Financial Analysis

"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 companys consolidated financial position or liquidity; however, it is possible that the final outcomes could have a significant impact on the companys 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 aga …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

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 de …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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.

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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. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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 companys 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 customers 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 p …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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 companys 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 …

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"Summary of Significant Accounting Policies Linde plc (""Linde"" or ""the company"") is an incorporated public limited company formed under the laws of Ireland. Lindes registered office is located at Ten Earlsfort Terrace, Dublin 2, D02 T380 Ireland. Lindes 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 companys significant accounting policies during 2026. Reclassifications Certain prior periods' amounts have been reclassified to conform to the current years 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 …

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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 chan …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing