Linde plc Ordinary Shares

Billionaire Daniel Sundheim's D1 Capital Partners disclosed two new non-AI stock picks in its second-quarter filings. The fund bought over 340,000 shares of Linde plc, a stake worth about $177.2 million and 0.51% of the portfolio, and 1.6 million shares of Builders FirstSource, Inc., worth about $146.7 million and 0.42% of the portfolio. Linde is the largest industrial gas company in the world, selling oxygen, nitrogen, hydrogen and argon to refiners, steelmakers, chemical plants and hospitals. Builders FirstSource, a building materials company, is down about 38% so far this year, and bulls argue the housing downturn may be close to a bottom. The stock trades at about 20 times forward non-GAAP earnings, roughly in line with the sector median of 19.9 times, and at about 11 times forward EBITDA versus a sector median of 12 times.

CF Industries, JERA, and Mitsui have begun construction of Blue Point One, a $3.7 billion low-carbon ammonia plant in Louisiana, which will be the world's largest of its kind upon completion. The facility, with an annual capacity of 1.4 million metric tons, is expected to start production in 2029 and will capture about 98% of its carbon dioxide emissions. CF Industries holds a 40% stake in the joint venture, while JERA owns 35% and Mitsui 25%, with CF also investing an additional $550 million in shared infrastructure. Linde is investing over $400 million in an on-site air-separation unit, and a 1PointFive-Enbridge joint venture will handle carbon transport and sequestration. CF shares have risen 43.9% over the past year, outperforming the industry's decline of 43.5%.

Linde secured two long-term agreements to supply ultra-high-purity industrial gases to one of the world's largest semiconductor manufacturers, backed by a combined $1.8 billion in investments. The first deal involves a $1 billion commitment in Phoenix, Arizona, featuring two new SPECTRA air separation units, while the second, through its Taiwan joint venture Linde LienHwa, earmarks roughly $800 million for air separation and hydrogen production units supporting the same customer's overseas expansion. The announcements came alongside Linde's record Q2 2026 earnings, where electronics emerged as the fastest-growing end market with an 18% year-over-year sales increase, contributing to a 9% rise in total sales to $9.29 billion and a 10% increase in adjusted diluted EPS to $4.50. The deals push Linde's sale-of-gas project backlog to a record $8.1 billion, though they also concentrate nearly $1.8 billion in capital on a single customer's build-out plans across two regions. Air Products and Chemicals also won a major semiconductor gas supply deal in Taiwan on July 21, intensifying the race for chip-industry infrastructure.

Linde reported second-quarter sales of $9.3 billion, up 9% from a year earlier, and adjusted earnings per share of $4.50, a 10% increase, while its sale-of-gas backlog reached a record $8.1 billion after securing a $1 billion electronics contract to support advanced node fabs in the Western US. Operating margin fell 60 basis points to 29.5%, or 30 basis points excluding cost pass-through, primarily due to the US homecare business, which management said is under strategic review. The company expects more than 20 project startups representing about $1.3 billion in investments for the remainder of the year, and it guided third-quarter EPS to $4.45 to $4.55 and full-year EPS to $17.70 to $17.90. Electronics was the fastest-growing end market with 18% growth, driven by AI-related hardware demand, while manufacturing growth was led by aerospace, which accounted for more than a third of that segment's expansion.

Ten of the 13 S&P 500 materials companies that reported quarterly results this week surpassed earnings expectations, while three fell short, and 12 beat revenue forecasts. The State Street Materials Select Sector SPDR ETF fell nearly 2% for the week, compared to the S&P 500's 1% rise. Among the reporters, Nucor easily beat adjusted earnings estimates and achieved record steel shipments of 7.1 million tons, while LyondellBasell Industries posted an earnings beat but missed on revenue. Corteva raised its full-year 2026 guidance on a profit beat, though quarterly revenue missed by $220 million, and Air Products and Chemicals lifted its annual and fourth-quarter adjusted EPS guidance after third-quarter results topped estimates. Linde also reported a beat, supported by 7% growth in quarterly operating profit. Next week, Albemarle and DuPont de Nemours are scheduled to report second-quarter results, with analysts expecting Albemarle to post earnings of $3.24 per share on revenue of $1.63 billion and DuPont to report earnings of $1.76 per share on revenue of $1.81 billion.

Linde reported second-quarter adjusted earnings of $4.50 per share, topping the Zacks Consensus Estimate of $4.49 per share. Revenue came in at $9.29 billion, exceeding the consensus estimate by 3.62% and up from $8.5 billion a year ago. The company has now beaten consensus EPS and revenue estimates in each of the last four quarters. Linde shares have gained about 19.3% year to date, outpacing the S&P 500's 8.7% advance.

