Oct 29, 2026 earnings call — Record sales and major restructuring action
Linde reported record quarterly sales of $9.4 billion and announced a $425 million restructuring charge.
Revenue $9.4B (est $9.2B) · EPS $4.59 (est $4.52)
Key quotes
"Effective this quarter, I realigned this business to report directly to Matt, which, among other reasons, has prompted us to modify the segment reporting by moving it into the Global Other segment."
"Prices increased 3% in the quarter. While the majority came from ongoing price actions, a portion relates to prior and current period inflation cost recovery in the Americas."
"We also have approximately $2 billion of electronics projects under construction in the U.S., Korea and China, providing a strong foundation for continued double-digit growth."
Analyst Q&A 16
Backlog levels and plant backlog
Q (David Begleiter · Deutsche Bank): They asked if sale-of-gas backlog will end the year around $8 billion, how sale-of-plant backlog should progress, and what it implies for 2027 engineering sales.
A: Management said sale-of-gas backlog sits close to $8 billion today and they expect to start up projects this quarter that might add around $1 billion. They said sale-of-plant backlog is just under $3 billion and should continue to grow next year. More detailed guidance will be given in February.
"My expectation remains we will continue to start up for the rest of this quarter, a number of projects that might lead up to around $1 billion, as we previously mentioned." — Sanjiv Lamba (CEO)
Why per-unit COGS rose so much
Q (Patrick Fischer · Goldman Sachs): He asked why COGS rose about 13% y/y while acquisitions and volume rose only 3%, and what drives the per-unit cost increase.
A: Management said several moving parts caused it: FX added about 1% and cost pass-through added about 1%. They said higher energy and HyCO (hydrogen) variable costs, acquisitions, and a pricing-recovery effort also contributed, and removing Lincare from the denominator makes recovery look more pronounced. They expect the effect to come back down in the fourth quarter.
"I would add that when we talked about some of this recovery we had to do, that partly plays into that as well." — Matthew White (CFO)
Severance charge payback timing
Q (John McNulty · BMO): He asked how the severance-related restructuring savings will play into 2027 versus the normal steady cadence of efficiency improvements.
A: Management said severance paybacks on a cash basis usually fall in the 1- to 2-year range. For this charge they expect it to be closer to the higher end of that range, with savings starting in the fourth quarter and full run-rate benefits in the second half of next year. This is consistent with prior actions.
"So as you may recall, the paybacks on a cash basis, undiscounted tend to be in the 1- to 2-year range." — Matthew White (CFO)
Europe energy costs and price recovery
Q (Vincent Andrews · Morgan Stanley): He asked how higher natural gas and electricity costs in Europe will impact margins and how quickly they can price for those costs in Q4 versus Q1.
A: Management said on-site contracts are recovered in the current month as cost pass-through. For merchant and package supply, recovery typically lags by about 3 to 6 months. They said in Europe the recovery may be cyclical with a 3–5 month lag or could become permanent pricing if the power spike persists, and they will watch winter months to see how it plays out.
"So on-site, it's recovered in the current month, and that's cost pass-through." — Matthew White (CFO)
Why Q4 EPS guide slows vs Q3
Q (Joshua Spector · UBS): He asked what drives the deceleration from 9% growth in Q3 to 7% in Q4 and what that implies for 2027.
A: Management said the midpoint of the Q4 guide implies about a 3% decline sequentially. They said roughly 1% of that is FX, about 1% reflects a pullback after elevated equity income in Q3, and the remaining 1% reflects seasonality and a guarded view on the economy and some actions taken in non-gas business. They will give 2027 guidance in February.
"Another percent, if you noticed, we had a little bit of elevated equity income this quarter and third quarter." — Matthew White (CFO)
Woodside project timing and impact
Q (James Hooper · Bernstein): He asked for an update on the Woodside project start-up timing and whether the customer's strategic review affects Linde's business there.
A: Management said the air separation unit and nitrogen supply started in Q3 and will continue to progress. They said hydrogen ATRs are two trains with staggered start-ups and they expect completion in the first half, with full ramp effects showing into the second half of next year and capacity reaching 100% probably in 2028; carbon capture work is by ExxonMobil. On the customer's strategic review, they are engaged and believe the asset is high quality regardless of ownership.
"I expect that to be completed in the first half." — Sanjiv Lamba (CEO)
Europe and China volume trends
Q (Matthew DeYoe · BofA): He asked whether Europe is improving (policy or protection measures) and if China slowdown is visible, noting Europe volumes looked a bit better in Q3.
A: Management said Europe remains in the same weak range with no catalyst to drive growth and the reported 1% gain was mainly from sale of equipment; underlying volumes are flat. On China, they said steel moderated (steel down 2.5%) and chemicals are flat, while electronics drove strong growth (about 17%) but domestic demand and EV purchases are weak, so overall they see no structural rebound yet.
"Europe, unfortunately continues to be in that range that we talked about the last time we spoke." — Sanjiv Lamba (CEO)
Lincare savings vs normal productivity
Q (Eric Boyes · Evercore): He asked whether Lincare restructuring savings replace the usual productivity gains or come on top for 2027.
A: Management said the savings will come on top of the normal productivity program. They said productivity is an ongoing part of the culture every day, while restructurings are episodic, one-time and incremental from the top down. So Lincare actions are additional to regular productivity.
