Linde PLC

Linde, the world’s largest industrial gas company, was added to the portfolio in April. The stock price has consolidated while fundamentals continued to progress. Linde remains an attractive long-term investment, supported by a highly durable business model and meaningful structural advantages. A large share of revenue is generated from long-term, recurring customer contracts in essential end markets, providing strong pricing power and cash flow visibility even in a slower growth environment. Looking ahead, Linde is well-positioned to benefit from structural improvements and a potential acceleration in global growth across several of its core markets over the medium term.

Linde (LIN) is mentioned in the context of the portfolio profile, with an EPS growth estimate of 10% for 2025-2026 and a P/E ratio of 28x for the most recent quarter. The company is part of a diversified portfolio that includes various high-growth names, but no specific bullish or bearish argument is made regarding its future performance.

Linde (-8.4%) edged down slightly due to a temporary cyclical weakness, without its pricing power or core business losing ground.

Linde, the world’s largest industrial gas company, was a top contributor to performance during the quarter. The company delivered solid results despite geopolitical and macroeconomic headwinds, with sales and EPS up approximately 6% each. Linde’s ability to pass through higher energy prices to customers should help protect margins. Additionally, elevated helium prices provided a modest tailwind. Linde remains an attractive long-term investment due to its durable business model and structural advantages, with a large portion of revenues derived from long-term, recurring contracts with customers in essential end markets, supporting pricing power and cash flow visibility even in a softer growth environment.

Linde plc (LIN) was a positive contributor to portfolio performance in Q1 2026, underpinned by resilient earnings delivery, strong forward visibility, and favorable industry dynamics. The company beat consensus earnings expectations, demonstrating continued margin expansion and pricing discipline despite muted industrial demand. Operationally, Linde delivered robust profitability and cash flow, with adjusted operating margins expanding to ~30% and operating cash flow up double digits year-over-year. Importantly, management maintained a constructive outlook and raised longer-term confidence, effectively signaling higher 2026 earnings power despite ongoing macroeconomic uncertainty.

Linde, a multinational provider of industrial gases, gained as investors favored companies with durable, hard-to-disrupt business models tied to both the global economy and semiconductor manufacturing. The company is well-positioned to benefit from the ongoing demand for industrial gases, which are essential for various sectors, including technology and manufacturing. This resilience in its business model supports our positive outlook on Linde's growth potential in the current market environment.

Linde moved higher as the market rewarded the company’s defensive business profile during a volatile, risk-off quarter. Strong quarterly results and optimism around the company’s exposure to space end-markets also provided a tailwind for stock performance. This reflects Linde's resilience and strategic positioning in the industrial energy efficiency sector, which is increasingly relevant in today's economic climate.

Linde PLC, a global provider of industrial gases, rounded out the top-five contributors.

Linde plc is the largest industrial gas company in the world, operating in over 80 countries. The company captures air and separates it into essential gases that serve mission-critical functions across various industries, including manufacturing, healthcare, and clean energy. This broad applicability ensures durable revenues, as these gases are integral to operations in sectors such as food & beverage, electronics, and chemicals. Given its scale and the essential nature of its products, we believe Linde is well-positioned for long-term growth and stability, making it an attractive addition to our portfolio.

We initiated a position in U.K.-based Linde, a well-run company operating in an attractive, consolidated end market of industrial gas, which is a key input in many industries including technology, chemicals, manufacturing, health care and electronics. Both the company and the industry are highly disciplined in terms of price and contracting structure, providing downside protection in periods of slower economic growth. The stock’s relative multiple has recently declined due to macroeconomic pressure on sales volumes, providing an attractive entry point. We believe an overlooked feature of Linde’s business is its role as primary provider of gases for rocket propellant and coatings used by companies operating space and satellite businesses.