LIN · 10-Q · 2026Q3 · Full report

Operating Margin Drivers

LINDE PLC · 2026-10-29 · Importance 36 · Surprise 32

GAAP operating profit fell $217 million, or 9%, to $2,150 million in third-quarter 2026, and operating margin declined to 22.9% from 27.5%. Cost reduction program charges and cost inflation drove the quarterly decline, partially offset by higher pricing and productivity initiatives. On an adjusted basis, operating profit rose 8% to $2,763 million and adjusted operating margin was 29.4%, versus 29.7% a year earlier. Nine-month adjusted operating profit increased 8% to $8,137 million, with higher pricing and productivity partly offset by cost inflation.

Key facts

• LINDE PLC operating profit decreased $217 million, or 9%, in Q3 2026 and increased $238 million, or 3%, in the nine months ended September 30, 2026. source
• Adjusted LINDE PLC operating profit increased $205 million, or 8%, in Q3 2026 and $585 million, or 8%, in the nine months ended September 30, 2026. source
• LINDE PLC SG&A was 9.5% of sales in Q3 2026 and 9.7% in the nine months ended September 30, 2026, versus 10.4% and 10.1% in the respective 2025 periods. source
• LINDE PLC Other operating profit decreased $20 million, or 32%, in Q3 2026 and $73 million, or 29%, year-to-date, primarily due to U.S. homecare declines partially offset by LAMT growth. source
• LINDE PLC SG&A increased $123 million, or 5%, in the nine months ended September 30, 2026, including a $57 million increase from currency. source
• Adjusted LINDE PLC depreciation and amortization increased $18 million, or 2%, in Q3 2026, including a $6 million currency increase, and $88 million, or 4%, year-to-date, including a $49 million currency increase. source
• LINDE PLC depreciation and amortization expense increased $4 million, or 0%, in Q3 2026 and $66 million, or 2%, in the nine months ended September 30, 2026. source
• Excluding currency, LINDE PLC underlying depreciation and amortization increases were largely driven by new project start-ups. source