Linde PLC (LIN) shares tumbled 5.28% in pre-market trading on Friday, as investors reacted negatively to the company's forward guidance despite a strong second-quarter earnings performance.
The industrial gases giant reported Q2 adjusted earnings per share of $4.50, up 10% year-over-year and slightly ahead of the consensus estimate of $4.48-$4.49. Revenue rose 9.3% to $9.29 billion, comfortably exceeding analyst expectations of $8.99-$9.02 billion. However, the company's full-year 2026 adjusted EPS guidance of $17.70-$17.90 disappointed the market, with the upper end falling short of the FactSet consensus of $17.91. Additionally, the Q3 EPS guidance midpoint of $4.50 came in below the Street estimate of $4.54, fueling concerns about the near-term growth trajectory.
On a positive note, Linde announced a $1 billion investment to expand a semiconductor gas production complex in Phoenix, Arizona, under a new long-term supply agreement, and its Taiwan joint venture plans to invest around $800 million for a similar project. CEO Sanjiv Lamba highlighted a healthy electronics pipeline and record sale of gas backlog of $8.1 billion. Still, the conservative guidance overshadowed these developments, driving the pre-market sell-off.
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