Linde Plcreason 02 of 4it owns a thing that cannot be built or permitted twicederived 2026-09-11accession 0001628280-26-051289
Building on-site plants and pipeline networks creates a physical asset moat: once a Linde facility sits inside a customer's fence-line, the economics of duplicating that infrastructure make competitive displacement prohibitively expensive. Ongoing capex of nearly $2.8 billion in H1 extends this installed base.
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 checkedsix sentences · whole, uncut
the claims it rests on
Linde constructs plants on or adjacent to these customers' sites and supplies the product directly to customers by pipeline
Due to the relatively high distribution cost, merchant oxygen and nitrogen generally have a relatively small distribution radius from the plants at which they are produced
Capital expenditures for the six months ended June 30, 2026 were $2,780 million, primarily due to investments in new plant and production equipment for backlog growth requirements
what it was checked against
onsite customer volume growth
Volumes increased sales by 2% primarily driven by the electronics, manufacturing, and chemicals and energy end markets.
onsite contract pass-through mechanism
Cost pass-through, representing the contractual billing of energy cost variances primarily to onsite customers, increased sales by 1%.
new plant project start-ups
Excluding currency, the underlying depreciation and amortization increase was largely driven by new project start-ups.
Linde Plc (LIN) — scarcity asset, read against the 10-Q