Flash | 25 Feb 2026 08:49:12 ET │ 11 pages Global Specialty Chemicals Meetings with AI & LIN: Seeing the world similarly – mostly CITI'S TAKE We met Air Liquide's leadership team earlier this week and attended Linde CFO's sell-side event today. Both companies see similar macro patterns: North America strongest, Europe weakest, and Asia mixed, with China deflationary. They expect limited near-term macro support. Neither seem constructive on Europe, yet, with Air Liquide noting improving sentiment in EU steel ...

Company Overview - Linde plc (NASDAQ:LIN) is a leading provider of industrial gases and has a market capitalization of $238.33 billion [2]. - The stock closed at $508.27 per share on February 25, 2026, with a one-month return of 11.71% and a 52-week gain of 10.43% [2]. Performance Analysis - The Aristotle Growth Equity Fund sold its position in Linde plc due to a prolonged trend of negative base volumes attributed to soft industrial activity in Europe [3]. - The fund noted that Linde's high exposure to North American industrial markets poses increased risks if the U.S. economy experiences a prolonged slowdown [3]. Investment Sentiment - Linde plc is not among the 30 Most Popular Stocks Among Hedge Funds, although 89 hedge fund portfolios held the stock at the end of Q4 2025, an increase from 76 in the previous quarter [3]. - The fund believes that certain AI stocks present greater upside potential and carry less downside risk compared to Linde plc [3].

Linde Increases Dividend 7%Feb 24, 2026 12:58 PM Eastern Standard Time# Linde Increases Dividend 7%Share---WOKING, England--([BUSINESS WIRE])-- Linde plc (Nasdaq: LIN) today announced its Board of Directors has declared a 7% increase in the company's quarterly dividend to $1.60 per share. This marks the 33rd consecutive year of quarterly dividend increases on the company's common stock.The dividend is payable on March 26, 2026, to shareholders of record on March 11, 2026.About LindeLinde is a leading global ...

Group 1 - Linde plc is recognized as one of the 16 Best Dividend Stocks with Rising Payouts [1] - BMO Capital analyst John McNulty raised the price target for Linde plc to $507 from $501, maintaining an Outperform rating, citing a stronger project backlog and pricing strength [2] - Linde's CEO Sanjiv Lamba described the economic environment as uneven, with strong investment in AI and digital infrastructure driving growth, while traditional sectors are experiencing a pullback [3][5] Group 2 - Linde reported record annual EPS, operating cash flow, and operating margins, achieving a 24.2% return on capital and returning over $7 billion to shareholders [3] - The company's project backlog reached a record $10 billion, excluding over $0.5 billion in additional investments for rocket propellant projects [4] - Linde serves a diverse range of industries, including chemicals, energy, food and beverage, electronics, healthcare, manufacturing, metals, and mining [5]

Core Insights - The article discusses the Zacks Style Scores, which are designed to help investors identify stocks with the best chances of outperforming the market over the next 30 days [2] Group 1: Zacks Style Scores Overview - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics [2][3] - Each stock is assigned a rating from A to F, with A indicating the highest potential for outperformance [3] Group 2: Value Score - The Value Score focuses on identifying stocks that are undervalued based on ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Group 3: Growth Score - The Growth Score evaluates a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Group 4: Momentum Score - The Momentum Score identifies trends in stock prices or earnings outlooks, helping investors time their positions based on recent price changes and earnings estimate revisions [5] Group 5: VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [6] Group 6: Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +23.86% since 1988 [7][10] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing returns [9] Group 7: Company Spotlight - Air Products and Chemicals - Air Products and Chemicals Inc. is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B [11] - The company is projected to have year-over-year earnings growth of 8.2% for the current fiscal year, with upward revisions in earnings estimates [12] - The Zacks Consensus Estimate for Air Products' earnings has increased by $0.05 to $13.01 per share, with an average earnings surprise of +0.4% [12]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various research services [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperforming the market [4] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [5] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [9] Stock Recommendation: Air Products and Chemicals (APD) - Air Products and Chemicals Inc. is rated 2 (Buy) on the Zacks Rank with a VGM Score of A, making it a notable option for momentum investors [12] - The stock has seen a 4.6% increase over the past four weeks, supported by positive earnings estimate revisions [12][13] - The Zacks Consensus Estimate for fiscal 2026 has risen by $0.05 to $13.01 per share, with an average earnings surprise of +0.4% [13]

Company Overview - Air Products and Chemicals Inc. is based in Pennsylvania and specializes in industrial gases, polymer, and performance chemicals, as well as processing equipment [11]. Zacks Rank and Style Scores - Air Products has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a moderate investment outlook [11]. - The company has a Growth Style Score of B, forecasting a year-over-year earnings growth of 7.8% for the current fiscal year [12]. - Two analysts have revised their earnings estimates upwards in the last 60 days for fiscal 2026, with the Zacks Consensus Estimate increasing to $12.97 per share [12]. Investment Potential - Air Products boasts an average earnings surprise of +0.4%, suggesting a potential for positive performance [12]. - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Air Products is recommended for investors' consideration [12].

