Linde (LIN) 2 May 242024 Q1 Earnings call transcript

Ladies and gentlemen, good day, and thank you for standing by. Welcome to the Linde's First Quarter 2024 Earnings Call and Webcast. [Operator Instructions] And please be advised that today's conference is being recorded. [Operator Instructions]

And I would now like to hand the conference over to Mr. Investor of Head Pelaez, Relations. Juan sir. Please go ahead,

on statement in I'm Thanks Abby, The X available and our are XXXX our quarter am Executive Pelaez, which Q&A. Relations. Officer; financial linde.com up everyone. Lamba, that White, the update website Page remarks, by the and the of Today's note outlook, opening thank then and good Juan we and made will performance presentation numbers wrap And disclosure section. Please Investor some of read of and it Financial you, and for Head slides an statements this on all Matt presentation. Linde's during first Chief on applies Investors the provide give the the after I Sanjiv morning Sanjiv attending forward-looking in webcast. adjusted reconciliations morning, joined Chief quarter first to Officer. the Matt call appendix earnings are this will materials at teleconference. of will

turn me Sanjiv. over call Let to the now

very to morning, margins XX.X%. Thanks, EPS a though even across These $X.XX represent X%. regions. delivered ROC stagnant economic good quarter operating and everyone. conditions most team The of XX%. record levels grew another XX.X% Juan, and solid increased Linde despite all reached volumes declined

environment, to manufacturing seen of base negative declining are in row the we a the last few stagnant have quarters, Over volumes, which EMEA. tracking especially

do While grow. we there volumes know is more continue to to we must local track production, industrial

have acquisitions, opportunities downturns. typically hard years solid technology the growth for as portfolio, pricing few ahead. network a also remains on we're and to backlog, Add we like growth of and other in density, economic areas our equipment on-site, goods, while for trim pipeline next that, the important even contracted the to certain which like small suffer lever applications we grow us, So an investments, including focused

start on color has have by their stable with which year-on-year. markets, quite some find end Let markets, can provide the the care additional you resiliency time. key I'll opportunities which trends me Health been you with X. consumer-related and after Slide time proven on

While we offerings been investment home sales EMEA, the the continue Americas growing, offset oxygen have of partially and rationalization which sleep, care don't demand by some see in criteria. to respiratory equipment and meet

Food driven by freezing, beverage and This mostly and beverage carbonation aquaculture. grew at nicely is X%. food

to with We our continue offset much Even the trends, associated opportunities to see other. ahead. talk good is see up Electronics X%, foods. excited beverage opportunities quality with we food and about sustainable which don't high growth and I'm each mostly more business, key though two

the see mostly one results growth we which in have from fairly hand, good to delivered APAC. continue steady startups, project On

year. to were up have and largely bottomed with volumes On where lower From the the the in growth fabs I half recovery part by softer. some growing. was other see packaged again trend offset we'll out current that expectations optimism I as suggests merchant production The levels in stand, this hand, volumes that second pick this of has of

data of be is will and this chips AI baked not the for by our time. at new centers. Some driven this guidance demand growing into This

industrial large-scale exploring Northern plant Steel existing world's up to long-term reduce steel carbon low-carbon At in as production EMEA for but footprint. and agreement are are due EAFs pricing green has ways customers contracts. protected volume we the flat end by to time, of offset account Mining reduction Metals industrial backlog well project the Green pick the to with new as electric weaker gases or Linde first arc a for Sweden. as by volume declines. are for activity seeing same recently strong Turning supply to markets. their furnaces increases mills signed opportunities majority steel steel industrial HX

supply In with the relationship ASUs [ Linde, our X by decaptivating like existing efficiency. increasing in addition, their supply their into Bao ] expanded have for network Tier China and producers reliability

We of from up decarbonization. Energy higher to the on petrochemical better to X%, healthy expansions low-cost year, and refining range continue driven customers mostly to projects closely we our Chemicals continue gas. Americas APAC. and decarbonization with access this today quarter U.S. outages see a to supporting volumes compared steel interest to when customers by planned and Gulf around on-site helped Coast in were work natural by and Furthermore, ran last projects. the growing spreads

paper, year-on-year. The energy split manufacturing good A challenges. has to and decline down the density when energy aerospace in pricing. gases EMEA volumes manufacturing broad-based merchant stable in clean manufacturing, is In customers merchant Brazil to end been scale and are sectors, announcement market experienced help underlying the to our variety the Manufacturing are up sector. key that opportunities. Elsewhere, due and up and electrolyzer declines our U.S., example recent volumes to slightly EMEA invest network including flat battery hydrogen is the have about manufacturing excluding industrial in of an between sales across volume and Most geopolitical grow supplied of timing of The production pulp is to X%. was a U.S. decarbonize.

