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Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2026
or
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
| Commission file number | 001-38730 |
LINDE PLC
(Exact name of registrant as specified in its charter)
| Ireland | 98-1448883 | |||||||
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | |||||||
| 10 Riverview Drive, | Forge | |||||||
| Danbury, Connecticut | 43 Church Street West | |||||||
| United States 06810 | Woking, Surrey GU21 6HT | |||||||
| United Kingdom | ||||||||
| (Address of principal executive offices) (Zip Code) | ||||||||
| (203) 837 - 2000 | +44 14 83 242200 | |||||||
| (Registrant's telephone number, including area code) |
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
| Ordinary shares (€0.001 nominal value per share) | LIN | NASDAQ |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||
| Emerging growth company | ☐ | ||||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
At June 30, 2026, 460,980,163 ordinary shares (€0.001 par value) of the Registrant were outstanding.
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 reasonable 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 cost increases; catastrophic events including natural disasters, epidemics, pandemics, 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 impact 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 failures, 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, estimates 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 consider Linde plc’s forward-looking statements in light of those risks.
LINDE PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Millions of dollars, except per share data)
(UNAUDITED)
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales | $ | 9,289 | $ | 8,495 | $ | 18,070 | $ | 16,607 | |||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | 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 | |||||||||||||||||||
| Net 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 | |||||||||||||||
| Weighted Average Shares Outstanding (000’s): | |||||||||||||||||||||||
| Basic shares outstanding | 462,525 | 470,865 | 463,284 | 471,857 | |||||||||||||||||||
| Diluted shares outstanding | 464,523 | 473,573 | 465,299 | 474,691 |
The accompanying notes are an integral part of these financial statements.
LINDE PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Millions of dollars)
(UNAUDITED)
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| NET INCOME (INCLUDING NONCONTROLLING INTERESTS) | $ | 1,972 | $ | 1,806 | $ | 3,872 | $ | 3,513 | |||||||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
| Translation adjustments: | |||||||||||||||||||||||
| Foreign currency translation adjustments | 268 | 514 | 347 | 645 | |||||||||||||||||||
| Reclassifications to net income | (20) | (22) | (38) | (22) | |||||||||||||||||||
| Income taxes | (2) | 7 | (8) | 10 | |||||||||||||||||||
| Translation adjustments | 246 | 499 | 301 | 633 | |||||||||||||||||||
| Funded status - retirement obligations (Note 7): | |||||||||||||||||||||||
| Retirement program remeasurements | (5) | 25 | 17 | 36 | |||||||||||||||||||
| Reclassifications to net income | (4) | (8) | (8) | (16) | |||||||||||||||||||
| Income taxes | 1 | (1) | (3) | (10) | |||||||||||||||||||
| Funded status - retirement obligations | (8) | 16 | 6 | 10 | |||||||||||||||||||
| Derivative instruments (Note 4): | |||||||||||||||||||||||
| Current unrealized gain (loss) | (7) | 3 | 21 | 13 | |||||||||||||||||||
| Reclassifications to net income | (7) | 30 | (23) | 25 | |||||||||||||||||||
| Income taxes | 4 | (7) | 2 | (9) | |||||||||||||||||||
| Derivative instruments | (10) | 26 | — | 29 | |||||||||||||||||||
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 228 | 541 | 307 | 672 | |||||||||||||||||||
| COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS) | 2,200 | 2,347 | 4,179 | 4,185 | |||||||||||||||||||
| Less: noncontrolling interests | (51) | (63) | (87) | (102) | |||||||||||||||||||
| COMPREHENSIVE INCOME (LOSS) - LINDE PLC | $ | 2,149 | $ | 2,284 | $ | 4,092 | $ | 4,083 |
The accompanying notes are an integral part of these financial statements.
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Millions of dollars)
(UNAUDITED)
| June 30, 2026 | December 31, 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 intangible assets - 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 (Note 10): | |||||||||||
| Ordinary shares, €0.001 par value, authorized 1,750,000,000 shares, 2026 and 2025 issued: 490,766,972 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 (2026 – 29,786,809 shares and 2025 – 27,086,030 shares) | (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 |
The accompanying notes are an integral part of these financial statements.
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions of dollars)
(UNAUDITED)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Increase (Decrease) in Cash and Cash Equivalents | |||||||||||
| Operations | |||||||||||
| Net income - Linde plc | $ | 3,785 | $ | 3,439 | |||||||
| Add: Noncontrolling interests | 87 | 74 | |||||||||
| Net Income (including noncontrolling interests) | 3,872 | 3,513 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Cost reduction program and other charges | (76) | (14) | |||||||||
| Depreciation and amortization | 1,914 | 1,852 | |||||||||
| Deferred income taxes | (12) | (13) | |||||||||
| Share-based compensation | 60 | 88 | |||||||||
| Working capital: | |||||||||||
| Accounts receivable | (651) | (309) | |||||||||
| Inventory | (89) | (36) | |||||||||
| Prepaid and other current assets | (52) | (81) | |||||||||
| Payables and accruals | 91 | (499) | |||||||||
| Contract assets and liabilities, net | (288) | (22) | |||||||||
| Pension contributions | (18) | (15) | |||||||||
| Long-term assets, liabilities and other | (240) | (92) | |||||||||
| Net cash provided by (used for) operating activities | 4,511 | 4,372 | |||||||||
| Investing | |||||||||||
| Capital expenditures | (2,780) | (2,527) | |||||||||
| Acquisitions, net of cash acquired | (385) | (270) | |||||||||
| Divestitures, net of cash divested and asset sales | 123 | 24 | |||||||||
| Other investing, net | — | (53) | |||||||||
| Net cash provided by (used for) investing activities | (3,042) | (2,826) | |||||||||
| Financing | |||||||||||
| Short-term debt borrowings (repayments) - net | 388 | 425 | |||||||||
| Long-term debt borrowings | 2,016 | 3,059 | |||||||||
| Long-term debt repayments | (759) | (1,645) | |||||||||
| Issuances of ordinary shares | 22 | 15 | |||||||||
| Purchases of ordinary shares | (1,678) | (2,222) | |||||||||
| Cash dividends - Linde plc shareholders | (1,479) | (1,412) | |||||||||
| Noncontrolling interest transactions and other | (157) | 26 | |||||||||
| Net cash provided by (used for) financing activities | (1,647) | (1,754) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 20 | 144 | |||||||||
| Change in cash and cash equivalents | (158) | (64) | |||||||||
| Cash and cash equivalents, beginning-of-period | 5,056 | 4,850 | |||||||||
| Cash and cash equivalents, end-of-period | $ | 4,898 | $ | 4,786 | |||||||
The accompanying notes are an integral part of these financial statements.
INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Notes to Condensed Consolidated Financial Statements - Linde plc and Subsidiaries (Unaudited)
1. Summary of Significant Accounting Policies
Linde plc ("Linde" or "the company") is an incorporated public limited company formed under the laws of Ireland. Linde’s registered office is located at Ten Earlsfort Terrace, Dublin 2, D02 T380 Ireland. Linde’s principal executive offices are located at Forge, 43 Church Street West, Woking, Surrey GU21 6HT, United Kingdom and 10 Riverview Drive, Danbury, Connecticut, 06810, United States.
Presentation of Condensed Consolidated Financial Statements - In the opinion of Linde management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair statement of the results for the interim periods presented and such adjustments are of a normal recurring nature. The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of Linde plc and subsidiaries in Linde's 2025 Annual Report on Form 10-K. There have been no material changes to the company’s significant accounting policies during 2026.
