Company Reports

Linde's second-quarter adjusted earnings per share of $4.50 came in a penny above FactSet consensus expectations. Despite the earnings beat, the stock was down 5% on July 31 as the updated full-year adjusted EPS guidance midpoint of $17.80 fell short of the $17.93 consensus estimate.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

The upcoming SpaceX IPO has put a spotlight on the rocket launch supply chain, sparking investor interest in companies with exposure to the commercial space boom. Linde is currently SpaceX's main industrial gas partner, supplying liquid oxygen used as a propellant in rocket launches.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Linde increased its first-quarter adjusted EPS by 10% year over year to $4.33, beating the FactSet consensus estimate by $0.06. Reported sales increased by 8%, led by 10% growth in the electronics end market.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Linde reported fourth-quarter adjusted EPS of $4.20, at the top end of management's guidance range for the quarter. For full-year 2026, management anticipates adjusted EPS of $17.40 to $17.90.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Linde reported third-quarter adjusted EPS of $4.21, slightly above the top end of management's $4.10-$4.20 guidance range. Linde narrowed its full-year outlook by a nickel on both ends and now anticipates full-year adjusted EPS of $16.35 to $16.45.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Linde posted second-quarter adjusted EPS of $4.09, above management's $3.95-$4.05 guidance range. The industrial gas firm raised the bottom end of its 2025 outlook by a dime and now anticipates full-year adjusted EPS of $16.30-$16.50.

After taking a fresh look at industrial gas firms, we've updated our Morningstar Capital Allocation Ratings: upgraded Linde from Standard to Exemplary, downgraded Air Products from Exemplary to Standard, and maintained Air Liquide at Standard. We've maintained our fair value estimates and wide moat ratings for all three companies.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling products that are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Despite a challenging macroeconomic environment, wide-moat Linde delivered solid first-quarter results, increasing adjusted earnings per share by 5% year over year to $3.95. Management narrowed its full-year adjusted EPS guidance to $16.20-$16.50 from $16.15-$16.55. The midpoint, which is unchanged as better foreign-currency translation offset lower volume, assumes an economic contraction. We’ve maintained our $437 fair value estimate, as our slightly more conservative near-term projections amid tariff-related uncertainty were offset by the time value of money.

On April 2, President Donald Trump announced a 10% baseline tariff on all imports into the United States, with higher rates on imports from select countries. We are keeping our fair value estimates unchanged for the three wide-moat industrial gas firms under our coverage: EUR 187 for Air Liquide, $333 for Air Products, and $437 for Linde. After the tariff announcement sent the market down, Air Products' shares looks the most attractive from a valuation perspective, trading at a roughly 14% discount to our fair value estimate.

Wide-moat-rated Linde ended 2024 with a solid fourth quarter, as the industrial gas firm’s full-year adjusted EPS of $15.51 came in a nickel above our expectations. After rolling our model forward one year, we’ve increased our fair value estimate to $437 per share from $419, which reflects our slightly more optimistic midcycle operating margin projections and time value of money.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling industrial gases, which are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.

Linde is the largest industrial gas producer in the world and benefits from operating in an industry with a very favorable structure. Despite selling industrial gases, which are essentially commodities, industrial gas companies have consistently delivered lucrative returns thanks to their economic moats. Industrial gases typically account for a relative fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure that their businesses are running smoothly. Long-term contracts and high switching costs contribute to industrial gas producers' moats, helping them generate a relatively predictable cash flow stream and lucrative returns.