Also, of of Furthermore, digit, have by as track which are trends billion clean and and for we contributing such are consumer industrial Looking some grow expected including earnings and mid-single to and food continue driven healthcare end will next continue healthy ahead, demographics such will local backlog a there to approximately $X production, demand. aerospace couple years. volumes encouraging the beverage batteries, our energy. as resilient secular markets base growth in to

of will in the near-term flat in especially midpoint, EMEA. These are industrial conditions improvement which embedded I'm expecting economic in assumptions not the discuss certain production, detail. at more However, guidance in parts Matt

when they financial positioned results. Linde to economic Overall, be this production over we be through the price do, the remain And industrial grow very actively the turn confident rebound in continue to between growth. I'll well conditions. Matt call I to as leverage volume, and now and that even will the balance manage to nimble will to levels productivity earnings walk sluggish always

results for Thanks, X% X the $X.X the timing, X% and sales from excluding last year of engineering When Slide sequentially. increased declined provides prior Sanjiv. Underlying Sales year cost quarter. remained project billion of impact pass-through X% first sequentially. over consolidated and but flat

Price growth underlying year-over-year. with X% sales continues positive to drive contribution of a

versus highly thus seen As have inflation quarter. Volumes products while fourth localized discussed year sequential the and the to in local is And small China, disinflation, most X% is price levels prior we've including some stabilized increase. evidenced deflation for are calls, in as by pricing and levels. correlated prior down

to the are backlog, production, from as While growth Sanjiv. positive base industrial from continue we negative see by volumes project down primarily mentioned

industrial $X.X care X% in In XXXX, which hard and addition, goods billion profit of is distribution basis with from approach. historical operating economics, noncore pruned on resulting in a based increased XXX we've volumes, some of Despite consistent or higher. XX.X% home offerings margin lower points

segment year offset effects can as and when taking continuing combination billion. excluding EMEA driven by we lower to net to CapEx the You and with is were overall interest. cost to count favorable partially have are $X $X.X actions levels to share lowered prior tax XX% project cost backlog to estimate billion of a a due over CapEx higher by pass-through see rate $X.XX Despite thus of lead of management. and timing. XXXX tighten increased margins EPS price XX% by year, full this, the

quarter. the more X but fourth including above slightly capital Slide important XX% to $X year, below management, OCF includes detail of flow trends. trend. on points highlight X There this last cash operating was regarding billion are

lowest our of quarter always is seasonal and incentive to timing payments. working capital QX First, due

the Second, as This more we've on of resulting in seen accounts XXXX cash recovery April, end of back track QX. statement on should as last the had March, get receivable Good outflow. Friday collection the a in unfavorable timing. us which appears weekday But by

remains free quarter. as billion issue, this continue in proven capital the execute we Despite to timing our including $X allocation healthy share repurchases flow policy, of cash

These us that long-term rates, X. during actions billion like expensive free up also issued at strong U.S. EUR with Slide X.X reinforce cash paper. to invaluable, continue guidance today. I'll term wrap debt and out Linde's steady sheet are especially attractive We dollar more flow on of balance enabling commercial times to

we're this assumes quarter, initiating $X.XX EPS a or an to range improvement excluding guidance with $X.XX economic growth Consistent quarter, to X% of the second last when headwind. no X% midpoint. the X% For at assumed FX

slightly of adjusted by no For $X.XX. range the the and full excluding We still range to year, X% or bottom we're which midpoint, updating growth our $XX.XX by a to prior prior the to economic maintaining headwind. ends FX Thus the assumes XX% top improvement. both narrowing X% guidance a $XX.XX

the range rest cautious seen assured at year we time. and until When geopolitical remain looking compound appropriate landscape, meaningful a can catalyst of any of warrant guidance an macroeconomic not we'll things control change believe to the see evidence to within our We in you at shareholder manage industrial remainder have driving to the Until continue the value. tangible we this on then, it's the recovery.

the turn to now Q&A. I'll call over

comes Duffy with Fischer [Operator Instructions] from And your first Sachs. question Goldman

seeing getting up, forward? how the around is more is, much electronics. that average? calls to Linde? whole we I what electronics in going guys could higher electronics it are question more revenue picks First but you electronics on you than leverage of you to picking lot How just bullish. is signs that market the up and believe a that do A to carries And of margin have So if know investors seem electronics, much be give the incoming leverage for

general you're an Duffy, a that view we that there electronics seeing in is on right suggesting are improvement.

