Air Liquide: A Steady Path Forward in Q1 2025 Driven by Resilience, Strategic Investments, and Growth
François Jackow, CEO of Air Liquide, emphasized the continued strength and adaptability of the Group during the first quarter of 2025. He credited the organization’s resilient business model and agile workforce for the company’s ability to perform well in a volatile economic environment. Sales growth and ongoing efforts to enhance margins have continued, while the Group maintains a long-term vision supported by a record-high investment backlog—a critical component of Air Liquide’s future trajectory.
Solid First Quarter Financial Performance
In the first quarter of 2025, Air Liquide recorded revenues of 7.028 billion euros, reflecting a +1.7% increase on a comparable basis compared to Q1 2024. On a published basis, sales rose by +5.7%, benefitting from favorable energy and currency effects. The energy price adjustments alone contributed +3.3%, while currency exchange added another +0.7%. Notably, the Group did not experience any significant scope impact in this period.
The core Gas & Services division, which comprises 97% of total Group sales, posted a +1.8% increase on a comparable basis. Key sectors driving this growth included Electronics and Healthcare. Electronics saw a +3.6% increase, fueled by growing demand linked to artificial intelligence and semiconductor expansion. Meanwhile, Healthcare revenues rose by +5.3%, bolstered by strong performances in both Home Healthcare and Medical Gases.
Operational Excellence and Margin Expansion
Air Liquide has been executing an effective strategy aimed at enhancing profitability. Group efficiencies rose by +17%, reaching 131 million euros in Q1—a record for the company. This achievement underscores the ongoing optimization of operations, pricing strategies, and business portfolio adjustments.
Industrial Merchant operations maintained positive momentum with +1.4% growth, supported by a strong price effect (+2.5%), though hardgoods sales declined in the U.S. Large Industries remained relatively flat at -0.3%, with demand weakness balanced by new unit ramp-ups. Electronics grew at +3.6%, while Healthcare continued to decouple from industrial trends, sustaining a +5.3% growth rate.
Air Liquide remains focused on increasing its operating margin by +460 basis points (excluding energy effects) over the five-year period from 2022 to 2026. This target was revised upward in February 2025 and is underpinned by strategic levers: pricing, efficiencies, and optimized portfolio management.
Investment Momentum and Energy Transition Projects
The Group’s investment backlog surged to a historic 4.5 billion euros, reflecting robust pipeline activity across regions and sectors. A diverse portfolio of projects includes initiatives in Large Industries and Electronics, with the latter accounting for one-third of the total backlog. The momentum includes:
- A new Air Separation Unit in Japan to support Mitsubishi Materials and semiconductor demand.
- Two major renewable hydrogen projects in the Netherlands: the 200MW ELYgator electrolyzer and a 250MW electrolyzer through a joint venture with TotalEnergies.
These projects demonstrate Air Liquide’s commitment to the energy transition and sustainable development. Supporting this vision, the company completed a 500 million euro green bond issue, earmarked for financing flagship clean energy initiatives.
Regional Performance Breakdown
Americas
Revenue in the Americas totaled 2.716 billion euros, reflecting +3.2% growth. Key drivers included:
- Large Industries (+5.9%) driven by the start-up of a new U.S. Air Separation Unit and favorable base effects.
- Industrial Merchant revenue rose by +1.1%, with a strong price effect (+3.1%) despite a decline in hardgoods.
- Healthcare saw robust growth of +12.3%, with higher Medical Gas prices in the U.S. and Home Healthcare expansion in Latin America.
- Electronics grew by +5.5%, supported by strong demand for advanced materials and ramp-up of carrier gas units.
Europe, Middle East & Africa (EMEA)
EMEA revenue was flat at 2.788 billion euros. Highlights included:
- Industrial Merchant posted +2.4% growth, driven by a +3.0% price effect, though offset by divestitures and weak demand.
- Large Industries declined -3.6% due to reduced cogeneration sales in Benelux and lower air gas sales in Italy.
- Healthcare maintained a steady +2.5% increase, with strong performance in Home Healthcare and Medical Gases.
Asia Pacific
Asia Pacific revenue rose +2.7%, reaching 1.326 billion euros. Performance highlights included:
- Large Industries grew +1.6% following the commissioning of a new hydrogen unit in China.
- Industrial Merchant returned to growth at +0.8%, with solid sales in China despite helium softness.
- Electronics posted +5.0% growth, led by strong carrier gas sales.
Engineering & Technologies: Restructuring for Growth
As of January 1, 2025, Air Liquide combined its Engineering & Construction and Global Markets & Technologies activities into a single entity: Engineering & Technologies. This restructuring aims to streamline operations, improve innovation cycles, and boost competitiveness. Within this new structure, certain segments, such as Biogas and Maritime, were reclassified under the Industrial Merchant segment.
Q1 revenue for Engineering & Technologies reached 198 million euros, a -2.9% drop on a comparable basis. Sales of technological equipment declined due to the divestiture of the Aeronautics & Defense business. Engineering project revenue remained stable, with the Group prioritizing internal projects.
Despite the slight revenue dip, order intake surged by +34% to 665 million euros, indicating strong future potential.
Efficiency, Portfolio Management, and Cash Flow
Efficiencies climbed to 131 million euros, marking a +17.4% improvement. The company continues to invest in strategic acquisitions and divestitures to refine its business mix:
- Acquisitions in Industrial Merchant: United States, Brazil, Spain
- Divestiture: Home Healthcare business in Japan
Cash flow from operations before working capital changes amounted to 1.620 billion euros, up +0.7%. Adjusted for one-time effects (a customer indemnity in 2024 and a French tax surcharge in 2025), cash flow rose +4.9%.
Robust Investment Activity
Industrial and financial investment decisions reached 1.0 billion euros in Q1, a +16.3% year-over-year increase. The 12-month investment opportunity portfolio remained high at 4.1 billion euros, with energy transition projects making up 40% of this pipeline.
Start-ups and ramp-ups contributed 78 million euros in additional sales during Q1. For full-year 2025, this figure is expected to fall within 310 to 340 million euros.
Strategic Direction
Air Liquide remains confident in its strategic direction for 2025 and beyond. With a clear focus on operational excellence, sustainable innovation, and capital discipline, the Group is well-positioned to navigate challenges and seize emerging opportunities.
CEO François Jackow concluded with an optimistic outlook: “Air Liquide stays the course and is confident in its ability to further increase its operating margin and deliver recurring net profit growth, at constant exchange rates.”
By maintaining resilience, investing in future-forward technologies, and consistently optimizing its portfolio, Air Liquide continues to chart a path of steady, long-term growth across global markets.
