Earnings release
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Page 1/10 Linde Reports Second-Quarter 2026 Results Second-Quarter Highlights ➢ Sales $9.3 billion, up 9% YoY, underlying sales up 4% ➢ Operating profit $2.6 billion, adjusted operating profit $2.7 billion, up 7% ➢ Operating profit margin 27.5%; adjusted operating profit margin 29.5% ➢ EPS $4.15, up 11%; adjusted EPS $4.50, up 10% YoY ➢ Second-quarter operating cash flow of $2.3 billion, up 3% YoY ➢ Full-year 2026 adjusted EPS guidance of $17.70 - $17.90 representing 8% to 9% growth ➢ Project backlog $11 billion Woking, UK, July 31, 2026 – Linde plc (Nasdaq: LIN) today reported second-quarter 2026 net income of $1,928 million and diluted earnings per share of $4.15, up 9% and up 11%, respectively. Excluding Linde AG purchase accounting impacts, adjusted net inc ome was $2,089 million, up 8% versus prior year. Adjusted diluted earnings per share was $4.50, 10% above prior year. Linde’s sales for the second quarter were $9,289 million, up 9% versus prior year including 2% favorable currency impact. Co mpared to prior year, underlying sales increased 4% from 2% price attainment and 2% volumes, primarily in the electronics, manufact uring and chemicals & energy end markets. Acquisitions increased sales by 1%. Second-quarter operating profit was $2,554 million. Adjusted operating profit of $2,744 million was up 7% versus prior year resultin g in an adjusted operating profit margin of 29.5%. Operating margin was 60 basis points lower than the previous year as high er price and productivity initiatives were offset by cost inflation. Second-quarter operating cash flow of $2,271 million increased 3% versus prior year. After capital expenditures of $1,438 million, f ree cash flow was $833 million. During the quarter, the company returned $1,590 million to shareholders through dividends an d stock repurchases, net of issuances. Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “Linde employees deliver ed another solid quarter, generating record sales and EPS while maintaining industry-leading profitability with 29.5% operating margin and 23.5% return on capital. During the quarter, we also signed another long-term electronics supply contract in the U.S., increasing the sale of gas backlog to a record $8.1 billion.” Lamba continued, “Customer proposal activity remains robust, primarily across the electronics end market, giving us confidenc e to further grow the backlog. Regardless of the economic climate, I’m confident the Linde team will continue to secure high-quality future growth projects while delivering long-term shareholder value.” For the third quarter of 2026, Linde expects adjusted diluted earnings per share in the range of $4.45 to $4.55, up 6% to 8% versus prior-year quarter, with no expected impact from foreign currency translation. For the full year 2026, the company expects adjusted diluted earnings per share to be in the range of $17.70 to $17.90, up 8% to 9% when assuming favorable currency of 1% versus prior year. Full-year capital expenditures are expected to be in the range of $5.5 billion to $6.0 billion to support growth and maintenance requirements including the $8.1 billion contractual sale of gas project bac klog.
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Page 2/10 Second-Quarter 2026 Results by Segment Americas sales of $4,083 million were up 7% versus prior year. Compared with second quarter 2025, underlying sales increased 4%, driven by 2% higher pricing and 2% higher volumes, primarily in the electronics and manufacturing end markets. Operating prof it of $1,272 million was 31.2% of sales, 50 basis points below prior year. APAC (Asia Pacific) sales of $1,870 million were up 13% versus prior year. Compared with second quarter 2025, underlying sale s increased 8%, driven by 6% volumes primarily in the electronics and chemicals & energy end markets and project start-ups and 2% higher pricing. Operating profit of $531 million was 28.4% of sales, 120 basis points below prior year or 70 basis points whe n excluding the effects of cost pass-through. EMEA (Europe, Middle East & Africa) sales of $2,303 million were up 7% versus prior year. Compared with second quarter 2025, underlying sales increased 1%, driven by 2% higher pricing and lower volumes, primarily in the manufacturing end market. Oper ating profit of $823 million was 35.7% of sales, 40 basis points below prior year or 10 basis points higher when excluding the effe cts of cost pass-through. Linde Engineering sales were $625 million, up 13% versus prior year, and operating profit was $100 million or 16.0% of sales. Order intake for the quarter was $871 million and third-party sale of equipment backlog was $3.0 billion. Earnings Call A teleconference on Linde’s second-quarter 2026 results is being held today at 9:00 am EDT. Live conference call US Toll-Free Dial-In Number: 1 888 770 7292 UK Toll-Free Dial-In Number: 0800 358 0970 Access code: 6877110 Live webcast (listen-only) https://www.linde.com/investors/financial-reports Materials to be used in the teleconference are also available on the website. About Linde Linde is a leading global industrial gases and engineering company with 2025 sales of $34 billion. We live our mission of mak ing our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet. Linde serves a variety of end markets such as chemical s & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases and tech nologies are used in countless applications, enabling space exploration and launch technologies, delivering ultra-high-purity and specialty gases for semiconductor manufacturing, providing life-saving medical oxygen and enabling clean hydrogen production and carbon capture to reduce greenhouse gas emissions. Linde also delivers state-of-the-art gas processing solutions to support customer growth, efficiency improvements and emissions reductions. For more information about the company and its products and services, please visit www.linde.com Adjusted amounts, free cash flow and return on capital are non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations for adjusted amounts.
