What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-25 compared with 2025-02-26 · 180 added, 190 removed, 1570 unchanged (19% of the section changed)

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Revenue Recognition

Subsequent Events

MANAGEMENT’S STATEMENT OF RESPONSIBILITY FOR FINANCIAL STATEMENTS

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/s/ K ELCEY E .

Chief Executive Officer Kelcey E.

Chairman and Chief Executive Officer

Chief Accounting Officer

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Divestitures, net of cash divested and asset sales 42 170 70

Other investing, net ( 90 ) — —

Net cash used for investing activities ( 5,721 ) ( 4,644 ) ( 4,670 )

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Supplemental Data

Income taxes paid $ 2,216 $ 1,955 $ 1,735

Interest paid, net of capitalized interest $ 548 $ 443 $ 451

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Dividends and other capital reductions — ( 113 ) ( 113 )

Additions (Reductions) (Note 14) — ( 56 ) ( 56 )

Additions (Reductions) $ ( 12 ) ( 12 ) ( 1 ) ( 13 )

Dividends ($ 5.10 per ordinary share)

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Share-based compensation 141 141 141

Intercompany reorganization (Note 14) ( 61,246 ) ( 15,300 ) ( 61,246 ) 15,300 —

Balance, December 31, 2023

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Share-based compensation 160 160 160

Intercompany reorganization (Note 14) ( 61,246 ) ( 15,300 ) ( 61,246 ) 15,300 —

Balance, December 31, 2024

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Financial Instruments – Linde enters into various derivative financial instruments to manage its exposure to fluctuating interest rates, currency exchange rates, commodity pricing and energy costs.

Such instruments primarily include interest-rate swap and treasury rate lock agreements;

currency-swap agreements;

forward contracts;

currency options;

and commodity-swap agreements.

Such instruments primarily include interest-rate swap and treasury rate lock agreements, forward contracts, and commodity-swap agreements.

These instruments are not entered into for trading purposes.

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When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge.

Currently, Linde designates all interest-rate and treasury rate locks as hedges for accounting purposes;

however, currency contracts are generally not designated as hedges for accounting purposes unless they are related to forecasted transactions.

Currently, Linde designates all interest-rate and treasury rate locks as hedges for accounting purposes when used.

Currency contracts are generally not designated as hedges for accounting purposes.

However, currency contracts related to certain forecasted transactions and net investments in foreign-denominated subsidiaries are designated as hedges for accounting purposes.

Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure.

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Accounting Standards Implemented in 2025

Improvements to Reportable Segments Disclosures - In November 2023, the FASB issued guidance requiring enhanced disclosure related to reportable segments.

The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The adoption of this standard includes enhanced disclosure of the company's segment reporting as it relates to the CODM's title and position, how the CODM uses the reported measure of segment's profit or loss, and the inclusion of significant expense categories and amounts that are regularly provided to the CODM and included in reported segment profit or loss (See Note 18).

Accounting Standards to be Implemented

Improvements to Income Tax Disclosures - In December 2023, the FASB issued guidance requiring enhanced disclosure related to income taxes.

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The new standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The adoption of this standard will only impact disclosures within the company's consolidated financial statements and the company is evaluating the impact this guidance will have on those disclosures.

The adoption of this standard impacted disclosures within the company's consolidated financial statements.

Linde has adopted this guidance retrospectively for fiscal year 2025 (see Note 5).

Accounting Standards to be Implemented

Disaggregation of Income Statement Expenses - In November 2024, the FASB issued guidance requiring disaggregated disclosure of income statement expenses.

The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods with fiscal years after December 15, 2027, with early adoption permitted.

The standard can be applied either prospectively after the effective date or retrospectively to any or all periods presented.

Targeted Improvements to the Accounting for Internal-Use Software - In September 2025, the FASB issued guidance that amends the existing standard for internal-use software by removing the software development project stage model and introducing a recognition and capitalization framework to reflect current software development practices.

The new standard is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted.

The standard can be applied prospectively, retrospectively, or via a modified prospective transition method.

The adoption of this standard is not expected to have a material impact on the financial statements.

ACQUISITIONS AND DIVESTITURES

Acquisitions were $ 317 million, $ 953 million and $ 110 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The fair value of purchase consideration for acquisitions, net of cash acquired was $ 412 million, $ 317 million and $ 953 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Acquisitions in 2025 primarily related to APAC and EMEA.

Acquisitions in 2024 and 2023 primarily related to the Americas.

Acquisitions in 2022 primarily related to the Americas and EMEA.

2023 Acquisition of nexAir, LLC

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The fair value of Linde’s equity interest in nexAir, LLC immediately preceding the acquisition date was $ 183 million, which resulted in a gain on remeasurement of the company’s previously held equity interest which was not material;

this gain is recorded within “Other income (expenses) – net” on the consolidated statements of income.

this gain is recorded within “Other income (expense) – net” on the consolidated statements of income.

Final Allocation of Purchase Price

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Linde's twelve months ended December 31, 2023 consolidated income statement includes sales of $ 408 million related to nexAir, LLC.

Pro forma results for 2022 have not been included as the impact of the acquisition is not material to the consolidated statements of income.

The company estimated the preliminary fair value of net assets acquired based on information available at the time of the acquisition and adjusted and finalized those estimates as additional information became available.

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Divestiture proceeds in 2024 include $ 69 million in net proceeds for a divestiture in APAC and a settlement with a supplier in the Americas.

2022 Sale of GIST business

In the third quarter of 2022, the company completed the sale of its GIST business.

Proceeds from the sale were $ 184 million, net of cash divested of $ 75 million, for net proceeds of $ 109 million.

The sale resulted in a loss of $ 21 million (benefit of $ 3 million, after tax), recorded within cost reduction program and other charges in the consolidated statement of income (see Note 3).

COST REDUCTION PROGRAM AND OTHER CHARGES

2025 Cost reduction program and other charges

Cost reduction program and other charges were $ 273 million for the year ended December 31, 2025.

Costs include global severance charges of $ 308 million, largely related to Engineering, and other benefits of $ 35 million largely related to a divestiture.

Cost reduction program and other charges for 2025 included an income tax benefit of $ 81 million.

2024 Cost reduction program and other charges

Cost reduction program and other charges were $ 145 million for the year ended December 31, 2024.

