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Linde Beats On Sales And Op Profit, Guides For 18%-32% Increase In FY24 CapEx

CAPITAL GOODS


  • Q4 Sales of $8.3bn rose 5% YoY to beat consensus of $8.1bn while Op Profit of USD 2.3bn saw a more substantial 14% YoY increase to come in slightly ahead of consensus USD 2.2bn.
  • Q4 OCF saw a 30% YoY increase to USD 2.7bn (short of the USD 2.9bn BBG consensus) with FY23 OCF +5% to $9.3bn. We calculate adj-EBITDA leverage slightly higher at 1.21x from 1.15x at FY22.
  • FY24 guidance sees EPS of USD 15.25-15.65 from USD 14.20 this year (constant FX) with CapEx in the range of USD 4.5-5bn from USD 3.8bn this year.
  • Linde spreads are pretty muted on the release – biggest move is in their EUR 28s which are 2bps wider. Equity +1.8%.

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