(BFM Stock Exchange) – The group specializing in industrial gases has increased its current operating margin of 1 percentage point outside the effects of the variation in energy prices, that is much more than expected by analysts. The company was brought by cost reductions of 287 million euros in the first half.
Small value of small carriers, who hold for about a third of its capital, Air Liquide has been following good publications since the beginning of the year.
Its annual results and especially its objectives in terms of progression of its margins had been praised in February, the market appreciating that the specialist in industrial gas aims to reduce the gap which separates it from its great American-German rival Linde.
The activity of the first quarter, a tantinet superior to expectations, had also been appreciated by investors.
Re-belot for the half-yearly liquid results which allow the company to sign a new significant increase to the Paris Stock Exchange. At the start of the afternoon, the company’s action took 2.5%, signing the fourth higher increase in CAC 40.
On the second quarter alone, the group has generated income of 6.694 billion euros, reflecting growth of 1.9% in comparable data over one year, slightly more than expected by consensus (1.8%), notes UBS.
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Record “efficiency”
In detail, Air Liquide sales increased 1.8% in data comparable in the second quarter in the so-called “merchant industrial” segment, that is to say, smaller industrial customers than “large industry”.
This last category, which brings together the most energy -consuming customers in the company (metallurgy, chemistry, refining) has seen its income increase by 1% in comparable data. The main vector of growth remains health that displays an increase in its 4.8% income in comparable data over the quarter.
Throughout the first half, Air Liquide revenues reached 13.72 billion euros up 1.8% in comparable data over one year.
The company’s current operating profit increased by 7.2% in data comparable to 2.74 billion euros. The current operating margin was 19.9%, up 50 base points (0.5 percentage point) over one year.
By excluding the effects linked to the variations in energy prices on certain indexed contracts, the current operating margin has increased by 100 basic points, far exceeding the expectations of consensus which tapped on an increase in this 83 basic points.
The current operating margin of the company’s “gas and services” division, by far the most important, has increased by 80 base points over a year to reach 22%. Excluding energy prices, profitability has increased by 130 basic points.
This improvement in profitability was allowed by “efficiency” (which Liquid defined by “lasting reductions in the cost base” allowed by specific action plans) of 287 million euros in the first half, against 233 million euros a year earlier.
“The group’s transformation program actively contributes to these efficiency, in particular the rationalization of the organization, the restructuring of home care activities in France and the deployment of digital tools integrating artificial intelligence and making it possible to optimize production and the logistics chain,” said the company.
A still heavy discount against Linde
Air liquid profit increased by 7.2% to 1.8 billion euros. The operating cash flow increased by 4.6% over one year to 2.977 billion euros.
At the end of this semester, the group confirmed its prospects both for 2025 and medium term. The company intends to improve this year its operating margin as well as its recurring net profit, excluding exchange effects, and reiterated wanting to increase by more than 200 basic points excluding energy effects its operating margin over two years at the end of 2026.
UBS considers, ultimately, that the market has something to be satisfied by the increase in margins of 130 base points in the “gas and services” division in the first half, as well as by the high generation of group cash.
Oddo BHF greets “the results of the first half 2025 solid and a confirmed roadmap”.
“Investment opportunities for the next 12 months amount to 4.1 billion euros (including more than 40% linked to the energy transition against 3.4 billion euros at the end of 2023) which makes it an essential player to play the energy transition”, appreciates the design office.
The broker reiterates his advice to “outperformance”, highlighting the stock market discount that the group accesses against Linde. The Air Liquide action is exchanged on the basis of a multiple business value representing 13 times the gross operating result expected in 2025 against 17.6 times for its American-German rival.
Julien Marion – © 2025 BFM Bourse
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