Costs include severance of $ 165 million, other cost reduction charges of $ 23 million, and a benefit of $ 43 million related to a divestiture in APAC.

Cost reduction program and other charges for 2024 included an income tax benefit of $ 35 million.

2023 Cost reduction program and other charges

Cost reduction program and other charges were $ 40 million for the year ended December 31, 2023.

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Cost reduction program and other charges for 2023 included an income tax benefit of $ 81 million primarily comprised of a benefit of $ 124 million related to the resolution of an income tax audit, partially offset by an accrual of $ 85 million for the potential settlement of an international income tax matter.

Cost reduction program and other charges were $ 1 billion ($ 896 million, after tax and noncontrolling interests) for the year ended December 31, 2022, largely attributable to the Russia-Ukraine conflict.

Russia-Ukraine Conflict

In response to the Russian invasion of Ukraine, multiple jurisdictions, including Europe and the U.S., have imposed several tranches of economic sanctions on Russia.

As a result, Linde reassessed its ability to control its Russian subsidiaries and determined that as of June 30, 2022 it can no longer exercise control over these entities.

As such, Linde deconsolidated its Russian gas and engineering business entities as of June 30, 2022 .

The deconsolidation of the company's Russian gas and engineering business entities resulted in a loss of $ 787 million ($ 730 million after tax).

The fair value of Linde’s Russian subsidiaries was determined using a probability weighted discounted cash flow model, which resulted in the recognition of a $ 407 million loss on deconsolidation when compared to the carrying value of the entities.

This loss is recorded within c ost reduction program and other charges in the consolidated statements of income.

Upon deconsolidation an investment was recorded, which represents the fair value of net assets.

The company did not receive any consideration, cash or otherwise, as part of the deconsolidation.

Linde will maintain its interest in its Russian subsidiaries and will continue to comply with sanctions and government restrictions.

The investment will be monitored for impairment in future periods.

Receivables, primarily loans receivable, with newly deconsolidated entities were reassessed for collectability resulting in a write-off of approximately $ 380 million.

Other Russia related charges

Cost reduction program and other charges related specifically to the Russia-Ukraine conflict were $ 103 million ($ 73 million after tax) for the year ended December 31, 2022, and are primarily comprised of impairments of assets which are maintained by international entities in support of the Russian business.

Merger-Related Costs and Other Charges

Merger-related costs and other charges were $ 139 million ($ 93 million, after tax) for the year ended December 31, 2022 , primarily related to severance actions within the Engineering segment recorded during the fourth quarter, the impairment of an equity method investment in the EMEA segment, and the sale of the GIST business completed on September 30, 2022 (see Note 2).

The following table provides a summary of the pre-tax charges by reportable segment for the year ended December 31, 2022:

Year Ended December 31, 2022

(millions of dollars) Russia deconsolidation charges Other Russia related charges Total Russia charges Merger-related costs and other charges Total

Americas $ — $ — $ — $ 4 $ 4

EMEA 733 ( 7 ) 726 25 751

APAC — — — 28 28

Engineering 54 110 164 41 205

Other — — — 41 41

Total $ 787 $ 103 $ 890 $ 139 $ 1,029

Cash Requirements

The total cash requirements of the c ost reduction program and other charges incurred for the year ended December 31, 2024 are expected to be immaterial.

Remaining cash requirements are expected to be paid primarily through 2025.

Cost reduction program and other charge s, net of payments in the consolidated statements of cash flows for the twelve months ended December 31, 2025 and 2024 also reflect the impact of cash payments of liabilities accrued as of December 31, 2024 and 2023, respectively.

Remaining cash requirements are expected to be paid largely through 2026.

The following table summarizes the activities related to the company's cost reduction programs and other charges during 2024 and 2025:

(millions of dollars) Severance costs Other charges Total

Balance, December 31, 2023 $ 172 $ 42 $ 214

2024 Cost reduction program and other charges 165 ( 20 ) 145

Cash payments, net ( 133 ) 19 ( 114 )

Non-cash charges — 4 4

Foreign currency translation and other ( 8 ) — ( 8 )

Balance, December 31, 2024 $ 196 $ 45 $ 241

2025 Cost reduction program and other charges 308 ( 35 ) 273

Cash payments, net ( 136 ) 2 ( 134 )

Non-cash charges — 40 40

Foreign currency translation and other 17 1 18

Balance, December 31, 2025 $ 385 $ 53 $ 438

Classification in the consolidated financial statements

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Linde determines whether a contract is or contains a lease at contract inception.

Total lease and rental expenses related to operating lease right of use assets for the twelve months ended December 31, 2024 and 2023 were $ 303 million and $ 284 million, respectively.

Total lease and rental expenses related to operating lease right of use assets for the twelve months ended December 31, 2025, 2024 and 2023 were $ 311 million, $ 303 million and $ 284 million, respectively.

Operating lease costs are included in selling, general and administrative expenses and cost of sales, exclusive of depreciation and amortization.

The related assets and obligations are included in other long-term assets and other current liabilities and other long-term liabilities, respectively.

Total lease and rental expenses related to finance lease right of use assets for the twelve months ended December 31, 2024 and 2023 were $ 70 million and $ 58 million, respectively, and the costs are included in depreciation and amortization and interest.

Total lease and rental expenses related to finance lease right of use assets for the twelve months ended December 31, 2025, 2024 and 2023 were $ 74 million, $ 70 million and $ 58 million, respectively, and the costs are included in depreciation and amortization and interest.

Related assets and obligations are included in other long-term assets and other current liabilities and other long-term liabilities, respectively .

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Gains and losses on sale and leaseback transactions were immaterial.

Operating cash flows used for operating leases for the twelve months ended December 31, 2024 and 2023 were $ 249 million.

Operating cash flows used for operating leases for the twelve months ended December 31, 2025, 2024 and 2023 were $ 250 million, $ 249 million and $ 249 million, respectively.

Cash flows used for finance leases for the same period were immaterial.

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Effective Tax Rate Reconciliation

Linde plc is not subject to tax in Ireland, its country of domicile.

Linde plc is not subject to tax in Ireland, its country of incorporation.

For purposes of the effective tax rate reconciliation, the company utilizes the U.S.

