Linde Clocks 13% Sales Growth in Q1, Tops Consensus

Linde PLC LIN reported first-quarter FY22 sales growth of 13.4% year-over-year to $8.21 billion, beating the consensus of $7.61 billion. Underlying sales increased 9%, including 6% price attainment and 3% higher volumes.
Sales by segments: Americas $3.24 billion (+14.1% Y/Y), APAC $1.6 billion (+12% Y/Y), EMEA $2.2 billion (+19% Y/Y), Engineering $728 million (+8% Y/Y), and Others $492 million (flat).
Adjusted operating profit increased by 12.9% Y/Y to $1.91 billion.
Adjusted EPS improved to $2.93 from $2.49 in 1Q21, beating the consensus of $2.57.
Linde generated operating cash flow in Q1 of $2 billion, a decrease of 5.2% Y/Y. Free cash flow was 1.35 billion.
Adjusted EBITDA was $2.66 billion (+9.2% Y/Y) and the margin contracted by 123 bps to 32.4%.
2Q22 Outlook: Linde expects Adjusted EPS of $2.90 - $3.00 (consensus $2.77), up 7% - 11% Y/Y.
FY22 Outlook: Linde expects adjusted EPS to grow 9%-11% Y/Y to $11.65 - $11.90 (prior $11.55-$11.85), versus the consensus of $11.02. It sees capital expenditures of $3 billion-$3.4 billion.
Price Action: LIN shares are trading higher by 2.71% at $315.36 on the last check Thursday.

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