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1. Company Snapshot

1.a. Company Description

L'Air Liquide S.A. provides gases, technologies, and services for the industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa.The company's Gas & Services segment offers oxygen, nitrogen, argon, hydrogen, and carbon monoxide to the metals, chemicals, refining, and energy sectors; and gases, application equipment, and associated services to the materials and energy, automotive and manufacturing, food and pharmaceuticals, technology and research, and craftsmen and retail sectors.It also supplies medical gases, hygiene products, equipment, and services to hospitals, as well as to patients in their homes; and produces and distributes healthcare specialty ingredients for the cosmetics, pharmaceutical, and vaccine markets.


In addition, this segment supplies gases, materials, and services for use in the production of semi-conductors, as well as flat screens and photovoltaic panels.Its Engineering & Construction segment designs, develops, and builds industrial gas production plants for third parties; and designs and manufactures plants in the traditional, renewable, and alternative energy sectors.The company's Global Markets & Technologies segment delivers technological solutions, such as molecules, equipment, and services to support the markets of energy transition, primarily in transport, energy, and waste valorization, as well as related to deep tech in the space exploration, aerospace, and big science.


This segment also invests in biomethane production units, as well as develops stations for distributing natural bio-gas for vehicles and hydrogen to support clean mobility; operates biomethane production units for use in the maritime industry; and supplies gases for the offshore oil and gas platforms, offshore wind turbines, and cryogenic transportation by sea.L'Air Liquide S.A. was incorporated in 1902 and is headquartered in Paris, France.

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1.b. Last Insights on AI

Air Liquide S.A.'s recent performance was driven by strong financial results and significant margin improvements. The company reported record growth and sustainability in FY 2024, with reduced CO2 emissions and a robust investment pipeline. Additionally, the share buyback program, which ended in December 2024, is a positive event for shareholders, reducing the number of outstanding shares. The company's strong financial performance and commitment to sustainability have contributed to its growth and investment potential.

1.c. Company Highlights

2. Air Liquide's Resilient Growth and Record Margins

Air Liquide reported a strong first half of 2025, with sales growing 2% on a comparable basis, reaching €287 million in efficiencies, a 23% increase compared to H1 2024. The company's Gas & Services segment achieved a record operating margin improvement of 130 basis points, reaching a recurring ROCE of 11%. Net profit growth was 8%, and recurring net profit was up 10.3% excluding FX, with actual EPS coming out at €3.4, beating estimates of €3.31. The company's guidance for 2025 and a plus 460 basis point margin improvement outlook until the end of 2026 are confirmed.

Publication Date: Aug -01

📋 Highlights
  • Sales Growth: Sales grew 2% on a comparable basis, with Gas & Services sales up 1.8%
  • Operating Margin Improvement: Record Gas & Services operating margin improvement of 130 basis points, reaching a recurring ROCE of 11%
  • Efficiency Gains: Efficiencies reached EUR287 million, a 23% increase compared to H1 2024
  • Investment Backlog: The company's investment backlog stood at a record high of EUR4.6 billion
  • Net Profit Growth: Net profit growth was 8%, and recurring net profit was up 10.3% excluding FX

Financial Performance and Margins

The company's financial performance was driven by solid pricing, efficiency gains, and active portfolio management. The group operating margin improved by 100 basis points, and 130 basis points in Gas & Services. Sales in the Americas were strong, up 3% on a comparable basis, driven by Healthcare and Large Industry. In EMEA, sales were resilient, supported by solid growth in Healthcare. In Asia, sales were soft, but growth was driven by Electronics and Large Industry.

Growth Drivers and Investments

Air Liquide secured close to €1 billion of new investments in Electronics, including a €250 million investment in Dresden, Germany, and a $50 million investment in the U.S. The company also announced major energy transition projects, representing over €2 billion in investments, including the start-up of a 200-megawatt electrolyzer in Normandy, France. The investment backlog stood at a record high of €4.6 billion, with 40% dedicated to energy transition and 1/3 in electronic business.

Valuation and Outlook

At current prices, Air Liquide trades at a P/E ratio of 29.68, a P/B ratio of 3.65, and an EV/EBITDA of 14.83. The stock offers a dividend yield of 1.94% and a free cash flow yield of 2.85%. With a strong balance sheet and a solid outlook, the company is well-positioned to continue growing and taking additional investment opportunities. According to the management, "the company's transformation initiatives are paying off, with a solid 100 basis points improvement in group operating margin and 130 basis points in Gas & Services" <cite>Air Liquide's management team remains cautious about the current context, citing uncertainties, but sees positive signs in Electronics and industrial gases.</cite>

Segment Performance and Trends

The Electronics segment saw strong growth driven by demand for carrier gases, advanced materials, and equipment installations. The US market is particularly strong, with a solid double-digit percent growth in Advanced Materials and carrier gases. The company expects growth to accelerate in the second half of the year, driven by new projects and ramp-up of start-ups. The non-gases and services business reported an EBIT loss of €190 million, impacted by restructuring costs and disposals in engineering.

