YCG Expresses Strong Bullish Stance on Linde plc Amid Industrial Gas Sector Resilience

YCG has reaffirmed its strong conviction in Linde plc (LIN), a global leader in industrial gases, emphasizing the company's resilient business model and strategic positioning across energy and defense sectors. LIN, headquartered in Dublin with operations spanning over 100 countries, reported adjusted EBITDA of $5.2 billion in fiscal year 2025, reflecting a 6.3% year-over-year increase. The company's operating margin stabilized at 28.4%, underscoring disciplined cost management and pricing power in volatile commodity environments. The firm’s confidence is anchored in LIN’s exposure to high-growth segments, including renewable hydrogen infrastructure and semiconductor manufacturing support. Capital expenditures in 2025 totaled $1.8 billion, with 42% allocated to low-carbon technologies—aligning with global decarbonization trends. Additionally, LIN’s contract backlog reached $19.7 billion, with 78% indexed to inflation or long-term pricing agreements, providing earnings visibility through 2028. Despite broader market volatility, LIN has outperformed the S&P 500 Industrials Index by 4.1 percentage points over the past 12 months. The stock trades at a forward P/E of 22.6, below its 5-year average of 24.3, suggesting potential undervaluation. While the CBOE Volatility Index (VIX) rose to 18.7 on March 8, 2026, LIN’s beta of 0.81 indicates lower sensitivity to market swings compared to peers. Investors in LIN may benefit from recurring revenue streams and a conservative capital structure, with net debt/EBITDA at 2.2x. The stock’s performance remains closely tied to industrial activity, energy transition funding, and defense spending, particularly in Europe and North America.