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Page 3/10 Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations. *Note: We are providing adjusted earnings per share (“EPS”) guidance for 2026. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we beli eve are not representative of our underlying business performance, such as cost reduction and other charges, and the impact of other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliat ion of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort. Forward-looking Statements This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management’s reaso nable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cos t increases; catastrophic events including natural disasters, epidemics, and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the im pact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system fai lures, network disruptions and cybersecurity breaches; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estim ates or other forward-looking statements. Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc’s Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on February 25, 2026 which should be reviewed carefully. Please consid er Linde plc’s forward-looking statements in light of those risks.
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LINDE PLC AND SUBSIDIARIES SUMMARY NON-GAAP RECONCILIATIONS (UNAUDITED) The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance. Items which the company does not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the "NON GAAP MEASURES AND RECONCILIATIONS" starting on page 9 for additional details relating to the adjustments. (Millions of dollars, except per share amounts) Sales Operating Profit Net Income Diluted EPS Quarter Ended June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Reported GAAP Amounts $ 9,289 $ 8,495 $ 2,554 $ 2,354 $ 1,928 $ 1,766 $ 4.15 $ 3.73 Purchase accounting impacts - Linde AG (b) — — 190 202 161 171 0.35 0.36 Adjusted amounts $ 9,289 $ 8,495 $ 2,744 $ 2,556 $ 2,089 $ 1,937 $ 4.50 $ 4.09 (Millions of dollars, except per share amounts) Sales Operating Profit Net Income Diluted EPS Year to Date June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Reported GAAP Amounts $ 18,070 $ 16,607 $ 4,993 $ 4,538 $ 3,785 $ 3,439 $ 8.13 $ 7.24 Cost reduction program and other charges (a) — — — 55 — 37 — 0.08 Purchase accounting impacts - Linde AG (b) — — 381 401 323 341 0.69 0.72 Total adjustments — — 381 456 323 378 0.69 0.80 Adjusted amounts $ 18,070 $ 16,607 $ 5,374 $ 4,994 $ 4,108 $ 3,817 $ 8.82 $ 8.04 (a) 2025 cost reduction program and other charges are primarily related to severance. (b) To adjust for purchase accounting impacts related to the merger. Page 4 of 10
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LINDE PLC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) Quarter Ended June 30, Year to Date June 30, (Millions of dollars, except per share data) 2026 2025 2026 2025 Sales $ 9,289 $ 8,495 $ 18,070 $ 16,607 Cost of sales 4,861 4,306 9,384 8,463 Selling, general and administrative 891 870 1,784 1,656 Depreciation and amortization 963 942 1,914 1,852 Research and development 37 38 75 76 Cost reduction program and other charges — — — 55 Other income (expense) - net 17 15 80 33 Operating Profit 2,554 2,354 4,993 4,538 Interest expense - net 61 67 123 127 Net pension and OPEB cost (benefit), excluding service cost (53) (59) (107) (115) Income Before Income Taxes and Equity