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2025 2024 2023

statutory income tax $ 1,800 21.0 % $ 1,677 21.0 % $ 1,164 21.0 %

State and local taxes – net of federal benefit 102 1.2 % 105 1.3 % 84 1.5 %

Tax on Non-U.S.

activities (a)(b) 186 2.2 % 169 2.1 % 176 3.2 %

Federal statutory income tax $ 1,868 21.0 % $ 1,800 21.0 % $ 1,677 21.0 %

State and local income taxes, net of Federal income tax effect (a) 88 1.0 % 102 1.2 % 105 1.3 %

Foreign tax effects

Changes in tax laws or rates ( 158 ) ( 1.8 ) % — — % — — %

Other 60 0.7 % 49 0.6 % 60 0.8 %

Other foreign jurisdictions 201 2.2 % 172 2.0 % 148 1.9 %

Share-based compensation ( 60 ) ( 0.7 ) % ( 63 ) ( 0.7 ) % ( 63 ) ( 0.8 ) %

Russia charges (Note 3) — — % — — % 108 1.9 %

Other (c) ( 20 ) ( 0.2 ) % ( 71 ) ( 0.9 ) % ( 57 ) ( 1.0 ) %

Tax credits ( 42 ) ( 0.5 ) % ( 45 ) ( 0.5 ) % ( 20 ) ( 0.3 ) %

Changes in unrecognized tax benefits 10 0.2 % 2 — % ( 54 ) ( 0.7 ) %

Other adjustments 22 0.3 % ( 15 ) ( 0.2 ) % ( 39 ) ( 0.5 ) %

Provision for income taxes $ 1,989 22.4 % $ 2,002 23.4 % $ 1,814 22.7 %

(a) Primarily related to differences between the U.S.

tax rate and the statutory tax rate in the countries in which the company operates.

It also includes the U.S.

tax impact of the non-U.S.

activities and other non-U.S.

permanent items and tax rate changes.

These other items were not material.

(b) 2024 includes the tax effect of Pillar II, the 15 % global minimum tax rate provisions of the OECD's framework for Pillar Two, which was not material.

In 2024, the tax effect of these items was not material.

(a) In 2025, 2024, and 2023, state taxes in California, Illinois, Indiana, New Jersey, Michigan, Pennsylvania, Texas, Florida, Minnesota, and Oregon made up the majority (greater than 50 percent) of the tax effect in this category.

Income Taxes Paid

Income taxes paid by federal, state/local, and foreign:

(Millions of dollars)

Year Ended December 31, 2025 2024 2023

Federal $ 544 $ 503 $ 483

State and local 100 106 121

1,630 1,607 1,351

Total $ 2,274 $ 2,216 $ 1,955

Income taxes paid by jurisdiction:

(Millions of dollars)

Year Ended December 31, 2025 2024 2023

United States $ 644 $ 609 $ 604

Germany 82 224 236

China 199 201 187

Mexico 237 158 138

Others 1,112 1,024 790

Total $ 2,274 $ 2,216 $ 1,955

Net Deferred Tax Liabilities

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Subsidiary/equity investments 492 535

Benefit plans and related (b)(c) 40 —

Other (a) 488 736

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(a) Includes $ 236 million in 2025 and $ 235 million in 2024 related to right-of-use lease assets and includes $ 82 million in 2025 and $ 335 million in 2024 related to timing differences regarding certain engineering projects accounted for on the cost incurred input method.

(b) Includes deferred tax liabilities of $ 95 million and deferred tax assets of $ 60 million in 2024 and 2023, respectively, related to pension / OPEB funded status (see Notes 7 and 16).

(b) Includes deferred tax liabilities of $ 102 million and $ 95 million in 2025 and 2024, respectively, related to pension / OPEB funded status (see Notes 7 and 16).

(c) The amounts are net of deferred tax assets of $ 137 million in 2025 and deferred tax liabilities of $ 290 million in 2024.

(d) Includes $ 244 million in 2025 and $ 244 million in 2024 related to lease liabilities.

(e) Summary of changes in valuation allowances relating to deferred tax assets follows (millions of dollars):

2024 2023 2022

(Millions of dollars) 2025 2024 2023

Balance, January 1, $ ( 146 ) $ ( 176 ) $ ( 276 )

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A provision has not been made for any additional non-U.S.

income or withholding taxes at December 31, 2024 on approximately $ 5 billion of unremitted non-U.S.

income or withholding taxes at December 31, 2025 on unremitted non-U.S.

earnings on which the company intends to remain indefinitely reinvested or on other outside basis differences in its investments unrelated to unremitted earnings.

A determination of these deferred taxes related to these amounts is not practicable.

A determination of deferred taxes related to these items is not practicable.

Uncertain Tax Positions

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Unrecognized income tax benefits, December 31 $ 315 $ 292 $ 304

(a) 2023 and 2022 amounts are primarily related to the closure of tax audits.

(a) 2023 amounts are primarily related to the closure of tax audits.

(b) Other includes reductions for statute of limitation lapses and foreign currency translation.

The company classifies interest income and expense related to income taxes as tax expense in the consolidated statements of income.

The company recognized net interest expense of $ 3 million and net interest benefit of $ 17 million and of $ 3 million for the years ended December 31, 2024, 2023, and 2022, respectively.

The company had $ 16 million and $ 14

million of accrued interest and penalties as of December 31, 2024 and 2023, respectively, which were recorded in other long-term liabilities in the consolidated balance sheets (See Note 7).

For the years ended December 31, 2025 and 2024, the company recognized net interest expense of $ 3 million.

For the year ended December 31, 2023, the company recognized net interest income of $ 17 million.

The company had $ 19 million and $ 16 million of accrued interest and penalties as of December 31, 2025 and 2024, respectively, which were recorded in other long-term liabilities in the consolidated balance sheets (See Note 7).

As of December 31, 2025, the company remained subject to examination in the following major tax jurisdictions for the tax years as indicated below:

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Brazil 2008 through 2025

France 2020 through 2024

Germany 2018 through 2025

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South Korea 2020 through 2025

The company is currently under audit in a number of jurisdictions.

As a result, it is reasonably possible that some of these matters will conclude or reach the stage where a change in unrecognized income tax benefits may occur within the next twelve months.

