Air Liquide confident on 2025 profit as quarterly revenue dips 2.4%

Air Liquide SA on Tuesday said it remains confident in its ability to deliver recurring net profit growth and further improve its operating margin in 2025, as comparable sales rose despite lower energy prices.

The Paris-based industrial gas supplier said group revenue fell 2.4% on a reported basis to EUR6.60 billion in the third quarter from EUR6.76 billion a year earlier, but rose 1.9% on a comparable basis excluding energy, currency and scope effects.

Gas & Services revenue, which accounted for 97% of group sales, went down 0.9% to EUR6.39 billion from EUR6.45 billion, with Healthcare and Industrial Merchant business lines serving as growth drivers, up 1.9% and 1.7% respectively.

Chief Executive Officer Francois Jackow said: "Air Liquide delivered another very solid performance, continuing its profitable growth trajectory. In line with the first half of the year and despite a difficult environment, our sales continue to increase, once again demonstrating the strength of our business model."

He added that efficiencies were at a record high of 23%, while cash flow before currency effects increased 7%.

Air Liquide said its investment backlog reached a record EUR4.9 billion at the end of September, with EUR900 million in new investment decisions during the quarter.

Air Liquide also signed an agreement to acquire DIG Airgas, an industrial gas producer in South Korea, in what it said will be its largest deal since acquiring Airgas in the United States in 2016.

The transaction, valued at EUR2.85 billion, is expected to be completed in the first half of 2026 and contribute to net profit one year after integration.

CEO Jackow said the group remains confident in its ability to further increase its operating margin and deliver recurring net profit growth at constant exchange rates in 2025.

Air Liquide continues to target a cumulative 460 basis point improvement in operating margin by the end of 2026, excluding energy pass-through impacts