They raised pricing 30% since 2022 and margins expanded 130 basis points. While the market chases chip designers, this company owns the utility bill the fabs cannot stop paying.
Thesis: This is a royalty on semiconductor manufacturing disguised as a gas company. The 'Electronic' segment isn't speculative; it's high-purity carrier gases with massive switching costs. Fabs cannot change suppliers without risking yield. The 130bps margin expansion proves they have pricing power that exceeds inflation. With a EUR 4.6bn backlog and the new Molybdenum plant for AI chips, they are the bottleneck owner for the physical layer of the AI stack.
Verdict: LONG — Conviction: HIGH
Catalyst: EUR 310 million revenue contribution from start-ups/ramp-ups in 2025, converting the record backlog into visible cash flow.
Key Risk: Fab construction delays. If Intel or Micron push out timelines, the Equipment & Installation (E&I) weakness persists and gas volume ramps get deferred.
The Tell: When asked about the 'Electronics' dip, Adam Peters didn't spin. He admitted E&I was down against a record comp but pivoted immediately to the 'solid double-digit growth' in carrier gases. He treated the E&I drop as a known cyclical feature, not a bug.
Friction Level: MODERATE_FRICTION — Market prices it as a sleepy industrial utility (2% growth). The data shows a semi-critical monopoly with tech-like pricing power and a record backlog locked in by CHIPS Act capex.
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