Linde plc Reports 8% Sales Growth and 12% Increase in Operating Profit for Q1 2026

Linde plc reported a strong financial performance for the first quarter of 2026, with sales reaching $8,781 million, an increase of 8% compared to $8,112 million in the same period last year. The growth was driven by a 5% contribution from currency translation, primarily due to the strengthening of the Euro against the U.S. dollar, alongside a 2% increase from higher pricing and a 1% rise in volumes attributed to new project start-ups. The company also noted that acquisitions contributed an additional 1% to sales, while engineering sales experienced a slight decline of 1%.

Operating profit for the quarter was $2,439 million, reflecting a 12% increase from $2,184 million in the prior year, resulting in an operating margin of 27.8%. This increase was largely attributed to higher pricing, favorable currency translation, and productivity initiatives, which offset the adverse impacts of cost inflation. The effective tax rate for the quarter was reported at 23.5%, slightly up from 23.4% in the previous year. Net income attributable to Linde plc was $1,857 million, an 11% increase from $1,673 million, with diluted earnings per share rising to $3.98 from $3.51.

In terms of operational developments, Linde's employee headcount stood at 65,034, a slight decrease from 65,069 a year earlier. The company continues to focus on strategic growth, with significant capital expenditures of $1,342 million during the quarter, primarily for new plant and production equipment to support backlog growth. Additionally, Linde made acquisitions totaling $153 million, mainly in the packaged gas sector within the Americas, while divestitures generated $112 million in cash inflows.

Looking ahead, Linde's management remains optimistic about future performance, citing a robust backlog of approximately $7.1 billion in large projects under construction. The company anticipates that the ongoing demand for industrial gases and engineering services will continue to drive growth. However, management also acknowledged potential risks, including market fluctuations, cost inflation, and geopolitical uncertainties, which could impact financial results. Linde plans to provide regular updates on its operating results and material trends affecting performance through its investor communications.