we About our our -- investment of know, portfolio. electronics. XX% just -- it's in you is XX% backlog XX% of As today under about overall

out. playing All that of is

view recovery gather back is actually that AI to expect everyone we Our data that about, of the chips end by led is this talking momentum. or towards centers year,

decent to anything recovery baked up. haven't rest half. Asia, a but as see build of electronics do you're we hopefully are in some in We equally points We've we to reasonable and level aware, a the momentum of second in expect a bottoming then the seeing guidance, seen China, which into performance out, our

Great. then maybe just hydrogen guys. to for And blue you hydrogen, jump low-carbon

a out couple over put last last You that the so, market over sizing X.X the decade. years of slides or

And then how general an as progressing announcements should far Just conversations with going? sequestration finding COX the expect announced how one and sizable with that? primarily for investors update, just projects? of far that those partners is as progress you've on as as kind the OCI, again, What are

Sure.

projects, So giving let OCI. I'll me developing are energy start I what then a talk and we you by around then clean projects and specifically of about see off just broader picture

I bit. little to a projects overall, you, momentum So say see moderating clean energy I'd on

is there greater that studies seeing as being and more are FID. is studies lot projects ensure there are We diligence feasibility to a upfront in field that taken now to effort

a announcements McKinsey of that fact, made that only space has In study in done X.X%. shows this the that get

think So to let's it forward. FID, of projects down dying say, high-quality projects of high I X% moving then reflection the and is a and surfacing which some make

forecast on project and we So with, developed the moving that exactly seeing we longer. have good time, play next little to that they're bit pipeline decisions. a will pleased precision, pipeline few taking And with this to next news to The what we you working at and continue and investment looks I'm decisions that that $X be say years, those is projects, to billion forward, is us continue see are are solid the the few in are -- said pipeline a they and make albeit $XX time high-quality to that expect very past into still to healthy that going when working have alluded we pipeline enough in I'd the out we've we're in but to investment we to be go point that and around not see we billion. years, the

the COX for already with concerned, sequestration who we have are As is and ExxonMobil, our sequestration. partner far partnership as OCI contracted

some of know, As technology. best world's you the we have carbon capture

So deploy we that. will

COX that the and the OSBL condition at who outside molecule then battery ExxonMobil, the COX or limit We will it hand over to capture will to sequester. take and

our next with take will Mike question Barclays. We from Leithead

for question one me. Just

softened decided and you've frame by full out of the sort original you guide better expectations? outlook? I And quarter. you're instead thinking further but anything On year just the narrow think, the Can start bit prepared to the remarks. Obviously, of, outlook historically, a a your how you where the Matt ended and about raised range nice the to has year from

just the really Matt to share important I I with we think talk So I I'm around sets about is going a about maybe think it's to tone think how the Mike, the world around we walk little it because guidance might for are bit let the what world, you you do seeing guys just itself. and guidance. the what

start I'll very So on just a you give and quickly brief Americas.

the obviously, with U.S. important the most start market, Let's one here.

said I've those in resilient. seen it's end been know, pretty at you And markets past, remarkably we've many As levels. the high of

base negative. other year-on-year, slightly in planned QX, volumes Chemicals they U.S., Manufacturing the a digit the largely It's mid-single hand, because digit. declined flat the about up mid-single we had year. saw in Now on to Energy, last was largely outages in and year-on-year.

So were a easier. the comps little bit

lot U.S. gases, a of packaged we to pay attention this.

the sales. year-on-year, to hand, digit heard on timing you as largely year-on-year, were down supply hardgoods U.S. aerospace you leading mainly on electronics, down us other talk also of equipment demand packaged As Hard but and gas lower mid-single package about know, was due to indicators. goods, volumes industry. softer from

note; gases So QX important well. was slightly Latin as in that America hardgoods flat. however, and positive to were both sequentially

slightly Looking We're in largely refiners to demand ahead, quarter. flat happy is largely good pick pet at record to customers levels. continues hydrogen really that U.S. the positive strong kind are to and running see the the Americas The news be Gulf chem, in Coast. of up second in extremely

So that good feel stands. about where

a far trend continued pickup was As as unchanged. we And largely QX, of over is last package merchant little the in lag volumes, year-on-year. quarters, saw EMEA and but concerned, on-site to a in the and negative bit few

we volumes there. see to expect We industrial as customer flatten developments

they a hold for comps year-on-year longer these to EMEA. going If So look negative bit little we'd comps easier. no levels, volumes might see actually being forward,

However, no suggest in change trend catalyst this significant that would yet. a just

in year as Chemicals almost negative, were XX%, X% under concerned, was carefully. that X%. obviously, you of we been pricing. to just a of moderated up, of then not talking QX, up, XX%, about offset we'll full I but know output and very just exports say, a of steel all steel expectations is there's let range first, far for China this China down that, talk give as a for by lot interest of APAC, about Asia. so We've to rest unexpected. me I'd Crude watching in was Well, probably while. were but if lower not Well, most

of that. really impact the really, -- didn't industry So overall impact get major a out

to were players to in some traditional tend news; and good flat, Tier shakeout. are however, There were the benefit that Manufacturing, up. X%. there shakeout that from EV output is The manufacturing sectors largely industry we was select manufacturing a up negative. Automotive X who up serve continue shipments were sectors within XX%.