Investments 2,546 2,346 4,977 4,526 Income taxes 610 573 1,181 1,084 Income Before Equity Investments 1,936 1,773 3,796 3,442 Income from equity investments 36 33 76 71 Income (Including Noncontrolling Interests) 1,972 1,806 3,872 3,513 Less: noncontrolling interests (44) (40) (87) (74) Net Income – Linde plc $ 1,928 $ 1,766 $ 3,785 $ 3,439 Per Share Data – Linde plc Shareholders Basic earnings per share $ 4.17 $ 3.75 $ 8.17 $ 7.29 Diluted earnings per share $ 4.15 $ 3.73 $ 8.13 $ 7.24 Cash dividends per share $ 1.60 $ 1.50 $ 3.20 $ 3.00 Weighted Average Shares Outstanding (000’s): Basic shares outstanding (000's) 462,525 470,865 463,284 471,857 Diluted shares outstanding (000's) 464,523 473,573 465,299 474,691 Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP. Page 5 of 10
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LINDE PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) June 30, December 31, (Millions of dollars) 2026 2025 Assets Cash and cash equivalents $ 4,898 $ 5,056 Accounts receivable - net 5,632 4,966 Contract assets 432 269 Inventories 2,122 2,055 Prepaid and other current assets 1,092 979 Total Current Assets 14,176 13,325 Property, plant and equipment - net 29,170 28,260 Goodwill 27,927 27,927 Other intangibles - net 11,564 11,871 Other long-term assets 5,512 5,434 Total Assets $ 88,349 $ 86,817 Liabilities and Equity Accounts payable $ 2,837 $ 2,810 Short-term debt 4,861 4,510 Current portion of long-term debt 2,474 1,796 Contract liabilities 1,128 1,231 Other current liabilities 4,827 4,851 Total Current Liabilities 16,127 15,198 Long-term debt 20,678 20,683 Other long-term liabilities 10,914 11,195 Total Liabilities $ 47,719 $ 47,076 Redeemable noncontrolling interests 13 13 Linde plc Shareholders’ Equity Ordinary shares 1 1 Additional paid-in capital 39,130 39,430 Retained earnings 18,804 16,608 Accumulated other comprehensive income (loss) (5,926) (6,233) Less: Treasury shares, at cost (12,928) (11,561) Total Linde plc Shareholders' Equity 39,081 38,245 Noncontrolling interests 1,536 1,483 Total Equity $ 40,617 $ 39,728 Total Liabilities and Equity $ 88,349 $ 86,817 Page 6 of 10
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LINDE PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) Quarter Ended June 30, Year to Date June 30, (Millions of dollars) 2026 2025 2026 2025 Operations Net income - Linde plc $ 1,928 $ 1,766 $ 3,785 $ 3,439 Add: Noncontrolling interests 44 40 87 74 Net income (including noncontrolling interests) 1,972 1,806 3,872 3,513 Adjustments to reconcile net income to net cash provided by operating activities: Cost reduction program and other charges (a) (32) (32) (76) (14) Depreciation and amortization 963 942 1,914 1,852 Accounts receivable (290) (79) (651) (309) Contract assets and liabilities, net (180) 43 (288) (22) Inventory (41) (45) (89) (36) Payables and accruals 56 (290) 91 (499) Pension contributions (11) (10) (18) (15) Deferred income taxes and other (166) (124) (244) (98) Net cash provided by (used for) operating activities 2,271 2,211 4,511 4,372 Investing Capital expenditures (1,438) (1,257) (2,780) (2,527) Acquisitions, net of cash acquired (232) (158) (385) (270) Divestitures, net of cash divested and asset sales 11 11 123 24 Other investing, net 1 (53) — (53) Net cash provided by (used for) investing activities (1,658) (1,457) (3,042) (2,826) Financing Debt increase (decrease) - net 1,981 346 1,645 1,839 Issuances of ordinary shares 19 4 22 15 Purchases of ordinary