Linde plc: Rain on the Parade

Research evidence excerpt

Linde plc: Rain on the Parade

Jeffrey J. Zekauskas AC North America Equity Research

(1-212) 622-6644 02 August 2026 J P M O R G A N

jeffrey.zekauskas@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We rate Linde Overweight. Linde is the largest industrial gas

company globally. Its strength lies in production efficiency and

exposure to a diverse group of end markets, including

healthcare, manufacturing, electronics, chemicals and energy.

Linde is benefiting from improved demand and new project wins

in the Electronics sector. Linde’s industrial customers in the U.S.

are also operating at high utilization rates given the relative cost

advantage and higher output prices. The oversupplied helium

market, which was a drag on Linde’s price growth, has tightened

YTD 1m 3m 12m due to the closure of the Strait of Hormuz. Linde tends to

Abs 19.3% -2.0% 1.5% 9.1% increase prices at a faster rate in an inflationary market than it

Rel 10.7% -1.2% -1.7% -7.8%

does in a non-inflationary market. We rate Linde Overweight.

Company Data We are establishing a December 2027 price target of $530.

Shares O/S (mn) 464 Our price target is based on an EV/EBITDA multiple of 19.1x for

52-week range ($) 548.20-387.78 2026E, or a two-multiple-point discount to where Ecolab trades.

Market cap ($ mn) 221,817.60

Exchange rate 1.00 Linde currently trades at 17.4x 2026E EBITDA.

Free float (%) 99.8%

3M ADV (mn) 2.26

3M ADV ($ mn) 1,158.2 Performance Drivers

Volatility (90 Day) 22

Index S&P 500

BBG ANR (Buy | Hold | Sell) 24|7|2

Key Metrics (FYE Dec)

$ in millions FY25A FY26E FY27E FY28E

Financial Estimates

Revenue 33,986 36,137 37,694 39,153

Adj. EBITDA 13,180 13,912 14,584 15,216

Adj. EBIT 10,194 10,833 11,443 12,012

Adj. net income 7,772 8,302 8,830 9,222

Adj.