Linde: Strong Execution, But Peer Momentum And Higher CapEx Limit The Upside

Mare Evidence Lab 6.17K Followers Follow Summary Q2 remained solid, but operating margin declined 60 basis points despite stronger pricing and volumes. The $8.1 billion backlog supports earnings visibility, although electronics growth is increasingly a sector-wide tailwind rather than a Linde-specific catalyst. Higher CAPEX and delayed project contributions temper the outlook, while APD and Air Liquide currently offer stronger margin-improvement stories. We raise our EPS estimate following improved guidance, but limited valuation upside and slower peer-relative growth support our Hold rating. krblokhin/iStock Editorial via Getty Images In our previous assessment (FY 2025 commentary), we moved Linde plc ( LIN ) to a hold rating despite another solid performance, while we are retaining a buy rating for both Air L'iquide This article was written by Mare Evidence Lab 6.17K Followers Follow Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.