“This combination of capital allocation and management actions is expected to deliver 10-plus percent EPS growth each year with margin expansion, and 2025 is no exception.”

In context

“w, as project start-up and acquisition cadence were ebb and flow, enabling a highly consistent EPS contribution from overall capital allocation. All of these elements have historically contributed 4% to 6% EPS growth, and I feel confident this will continue for the years to come. Management actions represent the daily self-help initiatives our employees undertake to ensure growth regardless of the macro climate. Digital solutions and AI are increasingly supporting productivity, price and cost management, which are controllable initiatives deeply embedded into a culture and operating rhythm. And which allow us to grow earnings regardless of the economy. History has proven for these to be the largest compound value generators as they are not directly correlated to overall economic activity. This combination of capital allocation and management actions is expected to deliver 10-plus percent EPS growth each year with margin expansion, and 2025 is no exception. The pre or post merger, these two components have been the dominant drivers of our long-term double-digit EPS growth CAGR. While I remain confident in our ability to deliver on this 10%, we are constantly striving to find more opportunities to improve. Conversely, we cannot control the third category, which represents macroeconomic factors. For Linde, these are 2 factors that matter the most. Foreign exchange rates and industrial production as a proxy for base volume trends. Recall that we are a U.S. dollar-functional company with approximately 2/3 of earnings denominated in foreign currencies and thus exposed to FX translation. Similarly, while our customers are often under long-term contracts with fixed facility fees, the incremental gas to consume is a function of their own production”