Linde has declared a quarterly dividend of $1.60 per share, in line with the previous payout. The dividend carries a forward yield of 1.23% and is payable on September 17 to shareholders of record as of September 3, with the ex-dividend date also set for September 3.

Linde has signed six new power purchase agreements to source renewable electricity across Europe, Africa, and India. The agreements will supply approximately 0.63 terawatt-hours per year of renewable energy from newly developed wind and solar assets, supporting operations in Spain, Greece, South Africa, and India. Low-carbon power currently accounts for around 50% of Linde's global electricity consumption, and the company has increased its active renewable power purchasing by 2.7 times compared to its 2021 baseline, from 2.8 terawatt-hours to 7.6 terawatt-hours in 2025. The move accelerates progress toward Linde's target to reduce absolute emissions 35% by 2035, according to Vice President of Sustainability Erin Catapano. In 2025, Linde helped its customers avoid 98 million metric tons of carbon dioxide equivalent, more than twice the greenhouse gases emitted in its own global operations.

Linde was included in the FTSE4Good Index Series for the 11th consecutive year, reinforcing its sustainability credentials as investors await its second-quarter earnings release on July 31. Analysts expect higher quarterly revenue and earnings, driven by Linde's contract-based industrial gas business and new agreements in helium and clean energy projects. The company's long-term narrative projects $41.0 billion in revenue and $9.5 billion in earnings by 2029, requiring 5.8% annual revenue growth and a $2.4 billion increase in earnings from $7.1 billion. Three fair value estimates from the Simply Wall St community range from roughly $482 to $545 per share, reflecting varied assessments of Linde's prospects amid concerns over prolonged industrial weakness in Europe and Asia.

The global silver-based brazing alloys market is projected to grow from $2.98 billion in 2026 to $3.8 billion by 2030, at a compound annual growth rate of 6.3%, according to a new report from ResearchAndMarkets.com. The market had already risen from $2.8 billion in 2025 to $2.98 billion in 2026, a 6.6% increase, driven by demand from the automotive sector, electrical equipment, aerospace, household appliances, and infrastructure. Escalating vehicle production, including the shift to electric vehicles, and expansion of automotive maintenance and repair services are key growth factors. North America led the market in 2025, but Asia-Pacific is expected to see the fastest growth. Major players include Compagnie de Saint-Gobain, Linde, Sumitomo Electric Industries, Umicore, and voestalpine.

Linde’s take-or-pay contracts and on-site gas plants create a structural moat that generated a $7.1 billion sale-of-gas backlog and a 30% adjusted operating margin in Q1 2026. The company has raised its dividend for 33 consecutive years at a 13% average rate, with the quarterly payout nearly doubling from $0.825 in 2018 to $1.60 in 2026, supported by $10.4 billion in FY2025 operating cash flow. Linde posted 10% EPS growth and adjusted EPS of $4.33 in Q1 2026, marking eight straight quarters of beating consensus, and guided for FY2026 adjusted EPS of $17.60 to $17.90 despite challenging global conditions. With a beta of 0.73, the stock offers low-volatility compounding for long-term, retirement-focused investors.

Citi raised its price target on PPG Industries to $125 from $114 while reiterating a Neutral rating as part of a broader specialty chemicals sector update ahead of second-quarter earnings. The firm named Ecolab its top pick and initiated a pair trade favoring Linde over Air Products. Separately, BMO Capital lifted its target to $140 from $135 with an Outperform rating, citing increased confidence in PPG's aerospace business after a detailed segment presentation. Analyst John McNulty noted PPG is well-positioned across commercial, business, and military aerospace markets, serving both aftermarket and OEM channels, and stands to benefit from multiple growth trends.

The global hydrogen generation market is projected to grow from US$ 208.96 billion in 2025 to US$ 427.07 billion by 2034, at a compound annual growth rate of 8.27 percent, according to a new report by The Insight Partners. Asia Pacific is expected to hold more than 35 percent of the market share in 2025, led by China, Japan, South Korea, Australia, and India, while Europe accounts for over 25 percent. Steam reforming remains the dominant production process, and ammonia production is the largest and fastest-growing application segment. Key drivers include government policies such as the US Inflation Reduction Act and the EU Hydrogen Strategy, industrial decarbonization targets, and rising investments in electrolyzer and hydrogen infrastructure. Major companies profiled include Linde PLC, Air Liquide, Shell Plc, and Plug Power.