Shares of industrial gas giant Linde plc declined 2.5% to close at $448.24 on Friday, following the release of its fourth-quarter financial results and forward-looking projections. The stock traded between $445.00 and $461.65 with volume of approximately 3.1 million shares.
Financial Results and Outlook
The company reported quarterly sales of $8.76 billion, a 6% year-over-year increase, with adjusted earnings per share reaching $4.20. However, investor focus centered on management's 2026 adjusted EPS forecast of $17.40 to $17.90, which fell short of analyst expectations. For the full year 2025, Linde returned $7.4 billion to shareholders through dividends and buybacks, including $1.4 billion in share repurchases during the fourth quarter.
Analyst Actions Diverge
Wall Street firms issued conflicting recommendations in response to the report. JPMorgan downgraded Linde to Neutral from Overweight, maintaining a $455 price target, citing valuation concerns and stagnant sequential pricing. Conversely, Morgan Stanley increased its price target to $530 from $495, and UBS raised its target to $550 from $500, with both firms maintaining positive ratings. The divergent views highlight uncertainty around the company's pricing power and industrial demand.
During the earnings call, CEO Sanjiv Lamba referenced "unprecedented activity" in 2025 driven by artificial intelligence and digital infrastructure investments, while noting continued challenges in traditional industrial markets. The company plans capital expenditures between $5.0 and $5.5 billion for 2026, supported by a $10.0 billion project pipeline.
Market participants will monitor upcoming presentations by Linde management at the Citi Global Industrial Tech and Mobility Conference on February 17 and the Barclays Industrial Select Conference on February 18 for further insights into the company's strategic direction amid macroeconomic uncertainties.