LIN2026 Q2Industrial

1mo

US homecare (Lincare) actions and evaluation of strategic fit

CEO cited the U.S. homecare business as the majority driver of Americas margin pressure and said portfolio pruning has not been enough to overcome headwinds.
Management said there is a series of actions underway to improve performance and expects sequential margin improvement into the third quarter.
CFO described persistent headwinds at Lincare including labor cost inflation and reimbursement environment changes contributing to penalties.
Management stated it is evaluating strategic options for the business with diligence and aims for a meaningful positive impact on the portfolio.
In Q&A, management quantified the penalty as somewhat higher than an implied $30M order of magnitude, describing it as probably ~30% higher.

More from LIN Q2 2026

Linde plc

LIN2026 Q2Industrial

1mo

Financial Performance Summary

Cost pass-through rose 1% due to higher power across segments, partially offset by lower natural gas for US hydrogen.
Margin headwinds were attributed mainly to the US homecare (Lincare) business in the Americas and APAC erosion largely linked to lower-margin equipment sales for electronic customers.
Operating margins were 29.5%, down 60 bps year over year (down ~30 bps excluding cost pass-through impact).
Operating profit rolled to an EPS of $4.50, down 10% versus prior year, driven by net income and lower share count.
Q2 sales were $9.3B, up 9% year over year and 6% sequentially.
Underlying sales increased 4% year over year (mix/cost pass-through excluded), driven by volume and price; almost half of volume growth was from project start-ups in APAC and Americas.

Linde plc

LIN2026 Q2Industrial

1mo

I fully expect sequential improvement into the third quarter.

Sanjiv Lamba

CEO, Linde plc

Context

CEO Sanjiv Lamba addressed margin underperformance and the actions underway to improve results into Q3. Lamba said the company is “not satisfied with” margin performance for the quarter and noted operating margins excluding cost pass through declined about 30 bps year over year, primarily driven by the Americas segment. He attributed much of the pressure to the U.S. homecare business and described cost inflation and policy changes. He then outlined that a series of actions are underway and explicitly expects sequential improvement into the third quarter.

Linde plc

LIN2026 Q2Industrial

1mo

Operating margin down ~30 bps ex pass through

US homecare (Lincare) drag dominates margin despite record sales/EPS

Management reported record Q2 sales and EPS growth but said operating margins excluding cost pass through declined ~30 bps year over year, with the majority driven by the U.S. homecare business (Lincare).

More from LIN Q2 2026

Linde plc

LIN2026 Q2Industrial

1mo

Financial Performance Summary

Cost pass-through rose 1% due to higher power across segments, partially offset by lower natural gas for US hydrogen.
Margin headwinds were attributed mainly to the US homecare (Lincare) business in the Americas and APAC erosion largely linked to lower-margin equipment sales for electronic customers.
Operating margins were 29.5%, down 60 bps year over year (down ~30 bps excluding cost pass-through impact).
Operating profit rolled to an EPS of $4.50, down 10% versus prior year, driven by net income and lower share count.
Q2 sales were $9.3B, up 9% year over year and 6% sequentially.
Underlying sales increased 4% year over year (mix/cost pass-through excluded), driven by volume and price; almost half of volume growth was from project start-ups in APAC and Americas.