde Engineering sales declined 15% year-over-year, reflecting softer demand in the engineering segment

Forward Guidance and Analyst Expectations

Looking ahead, Linde provided fourth-quarter 2025 adjusted EPS guidance of $4.10 to $4.20, representing growth of 3% to 6% compared to the prior year. This guidance compares to analyst estimates of $4.28 for the quarter. For the full year 2025, the company expects adjusted EPS between $16.35 and $16.45, which aligns closely with analyst estimates of $16.61.

The company maintained its disciplined capital allocation approach, returning $1.685 billion to shareholders through dividends and stock repurchases during the quarter. Full-year capital expenditures are projected between $5.0 billion and $5.5 billion to support growth initiatives and maintain the company's $7.1 billion project backlog.

For more detailed earnings analysis and future estimates, investors can review additional information on the earnings estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and should not be considered as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with financial advisors before making investment decisions.