At the time new information becomes available, the company will record any adjustment to income tax expense as required.

Final determinations, if any, are not expected to be material to the consolidated financial statements.

The company is also subject to income taxes in many hundreds of state and local taxing jurisdictions that are open to tax examinations.

EARNINGS PER SHARE – LINDE PLC SHAREHOLDERS

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Diluted Earnings Per Share $ 14.61 $ 13.62 $ 12.59

The weighted-average of antidilutive securities excluded from the calculation of diluted earnings per share was 268 thousand for the twelve months ended December 31, 2024.

There were no antidilutive securities in the respective 2023 and 2022 periods.

The weighted-average of antidilutive securities excluded from the calculation of diluted earnings per share were 572 thousand and 268 thousand for the twelve months ended December 31, 2025 and 2024, respectively .

There were no antidilutive securities in the respective 2023 period.

SUPPLEMENTAL INFORMATION

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Insurance recoveries 2 45 10

Purchase accounting impacts - Linde AG merger ( 164 ) ( 17 ) ( 15 )

Other – net gains (losses) 97 104 —

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The loss rates are also evaluated based on the expectations of the responsible management team regarding the collectability of the receivables.

Gross trade receivables aged less than one year were $ 4,573 million and $ 4,667 million at December 31, 2024 and December 31, 2023,

respectively, and gross receivables aged greater than one year were $ 322 million and $ 354 million at December 31, 2024 and December 31, 2023, respectively.

Gross trade receivables

aged less than one year were $ 5,032 million and $ 4,573 million at December 31, 2025 and December 31, 2024, respectively, and gross receivables aged greater than one year were $ 377 million and $ 322 million at December 31, 2025 and December 31, 2024, respectively.

Gross other receivables were $ 138 million and $ 148 million at December 31, 2025 and December 31, 2024, respectively.

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Provisions for expected credit losses were $ 207 million, $ 180 million and $ 175 million for the twelve months ended December 31, 2025, 2024 and 2023, respectively.

Allowance for expected credit losses increased to $ 581 million including an adjustment of $ 150 million to the allowance for homecare receivables, recorded through Other income (expenses) - net.

The allowance activity in the twelve months ended December 31, 2025 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.

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Unrealized gains on derivatives (Note 12)

Contract assets (Note 19) 67 —

Other 248 206

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Unrealized losses on derivatives (Note 12)

Contingent liabilities (Note 17)

Cost reduction programs and other charges (Note 3)

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Tax liabilities for uncertain tax positions (Note 5)

Tax Act liabilities (g) — 80

Lease liability (Note 4)

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Cumulative translation adjustment - net of taxes:

Americas (h) $ ( 4,422 ) $ ( 3,618 )

EMEA (h) ( 1,235 ) ( 737 )

APAC (h) ( 1,736 ) ( 1,037 )

Americas (g) $ ( 3,892 ) $ ( 4,422 )

EMEA (g) ( 958 ) ( 1,235 )

APAC (g) ( 1,170 ) ( 1,736 )

Engineering 283 ( 432 )

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Derivatives – net of taxes 16 ( 6 )

Pension/OPEB funded status obligation (net of $ 95 million tax obligation in 2024 and $ 60 million tax benefit in 2023) (Note 16)

Pension/OPEB funded status obligation (net of $ 102 million tax obligation in 2025 and $ 95 million tax obligation in 2024) (Note 16)

$ ( 6,233 ) $ ( 6,894 )

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(b) Includes estimated income tax payments of $ 106 million in 2025 and $ 221 million in 2024.

(c) In 2024, the balance relates primarily to current notes receivable from the sale of GIST, which were collected in 2025.

(d) Consists primarily of insurance contracts and other investments to be utilized for non-qualified pension and OPEB obligations.

(e) The balances at December 31, 2025 and 2024 are net of reserves of $ 41 million and $ 36 million, respectively.

In 2023, the amounts relate primarily to long-term notes receivable from customers in APAC, government receivables in Brazil and receivables from the sale of GIST.

(f) Includes investments from the deconsolidation of Russian subsidiaries.

(g) Represents tax payable related to the deemed repatriation tax pursuant to the U.S.

Tax Cuts and Jobs Act of 2018.

The company is required to fund the balance in annual installments through 2025.

In 2024, the final annual installment was reclassified to accrued taxes.

(h) Americas consists of currency translation adjustments primarily in Canada, Mexico, and Brazil.

EMEA relates primarily to Germany, the U.K., the Netherlands, Norway and Sweden.

APAC relates primarily to China, South Korea, India, and Australia.

(g) Americas consists of currency translation adjustments primarily in Canada, Mexico, Brazil, and Argentina.

EMEA relates primarily to Germany, the U.K., the Netherlands, Norway and Switzerland.

APAC relates primarily to South Korea, India, and Australia.

PROPERTY, PLANT AND EQUIPMENT – NET

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Foreign currency translation and other ( 56 ) ( 538 ) ( 253 ) ( 150 ) ( 21 ) ( 1,018 )

Disposals — ( 5 ) — — — ( 5 )

Disposals (Note 2) — — ( 4 ) — — ( 4 )

Balance, December 31, 2024 9,838 9,296 4,259 2,272 272 25,937

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Foreign currency translation and other 41 1,137 243 306 11 1,738

Disposals (Note 2) — — ( 4 ) — — ( 4 )

Balance, December 31, 2025 $ 9,910 $ 10,553 $ 4,601 $ 2,578 $ 285 $ 27,927

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dollar denominated unless otherwise noted)

1.20 % Euro denominated notes due 2024 (c)

1.875 % Euro denominated notes due 2024 (b,e)

4.800 % Notes due 2024 (g)

4.700 % Notes due 2025 (d)

2.65 % Notes due 2025 (d)

3.625 % Euro denominated notes due 2025 (f)

1.625 % Euro denominated notes due 2025 (h)

0.00 % Euro denominated notes due 2026

3.20 % Notes due 2026

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1.00 % Euro denominated notes due 2027

3.20 % Notes due 2026

2.271 % Euro denominated notes due 2027 (g)

1.00 % Euro denominated notes due 2028 (b)

3.00 % Euro denominated notes due 2028

3.375 % Euro denominated notes due 2029

2.625 % Euro denominated notes due 2029 (c)