You've story. the heard

You up about XX%. about Battery it. solar read

sectors these the traditional likely to again, expected year, soft. So to of for rest sectors sustain manufacturing the remain

for this about were said is Semi overall, saw will support round of self-sufficiency for market China fund up I is going probably which growth -- expect, earlier, push to a mid-single is well, were Electronics, electronics some I XX%, And let's QX. the moment. the to above in decent see be and pretty big outputs single-digit in growth. good. mid- expectation high up But our say, sales third we XX%.

X% China sales. reminder, about a our As is of

we've what markets before, XX% as i.e., well. of call is fees business end As fixed it's contracts resilient we in course, said with customer with supporting and our Tier about of X locked that on-site defensive,

China. So the story of that's

up there, growth backlogs slightly, are over volumes Asia, of around chemicals. particularly Rest contributing to

our bit to line the the rest quarter expectations I that elections, of in see a will saw the As get in year. expected, back we little expect that for India ongoing of but the due slowdown with

in and what a seeing into we're talk marketplace guidance, bit about to the that want the guidance taking little Matt? You

Sure.

approach for how really we've from with approaching seeing is than the different in how really we start X guide the last no I'll Mike, now. it we X think, to economy, when now -- from say the means clarify, no what I it years. been to improvement So And we're

I'd last some prepared to of in even declining say, it's regions. couple stagnant in so you And go been the months, we mentioned back as remarks, when in the

and of So held the year. for the remainder we've updated that for that

in the second comps mentioned, like half the baseline. easier, the get so though, year-over-year from even Sanjiv XXXX So just

just So not that's positive it and moves may how We're numbers even thinking current it. sequentially. about softer thinking status from that a about given forward more though demonstrate it we're baseline, the how

it. that's So how we applied

what just now, mentioned, time. ran we it seeing then on catalyst, were just at based And this that just we saw in, out change and no we to embedded it as

been since the months see benefit. taken obviously, actions a couple were Now hold we'll if But seeing erosion do, then continue that's And mitigate take some deteriorate. that that's something we'll if of and we've we've is improve, why from things prior that. do able ago, to our actions things to we midpoint, view to

will give time see to in this than tell. we geopolitical July right So have another how things lot a to aggressive, just We've to we going be cautious when got update play better overly see will got We've of in But and aspects will we happening. tell. ultimately we'll be out. Obviously, on. now lot time it's of a feel environment, elections

So time will tell.

We question Peter take with will our Bernstein. next Clark from

it'll don't now The ahead be comfortably question. margin to Americas surprised actually. of the think my EMEA I

You were some Americas, QX think, in the then but power with et it the in year, did last get cetera. funnies I there ahead surge,

on the very much Europe. energy strong some coming you your terms pricing the And be But your sure in X%. view like on situation, view it going in gases X%, the up think forward your particularly that, on surcharges was following it in just the structurally, EMEA, I bulk Year-on-year, off the higher-margin of in of the was if on So it sequentially, performance. up I'm because region anyway. had just EMEA then could not pricing peers.

be in highest. EMEA margins the that should said know I the past you've

there can gotten as finally we've see. you So

ongoing Now to. AI big that inflation, prepared margins of spread, in job And in managing credit where that identifying no as of and EMEA Matt is There's are gets right? many I manage variable to in. costs you factors power of particular, a together to they cost price, managing management, combination do number an we've the of good say silver opportunities taken stated remarks, and as kind pricing including that a of the number, combination his there both is a to account into know. But the on that a put us around team, work, a driver. one have to that our we've no gets basis. factors using a different come gotten a which all do We of lot bullet And effort it's management, fixed

see EMEA I to they when obviously They've now And as Peter, strive and Americas lots chasing questions obviously the recall was margins I around see you'll segments now other for So that always margins Americas. we of offer that and reach EMEA. overtaken is merged, target this, there first EMEA these sustainable. we the Americas to. would ever -- now we whether

how continue. there's together you, I us this I I'm to has see been a point. to result. obviously, can deliver team momentum assure see the work And come to that pleased that to So in that's expect gone on get really lot to And of

