Linde: The Overlooked Materials Giant Powering Clean Energy and Industrial Resilience

In a market dominated by tech headlines, Linde quietly stands out as a consistent performer combining defensive earnings, exposure to long-term megatrends like clean energy, and a robust track record of shareholder returns.

As we move through 2025, Linde remains one of the most compelling stories in the materials sector, delivering stable growth with upside from the accelerating global energy transition.

A Global Leader in Industrial Gases with High Barriers to Entry

Linde operates one of the largest and most diversified industrial gas businesses globally, supplying oxygen, nitrogen, hydrogen, and specialty gases to industries ranging from healthcare to manufacturing and energy. With operations in more than 100 countries, Linde generates stable, inflation-protected revenues through long-term contracts — many of which are indexed to cost pass-through mechanisms.

The company benefits from extremely high barriers to entry. Building new industrial gas infrastructure requires significant capital investment, regulatory approvals, and long-term customer relationships, making Linde’s existing asset network a massive competitive moat.

Financial Resilience with Attractive Cash Flows

Linde’s financial performance has been remarkably resilient. In 2024, Linde generated approximately $35 billion in annual revenue with operating margins consistently above 25%, significantly higher than most traditional materials companies. The business model produces strong free cash flow, with over $6 billion in FCF in 2024, supporting regular dividend growth and aggressive share buybacks.

The company has a strong balance sheet, maintaining investment-grade credit ratings, and continues to return excess capital to shareholders while funding disciplined growth.

A Silent Winner in the Hydrogen Economy

One of the most exciting growth drivers for Linde is its leadership in clean hydrogen and energy transition projects. Linde is already involved in over 250 hydrogen-related projects globally, positioning itself as a frontrunner in low-carbon industrial solutions.

With governments and corporations pushing for net-zero targets, Linde’s expertise in carbon capture, hydrogen production, and clean energy infrastructure gives it long-term structural growth opportunities.

Technical Analysis

• Price has been consolidating sideway since Q4 2025, with longer-term MAs moving generally in a horizontal direction

• Consolidate phase seems to be kept with the 420 support and 485 resistance levels

• Price seems to have found a new higher support over the past few months at around 450

• 3 consecutive 1GT Bullish signals still playing out

• Price is currently once again testing the 485 resistance level. If this level is breach and price can firmly hold above it, would not rule out more upside towards 520, where some profit-taking can return

Final Thoughts

Linde offers a rare combination: defensive earnings stability from industrial gas contracts, high-margin returns from specialty gases and healthcare segments, and growth optionality from clean energy investments. Trading at approximately 25x forward earnings, the stock reflects its premium positioning, but investors benefit from steady dividend growth, share buybacks, and exposure to future decarbonization trends.

For investors seeking materials sector exposure with less commodity price volatility and more structural growth drivers, Linde remains a standout name in 2025.

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Sources (pending to update):
1.Reports record revenues and forward guidance boosted by generative AI demand. Available at:
https://www.bloomberg.com/news/articles/2025-05-22/nvidia-sales-surge-on-ai-chip-demand-blackwell-gpu-hype

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