Core Insights - Air Products and Chemicals, Inc. (APD) reported first-quarter fiscal 2026 earnings of $3.04 per share, an increase from $2.77 in the same quarter last year, driven by a favorable mix and lower costs related to productivity improvements and reduced maintenance [1] - Adjusted earnings per share were $3.16, surpassing the Zacks Consensus Estimate of $3.04 [1][9] Revenue Performance - The company generated revenues of $3,102.5 million, reflecting a year-over-year increase of approximately 5.8%, exceeding the Zacks Consensus Estimate of $3,044.8 million [2] - Revenue growth was attributed to higher prices, favorable currency impacts, and energy cost pass-through, although volumes remained flat [2] Segment Analysis - Revenues in the Americas segment rose 4.2% year over year to $1,341.7 million, beating the Zacks Consensus Estimate of $1,332 million, driven by higher energy cost pass-through and favorable pricing [3] - The Europe segment saw a 12.2% year-over-year increase in revenues to $782 million, attributed to higher pricing, volumes, and favorable currency, surpassing the Zacks Consensus Estimate of $746 million [4] - Revenues in the Asia segment increased by 1.8% year over year to $831.5 million, driven by higher energy cost pass-through and favorable currency impacts, outperforming the Zacks Consensus Estimate of $811 million [5] Financial Position - At the end of the fiscal first quarter, the company had cash and cash equivalents of approximately $1,026.4 million, a decrease of around 44% year over year [6] - Long-term debt stood at $17,114.6 million, reflecting an increase of roughly 30% year over year [6] Future Outlook - The company anticipates adjusted earnings per share for fiscal 2026 to be in the range of $12.85 to $13.15, with second-quarter adjusted earnings projected between $2.95 and $3.10 [7] - Capital expenditures for the full fiscal year are expected to be around $4 billion [7] Stock Performance - Over the past year, the company's shares have declined by 23.6%, compared to a 22.2% decline in the Zacks Chemicals Diversified industry [8]

Group 1 - Air Products and Chemicals, Inc. (APD) expects adjusted earnings for Q2 in the range of $2.95 to $3.10 per share and maintains its full-year 2026 adjusted earnings guidance of $12.85 to $13.15 per share [1] - Analysts expect the company to report earnings of $3.02 per share for the quarter and $12.91 per share for the year, with estimates typically excluding special items [2] - The company anticipates capital expenditures of approximately $4.0 billion for the full-year fiscal 2026 [2] Group 2 - In pre-market trading, APD is trading at $258.90, reflecting an increase of $2.90 or 1.13 percent [3]

Financial Data and Key Metrics Changes - Brookfield Infrastructure Partners generated funds from operations (FFO) of $2.6 billion in 2025, reflecting a 10% increase compared to 2024 when normalized for asset sales and foreign exchange [4][5] - The fourth quarter FFO reached a record of $0.87 per unit, leading to a conservative payout ratio of 66% and a 6% increase in quarterly distribution to $1.82 per unit, marking the 17th consecutive year of distribution increases of at least 5% [5][6] Business Line Data and Key Metrics Changes - The transport segment generated FFO of $1.1 billion, consistent with the prior year after normalizing for $1.8 billion in capital recycling initiatives, with higher revenues in rail and toll road segments [6][7] - The midstream segment's FFO increased by 7% year-over-year to $668 million, driven by higher volumes in Canadian natural gas operations and a newly acquired US refined products pipeline [7][8] - The data segment's FFO surged over 50% to $502 million, attributed to new investments and strong organic growth, including the commissioning of 220 megawatts of capacity at hyperscale data centers [8][9] Market Data and Key Metrics Changes - The global data center platform has development potential of approximately 3.6 gigawatts, with contracted capacity exceeding 2.3 gigawatts [9] - In 2025, corporates invested around $500 billion into AI-related infrastructure, with expectations for further capital investment in the next two years [11][12] Company Strategy and Development Direction - The company is focused on a prudent, risk-focused approach to AI infrastructure investing, emphasizing long-term contracts and selective partnerships with investment-grade counterparties [12][13] - Brookfield Infrastructure aims to capitalize on structural themes such as digitalization, decarbonization, and deglobalization, positioning itself for a super cycle in infrastructure investment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating a return to 10% or higher per unit growth, supported by resilient cash flows and a robust pipeline of investment opportunities [20][21] - The company highlighted the importance of maintaining a disciplined execution strategy to convert demand into durable returns, particularly in the data center sector [16][17] Other Important Information - The company achieved record liquidity of $6 billion at the end of 2025, bolstered by $3.1 billion in asset sale proceeds [9] - Significant new investments included a $125 million acquisition of a South Korean industrial gas business and a $300 million investment in a railcar leasing platform [19] Q&A Session Summary Question: Can you elaborate on your contract approach to mitigate technology risk in data centers? - Management explained that long-term contracts (around 15 years) help avoid technology risks by ensuring that any necessary infrastructure changes are not at their cost [28][30] Question: What is the expected return on new data center developments? - Management indicated that new data centers yield a return of 9% to 10%, with monetization at cap rates of 5.5% to 6%, leading to potential equity returns in the high teens or twenties [26][27] Question: Can you provide details on the KKR acquisition of data centers? - Management stated that they cannot disclose specific transaction details but confirmed joint ventures with institutional investors across North America and Europe, totaling about 850 megawatts [35][36] Question: What is the outlook for inflation indexation across geographies in 2026? - Management expects inflation indexation in OECD markets to average between 2% and 3%, with emerging markets like India and Brazil ranging from 2% to 4% [46][47] Question: How is the capital backlog in data operations expected to evolve? - Management noted a significant increase in the capital backlog, driven by hyperscale projects, and expects about $1.5 billion to come online in 2026 [51][59]