0.6150 % Swiss franc denominated notes due 2029 (e)

1.10 % Notes due 2030

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1.375 % Euro denominated notes due 2031

1.00 % Euro denominated notes due 2028 (b)

3.00 % Euro denominated notes due 2028 (d)

3.20 % Euro denominated notes due 2031

1.10 % Notes due 2030

0.550 % Euro denominated notes due 2032

3.375 % Euro denominated notes due 2030 (f)

3.125 % Euro denominated notes due 2032 (g)

0.375 % Euro denominated notes due 2033

3.20 % Euro denominated notes due 2031 (d)

3.00 % Euro denominated notes due 2033 (c)

1.0629 % Swiss franc denominated notes due 2033 (e)

3.625 % Euro denominated notes due 2034

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1.625 % Euro denominated notes due 2035

3.50 % Euro denominated notes due 2034 (f)

3.40 % Euro denominated notes due 2036

3.40 % Euro denominated notes due 2036 (d)

3.250 % Euro denominated notes due 2037 (c)

3.750 % Euro denominated notes due 2038 (g)

3.55 % Notes due 2042

3.75 % Euro denominated notes due 2044 (f)

3.75 % Euro denominated notes due 2044

2.00 % Notes due 2050

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Refer to Note 12.

(d) In February 2024, Linde issued € 700 million of 3.00 % notes due in 2028, € 850 million of 3.20 % notes due in 2031 and € 700 million of 3.40 % notes due in 2036.

(e) In May 2024, Linde repaid € 300 million of 1.875 % notes that became due.

(f) In June 2024, Linde issued € 750 million of 3.375 % notes due in 2030, € 750 million of 3.500 % notes due in 2034 and € 700 million of 3.750 % notes due in 2044.

(g) In December 2024, Linde repaid $ 300 million of 4.800 % notes that became due.

(c) In February 2025, Linde issued € 850 million of 2.625 % notes due in 2029, € 750 million of 3.00 % notes due in 2033, and € 650 million of 3.25 % notes due in 2037.

(d) In February 2025, Linde redeemed $ 600 million of 4.700 % notes that were due in 2025 and repaid $ 400 million of 2.65 % notes that became due.

(e) In June 2025, Linde issued CHF 225 million of 0.6150 % notes due in 2029 and CHF 275 million of 1.0629 % notes due in 2033.

(f) In June 2025, Linde repaid € 500 million of 3.625 % notes that became due.

(g) In November 2025, Linde issued three tranches of euro-denominated notes, € 600 million of floating-rate notes due in 2027, at three-month EURIBOR plus a fixed spread and resetting quarterly ( 2.271 % as of December 31, 2025);

€ 650 million of 3.125 % fixed-rate notes due in 2032, and € 500 million of 3.750 % fixed-rate notes due in 2038.

(h) In December 2025, Linde repaid € 500 million of notes that became due.

Credit Facilities

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The objective of financial risk management at Linde is to minimize the negative impact of such fluctuations on the company’s earnings and cash flows.

To manage these risks, among other strategies, Linde routinely enters into various derivative financial instruments (“derivatives”) including interest-rate swap and treasury rate lock agreements, currency-swap agreements, forward contracts, currency options, and commodity-swap

These instruments are not entered into for trading purposes and Linde only uses commonly traded and non-leveraged instruments.

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When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge.

Currently, Linde designates all interest-rate and treasury rate locks as hedges for accounting purposes;

however, cross-currency contracts are generally not designated as hedges for accounting purposes.

Certain currency contracts related to forecasted transactions are designated as hedges for accounting purposes.

Currently, Linde designates all interest-rate and treasury-rate locks as hedges for accounting purposes when used.

Currency contracts are generally not designated as hedges for accounting purposes.

However, currency contracts related to certain forecasted transactions and net investments in foreign-denominated subsidiaries are designated as hedges for accounting purposes.

Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure.

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Commodity contracts N/A N/A 5 11 10 20

Interest rate swaps — 1,214 — 1 — 4

Total Hedges $ 3,980 $ 1,839 $ 35 $ 48 $ 39 $ 31

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The notional amount of the CDS, which was $ 73 million and $ 102 million for the two programs as of December 31, 2025, will reduce on a monthly basis over their respective 24 -month and 22 -month terms.

As of December 31, 2024, the fair value of both derivative liabilities were not material.

As of December 31, 2025, the fair value of the associated derivative asset and liability positions were not material.

Balance Sheet Items

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For forecasted transactions that do not qualify for cash flow hedging relationships, fair value adjustments are recorded directly to earnings.

Linde is hedging forecasted transactions for a maximum period of three years .

Linde is hedging forecasted transactions for a maximum period of four years .

Commodity Contracts

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Foreign Currency-Denominated Debt Designations

As of December 31, 2024, Linde has € 17.9 billion ($ 19.0 billion) Euro-denominated notes and intercompany loans, ¥ 3.7 billion ($ 0.5 billion) CNY-denominated intercompany loans, and C$ 1.4 billion ($ 1.0 billion) CAD-denominated intercompany loans that are designated as hedges of the net investment positions in certain foreign operations.

Since hedge inception, the deferred gain recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $ 1,220 million (deferred gain of $ 1,175 million in the consolidated statement of comprehensive income for the year ended December 31, 2024), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged.

As of December 31, 2025, Linde has € 17.3 billion ($ 20.4 billion) Euro-denominated notes and intercompany loans, ¥ 5.2 billion ($ 0.7 billion) CNY-denominated intercompany loans and CHF 500 million ($ 631 million) CHF-denominated notes that are designated as hedges of the net investment positions in certain foreign operations.

Since hedge inception, the deferred loss recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $ 1,558 million (deferred loss of $ 2,704 million in the consolidated statement of comprehensive income for the year ended December 31, 2025), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged.

Foreign Currency Forward Exchange Contract Designations

In 2024, the Company entered into forward exchange contracts to partially hedge its net investment in certain foreign-denominated subsidiaries.

The Company enters into forward exchange contracts to partially hedge its net investment in certain foreign-denominated subsidiaries.

The Company assesses the forward exchange contracts used as net investment hedges under the spot method.

