Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Linde plc, consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income, Linde plc	6,898)	6,565)	6,199)	4,147)	3,826)
Income from discontinued operations, net of tax and noncontrolling interests	—)	—)	—)	—)	(5)
Noncontrolling interests from continuing operations	160)	172)	142)	134)	135)
Income from continuing operations, including noncontrolling interests	7,058)	6,737)	6,341)	4,281)	3,956)
Cost reduction program and other charges	139)	31)	(118)	902)	98)
Depreciation and amortization	3,763)	3,780)	3,816)	4,204)	4,635)
Deferred income taxes	(465)	(142)	(84)	(383)	(254)
Share-based compensation	164)	160)	141)	107)	128)
Non-cash charges and other	23)	(72)	43)	(49)	(19)
Accounts receivable	(122)	(160)	(86)	(423)	(553)
Contract assets and liabilities, net	(72)	(409)	(168)	310)	1,307)
Inventory	47)	56)	(127)	(347)	(129)
Prepaid and other current assets	55)	(55)	66)	(157)	76)
Payables and accruals	(148)	(277)	(168)	307)	447)
Working capital	(240)	(845)	(483)	(310)	1,148)
Pension contributions	(25)	(35)	(46)	(51)	(42)
Long-term assets, liabilities and other	(67)	(191)	(305)	163)	75)
Adjustments to reconcile net income to net cash provided by operating activities	3,292)	2,686)	2,964)	4,583)	5,769)
Net cash provided by operating activities	10,350)	9,423)	9,305)	8,864)	9,725)
Capital expenditures	(5,261)	(4,497)	(3,787)	(3,173)	(3,086)
Acquisitions, net of cash acquired	(412)	(317)	(953)	(110)	(88)
Divestitures, net of cash divested and asset sales	42)	170)	70)	195)	167)
Other investing, net	(90)	—)	—)	—)	—)
Net cash used for investing activities	(5,721)	(4,644)	(4,670)	(3,088)	(3,007)
Short-term debt borrowings (repayments), net	41)	(372)	554)	3,050)	(1,329)
Long-term debt borrowings	5,148)	4,844)	2,188)	3,210)	2,283)
Long-term debt repayments	(2,278)	(1,305)	(1,682)	(1,785)	(1,468)
Issuances of ordinary shares	23)	31)	33)	36)	50)
Purchases of ordinary shares	(4,601)	(4,482)	(3,958)	(5,168)	(4,612)
Cash dividends, Linde plc shareholders	(2,811)	(2,655)	(2,482)	(2,344)	(2,189)
Noncontrolling interest transactions and other	(76)	(420)	(53)	(88)	(323)
Net cash used for financing activities	(4,554)	(4,359)	(5,400)	(3,089)	(7,588)
Effect of exchange rate changes on cash and cash equivalents	131)	(234)	(7)	(74)	(61)
Change in cash and cash equivalents	206)	186)	(772)	2,613)	(931)
Cash and cash equivalents, beginning-of-period	4,850)	4,664)	5,436)	2,823)	3,754)
Cash and cash equivalents, end-of-period	5,056)	4,850)	4,664)	5,436)	2,823)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The company demonstrates a generally positive trend in net income over the observed period, increasing from $3,826 million in 2021 to $6,898 million in 2025. Operating cash flow also exhibits an upward trajectory, rising from $9,725 million in 2021 to $10,350 million in 2025, indicating a strengthening ability to generate cash from core business operations. However, financing activities consistently represent a significant cash outflow throughout the period.

Operating Activities: Net cash provided by operating activities remained relatively stable between $8,864 million and $9,423 million from 2022 to 2024, before increasing to $10,350 million in 2025. Adjustments to reconcile net income to net cash provided by operating activities decreased from $5,769 million in 2021 to $2,686 million in 2024, then increased to $3,292 million in 2025. Depreciation and amortization consistently contribute a substantial non-cash inflow, ranging from $3,763 million to $4,635 million annually. Fluctuations in working capital are notable, shifting from an inflow of $1,148 million in 2021 to an outflow of $240 million in 2025, driven by changes in accounts receivable, contract assets/liabilities, and payables/accruals.
Investing Activities: The company consistently utilizes cash in investing activities, primarily due to capital expenditures. Capital expenditures increased steadily from $3,086 million in 2021 to $5,261 million in 2025, suggesting growing investment in property, plant, and equipment. Acquisitions also represent a significant cash outflow, particularly in 2023 ($953 million) and 2024 ($317 million). Divestitures provide some offsetting cash inflow, but are considerably smaller in magnitude than acquisitions and capital expenditures.
Financing Activities: Financing activities consistently represent a net cash outflow. Purchases of ordinary shares are a major component of this outflow, ranging from $3,958 million to $4,612 million annually. Cash dividends paid to shareholders also contribute significantly to the outflow, increasing from $2,189 million in 2021 to $2,811 million in 2025. While the company engages in both long-term debt borrowing and repayment, net borrowing is present in most years, though the net effect varies. Short-term debt activity is also present, with net borrowing in 2022 and 2025, and net repayment in other years.
Cash Position: The company experienced a decrease in cash and cash equivalents in 2021 and 2023, but increases in 2022, 2024, and 2025. The end-of-period cash balance increased from $2,823 million in 2021 to $5,056 million in 2025. Exchange rate changes have a fluctuating impact on cash, with a notable positive impact in 2025 ($131 million) and negative impacts in prior years.

The cost reduction program and other charges show volatility, with a significant positive impact in 2023 (-$118 million) and 2025 ($139 million), suggesting potential reversals of prior charges or gains from restructuring efforts. Deferred income taxes consistently represent a cash outflow, though the magnitude varies annually.

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Linde plc (NASDAQ:LIN)

Cash Flow Statement