Linde Plcreason 03 of 4it makes it for less than anyone else canderived 2026-09-11accession 0001628280-26-051289
Management's ongoing productivity initiatives are compressing SG&A as a share of revenue while pass-through clauses shift energy-cost volatility to customers, enabling adjusted operating margins near 30% even during inflationary periods.
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
“Adjusted operating profit of $2,744 million, or 29.5% of sales, was 7% higher as compared to the prior year driven by higher pricing, currency translation and productivity initiatives, which more than offset adverse impacts from cost inflation”
“SG&A was 9.6% of sales for the quarter versus 10.2% of sales for the respective 2025 period”
“Cost of sales increase as a percentage of sales was primarily due to higher costs and cost pass-through, partially offset by productivity gains”
what it was checked against
SG&A compression as share of revenue
“SG&A was 9.6% and 9.9% of sales for the quarter and six months ended June 30, 2026, respectively, versus 10.2% and 10.0% of sales for the respective 2025 periods.”
energy cost pass-through clauses
“Cost pass-through, representing the contractual billing of energy cost variances primarily to onsite customers, increased sales by 1%.”
adjusted operating margin near 30%
“In the second quarter of 2026, adjusted operating profit of $2,744 million, or 29.5% of sales, was 7% higher as compared to the prior year driven by higher pricing, currency translation and productivity initiatives, which more than offset adverse impacts from cost inflation.”