Specialty Chemicals Major Linde Shares Are Surging Today: What's Going On?

Linde PLC LIN shares are surging today after the company reported fourth-quarter FY23 results.

Sales rose 5% Y/Y to $8.30 billion, underlying sales up 4% Y/Y, beating the consensus of $8.08 billion. 

Americas sales rose 5% Y/Y to $3.58 billion, APAC (Asia Pacific) sales increased 5% Y/Y to $1.64 billion and EMEA (Europe, Middle East & Africa) sales was up 4% Y/Y to $2.1 billion in the quarter.

Adjusted operating profit increased 14% Y/Y to $2.3 billion, with margin expanding 210 basis points Y/Y to 27.4%, led by increased price and continued productivity initiatives across all segments.

Adjusted EPS was $3.59, beating the consensus of $3.49.

As of FY23, Linde’s total project backlog stood at $8.5 billion. The company returned $6.4 billion to shareholders through dividends and share repurchases in the year, including $1.6 billion in the quarter.

Operating cash flow stood at $2.73 billion (+30% Y/Y), with capital expenditures of $1.15 billion and free cash flow of $1.58 billion in the quarter.

Outlook: For the first-quarter of 2024, the company expects adjusted EPS of $3.58 – $3.68 (up 6%-9% ex. FX), vs. consensus of $3.73.

Linde projects FY24 adjusted EPS of $15.25 – $15.65 (+8% to +11% Y/Y ex. FX) vs. street view of $15.43.

Sanjiv Lamba, Chief Executive Officer said, “Looking ahead, the geopolitical and macro environment remain uncertain. However, we are well positioned to win more than our fair share of high-quality projects and again create shareholder value by leveraging all of the opportunities that lie ahead.”

Recently, Linde inked two new long-term power purchase deals for renewable energy supply in China.

Also, the Specialty Chemicals company expanded its existing long-term agreement to supply industrial gases with Steel Authority of India Limited (SAIL) for an investment of about $60 million.

Price Action: LIN shares are up 4.14% at $417.20 on the last check Tuesday.

Photo via Wikimedia Commons