And actions an being pricing. view, We sustainable I it's us, for see, of expect they've and being pricing you time, in pricing around whole others. concept concerned, And product for out well. into that's where as necessarily I In As you a translated as believe may guys. laying all surcharges going different don't what that about just over expect pricing, at hear what And impact. to what Linde is see pricing. consistent fantastic having the get would I have that's in far our pricing to job really that's done product forward from surcharges

take JPMorgan. We from next will Jeffrey our question Zekauskas with

is down were X%. says X% year-on-year add projects the one that growth. of I volumes think Your And that things new about Linde

your is growth from new XX%. you negative X%? margin Or When helium EBITDA expect -- average So And base then or that really volume the growth of volume at helium secondly, amount is projects or meaningfully is below margin should we you the gross think the smaller? that your margin average at above that around or look business, business your level? is your

by Let just volume off the base me addressing start piece.

which about base a and before that So the us, focus are key globally said also projects that to pushing before, that on as reflect the percentage point about and is, levers growth said and number on volumes us I've X I've not X%, I'd say are industrial we minus for new weighted and also I'd world. where growth added down say production. across our many with growth happy those of we're priority is for you,

we've is actions feel So that as moment, which support the play in got of move at base a to number I volume there we forward.

as know, concerned, of you we've single-digit is number helium small, a our low it as far times, a of sales and said As part very is this piece.

impact business really doesn't lot of consequential. And attractive really the in recently. any I us. overall helium EBITDA it So a on the its impact is It's around not an And noise size, been margin given for way know there's us.

And we Begleiter David will next our from Bank. Deutsche question of take

on Question CapEx.

the lack now of to volume quarters, you not lowering the increasing last as few CapEx opposed here? are why it Given growth

around ensuring know no the are that And us, we David, us, across about are For different. think we environment business, CapEx seeing our productivity the actions as actually industrial we board, you we are right? right? how is taking

the So the well. have and around and industrial activity we're reduction consistent CapEx optimization, are of weak by the backlog numbers scrubbed in both the their seeing. driven world CapEx And really as teams CapEx our CapEx is kind with base that they the

of result will into we development, think I that CapEx. said then on-site, pushing on open are factored we for small get a sometimes base CapEx a necessary to actions that, that I on on pickup of pickup And number as very are our before growth we that taking. clearly, find Now a applications

ignore because it. mean just now, stand things sits doesn't As on we sheet CapEx the balance

projects But have productivity make if through, the and then constrained. are actually will And small number our itself. are giving will it We at CapEx are reflect come and we big, are high-quality sure we actually we that. we in we looking spend that investing that attention, or not them in full CapEx

We will question from Andrews take with Vincent Stanley. next Morgan our

is Haynes for on Steve This Vincent.

Just the sounds two bigger health and back in some maybe performance pie pieces also volume of your were into the some quarter maybe care -- to come It like you wanted some walked manufacturing down. the away Americas and of onetime maybe to had there, from issues aerospace. and

I you impact of would we if So should that. be X of quantify the about be balance collective those the and items kind how of the interested just what you're generally for assuming or thinking year

Yes.

mean, on, earlier goods piece. Americas, hard So I with about business, is see let's said as I talking as did I -- start the to the part basically -- related manufacturing we which was the we of the

digit. look down taking at yes, that were mid-single appropriate. goods And we very been and we've close it's hard been equipment we've So portfolio, where a rationalizing think

seeing there. So numbers in of reflection that are the we a

on we portfolio health talking criteria again, portfolio just think health again, said we continued from of have, that the meeting care, offset. more on some there, by, it demand respiratory, on that, rationalization but our of to oxygen, expect which It wasn't was really that was offset broadly. care, I addition saw In sleep, I about we the business DME being

would want intentional That's expect. business have numbers where we both the that those you were in So about we quality have And to as the of actions reflected and be. that were you seen. adjusted that those, of very concerted for

within decline timing packaged broadly was said on, as digit, difference. more earlier the gas I business, a mid-single did Manufacturing there

in will back the by the launches amount reflected saw happened, aerospace, propulsion as gases next been explain amount of that we nature. Aerospace, of referenced and the its to number we I that lumpy satellites want And X the a And the will You number that. announced in various very is that of I by launches you The volumes given aerospace customers for quarters, that that have. needed fully know, satellites. expect just just robust quarter. have of and -- be be

our with take question John Roberts will next We from Mizuho.

