Sustainable Growth Advisers, LP on Linde plc
Thesis
SGA re-entered Linde after exiting in 2024 for valuation reasons, as the share price consolidated while fundamentals continued to improve. The company benefits from long-term recurring contracts in essential end markets, strong pricing power and broad exposure to healthcare, manufacturing, electronics, chemicals and energy. SGA expects potential medium-term acceleration from U.S. industrial recovery, semiconductor manufacturing, refinery utilization and stabilization in Europe and Asia-Pacific. Elevated energy prices can also support profitability because Linde tends to raise prices quickly in inflationary environments. The fund views the combination of durable cash-flow visibility and structural demand as attractive at the current valuation.
“Linde remains an attractive long-term investment, supported by a highly durable business model and meaningful structural advantages.”
Key risks
- Weak European industrial volumes or a slower global growth recovery