On October 26, 2023, Linde PLC (LIN, Financial) released its third-quarter 2023 earnings report. The company reported net income of $1,565 million and diluted earnings per share of $3.19, up 23% and 26% respectively. Adjusted net income was $1,783 million, up 15% versus the prior year. Adjusted earnings per share was $3.63, 17% above the prior year.
Financial Performance
Third-quarter sales were $8,155 million, 7% below the prior year, but underlying sales increased 3% from 5% price attainment partially offset by 2% lower volumes. Operating profit was $2,052 million, while adjusted operating profit of $2,306 million was up 15% versus the prior year. The adjusted operating profit margin of 28.3% was 550 basis points above the prior year and 400 basis points higher when excluding the effects of cost pass-through.
Cash Flow and Shareholder Returns
Third-quarter operating cash flow of $2,520 million decreased 4% versus the prior year, primarily driven by lower engineering payments. After capital expenditures of $948 million, free cash flow was $1,572 million. During the quarter, the company returned $1,774 million to shareholders through dividends and stock repurchases, net of issuances.
CEO Commentary
“Linde employees delivered another quarter of strong results, with EPS growth of 17%, ROC of 25.6%, OCF of $2.5 billion and operating margin expansion of 550 basis points to 28.3%. This performance is driven by our relentless culture to optimize the base business while increasing network density and deploying capital to high-quality growth initiatives,” said Chief Executive Officer Sanjiv Lamba.
Outlook
For the fourth quarter of 2023, Linde expects adjusted diluted earnings per share in the range of $3.38 to $3.48, up 7% to 10% versus the prior-year quarter. For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $14.00 to $14.10, up 14% to 15% versus the prior year.
Explore the complete 8-K earnings release (here) from Linde PLC for further details.