Reclassifications – Certain prior periods' amounts have been reclassified to conform to the current year’s presentation.
Accounting Standards to be Implemented
Disaggregation of Income Statement Expenses - In November 2024, the FASB issued guidance requiring disaggregated disclosure of income statement expenses. The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods with fiscal years after December 15, 2027, with early adoption permitted. The standard can be applied either prospectively after the effective date or retrospectively to any or all periods presented. The adoption of this standard will only impact disclosures within the company's consolidated financial statements and the company is evaluating the impact this guidance will have on those disclosures.
Targeted Improvements to the Accounting for Internal-Use Software - In September 2025, the FASB issued guidance that amends the existing standard for internal-use software by removing the software development project stage model and introducing a recognition and capitalization framework to reflect current software development practices. The new standard is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted. The standard can be applied prospectively, retrospectively, or via a modified prospective transition method. The adoption of this standard is not expected to have a material impact on the financial statements.
2. Supplemental Information
Receivables
Linde applies loss rates that are lifetime expected credit losses at initial recognition of the receivables. These expected loss rates are based on an analysis of the actual historical default rates for each business, taking regional circumstances into account. If necessary, these historical default rates are adjusted to reflect the impact of current changes in the macroeconomic environment using forward-looking information. The loss rates are also evaluated based on the expectations of the responsible management team regarding the collectability of the receivables. Gross trade receivables aged less than one year were $5,681 million and $5,032 million at June 30, 2026 and December 31, 2025, respectively, and gross receivables aged greater than one year were $430 million and $377 million at June 30, 2026 and December 31, 2025, respectively. Gross other receivables were $112 million and $138 million at June 30, 2026 and December 31, 2025, respectively. Receivables aged greater than one year are generally fully reserved unless specific circumstances warrant exceptions, such as those backed by federal governments.
Accounts receivable net of reserves were $5,632 million at June 30, 2026 and $4,966 million at December 31, 2025. Allowances for expected credit losses were $591 million at June 30, 2026 and $581 million at December 31, 2025. Provisions for expected credit losses were $109 million and $102 million for the six months ended June 30, 2026 and 2025, respectively. The allowance activity in the six months ended June 30, 2026 and 2025 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.
Inventories
The following is a summary of Linde's consolidated inventories:
| (Millions of dollars) | June 30, 2026 | December 31, 2025 | |||||||||
| Inventories | |||||||||||
| Raw materials and supplies | $ | 554 | $ | 530 | |||||||
| Work in process | 409 | 346 | |||||||||
| Finished goods | 1,159 | 1,179 | |||||||||
| Total inventories | $ | 2,122 | $ | 2,055 |
3. Debt
The following is a summary of Linde's outstanding debt at June 30, 2026 and December 31, 2025:
| (Millions of dollars) | June 30, 2026 | December 31, 2025 | |||||||||||||||
| SHORT-TERM | |||||||||||||||||
| Commercial paper | $ | 4,531 | $ | 4,226 | |||||||||||||
| Other bank borrowings (primarily non-U.S.) | 330 | 284 | |||||||||||||||
| Total short-term debt | 4,861 | 4,510 | |||||||||||||||
| LONG-TERM (a) | |||||||||||||||||
| (U.S. dollar denominated unless otherwise noted) | |||||||||||||||||
| 3.20% | Notes due 2026 (b) | — | 725 | ||||||||||||||
| 0.00% | Euro denominated notes due 2026 | 799 | 822 | ||||||||||||||
| 3.434% | Notes due 2026 | 200 | 200 | ||||||||||||||
| 1.652% | Euro denominated notes due 2027 | 92 | 95 | ||||||||||||||
| 0.250% | Euro denominated notes due 2027 | 856 | 880 | ||||||||||||||
| 1.00% | Euro denominated notes due 2027 | 574 | 589 | ||||||||||||||
| 2.439% | Euro denominated notes due 2027 (c) | 685 | 705 | ||||||||||||||
| 1.00% | Euro denominated notes due 2028 (d) | 836 | 854 | ||||||||||||||
| 2.604% | Euro denominated notes due 2028 (c) (e) | 685 | — | ||||||||||||||
| 3.00% | Euro denominated notes due 2028 | 798 | 820 | ||||||||||||||
| 3.375% | Euro denominated notes due 2029 | 854 | 878 | ||||||||||||||
| 2.625% | Euro denominated notes due 2029 | 968 | 994 | ||||||||||||||
| 0.6150% | Swiss franc denominated notes due 2029 | 278 | 283 | ||||||||||||||
| 1.10% | Notes due 2030 | 698 | 698 | ||||||||||||||
| 1.90% | Euro denominated notes due 2030 | 117 | 120 | ||||||||||||||
| 3.200% | Euro denominated notes due 2030 (e) | 569 | — | ||||||||||||||
| 3.375% | Euro denominated notes due 2030 | 853 | 877 | ||||||||||||||
| 1.375% | Euro denominated notes due 2031 | 861 | 884 | ||||||||||||||
| 3.20% | Euro denominated notes due 2031 | 969 | 997 | ||||||||||||||
| 0.550% | Euro denominated notes due 2032 | 853 | 877 | ||||||||||||||
| 3.125% | Euro denominated notes due 2032 | 736 | 759 | ||||||||||||||
| 0.375% | Euro denominated notes due 2033 | 566 | 582 | ||||||||||||||
| 3.00% | Euro denominated notes due 2033 | 853 | 877 | ||||||||||||||
| 1.0629% | Swiss franc denominated notes due 2033 | 339 | 346 | ||||||||||||||
| 3.625% | Euro denominated notes due 2034 | 740 | 760 | ||||||||||||||
| 3.50% | Euro denominated notes due 2034 | 850 | 874 | ||||||||||||||
| 1.625% | Euro denominated notes due 2035 | 909 | 934 | ||||||||||||||
| 3.40% | Euro denominated notes due 2036 | 794 | 816 | ||||||||||||||
| 3.800% | Euro denominated notes due 2036 (e) | 567 | — | ||||||||||||||
| 3.250% | Euro denominated notes due 2037 | 736 | 756 | ||||||||||||||
| 3.750% | Euro denominated notes due 2038 | 565 | 582 | ||||||||||||||
| 3.55% | Notes due 2042 | 666 | 666 | ||||||||||||||
| 3.75% | Euro denominated notes due 2044 | 788 | 810 | ||||||||||||||
| 2.00% | Notes due 2050 | 297 | 297 | ||||||||||||||
| 1.00% | Euro denominated notes due 2051 | 782 | 805 | ||||||||||||||
| Non-U.S. borrowings | 419 | 307 | |||||||||||||||
| Other | — | 10 | |||||||||||||||
| 23,152 | 22,479 | ||||||||||||||||
| Less: current portion of long-term debt | (2,474) | (1,796) | |||||||||||||||
| Total long-term debt | 20,678 | 20,683 | |||||||||||||||
| Total debt | $ | 28,013 | $ | 26,989 |
(a)Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable.
(b)In January 2026, Linde repaid $725 million of 3.20% notes that became due.
(c)Floating-rate notes that reset quarterly at three-month EURIBOR plus a fixed spread.
(d)June 30, 2026 and December 31, 2025 included a cumulative $19 million and $25 million adjustment to carrying value, respectively, related to hedge accounting of terminated interest rate swaps. Refer to Note 4.