as that chemicals with We're lot our gases, across Or affect gas inflation that not of discussions broadly. industries, cost drive seeing shift of plant project but new not have sale a sale project Does just that customers? does decision? between any in of you

look of we you every we gas have we sale as fact project versus are sale optionality in unique will the -- between at plants. on we merit, we've that make and know, of said John, before, pursuing that

fundamental at at there. economics the look Really, profile and movement the factor look in before the project cost then that's there around gets over we we way that isn't and project marketplace the capital we So inflation, considered cost -- a really risk broadly which go. determine or

those. you I think what just meets is and the are our gas we billion of investment that see as profile. have we consider to the return we risk of are happy If criteria, backlog sale it that currently executing under $X

advantage for competitive have go it optionality market when such projects. we a as strong to feels So that we really that

question UBS. take Josh from And our will with we Spector next

on of recent a announcements I here. had question two kind of your

two books you a benefit is in now? talked your in environment could you from when something also then metals Latin investments Asia, a electrolyzer is from about if that with that's curious or now? just to quarter And So that some the frame decaptivating customer more assets around hitting the Or down America, there.

think in America particularly from differ or we're and invest subsidy those versus around regions does more America and that so how I Europe North why schemes, talking and there? about support investments Latin

let's Sure, off decaptivation. the start with

operating And my remarks, customers enhances the as you're to said benefit plants earlier into right, decaptivated is of the preferred enhances those in customers, efficiency. prepared Linde one comes I clearly, option see on bringing from of a reliability, it steel plant we've our large the assets when like So this. network, obviously,

think have for meet investments. to we decaptivation that the we opportunities when decaptivation same our would investment about criteria own for So set us,

and are where purchase are asset the met, quality good. are We the happy the of quality where these customer the to those conditions assets of

a Typically, of year, on probably in I or opportunities, go don't we ahead would see, so X or we know, dozen decaptivation a X would those. maybe

go that to but our network, you're Bao that importantly, one fits with we improving about density that the as both area our with with decided that forward in providing really is good well more referencing So optimization, that and well. how feel one network

So around they we projects are movement that, are be think around we able happen. and I selective seeing again, to decap happy be to as

that. is As opportunity were I improve density good energy in remember this and competitively there for There Brazil, around customers are was us, couple decarbonize and was right? Brazil the are for looking that renewable far different, clean Brazil it's actually priced. a You'll actually happy ground Brazil mix put who to its really on and grid has able we high as that energy the hydrogen asset has were in a very available that network factors help concerned, -- a of

energy, it's of the the one renewable or hydrogen. I called in So renewable And what hydrogen in electrolysis of price. really Brazil, constraints is development obviously, competitive

So therefore, well. work economics it actually makes the

is decarbonize. that therefore, well to it's for is piece use green competitive other attractive gas actually to high, works want reasonably that comps electrolysis, the also of and that which out that to customers quite The the to pricing, comes natural makes hydrogen

really an opportunity electrolyzer increase those happy really network for to came put our provide and on that. us to density, ground, the together we're factors very So a great with

it is and cases you've is I you timing know yes, but typically, decap on, to coming timing decap. on the -- a where respond little And typically, a timing. of I there in question new here asked there probably a now. and of ramp, in got had now. didn't a terms briefly bit plant Just starts some And

from question Citi. We will take Cunningham next Patrick our with

those Americas you This Zhang your changed changes outlook? been Patrick. in is have on Eric on the in any productivity account to and Have elaborate macro or for adjusted for Can initiatives EMEA? initiatives

said reiterate around bullet point silver to in going to in there past, both in the of We that portion Americas projects this a about XX,XXX no the is XX,XXX now projects A I'm We've just those productivity. significant run and happen EMEA. year.

fixed The projects economic around are record and are with to lot them a happening U.S., productivity a great are margins the Latin a The up, driving action America make are being projects, is actions that, taking those right? there productivity those given that sure rigor cost a EMEA that them Americas around developed. ensuring and benefits both projects There ramp to and through. hard of have we the been managing total across has that So around lot Canada organizational reflecting track got of conditions. and productivity board seeing cash come rigor from of

done think actions made and have when midpoint, focused as Matt the able obviously to very that conditions moment, we taking we are where we to you track hold being mitigation more bit EMEA. have successfully the And are sure I feel a are. know, do at on, get guidance obviously, point as we're pushing productivity to actions economic and to in are ensure costs the earlier of where are on pretty as a the I good we those Americas constantly well as the managing what that. beyond about record we see we at we just the both able today make targets

Markets. McNulty John our take BMO question Capital will with we next And from

cost versus APAC. price the address to wanted kind I of environment So in

seen or a cost deflationary perspective. we've pricing I you I the little in moderate a to least environment spoke at a from Matt, think, comments, your But decelerate. bit think

So I as think in the push we to pricing balance you about guess, and to forward? can region about help maybe think that us how

Yes, John, This is sure. Matt.