"The way we always view it is the productivity is an ongoing embedded in the culture." — Matthew White (CFO)
Helium prices and Lincare EBIT impact
Q (Jeffrey Zekauskas · JPMorgan): He asked if helium prices rose outside Asia too, and he queried the math on Lincare's EBIT decline and the stated EPS impact.
A: Management said helium prices have moved up globally and pricing includes recovery of dislocation costs from the Middle East conflict, but higher costs also limit margin improvement. On Lincare, management said the year-to-date impact is about 1.5% to 2% and that range explains the EPS effect they cited, with some rounding in presentation. They noted the full-year effect depends on baseline and Q4 performance.
"But it is about 1.5% to 2% on the year-to-date and especially when we kind of look out on holding flat what the Q4 would be." — Matthew White (CFO)
Why Americas pricing outpaced others
Q (Kevin McCarthy · Vertical Research Partners): He asked why Americas pricing rose about 6% versus lower rates in Asia and Europe, and whether Americas should keep outpacing the rest of world.
A: Management said roughly 2% of the Americas increase was recovery; excluding that the run rate is closer to 4%. They said global underlying pricing run rate is a strong 3% and factors include South America inflation and North American power/distribution inflation; EMEA and APAC show different patterns (EMEA vacillates, APAC partly driven by helium). Management added pricing actions are a global focus.
"So the run rate there has probably been more in the 4% range, and that's kind of the year-to-date, if you look at it, too, through that period, excluding the 2%." — Matthew White (CFO)
Why Lincare moved and sale prospects
Q (Patrick Cunningham · Citi): He asked for logic behind moving Lincare to the other segment, whether they may sell it, and when profit improvement might occur.
A: Management said the move was driven by accounting (CODM) and a change in executive oversight that changed how the business is evaluated. They said they will continue to evaluate strategic options but cannot assure a sale, so the immediate focus is to improve and run the business better and safely. They referenced a past similar move (GIST) that later led to a sale but did not promise the same outcome for Lincare.
"The move is driven by accounting, right, which is -- it's called CODM, the Chief Operating Decision Maker." — Matthew White (CFO)
Revenue drag from supplying Woodside
Q (Abigail Eberts · Wells Fargo): She asked for help sizing the revenue drag from supplying Woodside from existing network while assets are not fully up.
A: Management said they are supplying Woodside from their existing network, so molecules that otherwise could be sold to other customers are being routed to Woodside. They noted hydrogen from the U.S. Gulf Coast is valuable to refiners and the molecules will be incremental when the new assets start up; for now this supply reduces molecules available to sell elsewhere.
"I think as far as a revenue drag, yes, the way I would probably characterize it is we are supplying them from our existing network." — Matthew White (CFO)
Electronics growth and backlog prospects
Q (Aleksey Yefremov · Barclays): He asked if electronics growth in mid- to high-teens is sustainable and whether new electronics backlog additions look likely.
A: Management said the quarter's electronics growth was largely organic and they feel good about sustaining that trend for the next few quarters. They said backlog includes about $2 billion of projects under execution with staggered start-ups over the next 2 to 3 years that will support double-digit electronics growth, and they expect to win more projects given strong customer relationships. They also cited growth in electronic specialty gases.
"I fully expect to see electronics growth in the double-digit rate going forward." — Sanjiv Lamba (CEO)
How much pricing was one-off vs permanent
Q (Salvator Tiano · KeyBanc): He asked how much of the quarter's pricing was excess one-off margin from past cost recovery and whether they could recover costs if cyclical end markets weaken.
A: Management said cost recovery is contractual and normal, but the recent cost acceleration came faster and recovery will spread over multiple quarters, often 1–2 quarters lag for merchant and package. They said year-to-date recovery is net positive on operating profit but was dilutive to the average Americas margins in the quarter, and if inflation persists they expect Americas pricing to rise above the current run rate.
"I would just say it's been spread over a couple of quarters for the most part, within the quarter itself, it would have still been net dilutive to the 35% margins that we printed just given the recovery portion." — Matthew White (CFO)
Lincare free cash flow and Europe outlook
Q (Laurence Alexander · Jefferies): He asked roughly how much free cash flow Lincare contributes and how long Europe can stay in its current malaise before deindustrialization accelerates.
A: Management said Lincare free cash flow is positive and a rough way to think about it is that depreciation add-back and CapEx mostly offset, so EBIT is a rough proxy for cash flow, with working capital creating some seasonal noise. On Europe, management said there is no consistent policy framework and high, volatile energy costs give a structural disadvantage; some regions like the Nordics remain competitive, but there is no clear timeline and any rebound will likely take longer than people expect.
"A kind of rough and simple way to think about it is the depreciation add back and the CapEx mostly offset." — Matthew White (CFO)
Qatar helium supply and pricing outlook
Q (Tony Jones · Rothschild): He asked whether Qatar supply will change in 2027, whether pricing will be positive next year, and what it means for margin.
A: Management said the team managed helium well, added long-term customer contracts, and pricing actions focused on recovering dislocation costs rather than excessive pricing. They said their view is Qatar will likely reach about 75% of production, but export logistics and a shortage of tanks limit shipments, and the Strait of Hormuz uncertainty makes timing unclear. They noted they moved 340 containers last quarter and global supply-chain management is a strength; normalization in Qatar would help place more molecules.
"Our view is that Qatar is likely to get to about 75% of the production levels." — Sanjiv Lamba (CEO)