(e)In May 2026, Linde issued three tranches of Euro-denominated notes consisting of: €600 million of floating-rate notes due in 2028, bearing interest at three-month EURIBOR plus a fixed spread and resetting quarterly (2.604% as of June 30, 2026), €500 million of 3.200% notes due in 2030, and €500 million of 3.800% notes due in 2036.
The company maintains a $5 billion and a $1.5 billion unsecured revolving credit agreement with a syndicate of banking institutions that expire on December 7, 2027 and December 2, 2026, respectively. There are no financial maintenance covenants contained within the credit agreements. No borrowings were outstanding under the credit agreements as of June 30, 2026.
The weighted-average interest rates of short-term borrowings outstanding were 3.1% and 3.0% as of June 30, 2026 and December 31, 2025, respectively.
4. Financial Instruments
In its normal operations, Linde is exposed to market risks relating to fluctuations in interest rates, foreign currency exchange rates, energy and commodity costs. The objective of financial risk management at Linde is to minimize the negative impact of such fluctuations on the company’s earnings and cash flows. To manage these risks, among other strategies, Linde routinely enters into various derivative financial instruments (“derivatives”) including interest-rate swap and treasury rate lock agreements, forward contracts, and commodity-swap agreements. These instruments are not entered into for trading purposes and Linde only uses commonly traded and non-leveraged instruments.
There are three types of derivatives that the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies.
When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Linde designates all interest-rate and treasury-rate locks as hedges for accounting purposes when used. Currency contracts are generally not designated as hedges for accounting purposes. However, currency contracts related to certain forecasted transactions and net investments in foreign-denominated subsidiaries are designated as hedges for accounting purposes. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective, through the use of a qualitative assessment, then hedge accounting will be discontinued prospectively.
Counterparties to Linde’s derivatives are major banking institutions with credit ratings of investment grade or better. The company has Credit Support Annexes ("CSAs") in place for certain entities with their principal counterparties to minimize potential default risk and to mitigate counterparty risk. Under the CSAs, the fair values of derivatives for the purpose of interest rate and currency management are collateralized with cash on a regular basis. As of June 30, 2026, the impact of such collateral posting arrangements on the fair value of derivatives was insignificant. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial.
The following table is a summary of the notional amount and fair value of derivatives outstanding at June 30, 2026 and December 31, 2025 for consolidated subsidiaries:
| Fair Value | |||||||||||||||||||||||||||||||||||
| Notional Amounts | Assets (a) | Liabilities (a) | |||||||||||||||||||||||||||||||||
| (Millions of dollars) | June 30, 2026 | December 31, 2025 | June 30, 2026 | December 31, 2025 | June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||
| Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||
| Currency contracts: | |||||||||||||||||||||||||||||||||||
| Balance sheet items | $ | 9,686 | $ | 9,509 | $ | 71 | $ | 79 | $ | 62 | $ | 34 | |||||||||||||||||||||||
| Forecasted transactions | 200 | 164 | 1 | 3 | 2 | 1 | |||||||||||||||||||||||||||||
| Total | $ | 9,886 | $ | 9,673 | $ | 72 | $ | 82 | $ | 64 | $ | 35 | |||||||||||||||||||||||
| Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||
| Currency contracts: | |||||||||||||||||||||||||||||||||||
| Forecasted transactions | $ | 656 | $ | 560 | $ | 7 | $ | 24 | $ | 9 | $ | 1 | |||||||||||||||||||||||
| Forward exchange transactions | 3,337 | 3,420 | 85 | 6 | — | 28 | |||||||||||||||||||||||||||||
| Commodity contracts | N/A | N/A | 27 | 5 | 12 | 10 | |||||||||||||||||||||||||||||
| Total Hedges | $ | 3,993 | $ | 3,980 | $ | 119 | $ | 35 | $ | 21 | $ | 39 | |||||||||||||||||||||||
| Total Derivatives | $ | 13,879 | $ | 13,653 | $ | 191 | $ | 117 | $ | 85 | $ | 74 |
(a)Amounts as of June 30, 2026 and December 31, 2025, respectively, included current assets of $181 million and $107 million which are recorded in prepaid and other current assets; long-term assets of $10 million and $10 million which are recorded in other long-term assets; current liabilities of $78 million and $72 million which are recorded in other current liabilities; and long-term liabilities of $7 million and $2 million which are recorded in other long-term liabilities.
In addition, during 2024, Linde issued credit default swaps (“CDS”) to third-party financial institutions. The CDS relate to secured borrowings provided by the financial institutions to a government customer in Mexico, that were utilized to pay certain of Linde’s outstanding receivables. The notional amounts of the CDS, which were $10 million and $46 million for the two programs as of June 30, 2026, will reduce on a monthly basis over their respective 24-month and 22-month terms. As of June 30, 2026, the fair value of the associated derivative liability positions were not material.
Balance Sheet Items
Foreign currency contracts related to balance sheet items consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on recorded balance sheet assets and liabilities denominated in currencies other than the functional currency of the related operating unit. Certain forward currency contracts are entered into to protect underlying monetary assets and liabilities denominated in foreign currencies from foreign exchange risk and are not designated as hedging instruments. For balance sheet items that are not designated as hedging instruments, the fair value adjustments on these contracts are offset by the fair value adjustments recorded on the underlying monetary assets and liabilities.
Forecasted Transactions
Foreign currency contracts related to forecasted transactions consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on (i) forecasted purchases of capital-related equipment and services, (ii) forecasted sales, or (iii) other forecasted cash flows denominated in currencies other than the functional currency of the related operating units. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income (loss) with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated purchase. For forecasted transactions that do not qualify for cash flow hedging relationships, fair value adjustments are recorded directly to earnings. Linde is hedging forecasted transactions for a maximum period of four years.
Commodity Contracts
Commodity contracts are entered into to manage the exposure to fluctuations in commodity prices, which arise in the normal course of business from its procurement transactions. To reduce the extent of this risk, Linde enters into a limited number of electricity, natural gas, and propane gas derivatives. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income (loss) with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated purchase. Linde is hedging commodity contracts for a maximum period of three years.
Net Investment Hedges
Foreign Currency-Denominated Debt Designations
As of June 30, 2026, Linde has €18.9 billion ($21.6 billion) Euro-denominated notes and intercompany loans, ¥6.0 billion ($0.9 billion) CNY-denominated intercompany loans and CHF0.5 billion ($0.6 billion) CHF-denominated notes that are designated as hedges of the net investment positions in certain foreign operations. Since hedge inception, the deferred loss recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $951 million (deferred gain of $277 million and $607 million in the consolidated statement of comprehensive income for the quarter and six months ended June 30, 2026, respectively), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged.
Foreign Currency Forward Exchange Contract Designations
The Company enters into forward exchange contracts to partially hedge its net investment in certain foreign-denominated subsidiaries. The Company assesses the forward exchange contracts used as net investment hedges under the spot method. This results in the difference between the spot rate and the forward rate of the forward exchange contract being excluded from the assessment of hedge effectiveness and recorded as incurred as a reduction in interest expense - net in the consolidated statement of income. Since hedge inception, the deferred gain recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $85 million (deferred gain of $56 million and $80 million in the consolidated statement of comprehensive income for the quarter and six months ended June 30, 2026, respectively), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged. The amount of net interest income recorded for the quarter and six months ended June 30, 2026 for all forward exchange contracts was $20 million and $38 million, respectively, and $22 million for the respective 2025 periods.
