C2Q26 Industrial Gas Preview - Expect Solid Qtrs Despite Euro Sluggishness / FX Headwinds

Research evidence excerpt

C2Q26 Industrial Gas Preview - Expect Solid Qtrs Despite Euro Sluggishness / FX Headwinds

Chemicals

Industrial Gases - Market Overweight

C2Q26 Industrial Gas Preview - Expect Solid Qtrs Despite July 22, 2026

Euro Sluggishness / FX Headwinds

The Wolfe Byte

APD: Expect a solid F3Q on US H2 demand and Electronics momentum (incl. TSMC ramp). NEOM off-take sentiment

still a material drag on LT narratives.

LIN: Modeling a solid 2Q (FX a bit more challenging vs. prior model), w/ '26 #s edging to the very high end of

guidance.

Industrial Gases (Market Overweight): Despite some "standard" noise in Europe (incl. energy pass-through) and FX

volatility, we expect both LIN and APD to post solid C2Qs on the back of strong H2 demand, building electronics

momentum offsetting sluggish Asia manufacturing, and stable industrial activity in the west ("cautious cautious"

optimism for the 2H). We continue to forecast improving helium dynamics into C27, but no "real" reversal of prior

headwinds until C4Q (monitoring Qatari outages at Ras Laffan for LIN / Barzan for APD - but US supply optionality

should be a full offset). Overall we expect Asia to be +ive, NA to be +ive/= and the EU to be sluggish.

Electronics activity should demonstrate qtr/qtr progress, while new project wins should represent a steady state of 2H

catalysts (recent "W"s for APD / Air Liquide; LIN likely to win more content at TSMC AZ). With investors beginning to

look beyond megaproject risks for APD (Darrow cancellation, potential partial NEOM resolution) we believe investors

will "credit" APD for its F2H ramp of TSMC Kaohsiung (~$900mm investment), four recent Taiwan ASU wins (7/21

PR) and new Samsung Pyeongtaek projects (WRe >$1bln investment). Despite constructive semi narratives, we sense