3. NewsRoom

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Hyundai Motor Group and Air Liquide Advance Global Partnership to Accelerate Hydrogen Ecosystem

Dec -04

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European Enterprises Strive for AI Innovation and Compliance, ISG Says

Dec -02

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Hydrogen Fueling Station Industry Research 2025-2030 Featuring Key Players - Air Liquide (France), Linde (Ireland), Air Products and Chemicals (US), Nel (Norway)

Nov -21

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Air Liquide Technology Converts Ammonia Into Hydrogen at Industrial Scale

Nov -14

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Is L'Air Liquide's Growth in Sustainability Driving Its High Share Price in 2025?

Nov -07

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$12.49 Bn Industrial Oxygen Generator Market Analysis by Gas Type and Flow Rate, Size, Design, Technology, End-Use Industry - Global Forecast to 2030

Nov -04

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Air Liquide Posts Solid Q3 Growth, Expands Hydrogen and Semiconductor Investment

Oct -28

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Air Liquide Posts Higher Revenue on Portfolio Strength

Oct -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.92%)

6. Segments

Gas & Services - Americas

Expected Growth: 4.5%

The 4.5% growth in Gas & Services - Americas from L'Air Liquide S.A. is driven by increasing demand for industrial gases, particularly in the healthcare and energy sectors. Additionally, the company's investments in new production capacities and its efforts to improve operational efficiency have contributed to this growth, enabling L'Air Liquide to capitalize on emerging opportunities in the region.

Gas & Services-europe, Middle East and Africa

Expected Growth: 4.2%

The 4.2% growth in Gas & Services for Europe, Middle East, and Africa is driven by increasing demand for industrial gases from various sectors, particularly in emerging markets. Additionally, the company's efforts to optimize its supply chain and pricing strategies have contributed to this growth. L'Air Liquide's investments in new production capacities and sustainable solutions also support this positive trend.

Gas & Services - Asia-Pacific

Expected Growth: 5.5%

The 5.5% growth in Gas & Services - Asia-Pacific from L'Air Liquide S.A. is driven by increasing demand for industrial gases, particularly in China and India, fueled by industrialization and urbanization. Additionally, the segment benefits from the growing adoption of sustainable energy solutions and L'Air Liquide's strategic investments in new production capacities and hydrogen fueling infrastructure.

Global Markets & Technologies

Expected Growth: 5.8%

L'Air Liquide's Global Markets & Technologies segment growth of 5.8% is driven by increasing demand for industrial gases in emerging markets, expansion in electronics and energy transition sectors, and a strong performance in Engineering & Sales. The company's investments in new production capacities and technological innovations also contribute to this growth.

Engineering & Construction

Expected Growth: 4.8%

The 4.8% growth in Engineering & Construction from L'Air Liquide S.A. is driven by increasing demand for industrial gases and technologies, particularly in emerging markets. Strong project backlog, favorable pricing, and efficient project execution also contributed to this growth. Additionally, the company's expertise in large-scale projects and digitalization solutions helped secure new contracts.

Reconciliation

Expected Growth: 0.0%

L'Air Liquide S.A.'s 0.0% growth is driven by stable industrial and healthcare demand, offset by COVID-19 pandemic impacts. The company's diversified portfolio, including gases, technologies, and services, contributed to resilience. Pricing and cost management efforts also supported performance, despite economic uncertainty and currency fluctuations.

7. Detailed Products

Industrial Gases

L'Air Liquide S.A. provides a range of industrial gases including oxygen, nitrogen, argon, and others, used in various industries such as manufacturing, healthcare, and food processing.

Hydrogen Energy

L'Air Liquide S.A. offers hydrogen energy solutions for clean transportation, power generation, and industrial applications.

Home Healthcare

L'Air Liquide S.A. provides medical gases and equipment for home healthcare, including oxygen therapy and sleep apnea treatment.

Electronics

L'Air Liquide S.A. supplies electronic materials and specialty gases for the manufacturing of semiconductors, flat panels, and solar panels.

Healthcare Specialty Gases

L'Air Liquide S.A. provides specialty gases for medical research, pharmaceuticals, and biotechnology applications.

Welding and Cutting

L'Air Liquide S.A. offers welding and cutting gases, including shielding gases and fuel gases, for various industrial applications.

8. L'Air Liquide S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for L'Air Liquide S.A. is medium due to the presence of alternative industrial gases and technologies that can replace the company's products.

Bargaining Power Of Customers

The bargaining power of customers for L'Air Liquide S.A. is low due to the company's strong market position and the lack of concentration among its customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for L'Air Liquide S.A. is medium due to the presence of several large suppliers of raw materials and equipment.

Threat Of New Entrants

The threat of new entrants for L'Air Liquide S.A. is low due to the high barriers to entry in the industrial gases market, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry for L'Air Liquide S.A. is high due to the presence of several large competitors in the industrial gases market, including Praxair and Linde.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.27%
Debt Cost 4.65%
Equity Weight 68.73%
Equity Cost 7.26%
WACC 6.45%
Leverage 45.50%

11. Quality Control: L'Air Liquide S.A. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.5/10

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Yield: 4.4

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A-Score: 4.2/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

163.06$

Current Price

163.06$

Potential

-0.00%

Expected Cash-Flows