This results in the difference between the spot rate and the forward rate of the forward exchange contract being excluded from the assessment of hedge effectiveness and recorded as incurred as a reduction in interest expense - net in the consolidated statements of income.

Since hedge inception and for the year ended December 31, 2024, the deferred gain recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $ 30 million, which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged.

The amount of net interest income recorded in 2024 for all forward exchange contracts was immaterial.

Since hedge inception and for the year ended December 31, 2025, the deferred loss recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $ 23 million (deferred loss of $ 23 million in the consolidated statement of comprehensive income for the year ended December 31, 2025), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged.

The amount of net interest income recorded in 2025 and 2024 for all forward exchange contracts was $ 62 million and $ 6 million, respectively.

Effects of Previous Hedge Designations

As of December 31, 2024, exchange rate movements relating to previously designated hedges that remain in accumulated other comprehensive income (loss) is a gain of $ 56 million.

As of December 31, 2025, exchange rate movements relating to previously designated hedges that remain in accumulated other comprehensive income (loss) is a loss of $ 86 million.

These movements will remain in accumulated other comprehensive income (loss), until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated statements of income.

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fair value adjustments were recognized in earnings along with an equally offsetting charge/benefit to earnings for the changes in the fair value of the underlying financial asset or financial liability (see Note 11).

In addition, as of December 31, 2023, Linde was using interest rate swaps with a notional value of € 1 billion to hedge the variability of future cash flows of forecasted transactions due to interest rate risk and had designated this as a cash flow hedge.

The interest rate swaps were terminated during the first quarter of 2024 with the February debt issuance and the settlement values were immaterial .

Derivatives Impact on Consolidated Statements of Income

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* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities.

Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net.

Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net.

Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt-related items are recorded in the consolidated statements of income as interest expense-net.

Other balance sheet items gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net.

The amounts of gain or loss recognized in accumulated other comprehensive income (loss) and reclassified to the consolidated statements of income were not material for the years ended December 31, 2025, 2024, and 2023.

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No new ordinary shares were issued in 2025, 2024 and 2023.

On January 25, 2021 the company's board of directors approved the additional repurchase of $ 5.0 billion of its ordinary shares under which Linde had repurchased 16,662,678 shares through December 31, 2022.

Linde completed the repurchases under this program in the first quarter of 2022.

On February 28, 2022, the company's board of directors authorized a new share repurchase program for up to $ 10.0 billion of its ordinary shares ("2022 program") under which Linde had repurchased 29,552,394 shares through December 31, 2024.

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On October 23, 2023, the company's board of directors approved a new share repurchase program for up to $ 15.0 billion of its ordinary shares ("2023 program") under which Linde has repurchased $ 7.7 billion as of December 31, 2025.

program will terminate on the earlier of the date as the maximum authority under the 2023 program is reached or the board terminates the 2023 program.

This program will terminate on the earlier of the date as the maximum authority under the 2023 program is reached or the board terminates the 2023 program.

Noncontrolling Interests

Noncontrolling interest ownership changes are presented within the consolidated statements of equity.

2022 includes the impact of deconsolidating the company's Russian gas and engineering business entities (see Note 3).

Redeemable Noncontrolling Interests

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Share-based compensation expense was $ 164 million in 2025 ($ 160 million and $ 141 million in 2024 and 2023, respectively).

The related income tax benefit recognized was $ 88 million in 2024 ($ 88 million and $ 64 million in 2023 and 2022, respectively).

The related income tax benefit recognized was $ 85 million in 2025 ($ 88 million in 2024 and 2023).

The expense was primarily recorded in selling, general and administrative expenses and no share-based compensation expense was capitalized.

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The weighted-average fair value of options granted during 2025 was $ 110.50 ($ 112.63 in 2024 and $ 83.69 in 2023) based on the Black-Scholes Options-Pricing model.

The increase in the grant date fair value year-over-year is primarily attributable to the increase in the stock price.

The decrease in the grant date fair value year-over-year is primarily attributable to a lower expected volatility.

The following weighted-average assumptions were used to value the grants in 2025, 2024 and 2023:

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The actual number of shares issued in settlement of a vested award can range from zero to 200 percent of the target number of shares granted based upon the company’s attainment of specified performance targets at the end of a three-year period.

Compensation expense related to these awards is recognized over the three-year performance period based on the fair value of the closing market price of the company’s ordinary shares on the date of the grant and the estimated performance that will be achieved.

Compensation expense related to these awards is recognized over the

three-year performance period based on the fair value of the closing market price of the company’s ordinary shares on the date of the grant and the estimated performance that will be achieved.

Compensation expense for ROC awards will be adjusted during the three-year performance period based upon the estimated performance levels that will be achieved.

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The collective bargaining agreements expire on different dates through 2030.

In connection with such agreements, the company is required to make periodic contributions to the MEPs in accordance with the terms of the respective collective bargaining

In connection with such agreements, the company is required to make periodic contributions to the MEPs in accordance with the terms of the respective collective bargaining agreements.

Linde’s participation in these plans is not material either at the plan level or in the aggregate.

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Linde’s retiree plans may be changed or terminated by Linde at any time for any reason with no liability to current or future retirees.

Linde uses a measurement date of December 31 for its pension and other post-retirement benefit plans.

Linde uses a measurement date of December 31 for its pension and other postretirement benefit plans.

Pension and Postretirement Benefit Costs

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Total recognized in other comprehensive income $ ( 32 ) $ ( 674 )

* Pension net actuarial gains in 2024 are largely driven by continued increase in the discount rate environment in U.S.

plans resulting in actuarial gains from a lower PBO as well as favorable plan asset experience for the U.S.

In 2023, the actuarial losses were largely driven by the decrease in the discount rate environment resulting from a higher PBO, which was partially offset by favorable plan asset experience for non-U.S plans.

plan derived a benefit from the actual return on plan assets.

* In 2025, pension net actuarial gains were primarily driven by favorable plan asset experience, partially offset by losses from discount rate changes.

In 2024, the net actuarial gains arose due to rising discount rates across both regions which lowered PBO, supplemented by favorable plan asset experience for the U.S.

The following table provides information only for those individual pension plans where the accumulated benefit obligation exceeds the fair value of plan assets:

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This category also includes similar loans to real estate companies or individual properties.