shares (871) (1,111) (1,678) (2,222) Cash dividends - Linde plc shareholders (738) (704) (1,479) (1,412) Noncontrolling interest transactions and other (70) 99 (157) 26 Net cash provided by (used for) financing activities 321 (1,366) (1,647) (1,754) Effect of exchange rate changes on cash and cash equivalents 5 104 20 144 Change in cash and cash equivalents 939 (508) (158) (64) Cash and cash equivalents, beginning-of-period 3,959 5,294 5,056 4,850 Cash and cash equivalents, end-of-period $ 4,898 $ 4,786 $ 4,898 $ 4,786 (a) There were no cost reduction program and other charges for the six months ended June 30, 2026. 2025 charges were primarily related to severance. Related cash outflows were $32 million and $32 million for the quarters ended June 30, 2026 and 2025, respectively, and $76 million and $69 million for the six months ended June 30, 2026 and 2025, respectively. Page 7 of 10
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LINDE PLC AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) Quarter Ended June 30, Year to Date June 30, (Millions of dollars) 2026 2025 2026 2025 Sales Americas $ 4,083 $ 3,812 $ 8,108 $ 7,478 EMEA 2,303 2,162 4,474 4,193 APAC 1,870 1,655 3,571 3,194 Engineering 625 551 1,142 1,116 Other 408 315 775 626 Total segment sales $ 9,289 $ 8,495 $ 18,070 $ 16,607 Operating Profit Americas $ 1,272 $ 1,209 $ 2,544 $ 2,346 EMEA 823 780 1,607 1,502 APAC 531 490 1,008 941 Engineering 100 90 201 204 Other 18 (13) 14 1 Segment operating profit 2,744 2,556 5,374 4,994 Cost reduction program and other charges — — — (55) Purchase accounting impacts - Linde AG (190) (202) (381) (401) Total operating profit $ 2,554 $ 2,354 $ 4,993 $ 4,538 Page 8 of 10
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LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (UNAUDITED) The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance and liquidity. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. Adjusted Operating Profit and Operating Margin Reported operating profit $ 4,993 $ 2,554 $ 2,439 $ 4,538 $ 2,018 $ 2,367 $ 2,354 $ 2,184 Add: Cost reduction program and other charges — — — 55 229 (11) — 55 Add: Purchase accounting impacts - Linde AG (c) 381 190 191 401 338 202 202 199 Total adjustments 381 190 191 456 567 191 202 254 Adjusted operating profit $ 5,374 $ 2,744 $ 2,630 $ 4,994 $ 2,585 $ 2,558 $ 2,556 $ 2,438 Reported percentage change 10 % 8 % 12 % Adjusted percentage change 8 % 7 % 8 % Reported sales $ 18,070 $ 9,289 $ 8,781 $ 16,607 $ 8,764 $ 8,615 $ 8,495 $ 8,112 Reported operating margin 27.6 % 27.5 % 27.8 % 27.3 % 23.0 % 27.5 % 27.7 % 26.9 % Adjusted operating margin 29.7 % 29.5 % 30.0 % 30.1 % 29.5 % 29.7 % 30.1 % 30.1 % Adjusted Depreciation and Amortization Reported depreciation and amortization $ 1,914 $ 963 $ 951 $ 1,852 $ 950 $ 961 $ 942 $ 910 Less: Purchase accounting impacts - Linde AG (c) (381) (190) (191) (389) (186) (202) (198) (191) Adjusted depreciation and amortization $ 1,533 $ 773 $ 760 $ 1,463 $ 764 $ 759 $ 744 $ 719 Adjusted Other Income (Expense) - net Reported other income (expense) - net $ 80 $ 17 $ 63 $ 33 $ (105) $ 14 $ 15 $ 18 Add: Purchase accounting impacts - Linde AG (c) (e) — — — (12) (152) — (4) (8) Adjusted other income (expense) - net $ 80 $ 17 $ 63 $ 45 $ 47 $ 14 $ 19 $ 26 Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost Reported net pension and OPEB cost (benefit), excluding service cost $ (107) $ (53) $ (54) $ (115) $ (57) $ (57) $ (59) $ (56) Add: Pension settlement