Linde Plc.

Strong Q2 performance + record backlog (good): Linde reported Q2 sales of $9.3B (+9% YoY, +6% QoQ) and EPS of $4.50 (+10% YoY). Management highlighted near double-digit growth in both sales and EPS, plus an increase in sale-of-gas backlog by $1B to a record $8.1B. Electronics added a new US electronics win to support advanced-node fab expansion.

Margin disappointment (bad): Operating margins fell—down ~60 bps YoY, or ~30 bps excluding cost pass-through. The key culprit is Americas, especially US healthcare (Lincare) headwinds; management also noted dilution from higher US hardgoods sales (seen as a *potentially positive* sign of manufacturing recovery) and APAC margin erosion tied to lower-margin electronics equipment sales. Management is not satisfied with margins, but expects sequential improvement into Q3 as actions take effect.

Guidance modestly raised at the low end, but assumptions unchanged (surprising/neutral): - Q3 EPS guidance: $4.45–$4.55 (+6% to +8% YoY), assuming no FX impact vs prior year and ~1% FX headwind sequentially. - Full-year EPS guidance: $17.70–$17.90 (+8% to +9% YoY excluding a 1% FX tailwind assumption). Raised the bottom end by $0.10, while top unchanged—management said they’re not yet building in stronger base volume trends; the back-half volume assumption remains the same.