the because absolutely very, everywhere spread, in you're model it terms right. in think inflationary about very is our And We different world. So local. of always a there's environments right,

as the which managing taking we've think does the conditions. ago, talked And in some been is China, And you up when large is about seeing segment. So you I China of why undertaking. deflationary out portion several very primary quarters actions spread about APAC, a we this reason cost important. make mentioned, clearly, that And are

while flattish, seeing China, that dynamic Sanjiv like So we're in so flattish, volumes positive are are still actually also is down. said, pricing and is And regard. in that spread the costs coming

exposure. when I like the think model more pretty Australia, about In India like following think Korea, electronics a closely. place or have tend you to little places they're South a bit you

helium that digit more Korea a probably globalized product. bit of impacted Sanjiv by locations given level, South a So low it's that, is portfolio. larger a will consolidated there, But will for more as an for be mentioned, of single But be little us us. effect other helium electronics disproportionately the given than at more and there

we are managed see managed. think you I'd how hyperinflation, as the to it's Because I right hence, APAC, are think expanding. notice how to doing? lower. margin what And that. could is little APAC we is can really also little being see And are is in is still of costs how, And way management, in key margin that's what you the that's as inflation, see being managing still me, and that's but a me, could APAC. representative So The you the that's about deflation. the see the margin why is lower, And the And now, you that? a margins question and why is you is expanding really could disinflation our

next of our take America. question will Byrne We from with Bank Steve

increase pipeline greater your and I businesses. your targeted density was just acquisitions, even merchant your about curious for packaged of potentially gases

you exist comment more on geographically regulatory opportunities? might pushback? can have without You And where that

world. tuck-in a See, guides the to and a actually move acquisitions we us able to we density decision network is what good growth point, And to network are opportunity. business how tuck-in anywhere forward for in that be our your very is acquisition, density enhance see that to bring committed

U.S., to track tremendously is did, these. The do you of in that very in U.S., of that's integrate which doing as proven be large we we As we into market a would know, Southeast have looking which that to enough, argue, it's and business nexAir, good I a that. was one really is the last record successful, many attractive which

us. think look I worked across that where well example acquisition board. really for good the at a We again, has So that

the opportunities obviously looking recognize a But elsewhere we can in for Middle a tuck-in of and are acquisition also tuck-in to reasons, get doable where and that pursue parts model in not large Western regulatory explore Europe, we Asia, acquisitions. will East, in for such world, large in in mentioned. we U.S. very So is similar We are China, Eastern even They you've that Europe, Australia, in a that continuing et the cetera, acquisition opportunity. we're

And will Sison from take Michael with Fargo. our we question next Wells

is Avi for This Mike. on

project higher your your down going I quality terms wondering if if was just just year-over-year that attribute intake, on at there and you're a of to are obviously projects factors focus other play. quarter-over-quarter. that's to bit So on only taking or in

I'll then today just execution. tell $X.X back about and billion. our at you we've is intake, It's and go under order that look backlog we when the we about currently got backlog think

intake have pipeline. order a We healthy

That the just intake a billion pretty business space, engineering engineering and high-quality therefore, question take unique $X.X build on track to Linde's today on by that past. no engineering our we in position fact does order think to after gas the well on at leading Yes, I quarter. looks There's a would leader customers that. maintained of moment. much do the under continue we we've the entities projects. are have one in the sought we over is and them of like relationships processing with that But who

sale terms do for over things if that because as the of kind well look stand. feel the stand I'll underpin you intake. we here gas I order at with where I'll for about you in of And you So as intake backlog, project just good math of the

of billion. we moment make $X anywhere of to of that my at around billion gas months, reduce expectation billion under billion we'll is, $X.X the that sale is $X.X year, $X projects, course between $X this that the we backlog backlog next we to start up backlog to year $X will will into end the In And mark. about the just sure The add the between billion. billion many over of at back course so

over intake well. here will backlog state gas the of by that the again, solved as be will there shows which So in that be in, order coming engineering team

we stand feel good with we So about that. pretty where overall,

Okay.

anticipating order I'm So the later versus in on higher hearing earlier in year what year? a the you're intake is

for on are to I of projects gas are we $X -- year. being billion we period So up Does to and very of and get of already and $X.X the gas backlog, about expect developed to projects by the the therefore, $X over mark start same clarify? as the the executed, will that close of into engineering and we of backlog try sale time, the add the billion level to that back said, sale we billion intake around a order end

Yes, that's helpful.

We will question with our from Favre next Laurent take BNP.

left. question one have just I

haven't in hydrogen ASU choice million by it we place? Is any particular you And contract. on On or accident? think involved the green HX than steel wondering side, about should have steel been in green that the was we just there I the ] first was I the noticed you announcements if Europe, assuming it why supply was exposure XXX unit? means I guess, bigger further when in be by [ may those to reason

Right.