charges — — — — — (2) — — Adjusted Net Pension and OPEB cost (benefit), excluding service costs $ (107) $ (53) $ (54) $ (115) $ (57) $ (59) $ (59) $ (56) Adjusted Income Taxes (a) Reported income taxes $ 1,181 $ 610 $ 571 $ 1,084 $ 481 $ 424 $ 573 $ 511 Add: Purchase accounting impacts - Linde AG (c) 90 45 45 90 83 155 46 44 Add: Cost reduction program and other charges — — — 18 62 1 — 18 Total adjustments 90 45 45 108 145 156 46 62 Adjusted income taxes $ 1,271 $ 655 $ 616 $ 1,192 $ 626 $ 580 $ 619 $ 573 2026 2025 (Millions of dollars) Year to Date June 30, Q2 Q1 Year to Date June 30, Q4 Q3 Q2 Q1 Page 9 of 10
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Adjusted Effective Tax Rate (a) Reported income before income taxes and equity investments $ 4,977 $ 2,546 $ 2,431 $ 4,526 $ 2,011 $ 2,360 $ 2,346 $ 2,180 Add: Pension settlement charge — — — — — 2 — — Add: Purchase accounting impacts - Linde AG (c) 381 190 191 401 338 202 202 199 Add: Cost reduction program and other charges — — — 55 229 (11) — 55 Total adjustments 381 190 191 456 567 193 202 254 Adjusted income before income taxes and equity investments $ 5,358 $ 2,736 $ 2,622 $ 4,982 $ 2,578 $ 2,553 $ 2,548 $ 2,434 Reported Income taxes $ 1,181 $ 610 $ 571 $ 1,084 $ 481 $ 424 $ 573 $ 511 Reported effective tax rate 23.7 % 24.0 % 23.5 % 24.0 % 23.9 % 18.0 % 24.4 % 23.4 % Adjusted income taxes $ 1,271 $ 655 $ 616 $ 1,192 $ 626 $ 580 $ 619 $ 573 Adjusted effective tax rate 23.7 % 23.9 % 23.5 % 23.9 % 24.3 % 22.7 % 24.3 % 23.5 % Adjusted Income from Equity Investments Reported income from equity investments $ 76 $ 36 $ 40 $ 71 $ 43 $ 36 $ 33 $ 38 Add: Purchase accounting impacts - Linde AG (c) 38 19 19 36 18 18 18 18 Add: Cost reduction program and other charges — — — — — 6 — — Total adjustments 38 19 19 36 18 24 18 18 Adjusted income from equity investments $ 114 $ 55 $ 59 $ 107 $ 61 $ 60 $ 51 $ 56 Adjusted Noncontrolling Interests Reported noncontrolling interests $ (87) $ (44) $ (43) $ (74) $ (43) $ (43) $ (40) $ (34) Add: Purchase accounting impacts - Linde AG (c) (6) (3) (3) (6) (2) (3) (3) (3) Adjusted noncontrolling interests $ (93) $ (47) $ (46) $ (80) $ (45) $ (46) $ (43) $ (37) Adjusted Net Income - Linde plc (b) Reported net income $ 3,785 $ 1,928 $ 1,857 $ 3,439 $ 1,530 $ 1,929 $ 1,766 $ 1,673 Add: Pension settlement charge — — — — — 2 — — Add: Cost reduction program and other charges — — — 37 167 (6) — 37 Add: Purchase accounting impacts - Linde AG (c) 323 161 162 341 271 62 171 170 Total adjustments 323 161 162 378 438 58 171 207 Adjusted net income - Linde plc $ 4,108 $ 2,089 $ 2,019 $ 3,817 $ 1,968 $ 1,987 $ 1,937 $ 1,880 Adjusted Diluted EPS (b) Reported diluted EPS $ 8.13 $ 4.15 $ 3.98 $ 7.24 $ 3.26 $ 4.09 $ 3.73 $ 3.51 Add: Cost reduction program and other charges — — — 0.08 0.36 (0.01) — 0.08 Add: Purchase accounting impacts - Linde AG (c) 0.69 0.35 0.35 0.72 0.58 0.13 0.36 0.36 Total adjustments 0.69 0.35 0.35 0.80 0.94 0.12 0.36 0.44 Adjusted diluted EPS $ 8.82 $ 4.50 $ 4.33 $ 8.04 $ 4.20 $ 4.21 $ 4.09 $ 3.95 Reported percentage change 12 % 11 % 13 % Adjusted percentage change 10 % 10 % 10 % 2026 2025 (Millions of dollars) Year to Date June 30, Q2 Q1 Year to Date June 30, Q4 Q3 Q2 Q1 Page 9 of 10 cont'd
