Linde (LIN1N) Q3 2026 Earnings Report

The call was positive but cautious. Linde delivered quarterly records, broad-based sales and pricing growth, strong cash flow, a substantial project backlog and continued momentum in electronics and selected industrial markets. However, management highlighted meaningful challenges from Lincare, restructuring, margin pressure, European industrial weakness, uneven China demand, energy-cost recovery lags and a guarded fourth-quarter outlook. The number and significance of the stated operating strengths outweighed the challenges, while management emphasized that further improvement work remains.

For the fourth quarter, Linde is guiding an EPS range of $4.40 to $4.50, or 5% to 7% growth, with no prior year currency impact assumed, a 1% headwind sequentially, and no economic improvement assumed, including Lincare; the full year guide is $17.82 to $17.92, with the full year FX benefit increased from a strong 1% last quarter to a weak 2% this quarter. Sale of gas backlog is expected to remain pretty close to $8 billion, with projects that might lead up to around $1 billion starting up for the rest of this quarter, while sale of plant backlog is just under $3 billion and expected to continue to grow over the course of next year. Severance paybacks tend to be in the 1- to 2-year range, with this charge probably closer to the higher 2-year end, full benefits expected in the second half of next year on a full run rate basis, and full benefits within 3 to 4 quarters of the action itself. Electronics growth is expected to remain in the double-digit rate going forward, supported by about $2 billion of backlog projects under execution over the next 2, 3 years.