Effects of Previous Hedge Designations
As of June 30, 2026, exchange rate movements relating to previously designated hedges that remain in accumulated other comprehensive income (loss) is a loss of $137 million. These movements will remain in accumulated other comprehensive income (loss), until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated statement of income.
Interest Rate Swaps
Linde has historically used interest rate swaps to hedge the exposure to changes in the fair value of financial assets and financial liabilities as a result of interest rate changes. When used, these interest rate swaps would effectively convert fixed-rate interest exposures to variable rates; fair value adjustments were recognized in earnings along with an equally offsetting charge/benefit to earnings for the changes in the fair value of the underlying financial asset or financial liability (See Note 3).
Derivatives' Impact on Consolidated Statement of Income
The following table summarizes the impact of the company’s derivatives on the consolidated statement of income:
| Amount of Pre-Tax Gain (Loss) Recognized in Earnings * | |||||||||||||||||||||||
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||
| Currency contracts: | |||||||||||||||||||||||
| Balance sheet items | |||||||||||||||||||||||
| Debt-related | $ | 86 | $ | (36) | $ | 46 | $ | (125) | |||||||||||||||
| Other balance sheet items | (5) | 12 | (12) | 13 | |||||||||||||||||||
| Total | $ | 81 | $ | (24) | $ | 34 | $ | (112) |
- The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities pertaining to debt-related items are recorded in the consolidated statement of income as interest expense-net. Other balance sheet items' gains (losses) are recorded in the consolidated statement of income as other income (expenses)-net.
The amounts of gain or loss recognized in accumulated other comprehensive income (loss) and reclassified to the consolidated statement of income was not material for the quarters and six months ended June 30, 2026 and 2025. Net impacts expected to be reclassified to earnings during the next twelve months are also not material.
5. Fair Value Disclosures
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:
Level 1 – quoted prices in active markets for identical assets or liabilities
Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable
Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions)
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table summarizes assets and liabilities measured at fair value on a recurring basis:
| Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
| (Millions of dollars) | June 30, 2026 | December 31, 2025 | June 30, 2026 | December 31, 2025 | June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Derivative assets | $ | — | $ | — | $ | 191 | $ | 117 | $ | — | $ | — | |||||||||||||||||||||||
| Investments and securities* | 21 | 20 | — | — | 13 | 13 | |||||||||||||||||||||||||||||
| Total | $ | 21 | $ | 20 | $ | 191 | $ | 117 | $ | 13 | $ | 13 | |||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Derivative liabilities | $ | — | $ | — | $ | 85 | $ | 74 | $ | — | $ | — |
- Investments and securities are recorded in prepaid and other current assets and other long-term assets in the company's condensed consolidated balance sheet.
Level 1 investments and securities are marketable securities traded on an exchange. Level 2 investments are based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. Level 3 investments and securities consist of a venture fund. For the valuation, Linde uses the net asset value received as part of the fund's quarterly reporting, which for the most part is not based on quoted prices in active markets. In order to reflect current market conditions, Linde proportionally adjusts these by observable market data (stock exchange prices) or current transaction prices.
Changes in Level 3 investments and securities were immaterial.
The fair value of cash and cash equivalents, short-term debt, accounts receivable-net, and accounts payable approximate carrying value because of the short-term maturities of these instruments.
The fair value of long-term debt is estimated based on the quoted market prices for the same or similar issues. Long-term debt is categorized within Level 2 of the fair value hierarchy. At June 30, 2026, the estimated fair value of Linde’s long-term debt portfolio was $21,821 million versus a carrying value of $23,152 million. At December 31, 2025, the estimated fair value of Linde’s long-term debt portfolio was $21,064 million versus a carrying value of $22,479 million. Differences between the carrying value and the fair value are attributable to fluctuations in interest rates subsequent to when the debt was issued and relative to stated coupon rates.
6. Earnings Per Share - Linde plc Shareholders
Basic and diluted earnings per share is computed by dividing Net income – Linde plc for the period by the weighted average number of either basic or diluted shares outstanding, as follows:
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Numerator (Millions of dollars) | |||||||||||||||||||||||
| Net Income – Linde plc | $ | 1,928 | $ | 1,766 | $ | 3,785 | $ | 3,439 | |||||||||||||||
| Denominator (Thousands of shares) | |||||||||||||||||||||||
| Weighted average shares outstanding | 461,855 | 470,091 | 462,530 | 471,011 | |||||||||||||||||||
| Shares earned and issuable under compensation plans | 670 | 774 | 754 | 846 | |||||||||||||||||||
| Weighted average shares used in basic earnings per share | 462,525 | 470,865 | 463,284 | 471,857 | |||||||||||||||||||
| Effect of dilutive securities | |||||||||||||||||||||||
| Stock options and awards | 1,998 | 2,708 | 2,015 | 2,834 | |||||||||||||||||||
| Weighted average shares used in diluted earnings per share | 464,523 | 473,573 | 465,299 | 474,691 | |||||||||||||||||||
| Basic Earnings Per Share | $ | 4.17 | $ | 3.75 | $ | 8.17 | $ | 7.29 | |||||||||||||||
| Diluted Earnings Per Share | $ | 4.15 | $ | 3.73 | $ | 8.13 | $ | 7.24 |
The weighted average of antidilutive securities excluded from the calculation of diluted earnings per share was 590 thousand and 557 thousand for the quarter and six months ended June 30, 2026, respectively, and 665 thousand and 533 thousand for the respective 2025 periods.
7. Retirement Programs
The components of net pension and postretirement benefits other than pensions (“OPEB”) costs for the quarters and six months ended June 30, 2026 and 2025 are shown below:
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Amount recognized in Operating Profit | |||||||||||||||||||||||
| Service cost | $ | 20 | $ | 21 | $ | 40 | $ | 41 | |||||||||||||||
| Amount recognized in Net pension and OPEB cost (benefit), excluding service cost | |||||||||||||||||||||||
| Interest cost | 89 | 89 | 178 | 175 | |||||||||||||||||||
| Expected return on plan assets | (138) | (140) | (277) | (274) | |||||||||||||||||||
| Net amortization and deferral (gain) loss | (4) | (8) | (8) | (16) | |||||||||||||||||||
| Total amount recognized in Net pension and OPEB cost (benefit), excluding service cost | (53) | (59) | (107) | (115) | |||||||||||||||||||
| Net periodic benefit cost (benefit) | $ | (33) | $ | (38) | $ | (67) | $ | (74) |
Components of net periodic benefit expense for other post-retirement plans for the quarters and six months ended June 30, 2026 and 2025 were not material.
Linde estimates that 2026 required contributions to its pension plans will be in the range of approximately $25 million to $35 million, of which $18 million have been made through June 30, 2026.
8. Commitments and Contingencies
Contingent Liabilities
Linde is subject to various lawsuits and government investigations that arise from time to time in the ordinary course of business. These actions are based upon alleged environmental, tax, antitrust and personal injury claims, among others. Linde has strong defenses in these cases and intends to defend itself vigorously. It is possible that the company may incur losses in
connection with some of these actions in excess of accrued liabilities. Management does not anticipate that in the aggregate such losses would have a material adverse effect on the company’s consolidated financial position or liquidity; however, it is possible that the final outcomes could have a significant impact on the company’s reported results of operations in any given period.