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Th ird Quarter 2026 Full Year 2026 Adjusted Diluted EPS Guidance (d) Low End High End Low End High End 2026 Adjusted Guidance $ 4.45 $ 4.55 $ 17.70 $ 17.90 Adjusted percentage changes versus 2025 adjusted diluted EPS 6 % 8 % 8 % 9 % Add: Estimated currency headwind/(tailwind) — % — % (1)% (1)% Adjusted percentage change excluding currency 6 % 8 % 7 % 8 % Adjusted EBITDA and % of Sales Net Income - Linde plc $ 3,785 $ 1,928 $ 1,857 $ 3,439 $ 1,530 $ 1,929 $ 1,766 $ 1,673 Add: Noncontrolling interests 87 44 43 74 43 43 40 34 Add: Net pension and OPEB cost (benefit), excluding service cost (107) (53) (54) (115) (57) (57) (59) (56) Add: Interest expense 123 61 62 127 64 64 67 60 Add: Income taxes 1,181 610 571 1,084 481 424 573 511 Add: Depreciation and amortization 1,914 963 951 1,852 950 961 942 910 EBITDA 6,983 3,553 3,430 6,461 3,011 3,364 3,329 3,132 Add: Cost reduction program and other charges — — — 55 229 (5) — 55 Add: Purchase accounting impacts - Linde AG (c) 38 19 19 48 170 18 22 26 Total adjustments 38 19 19 103 399 13 22 81 Adjusted EBITDA $ 7,021 $ 3,572 $ 3,449 $ 6,564 $ 3,410 $ 3,377 $ 3,351 $ 3,213 Reported sales $ 18,070 $ 9,289 $ 8,781 $ 16,607 $ 8,764 $ 8,615 $ 8,495 $ 8,112 % of sales EBITDA 38.6 % 38.2 % 39.1 % 38.9 % 34.4 % 39.0 % 39.2 % 38.6 % Adjusted EBITDA as a % of Sales 38.9 % 38.5 % 39.3 % 39.5 % 38.9 % 39.2 % 39.4 % 39.6 % 2026 2025 (Millions of dollars) Year to Date June 30, Q2 Q1 Year to Date June 30, Q4 Q3 Q2 Q1 (a) The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts. (b) Net of income taxes which are shown separately in “Adjusted Income Taxes and Effective Tax Rate”. (c) The company believes that its non-GAAP measures excluding merger Purchase accounting impacts - Linde AG are useful to investors because: (i) the 2018 business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii) the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by merger purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of merger purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding merger purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements. A summary of each of the adjustments made for Purchase accounting impacts - Linde AG are as follows: Adjusted Operating Profit and Margin: The purchase accounting adjustments for the periods presented relate primarily to depreciation and amortization related to the fair value step up of fixed assets and intangible assets (primarily customer related) acquired in the merger and the allocation of fair value step-up for ongoing Linde AG asset disposals (reflected in Other Income/(Expense)). Adjusted Income Taxes and Effective Tax Rate: Relates to the current and deferred income tax impact on the adjustments discussed above. The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions Page 9 of 10 cont'd
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(d) We are providing adjusted earnings per share (“EPS”) guidance for 2026. This is a non-GAAP financial measure that represents diluted earnings per share (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges and the impact of other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort. (e) Fourth quarter 2025 Adjusted other income (expense) - net includes a charge associated with Linde AG merger-related purchase accounting. that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts. Adjusted Income from Equity Investments: Represents the amortization of increased fair value on equity investments related to depreciable and amortizable assets. Adjusted Noncontrolling Interests: Represents the noncontrolli ng interests’ ownership portion of the adjustment s described above determined on an entity by entity basis. Page 9 of 10 cont'd
