Linde reported higher sales, adjusted earnings and cash flow for the third quarter of 2026, with growth across its major regions. Reported net income and earnings per share fell, however, while the company’s adjusted measures rose. Linde also reaffirmed full-year adjusted EPS guidance and set a fourth-quarter earnings range.
The industrial gases and engineering company said sales reached $9.4 billion, up 9% from a year earlier. Underlying sales growth was 5%, reflecting higher prices and volumes; currency added 1 percentage point to reported growth.
Key details
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Earnings: Net income was $1.69 billion, down 12%, and diluted EPS was $3.66, down 11%. Excluding Linde AG purchase-accounting impacts, cost-reduction-program costs and other charges, adjusted net income rose 7% to $2.12 billion and adjusted EPS increased 9% to $4.59.
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Operating performance: Operating profit was $2.15 billion, while adjusted operating profit rose 8% to $2.76 billion. The adjusted operating margin was 29.4%. The reported operating margin was 22.9%, down 30 basis points year over year; it was flat after excluding the effects of cost pass-through.
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Cash flow and shareholder returns: Operating cash flow increased 8% to $3.17 billion. After $1.39 billion of capital spending, free cash flow was $1.78 billion. Linde returned $1.69 billion to shareholders through dividends and net stock repurchases during the quarter.
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Fourth-quarter and full-year outlook: Linde expects fourth-quarter adjusted diluted EPS of $4.40 to $4.50, up 5% to 7% from a year earlier, with no expected foreign-currency impact. For 2026, it expects adjusted EPS of $17.82 to $17.92, representing 8% to 9% growth assuming a favorable 2% currency effect.
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Capital spending and project pipeline: Full-year capital expenditures are expected to be $5.5 billion to $6.0 billion, supporting growth and maintenance needs, including a $7.9 billion contractual sale-of-gas project backlog. Total project backlog was $11 billion.
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Americas: Sales rose 11% to $3.60 billion; underlying growth was 9%, from 6% higher pricing and 3% higher volumes. Operating profit was $1.26 billion, or 35.1% of sales, with the margin up 50 basis points.
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Asia Pacific: Sales increased 12% to $1.95 billion, with underlying growth of 8%—3% from pricing and 5% from volumes. Operating profit was $534 million, or 27.4% of sales. The margin fell 70 basis points, or 40 basis points excluding cost pass-through effects.
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Europe, Middle East and Africa: Sales rose 7% to $2.33 billion, with underlying growth of 3% from pricing and volumes. Operating profit was $817 million, or 35.1% of sales. The margin was down 80 basis points year over year but flat excluding cost pass-through effects.
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Linde Engineering: Sales rose 12% to $582 million, and operating profit was $107 million, equal to 18.4% of sales. Quarterly order intake was $499 million, and third-party equipment backlog stood at $2.9 billion.
What the results show
Underlying sales grew through a combination of pricing and higher volumes, particularly in electronics, chemicals and energy, and manufacturing. Linde’s adjusted earnings and cash generation improved even as reported net income and EPS declined. The company’s guidance points to continued adjusted EPS growth for the year, while its stated capital spending plans and project backlog reflect ongoing investment in growth and maintenance.