Significant matters are:
-
During 2009, the Brazilian government published Law 11941/2009 instituting a new voluntary amnesty program (“Refis Program”) which allowed Brazilian companies to settle certain federal tax disputes at reduced amounts. During 2009, the company decided that it was economically beneficial to settle many of its outstanding federal tax disputes and such disputes were enrolled in the Refis Program, subject to final calculation and review by the Brazilian federal government. The company recorded estimated liabilities based on the terms of the Refis Program. Since 2009, Linde has been unable to reach final agreement on the calculations and initiated litigation against the government in an attempt to resolve certain items. Open issues relate to the following matters: (i) application of cash deposits and net operating loss carryforwards to satisfy obligations and (ii) the amount of tax reductions available under the Refis Program. It is difficult to estimate the timing of resolution of legal matters in Brazil.
-
On and after April 23, 2019 former shareholders of Linde AG filed appraisal proceedings at the District Court (Landgericht) Munich I (Germany), seeking an increase of the cash consideration paid in connection with the previously completed cash merger squeeze-out of all of Linde AG’s minority shareholders for €189.46 per share. Any such increase would apply to all 14,763,113 Linde AG shares that were outstanding on April 8, 2019, when the cash merger squeeze-out was completed. The period for plaintiffs to file claims expired on July 9, 2019. In November 2023, the court issued a decision rejecting the plaintiffs’ claims in their entirety and determining that the cash merger squeeze-out consideration was appropriate. The plaintiffs have appealed this decision.
The company believes the consideration paid was fair and that the claims are not supported by sufficient evidence, and no reserve has been established. We cannot estimate the timing of resolution.
- On May 27, 2022, performance of all Linde Engineering agreements in Russia were lawfully suspended in compliance with applicable sanctions. In December 2022, at RusChemAlliance’s ("RCA") request a Russian St. Petersburg court (“St. Petersburg Court”) issued an injunction preventing sale of Linde Russia subsidiaries and assets. Since then, in accordance with the dispute resolution provisions of the related engineering agreements, Linde secured judgments reenforcing jurisdiction of the agreements with RCA outside of Russia and ordering the St. Petersburg proceedings stayed and injunctions lifted. However, RCA has continued to pursue its claims in Russia and during 2024 two Linde Russian joint ventures were sold locally pursuant to a St. Petersburg court order and the proceeds provided to RCA. Linde does not expect a material adverse impact on earnings given the combined $1.8 billion liabilities recorded as of June 30, 2026 and the immaterial investment value of its remaining deconsolidated Russia subsidiaries. Please see further detail on the Russian legal cases below.
RCA GPP and LNG
In December 2022, the St. Petersburg Court issued an injunction preventing (i) the sale of any shares in Linde’s subsidiaries and joint ventures in Russia, and (ii) the disposal of any of the assets in those entities exceeding 5% of the relevant company’s overall asset value. RCA is owned 50% by PJSC Gazprom. The injunction was requested by RCA to secure payment of a possible award under an arbitration proceeding RCA intended to file against Linde Engineering for alleged breach of contract under the agreement to build a gas processing plant in Russia entered into in July 2021. In 2023, RCA filed a claim in St. Petersburg against Linde GmbH for recovery of advance payments under the agreement ("GPP Claim"), and subsequently (i) added Linde and other Linde subsidiaries as defendants, and (ii) seeking payment of alleged damages from Linde and guarantor banks. In 2024, RCA filed a similar claim for repayment and damages against Linde for alleged breach of contract under the agreement to build a liquefied natural gas plant in Russia entered into in September 2021 (“LNG Claim”, and together with the GPP Claim, the “Russian Claims”).
Dispute resolution provisions
In accordance with the dispute resolution provisions of the agreements, in 2023, Linde filed a notice of arbitration with the Hong Kong International Arbitration Centre ("HKIAC") against RCA to claim that (i) RCA has no entitlement to payment, (ii) RCA’s Russian Claims are in breach of the arbitration agreement which requires HKIAC arbitration, and (iii) RCA must compensate Linde for the losses and damages caused by the injunction. During 2024, Linde secured awards on exclusive jurisdiction with HKIAC.
In January 2024, the Hong Kong court issued a final judgment in Linde’s favor (i) granting a permanent anti-suit injunction against RCA to seek a stay of the GPP claim and not start an LNG claim, (ii) granting a permanent, global anti-enforcement injunction against RCA for the GPP claim, and (iii) ordering that the injunction issued by the St. Petersburg Court be lifted (“HK Court Judgment”).
Despite the judgments of the Hong Kong court and similar orders issued by the HKIAC arbitration tribunals, RCA is continuing to pursue its claims in Russia and neither the St. Petersburg injunction affecting Linde’s shares and assets has been lifted, nor the proceeding in St. Petersburg been stayed. The HKIAC arbitration proceedings are ongoing.
Local seizures
During 2024, the St. Petersburg Court decided the GPP Claim in favor of RCA (the “GPP Decision”) and later that year, decided the LNG Claim in favor of RCA (the “LNG Decision”). Linde unsuccessfully appealed the GPP Decision in 2024. During the fourth quarter of 2024, RCA executed enforcement actions related to the GPP Decision within Russia for Linde’s shares in two Linde Russian joint ventures and locally RCA received payment from the purchase of these shares by Linde’s joint venture partners. RCA previously initiated the enforcement process for the GPP Decision within Russia for the remainder of Linde’s local assets, and these proceedings are currently ongoing.
Separately, certain guarantor banks of the RCA GPP and LNG projects, following their own asset seizures in Russia, have asserted claims for reimbursement against Linde GmbH in Germany totaling approximately €0.8 billion. These guarantee proceedings are exceptional in nature and arise from highly specific, sanctions-driven situations.
Linde intends to claim all damages related to or rising from RCA's enforcement of the GPP and LNG Decisions in the HKIAC arbitration proceedings. Linde subsidiaries affected by the GPP Decision have also filed claims for damages against RCA and/or its controlling shareholder in the Southern District of New York, the Netherlands and Germany. A subsidiary of Linde has obtained a judgment for damages in Germany against Gazprom PJSC in an amount of €204 million related to the seizure of the shares of a Russian joint venture.
As of June 30, 2026, Linde has a contingent liability of $1.1 billion, which represents advance payments previously recorded in contract liabilities related to terminated engineering projects with RCA. As a result of the contract terminations, Linde no longer has future performance obligations for these projects.
It is difficult to estimate the timing of resolution of these matters. The company intends to vigorously defend its interests in the Russian Claims, Hong Kong arbitration proceedings, German guarantee proceedings and other jurisdictions.
Amur GPP
In July 2015, Gazprom Pererabotka Blagoveshchensk LLC ("Gazprom"), a 100% subsidiary of PJSC Gazprom, entered into an engineering, procurement and construction contract with OJSC NIPIgazpererabotka ("Nipigas") for the construction of a gas processing plant and other components located in the Amur Region, Russia (“Amur GPP”). Subsequently, in December 2015, Nipigas and Linde Engineering executed a subcontract for engineering, procurement, and site services ("EPSS Contract") for licensed production units for the Amur GPP project. Additionally, Linde also entered into (i) a license agreement with Gazprom in 2017 for the operation of the plants, and (ii) a direct owner agreement with Gazprom and Nipigas ("DOA") which included limitation of liability provisions. Performance of the Amur GPP agreements were lawfully suspended in compliance with applicable sanctions on May 27, 2022.