There other separation, agreed the be green having the most up projects that electrolysis guides them. one with we do And know projects that earlier are obviously, we very Obviously, larger have reliability to lot supply to steel going mindful renewable Steel, probably are and and of wanted Green happy that HX does we we about we the intensity than around that see the in a that we scope as are agreement on So development. others. of capital probably customer. very with projects. also The the was availability air Europe how you are starting to scope depends on They the are pursuing. those opportunity energy

we developing are which we tend industrial There on supply is So we based separation. choose are stick around to the gas hydrogen projects pick to -- and and include air of portion, that. that Europe steel in that in currently others,

follow-up a Matt. for And

the us? cash capital, of for you working cut-off for had can you On QX? in it outflow size QX and maybe most flow Is the $X.X date billion impact

It outflow in could repeat QX you to sorry, I'm that? related the Yes. what? was

Yes.

is that second that year-on-year if come $X.X and assume On should most to that the I the in of back just cutoff we on Friday, capital working billion related quarter? see was outflow date, the should wondering timing Good we

Yes.

with the cash exact this So of of AR the the when million. majority face flow, at the you to timing about impact. look your that $XXX some year-on-year point, And is unfavorable, was of associated

Thursday, Holy America. jurisdictions, arguably Friday even holiday a most bank can imagine, As some in in in was Good Latin you

created And of that a a bit first rebound a the the But receivables. we've timing weeks April, definitely dynamic we seen on so of when that monitored timing. few on

should back mentioned, and as get And to on so back that I expect get in would QX track. we

to the was AR you this really component a contractual customers. supply. are function was because, stuck obviously really, and to So thing the get that and all to timing need contractual terms, continue these of only they it pay are out know, as These

will final Laurence Alexander we Jefferies. with question our And take from

with see to respect in competitors? kind policy quickly? be? your And wondering merchants, the practical of the see through to the exactly projects what's Or nervousness comment into two see project get through you backlog the Could planning to of flow seeing mode project there Or how pricing flow the is philosophy, list about of the translating to will directions where you the relative like even where there of translate to just gains of reaching elections that disruptions Just share once you over in to are sense into comments? one, the a is -- kind because a uncertainty philosophy? kind clarity, backlog longer-term is your you So should X then quarters? a -- number kind in unpack to difference given for next, the difference around people what in pent-up with respect of X year. second say, we impact customers of longer there kind Do sort more political of aren't of this of fairly that are your is particularly the

a the start Laurence. Let's the it's let's reflection project -- start pipeline and on with backlog,

projects. and distinguish energy projects I'll this clean between traditional So

on I On the aren't dramatic elections activity timing. having a would lot traditional impact project say of projects, continue. see a that we

in projects day-to-day that's a just given slowdown the about I that as being people the ongoing bit have to business said and that wish logistics but saw they perspective. a I made very we think of just long-term to India, a the intentional pursue. decisions around business from elections, are being opposed just in little

impact really business traditional to elections the of don't any otherwise. we related on significant our So or see side

projects We're get very is to between pipeline backlog end earlier think there new that a And is up continuing. of on of response I won. to you've natural by and close we strong that time. will there's be to between a been I the back there happens that means that billion when year, billion the the developing $X The period $X then, trend which in of billion mentioned I healthy. only pipeline over looking now the to $X.X that expect over at conversions. is a

So there. feel it's pretty much

Obviously, said with do energy also I clean I Clean Again, some projects, highs so going see Energy, with IRA moderating, some clarity is on and and the momentum particularly XXV I elections. less to being away. see of sought so forth. on and

a is there complex know, penalty you As very and incentives in structure Europe.

That's So people make than factor handle play a try they that's at decisions. good large elections. on they before more those are get and making understand investment and sure the

your here was I not pricing question pricing. fully is think as but I As about it, concerned, how far got on I'm sure

and are out. that converting built rise only many not said made number actions of play constantly is sustaining future. it of over, what that making manage proxy into to the in a pricing. decades, we us Matt pushing price inflation. weighted into And that. that we're in tracking the place product advantage and it have that a seeing versus great times at couple happens is environment. right pricing, that around an comments correlation, are we high through our our price sure track increases It's terms philosophy for But we've correlation of those, a gives globally inflation. disinflation around over weighted we the globally We a each that we that in looking And So deflation of

And And You you given where package. that can kind hold think the that goods pricing actions reflecting plays I goods market through it of out we see we've operate. consistent for what merchant, performance the in that well. that's the and for as holds for

over Mr. like Pelaez any now conference additional would remarks. to or the Juan back turn for I closing And to

else a participating you, thank Stay you, thank safe. hope for you I have everyone day. and Abby, productive in Bye. today's call.

conference We call. today's participation. this and Ladies your for gentlemen, you concludes thank

You disconnect. may now