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LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (UNAUDITED) 2026 2025 (Millions of dollars) Q2 Q1 Q4 Q3 Q2 Q1 Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital expenditures. Operating Cash Flow $ 2,271 $ 2,240 $ 3,030 $ 2,948 $ 2,211 $ 2,161 Less: Capital Expenditures (1,438) (1,342) (1,458) (1,276) (1,257) (1,270) Free Cash Flow $ 833 $ 898 $ 1,572 $ 1,672 $ 954 $ 891 Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets. Debt $ 28,013 $ 26,317 $ 26,989 $ 25,925 $ 25,920 $ 23,897 Less: Cash and cash equivalents (4,898) (3,959) (5,056) (4,509) (4,786) (5,294) Net debt 23,115 22,358 21,933 21,416 21,134 18,603 Less: Purchase accounting impacts - Linde AG (3) (3) (3) (4) (4) (4) Adjusted net debt $ 23,112 $ 22,355 $ 21,930 $ 21,412 $ 21,130 $ 18,599 After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after-tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc shareholders’ equity). Reported net income - Linde plc $ 1,928 $ 1,857 $ 1,530 $ 1,929 $ 1,766 $ 1,673 Add: noncontrolling interests 44 43 43 43 40 34 Add: interest expense - net 61 62 64 64 67 60 Less: tax benefit on interest expense - net * (15) (15) (16) (15) (16) (14) Reported NOPAT $ 2,018 $ 1,947 $ 1,621 $ 2,021 $ 1,857 $ 1,753 Adjusted net income - Linde plc $ 2,089 $ 2,019 $ 1,968 $ 1,987 $ 1,937 $ 1,880 Add: adjusted noncontrolling interests 47 46 45 46 43 37 Add: interest expense - net 61 62 64 64 67 60 Less: tax benefit on interest expense - net * (15) (15) (16) (15) (16) (14) Adjusted NOPAT $ 2,182 $ 2,112 $ 2,061 $ 2,082 $ 2,031 $ 1,963 *Tax benefit on interest expense - net is generally presented using the reported effective rate. 4-quarter trailing reported NOPAT $ 7,607 $ 7,446 $ 7,252 $ 7,440 $ 7,074 $ 6,970 4-quarter trailing adjusted NOPAT $ 8,437 $ 8,286 $ 8,137 $ 8,062 $ 7,968 $ 7,890 P age 10 of 10
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2026 2025 (Millions of dollars) Q2 Q1 Q4 Q3 Q2 Q1 Equity and redeemable noncontrolling interests: Redeemable noncontrolling interests $ 13 $ 13 $ 13 $ 13 $ 13 $ 13 Linde plc shareholders' equity 39,081 38,566 38,245 38,616 38,515 38,032 Noncontrolling interests 1,536 1,513 1,483 1,457 1,458 1,418 Total equity and redeemable noncontrolling interests $ 40,630 $ 40,092 $ 39,741 $ 40,086 $ 39,986 $ 39,463 Reported capital $ 63,745 $ 62,450 $ 61,674 $ 61,502 $ 61,120 $ 58,066 Total equity and redeemable noncontrolling interests $ 40,630 $ 40,092 $ 39,741 $ 40,086 $ 39,986 $ 39,463 Add: Adjusted net debt 23,112 22,355 21,930 21,412 21,130 18,599 Less: Linde AG Goodwill (a) 24,256 24,256 24,256 24,256 24,256 24,256 Less: Linde AG Indefinite lived intangibles (a) 1,868 1,868 1,868 1,868 1,868 1,868 Adjusted capital $ 37,618 $ 36,323 $ 35,547 $ 35,374 $ 34,992 $ 31,938 (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. Ending capital (see above) $ 63,745 $ 62,450 $ 61,674 $ 61,502 $ 61,120 $ 58,066 5-quarter average ending capital $ 62,098 $ 60,962 $ 59,725 $ 58,925 $ 57,914 $ 56,830 Ending adjusted capital (see above) $ 37,618 $ 36,323 $ 35,547 $ 35,374 $ 34,992 $ 31,938 5-quarter average ending adjusted capital $ 35,971 $ 34,835 $ 33,597 $ 32,797 $ 31,786 $ 30,701 After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending capital) 12.2 % 12.2 % 12.1 % 12.6 % 12.2 % 12.3 % Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5- quarter average ending adjusted capital) 23.5 % 23.8 % 24.2 % 24.6 % 25.1 % 25.7 % Page 10 of 10 cont'd