LIN · Earnings call · 2026Q3T · Full report

European Industrial Slowdown

LINDE PLC · 2026-10-29 · Importance 25 · Surprise 32

Europe’s reported 1% positive volume was largely attributable to equipment sales; underlying volume was flat, which management described as stable versus declines of 2%–3% 12–18 months earlier, but saw no near-term catalyst for recovery. Scandinavia continued to show good industrial activity and project prospects, while Continental Europe faced cost disadvantages and Eastern Europe was affected by its role in the supply chain serving Continental Europe. In China, steel production declined 2.5% amid government curtailments, chemicals were flat, and electronics industrial production grew about 17%; domestic demand remained weak despite strong exports. India and China growth remained healthy in selected areas, with U.S. merchant and on-site volumes strongest.

Key facts

• LINDE PLC said Europe’s flat volume compared with minus 2% to minus 3% 12–18 months earlier reflected stability, but there was no catalyst for near-term European market growth.
• LINDE PLC said Europe’s energy costs had reached EUR 150 per megawatt for electricity and natural gas had sold at EUR 30 per MMBtu a couple of weeks earlier, creating structural cost disadvantages.
• LINDE PLC said Scandinavia continued to have good industrial activity and growth and project prospects, supported by lower-cost hydroelectric power.
• LINDE PLC said Europe had rounded positive volume growth of 1% in Q3, largely due to equipment sales; excluding equipment, underlying volume was flat.