Linde Plcreason 01 of 4it is wired into how the customer already worksderived 2026-09-11accession 0001628280-26-051289
Linde's on-site delivery model locks customers into decade-plus take-or-pay contracts with built-in price escalators, creating a visible, inflation-protected revenue base that competitors cannot replicate without building adjacent plants. The $64 billion minimum-purchase backlog quantifies the annuity-like stream these contracts generate.
the thesis · admitted · the reason above is the thesis, not printed twice
no findingread · nothing bore on it
It held on this filing. No finding was written because nothing in it bore on the reason — the sentences it was read against are below.
the evidence · every sentence checkedfive sentences · whole, uncut
the claims it rests on
On-site product supply contracts generally are total requirement contracts with terms typically ranging from 10-20 years and contain minimum purchase requirements and price escalation provisions
The company estimates the consideration related to future minimum purchase requirements and plant sales was approximately $64 billion
Higher pricing increased sales by 2% in the quarter
The actual duration of long-term supply contracts ranges up to thirty years
what it was checked against
contractual cost pass-through to onsite customers
Cost pass-through, representing the contractual billing of energy cost variances primarily to onsite customers, increased sales by 1%.
Linde Plc (LIN) — switching costs, read against the 10-Q