On October 8, 2021 and January 5, 2022, fires occurred at the Amur GPP facility. Following the initial fire in 2021, Linde undertook a comprehensive review of the incident, including a detailed local inspection conducted by Linde employees. The Linde report concluded that the fire was attributable to the quality of construction and assembly work, responsibilities falling under the scope of Nipigas.
On October 29, 2024, Gazprom submitted a claim to the Arbitration State Court in the Amur Region, Russia (“Amur Court”) against Linde Engineering and project-unrelated Linde entities claiming damages and lost profits arising from the fire incidents.
During 2025, Linde Engineering formally initiated arbitration proceedings against Gazprom before the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) in Stockholm, Sweden, as provided for in the DOA.
As of June 30, 2026, Linde has a contingent liability of $0.7 billion for this and other Amur GPP contract matters. It is difficult to estimate the timing of resolution of this matter. The company intends to vigorously defend its interests in this case.
9. Segment Information
For a description of Linde plc's operating segments and information on how the Chief Operating Decision Maker assesses performance and allocates resources, refer to Note 18 to the consolidated financial statements on Linde plc's 2025 Annual Report on Form 10-K. The company’s measure of profit/loss for segment reporting is segment operating profit. Segment operating profit is defined as operating profit excluding purchase accounting impacts of the Linde AG merger, cost reduction and other charges, and items not indicative of ongoing business trends.
The table below presents sales and operating profit information about reportable segments and Other for the quarters and six months ended June 30, 2026 and 2025.
| Quarter Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| (Millions of dollars) | Americas | EMEA | APAC | Engineering | Other | Total | ||||||||||||||||||||||||||||||||
| 2026 | ||||||||||||||||||||||||||||||||||||||
| Sales (a) | $ | 4,083 | $ | 2,303 | $ | 1,870 | $ | 625 | $ | 408 | $ | 9,289 | ||||||||||||||||||||||||||
| Variable Costs (b) | 1,577 | 806 | 958 | 292 | 176 | 3,809 | ||||||||||||||||||||||||||||||||
| Fixed Costs and other (c) | 846 | 499 | 205 | 225 | 188 | 1,963 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization (d) | 388 | 175 | 176 | 8 | 26 | 773 | ||||||||||||||||||||||||||||||||
| Operating Profit (e) | $ | 1,272 | $ | 823 | $ | 531 | $ | 100 | $ | 18 | $ | 2,744 | ||||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||||||||||||||
| Sales (a) | $ | 3,812 | $ | 2,162 | $ | 1,655 | $ | 551 | $ | 315 | $ | 8,495 | ||||||||||||||||||||||||||
| Variable Costs (b) | 1,424 | 733 | 803 | 206 | 112 | 3,278 | ||||||||||||||||||||||||||||||||
| Fixed Costs and other (c) | 805 | 480 | 194 | 247 | 191 | 1,917 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization (d) | 374 | 169 | 168 | 8 | 25 | 744 | ||||||||||||||||||||||||||||||||
| Operating Profit (e) | $ | 1,209 | $ | 780 | $ | 490 | $ | 90 | $ | (13) | $ | 2,556 | ||||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| (Millions of dollars) | Americas | EMEA | APAC | Engineering | Other | Total | ||||||||||||||||||||||||||||||||
| 2026 | ||||||||||||||||||||||||||||||||||||||
| Sales (a) | $ | 8,108 | $ | 4,474 | $ | 3,571 | $ | 1,142 | $ | 775 | $ | 18,070 | ||||||||||||||||||||||||||
| Variable Costs (b) | 3,153 | 1,528 | 1,799 | 460 | 333 | 7,273 | ||||||||||||||||||||||||||||||||
| Fixed Costs and other (c) | 1,644 | 989 | 414 | 466 | 377 | 3,890 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization (d) | 767 | 350 | 350 | 15 | 51 | 1,533 | ||||||||||||||||||||||||||||||||
| Operating Profit (e) | $ | 2,544 | $ | 1,607 | $ | 1,008 | $ | 201 | $ | 14 | $ | 5,374 | ||||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||||||||||||||
| Sales (a) | $ | 7,478 | $ | 4,193 | $ | 3,194 | $ | 1,116 | $ | 626 | $ | 16,607 | ||||||||||||||||||||||||||
| Variable Costs (b) | 2,819 | 1,454 | 1,551 | 421 | 226 | 6,471 | ||||||||||||||||||||||||||||||||
| Fixed Costs and other (c) | 1,572 | 909 | 372 | 475 | 351 | 3,679 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization (d) | 741 | 328 | 330 | 16 | 48 | 1,463 | ||||||||||||||||||||||||||||||||
| Operating Profit (e) | $ | 2,346 | $ | 1,502 | $ | 941 | $ | 204 | $ | 1 | $ | 4,994 |
(a)Sales reflect external sales only. Intersegment sales from Engineering to the industrial gases segments were $639 million and $619 million for the quarters ended June 30, 2026 and 2025, respectively, and $1,212 million and $1,220 million for the six months ended June 30, 2026 and 2025, respectively. Intersegment sales from Helium were $123 million and $107 million for the quarters ended June 30, 2026 and 2025, respectively, and $220 million and $219 million for the six months ended June 30, 2026 and 2025, respectively.
(b)Variable costs represent the variable portion of cost of sales, exclusive of depreciation and amortization.
(c)Fixed costs and other represent the fixed portion of cost of sales (exclusive of depreciation and amortization), selling, general and administrative, research and development and other income (expenses) - net.
(d)Refer to the reconciliation of depreciation and amortization to consolidated results below.
(e)Refer to the reconciliation of operating profit to consolidated results below.
Reconciliations to Consolidated Results
Depreciation and Amortization
The table below reconciles total depreciation and amortization disclosed in the table above to consolidated depreciation and amortization as reflected on our consolidated statement of income:
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Total segment depreciation and amortization | $ | 773 | $ | 744 | $ | 1,533 | $ | 1,463 | ||||||||||||||||||
| Purchase accounting impacts - Linde AG (a) | 190 | 198 | 381 | 389 | ||||||||||||||||||||||
| Total depreciation and amortization | $ | 963 | $ | 942 | $ | 1,914 | $ | 1,852 | ||||||||||||||||||
Income Before Income Taxes and Equity Investments
The table below reconciles total operating profit disclosed in the table above to consolidated income before income taxes and equity investments as reflected on our consolidated statement of income:
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (Millions of dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Total segment operating profit | $ | 2,744 | $ | 2,556 | $ | 5,374 | $ | 4,994 | ||||||||||||||||||
| Cost reduction program and other charges | — | — | — | 55 | ||||||||||||||||||||||
| Purchase accounting impacts - Linde AG (a) | 190 | 202 | 381 | 401 | ||||||||||||||||||||||
| Total 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) | ||||||||||||||||||||||
| Total consolidated income before income taxes and equity investments | $ | 2,546 | $ | 2,346 | $ | 4,977 | $ | 4,526 |
(a)To adjust for purchase accounting impacts related to the merger.