Loans included in this category are valued at par value, are held to maturity or to call, and are classified within level 3 of the valuation hierarchy.

Loans included

in this category are valued at par value, are held to maturity or to call, and are classified within level 3 of the valuation hierarchy.

Contributions

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Petersburg Court”) issued an injunction preventing sale of Linde Russia subsidiaries and assets.

During 2023 and 2024, in accordance with the dispute resolution provisions of the related engineering agreements Linde secured judgements reenforcing jurisdiction of the agreements with RCA outside of Russia and ordering the St.

Since then, in accordance with the dispute resolution provisions of the related engineering agreements Linde secured judgments reenforcing jurisdiction of the agreements with RCA outside of Russia and ordering the St.

Petersburg proceedings stayed and injunctions lifted.

However, RCA has continued to pursue its claims in Russia and during the fourth quarter of 2024 two Linde Russian joint ventures were sold locally pursuant to a St.

However, RCA has continued to pursue its claims in Russia and during 2024 two Linde Russian joint ventures were sold locally pursuant to a St.

Petersburg court order and the proceeds provided to RCA.

Linde does not expect a material adverse impact on earnings given the $ 1.7 billion liabilities recorded as of December 31, 2024 and the immaterial investment value of its remaining deconsolidated Russia subsidiaries.

Please see further detail on the Russia legal cases below.

Linde does not expect a material adverse impact on earnings given the combined $ 1.9 billion liabilities recorded as of December 31, 2025 and the immaterial investment value of its remaining deconsolidated Russia subsidiaries.

Please see further detail on the Russian legal cases below.

RCA LNG and GPP

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The injunction was requested by RCA to secure payment of a possible award under an arbitration proceeding RCA intended to file against Linde Engineering for alleged breach of contract under the agreement to build a gas processing plant in Russia entered into in July 2021.

In March 2023, RCA filed a claim in St.

In 2023, RCA filed a claim in St.

Petersburg against Linde GmbH for recovery of advance payments under the agreement ("GPP Claim"), and subsequently (i) added Linde and other Linde subsidiaries as defendants, and (ii) is seeking payment of alleged damages from Linde and guarantor banks.

In March 2024, RCA filed a similar claim for repayment and damages against Linde for alleged breach of contract under the agreement to build a liquefied natural gas plant in Russia entered into in September 2021 (“LNG Claim”, and together with the GPP Claim, the “Russian Claims”).

In 2024, RCA filed a similar claim for repayment and damages against Linde for alleged breach of contract under the agreement to build a liquefied natural gas plant in Russia entered into in September 2021 (“LNG Claim”, and together with the GPP Claim, the “Russian Claims”).

Dispute resolution provisions

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Petersburg been stayed.

The HKIAC arbitration proceedings are ongoing.

Local seizures

In February 2024, the St.

Petersburg Court decided the GPP Claim in favor of RCA (the “GPP Decision”) and in October 2024, decided the LNG Claim in favor of RCA (the “LNG Decision”).

Linde unsuccessfully appealed the GPP Decision in March and September 2024.

During 2024, the St.

Petersburg Court decided the GPP Claim in favor of RCA (the “GPP Decision”) and later that year, decided the LNG Claim in favor of RCA (the “LNG Decision”).

Linde unsuccessfully appealed the GPP Decision in 2024.

During the fourth quarter of 2024, RCA executed enforcement actions related to the GPP Decision within Russia for Linde’s shares in two Linde Russian joint ventures and locally RCA received payment from the purchase of these shares by Linde’s joint venture partners.

RCA previously initiated the enforcement process for the GPP Decision within Russia for the remainder of Linde’s local assets, and these proceedings are currently pending a court appointed local valuation of Linde’s assets.

Additionally, during November 2024, RCA seized the ruble equivalent of approximately € 238 million from one of the guarantor bank’s accounts in Russia.

RCA previously initiated the enforcement process for the GPP Decision within Russia for the remainder of Linde’s local assets, and these proceedings are currently ongoing.

Linde intends to claim all damages related to or rising from RCA's enforcement of the GPP and LNG Decisions in the HKIAC arbitration proceedings.

Linde subsidiaries affected by the GPP Decision have also filed claims for damages against RCA in the Southern District of New York, the Netherlands and Germany.

Linde subsidiaries affected by the GPP Decision have also filed claims for damages against RCA and/or its controlling shareholder in the Southern District of New York, the Netherlands and Germany.

As of December 31, 2025, Linde has a contingent liability of $ 1.2 billion, which represents advance payments previously recorded in contract liabilities related to terminated engineering projects with RCA.

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The company intends to vigorously defend its interests in the Russian Claims, Hong Kong arbitration proceedings and other jurisdictions.

In July 2015, Gazprom Pererabotka Blagoveshchensk LLC ("Gazprom") entered into an engineering, procurement and construction contract with OJSC NIPIgazpererabotka ("Nipigas") for the construction of a gas processing plant and other components located in the Amur Region, Russia (“Amur GPP”).

Subsequently, in December 2015, Nipigas and Linde Engineering, executed a subcontract for engineering, procurement, and site services for licensed production units for the Amur GPP project.

Additionally, Linde also entered into (i) a license agreement with Gazprom in 2017 for the operation of the plants, and (ii) a direct owner agreement with Gazprom and Nipigas which included limitation of liability provisions.

In July 2015, Gazprom Pererabotka Blagoveshchensk LLC ("Gazprom"), a 100% subsidiary of PJSC Gazprom, entered into an engineering, procurement and construction contract with OJSC NIPIgazpererabotka ("Nipigas") for the construction of a gas processing plant and other components located in the Amur Region, Russia (“Amur GPP”).

Subsequently, in December 2015, Nipigas and Linde Engineering, executed a subcontract for engineering, procurement, and site services ("EPSS Contract") for licensed production units for the Amur GPP project.

Additionally, Linde also entered into (i) a license agreement with Gazprom in 2017 for the operation of the plants, and (ii) a direct owner agreement with Gazprom and Nipigas ("DOA") which included limitation of liability provisions.

Performance of the Amur GPP agreements were lawfully suspended in compliance with applicable sanctions on May 27, 2022.

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The Linde report concluded that the fire was attributable to the quality of construction and assembly work, responsibilities falling under the scope of Nipigas.

