Aureus
AExcellent

Linde plc(LIN)

A

Financial data as of Dec 31, 2025Stable · Materials

FCF Margin15.0%Free Cash Flow / Revenue
Cash Conversion150.0%Operating CF / Net Income
Free Cash Flow$5.1B
Revenue$34.0B
Net Cash-$23.0BNet debt position
Debt / FCF5.5xElevated debt burden
Current Ratio0.88Tight short-term liquidity
YoY FCF Growth+0.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-0.5Elevated debt-to-FCF ratio (5.5x)
→
+0.5Healthy FCF margin with manageable debt (15.0%, 5.5x)
→
-1Current ratio below 1.0 (0.88)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (15.0%)
  • Excellent cash conversion (150%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($23.0B net debt, 5.5x FCF)
  • High debt-to-FCF ratio (5.5x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin15.0%
Net Margin20.3%
Operating CF Margin30.5%
CapEx Ratio15.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$23.0BNet debt position
Debt / FCF5.5xElevated debt burden
Current Ratio0.88Tight liquidity
Debt / Equity0.73Low leverage

Quarterly FCF Trend

+0.8% YoYStable (+0.8%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameLinde plc
SectorMaterials
Free Cash Flow$5.1B
Revenue$34.0B
Net Income$6.9B
Operating Cash Flow$10.3B
Capital Expenditure$5.3B
FCF Margin15.0%
Cash Conversion Rate150.0%
Net Margin20.3%
Total Debt$28.1B
Total Cash$5.1B
Net Cash-$23.0B
Current Ratio0.88
Debt / Equity0.73
Debt / FCF5.5x
YoY FCF Growth+0.8%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

Related Research

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Sector Report5 min read

Materials: Six A-Grades and Six Total Failures

The materials sector splits cleanly in half: six companies generating real cash, six burning through it. CF's 29.5% margin sits 1,800 basis points above the sector median.

Feb 13, 2026
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