10. Equity
A summary of the changes in total equity for the quarters and six months ended June 30, 2026 and 2025 is provided below:
| Quarter Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (Millions of dollars) | Linde plc Shareholders’ Equity | Noncontrolling Interests | Total Equity | Linde plc Shareholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 38,566 | $ | 1,513 | $ | 40,079 | $ | 38,032 | $ | 1,418 | $ | 39,450 | |||||||||||||||||||||||
| Net income (a) | 1,928 | 44 | 1,972 | 1,766 | 40 | 1,806 | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 221 | 7 | 228 | 518 | 23 | 541 | |||||||||||||||||||||||||||||
| Noncontrolling interests: | |||||||||||||||||||||||||||||||||||
| Additions (reductions) (b) | (25) | (11) | (36) | (4) | 18 | 14 | |||||||||||||||||||||||||||||
| Dividends and other capital changes | — | (17) | (17) | — | (41) | (41) | |||||||||||||||||||||||||||||
| Dividends to Linde plc ordinary shareholders ($1.60 per share in 2026 and $1.50 per share in 2025) | (738) | — | (738) | (704) | — | (704) | |||||||||||||||||||||||||||||
| Issuances of ordinary shares: | |||||||||||||||||||||||||||||||||||
| For employee savings and incentive plans | (17) | — | (17) | (25) | — | (25) | |||||||||||||||||||||||||||||
| Purchases of ordinary shares | (873) | — | (873) | (1,114) | — | (1,114) | |||||||||||||||||||||||||||||
| Share-based compensation | 19 | — | 19 | 46 | — | 46 | |||||||||||||||||||||||||||||
| Balance, end of period | $ | 39,081 | $ | 1,536 | $ | 40,617 | $ | 38,515 | $ | 1,458 | $ | 39,973 | |||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (Millions of dollars) | Linde plc Shareholders’ Equity | Noncontrolling Interests | Total Equity | Linde plc Shareholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 38,245 | $ | 1,483 | $ | 39,728 | $ | 38,092 | $ | 1,383 | $ | 39,475 | |||||||||||||||||||||||
| Net income (a) | 3,785 | 87 | 3,872 | 3,439 | 74 | 3,513 | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 307 | — | 307 | 644 | 28 | 672 | |||||||||||||||||||||||||||||
| Noncontrolling interests: | |||||||||||||||||||||||||||||||||||
| Additions (reductions) (b) | (25) | (11) | (36) | (4) | 18 | 14 | |||||||||||||||||||||||||||||
| Dividends and other capital changes | — | (23) | (23) | — | (45) | (45) | |||||||||||||||||||||||||||||
| Dividends to Linde plc ordinary shareholders ($3.20 per share in 2026 and $3.00 per share in 2025) | (1,479) | — | (1,479) | (1,412) | — | (1,412) | |||||||||||||||||||||||||||||
| Issuances of ordinary shares: | |||||||||||||||||||||||||||||||||||
| For employee savings and incentive plans | (148) | — | (148) | (119) | — | (119) | |||||||||||||||||||||||||||||
| Purchases of ordinary shares | (1,664) | — | (1,664) | (2,213) | — | (2,213) | |||||||||||||||||||||||||||||
| Share-based compensation | 60 | — | 60 | 88 | — | 88 | |||||||||||||||||||||||||||||
| Balance, end of period | $ | 39,081 | $ | 1,536 | $ | 40,617 | $ | 38,515 | $ | 1,458 | $ | 39,973 |
(a)Net income for noncontrolling interests excludes net income related to redeemable noncontrolling interests which is not significant for the quarters and six months ended June 30, 2026 and 2025 and which is not part of total equity.
(b)Additions (reductions) for noncontrolling interests for the quarter and six months ended June 30, 2026 include the impact from purchasing additional ownership interests in joint ventures with operations in APAC and the Americas.
The components of Accumulated other comprehensive income (loss) are as follows:
| (Millions of dollars) | June 30, 2026 | December 31, 2025 | |||||||||
| Cumulative translation adjustment - net of taxes: | |||||||||||
| Americas | $ | (3,738) | $ | (3,892) | |||||||
| EMEA | (936) | (958) | |||||||||
| APAC | (1,218) | (1,170) | |||||||||
| Engineering | 111 | 283 | |||||||||
| Other | (271) | (616) | |||||||||
| (6,052) | (6,353) | ||||||||||
| Derivatives - net of taxes | 16 | 16 | |||||||||
| Pension / OPEB (net of tax obligations of $105 million and $102 million at June 30, 2026 and December 31, 2025, respectively) | 110 | 104 | |||||||||
| Total cumulative translation adjustment - net of taxes | $ | (5,926) | $ | (6,233) |
11. Revenue Recognition
Revenue is accounted for in accordance with ASC 606. Revenue is recognized as control of goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled to receive in exchange for the goods or services.
Contracts with Customers
Linde serves a diverse group of industries including healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics.
Industrial Gases
Within each of the company’s geographic segments for industrial gases, there are three basic distribution methods: (i) on-site or tonnage; (ii) merchant or bulk liquid; and (iii) packaged or cylinder gases. The distribution method used by Linde to supply a customer is determined by many factors, including the customer’s volume requirements and location. The distribution method generally determines the contract terms with the customer and, accordingly, the revenue recognition accounting practices. Linde's primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (hydrogen, helium, carbon dioxide, carbon monoxide, electronic gases, specialty gases, acetylene). These products are generally sold through one of the three distribution methods.
Following is a description of each of the three industrial gases distribution methods and the respective revenue recognition policies:
On-site. Customers that require the largest volumes of product and that have a relatively constant demand pattern are supplied by cryogenic and process gas on-site plants. Linde constructs plants on or adjacent to these customers’ sites and supplies the product directly to customers by pipeline. Where there are large concentrations of customers, a single pipeline may be connected to several plants and customers. On-site product supply contracts generally are total requirement contracts with terms typically ranging from 10-20 years and contain minimum purchase requirements and price escalation provisions. Many of the cryogenic on-site plants also produce liquid products for the merchant market. Therefore, plants are typically not dedicated to a single customer. Additionally, Linde is responsible for the design, construction, operations and maintenance of the plants and our customers typically have no involvement in these activities. Advanced air separation processes also allow on-site delivery to customers with smaller volume requirements.
The company’s performance obligations related to on-site customers are satisfied over time as customers receive and obtain control of the product. Linde has elected to apply the practical expedient for measuring progress towards the completion of a performance obligation and recognizes revenue as the company has the right to invoice each customer, which generally corresponds with product delivery. Accordingly, revenue is recognized when product is delivered to the customer and the company has the right to invoice the customer in accordance with the contract terms. Consideration in these contracts is
generally based on pricing which fluctuates with various price indices. Variable components of consideration exist within on-site contracts but are considered constrained.
Merchant. Merchant deliveries generally are made from Linde's plants by tanker trucks to storage containers at the customer's site. Due to the relatively high distribution cost, merchant oxygen and nitrogen generally have a relatively small distribution radius from the plants at which they are produced. Merchant argon, hydrogen and helium can be shipped much longer distances. The customer agreements used in the merchant business are usually three- to seven-year supply agreements based on the requirements of the customer. These contracts generally do not contain minimum purchase requirements or volume commitments.
The company’s performance obligations related to merchant customers are generally satisfied at a point in time as the customers receive and obtain control of the product. Revenue is recognized when product is delivered to the customer and the company has the right to invoice the customer in accordance with the contract terms.
Packaged Gases. Customers requiring small volumes are supplied products in containers called cylinders, under medium to high pressure. Linde distributes merchant gases from its production plants to company-owned cylinder filling plants where cylinders are then filled for distribution to customers. Cylinders may be delivered to the customer’s site or picked up by the customer at a packaging facility or retail store. Linde invoices the customer for the industrial gases and the use of the cylinder container(s). The company also sells hardgoods and welding equipment purchased from independent manufacturers. Packaged gases are generally sold under one- to three-year supply contracts and purchase orders and do not contain minimum purchase requirements or volume commitments.