On October 29, 2024, Gazprom submitted a claim to the Arbitration State Court in the Amur Region, Russia (“Amur Court”) against Linde claiming damages and lost profits arising from the fire incidents.

On October 29, 2024, Gazprom submitted a claim to the Arbitration State Court in the Amur Region, Russia (“Amur Court”) against Linde Engineering and project-unrelated Linde entities claiming damages and lost profits arising from the fire incidents.

During 2025, Linde Engineering formally initiated arbitration proceedings against Gazprom before the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) in Stockholm, Sweden, as provided for in the DOA.

As of December 31, 2025, Linde has a contingent liability of $ 0.7 billion for this and other Amur GPP contract matters.

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The company intends to vigorously defend its interests in this case.

At December 31, 2024, Linde had undrawn outstanding letters of credit, bank guarantees and surety bonds valued at approximately $ 3,377 million from financial institutions.

At December 31, 2025, Linde had undrawn outstanding letters of credit, bank guarantees and surety bonds valued at approximately $ 3.5 billion from financial institutions.

These relate primarily to customer contract performance guarantees (including plant construction in connection with certain on-site contracts), self-insurance claims and other commercial and governmental requirements, including non-U.S.

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The distribution methods are generally integrated in order to best meet the customer’s needs and very few of its products can be economically transported outside of a region.

Therefore, the distribution economics are specific to the various geographies in which the company operates and are consistent with how management assesses performance.

The CODM consists of the CEO, CFO and senior or executive vice president of each respective segment.

the distribution economics are specific to the various geographies in which the company operates and are consistent with how management assesses performance.

The CODM consists of the CEO, COO, CFO and senior or executive vice president of each respective segment.

The company’s measure of profit/loss for segment reporting is segment operating profit.

Segment operating profit is defined as operating profit excluding purchase accounting impacts of the Linde AG merger, cost reduction and other charges, and items not indicative of ongoing business trends.

The CODM uses operating profit to assess overall segment performance, which

includes monitoring opportunities for growth and to make capital decisions across the respective segments, while assessing both industry and macroeconomic conditions.

The CODM uses operating profit to assess overall segment performance, which includes monitoring opportunities for growth and to make capital decisions across the respective segments, while assessing both industry and macroeconomic conditions.

Total assets have not been included as this is not provided to the CODM for their assessment.

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(b) Variable costs represents the variable portion of cost of sales, exclusive of depreciation and amortization.

(c) Fixed costs and other represents the fixed portion of cost of sales, exclusive of depreciation and amortization, selling, general and administrative, research and development and other income (expenses) - net.

(d) Refer to reconciliation of depreciation and amortization to consolidated results below.

(e) Refer to reconciliation of operating profit to consolidated results below.

(c) Fixed costs and other represent the fixed portion of cost of sales (exclusive of depreciation and amortization), selling, general and administrative, research and development and other income (expenses) - net.

(d) Refer to the reconciliation of depreciation and amortization to consolidated results below.

(e) Refer to the reconciliation of operating profit to consolidated results below.

Reconciliations to Consolidated Results

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Total segment depreciation and amortization $ 2,986 $ 2,857 $ 2,825

Purchase accounting impacts - Linde AG 923 991 1,481

Purchase accounting impacts - Linde AG (a) 777 923 991

Total depreciation and amortization $ 3,763 $ 3,780 $ 3,816

(a) To adjust for purchase accounting impacts related to the merger.

Income Before Income Taxes and Equity Investments

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Cost reduction program and other charges 273 145 40

Purchase accounting impacts - Linde AG 940 1,006 1,506

Purchase accounting impacts - Linde AG (a) 941 940 1,006

Interest expense - net 255 256 200

1 unchanged sentence

Total consolidated income before income taxes and equity investments $ 8,897 $ 8,569 $ 7,988

(a) To adjust for purchase accounting impacts related to the merger.

Geographic Information

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Contract liabilities are recognized as revenue as performance obligations are satisfied under contract terms.

Linde has contract assets of $ 263 million at December 31, 2024 and $ 196 million at December 31, 2023, respectively.

Linde has contract assets of $ 336 million at December 31, 2025 (current contract assets of $ 269 million and $ 67 million within other long-term assets in the consolidated balance sheets).

Total contract assets were $ 263 million at December 31, 2024, all classified as current contract assets in the consolidated balance sheets.

Total contract liabilities are $ 2,515 million at December 31, 2025 (current contract liabilities of $ 1,231 million and $ 1,284 million within deferred credits in the consolidated balance sheets).

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Revenue recognized for the twelve months ended December 31, 2025 that was included in the contract liability at December 31, 2024 was $ 732 million.

Contract assets and liabilities primarily relate to the Engineering business and customer repayments for certain on-site supply agreements.

Contract assets and liabilities primarily relate to the Engineering business and customer prepayments for certain on-site supply agreements.

Payment Terms and Other

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Payment terms vary based on the country where sales originate and local customary payment practices.

Linde does not offer extended financing outside of customary payment terms.

Linde does not typically offer extended financing outside of customary payment terms.

Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and are not included in sales within the consolidated statement of income.

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Additionally, plant sales from the Linde Engineering business are primarily contracted on a fixed price basis.

The company estimates the consideration related to future minimum purchase requirements and plant sales was approximately $ 58 billion.

As of December 31, 2025, the company estimates the consideration related to future minimum purchase requirements and plant sales was approximately $ 62 billion.

This amount excludes all on-site sales above minimum purchase requirements, which can be significant depending on customer needs.

In the future, actual amounts will be different due to impacts from several factors, many of which are beyond the company’s control including, but not limited to, timing of newly signed, terminated and renewed contracts, inflationary price escalations, currency exchange rates, and pass-through costs related to natural gas and electricity.

The actual duration of long-term supply contracts ranges up to twenty years .

The actual duration of long-term supply contracts ranges up to thirty years .

The company estimates that approximately half of the revenue related to minimum purchase requirements will be earned in the next six years and the remaining thereafter.

SUBSEQUENT EVENTS

In February 2025, Linde issued € 850 million o f 2.625 % notes due in 2029, € 750 million of 3.00 % notes due in 2033 and € 650 million of 3.25 % notes due in 2037.

Linde redeemed $ 600 million of 4.70 % notes that were due in 2025.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data