Linde plc (NASDAQ:LIN) shares declined more than 2% in premarket trading on Thursday after the industrial gases company issued a full-year 2026 earnings outlook that disappointed investors, even as it delivered fourth-quarter results that exceeded expectations.
The company reported adjusted earnings per share of $4.20 for the fourth quarter, slightly ahead of analyst forecasts of $4.17. Revenue increased 6% year-on-year to $8.8 billion, beating the consensus estimate of $8.64 billion. Underlying sales rose 3%, supported by 2% pricing improvements and a 1% volume increase linked to new project launches. Operating cash flow for the quarter grew 8% year-on-year to $3.0 billion.
Investor sentiment weakened following Linde’s 2026 full-year adjusted EPS forecast of $17.40 to $17.90. The midpoint of $17.65 came in below analyst expectations of $17.83. The company’s guidance for first-quarter 2026 earnings per share, projected at $4.20 to $4.30, was broadly in line with market estimates of $4.24.
“Linde delivered another year of resilient performance, with operating profit, cash flow and backlog each exceeding $10 billion,” said Chief Executive Officer Sanjiv Lamba. “Operating margins expanded to 29.8%, ROC reached 24.2% and EPS grew 6%. These results underscore the strength of our operating model and the exceptional execution by the Linde team worldwide.”
For full-year 2025, Linde posted adjusted EPS of $16.46, representing a 6% increase from the previous year, while total sales rose 3% to $34.0 billion. The company returned $7.4 billion to shareholders through dividends and share buybacks during the year.
Performance varied across regions in the fourth quarter, with sales in the Americas climbing 8% year-on-year to $3.9 billion. Asia-Pacific sales increased 3% to $1.7 billion, while revenue in Europe, the Middle East and Africa rose 6% to $2.2 billion.
Linde expects to spend between $5.0 billion and $5.5 billion in capital expenditures during 2026 to support growth initiatives, including fulfilling its contractual gas supply backlog, which currently stands at $10.0 billion.