The company’s performance obligations related to packaged gases are satisfied at a point in time. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up product from a packaged gas facility or retail store, and the company has the right to payment from the customer in accordance with the contract terms.
Engineering
The company designs and manufactures equipment for air separation and other industrial gas applications manufactured specifically for end customers. Sale of equipment contracts are generally comprised of a single performance obligation. Revenue from sale of equipment is generally recognized over time as Linde has an enforceable right to payment for performance completed to date and performance does not create an asset with alternative use. For contracts recognized over time, revenue is recognized primarily using a cost incurred input method. Costs incurred to date relative to total estimated costs at completion are used to measure progress toward satisfying performance obligations. Costs incurred include material, labor, and overhead costs and represent work contributing and proportionate to the transfer of control to the customer. Changes to cost estimates and contract modifications are typically accounted for as part of the existing contract and are recognized as cumulative adjustments for the inception-to-date effect of such change.
Contract Assets and Liabilities
Contract assets and liabilities result from differences in timing of revenue recognition and customer invoicing. Contract assets primarily relate to sale of equipment contracts for which revenue is recognized over time. The balance represents unbilled revenue which occurs when revenue recognized under the measure of progress exceeds amounts invoiced to customers. Customer invoices may be based on the passage of time, the achievement of certain contractual milestones or a combination of both criteria. Contract liabilities include advance payments or right to consideration prior to performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied under contract terms. Linde has contract assets of $523 million at June 30, 2026 (current contract assets of $432 million and $91 million within other long-term assets in the condensed consolidated balance sheet). Total contract assets were $336 million at December 31, 2025 (current contract assets of $269 million and $67 million within other long-term assets in the condensed consolidated balance sheet). Total contract liabilities are $2,413 million at June 30, 2026 (current contract liabilities of $1,128 million and $1,285 million within other long-term liabilities in the condensed consolidated balance sheet). Total contract liabilities were $2,515 million at December 31, 2025 (current contract liabilities of $1,231 million and $1,284 million within other long-term liabilities in the condensed consolidated balance sheet). Revenue recognized for the six months ended June 30, 2026 that was included in the contract liability at December 31, 2025 was $524 million. Contract assets and liabilities primarily relate to the Engineering business and customer prepayments for certain on-site supply agreements.
Payment Terms and Other
Linde generally receives payment after performance obligations are satisfied, and customer prepayments are not typical for the industrial gases business. Payment terms vary based on the country where sales originate and local customary payment practices. Linde does not typically offer extended financing outside of customary payment terms. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and are not included in sales within the consolidated statement of income. Additionally,
sales returns and allowances are not a normal practice in the industry and are not significant.
Disaggregated Revenue Information
As described above and in Note 19 to Linde plc's 2025 Annual Report on Form 10-K, the company manages its industrial gases business on a geographic basis, while the Engineering and Other businesses are generally managed on a global basis. Furthermore, the company believes that reporting sales by distribution method by reportable geographic segment best illustrates the nature, timing, type of customer, and contract terms for its revenues, including terms and pricing.
The following tables show sales by distribution method at the consolidated level and for each reportable segment and Other for the quarters and six months ended June 30, 2026 and 2025.
| (Millions of dollars) | Quarter Ended June 30, | ||||||||||||||||||||||
| Sales | Americas | EMEA | APAC | Engineering | Other | Total | % | ||||||||||||||||
| 2026 | |||||||||||||||||||||||
| Merchant | $ | 1,352 | $ | 763 | $ | 616 | $ | — | $ | 53 | $ | 2,784 | 30 | % | |||||||||
| On-Site | 946 | 480 | 764 | — | — | 2,190 | 24 | % | |||||||||||||||
| Packaged Gas | 1,708 | 1,053 | 402 | — | 5 | 3,168 | 34 | % | |||||||||||||||
| Other | 77 | 7 | 88 | 625 | 350 | 1,147 | 12 | % | |||||||||||||||
| Total | $ | 4,083 | $ | 2,303 | $ | 1,870 | $ | 625 | $ | 408 | $ | 9,289 | 100 | % | |||||||||
| 2025 | |||||||||||||||||||||||
| Merchant | $ | 1,260 | $ | 726 | $ | 558 | $ | — | $ | 51 | $ | 2,595 | 31 | % | |||||||||
| On-Site | 878 | 426 | 698 | — | — | 2,002 | 24 | % | |||||||||||||||
| Packaged Gas | 1,617 | 1,002 | 350 | — | 7 | 2,976 | 35 | % | |||||||||||||||
| Other | 57 | 8 | 49 | 551 | 257 | 922 | 10 | % | |||||||||||||||
| Total | $ | 3,812 | $ | 2,162 | $ | 1,655 | $ | 551 | $ | 315 | $ | 8,495 | 100 | % |
| (Millions of dollars) | Six Months Ended June 30, | ||||||||||||||||||||||
| Sales | Americas | EMEA | APAC | Engineering | Other | Total | % | ||||||||||||||||
| 2026 | |||||||||||||||||||||||
| Merchant | $ | 2,648 | $ | 1,482 | $ | 1,150 | $ | — | $ | 92 | $ | 5,372 | 30 | % | |||||||||
| On-Site | 1,954 | 905 | 1,489 | — | — | 4,348 | 24 | % | |||||||||||||||
| Packaged Gas | 3,357 | 2,072 | 765 | — | 11 | 6,205 | 34 | % | |||||||||||||||
| Other | 149 | 15 | 167 | 1,142 | 672 | 2,145 | 12 | % | |||||||||||||||
| Total | $ | 8,108 | $ | 4,474 | $ | 3,571 | $ | 1,142 | $ | 775 | $ | 18,070 | 100 | % | |||||||||
| 2025 | |||||||||||||||||||||||
| Merchant | $ | 2,410 | $ | 1,397 | $ | 1,067 | $ | — | $ | 98 | $ | 4,972 | 30 | % | |||||||||
| On-Site | 1,766 | 852 | 1,365 | — | — | 3,983 | 24 | % | |||||||||||||||
| Packaged Gas | 3,189 | 1,928 | 666 | — | 14 | 5,797 | 35 | % | |||||||||||||||
| Other | 113 | 16 | 96 | 1,116 | 514 | 1,855 | 11 | % | |||||||||||||||
| Total | $ | 7,478 | $ | 4,193 | $ | 3,194 | $ | 1,116 | $ | 626 | $ | 16,607 | 100 | % |
Remaining Performance Obligations
As described above, Linde's contracts with on-site customers are under long-term supply arrangements which generally require the customer to purchase their requirements from Linde and also have minimum purchase requirements. Additionally, plant sales from the Linde Engineering business are primarily contracted on a fixed price basis. As of June 30, 2026, the company estimates the consideration related to future minimum purchase requirements and plant sales was approximately $64 billion. This amount excludes all on-site sales above minimum purchase requirements, which can be significant depending on customer needs. In the future, actual amounts will be different due to impacts from several factors, many of which are beyond the company’s control including, but not limited to, timing of newly signed, terminated and renewed contracts, inflationary price escalations, currency exchange rates, and pass-through costs related to natural gas and electricity. The actual duration of long-term supply contracts ranges up to thirty years. The company estimates that approximately half of the revenue related to minimum purchase requirements will be earned in the next six years and the remaining thereafter.