The French industrial gas group Air Liquide recorded a record net profit of €3.31 billion in 2024, marking a 7.4% increase compared to the previous year. This performance is primarily attributed to an improvement in operating margins, according to a statement released on Friday. However, annual revenue declined by 2% to €27.06 billion, due to unfavourable currency fluctuations and energy costs.
Resilience amid economic fluctuations
Excluding the impact of currency and energy price variations, Air Liquide posted an organic revenue growth of 2.6%. The group applies indexed pricing on natural gas and electricity costs, mitigating the effects of price fluctuations on its results. This strategy has helped maintain positive momentum despite economic volatility.
Investments and growth outlook
Air Liquide continued its expansion strategy in 2024 with several large-scale investments. In the United States, the company announced an investment of up to $850 million for oxygen production as part of ExxonMobil’s low-carbon hydrogen project in Baytown, Texas. This initiative aligns with the group’s diversification efforts to strengthen its position in high-growth markets.
In Europe, Air Liquide unveiled two large-capacity electrolyser projects in the Netherlands in partnership with TotalEnergies and secured a €110 million European subsidy to develop a large-scale low-carbon hydrogen production and distribution network in the port of Antwerp-Bruges, Belgium. These initiatives reinforce the company’s presence in the rapidly expanding hydrogen market.
Financial targets and market expectations
Air Liquide has revised its profitability targets upwards, aiming for a 200-basis point increase in its operating margin over the 2025-2026 period. This would bring the total improvement to 460 basis points, excluding energy effects, over five years.
The group is also betting on the growth of the semiconductor and artificial intelligence industries to drive demand for industrial gases, a fast-growing segment. “Air Liquide is confident in its ability to further increase its operating margin and achieve recurring net profit growth at constant exchange rates,” the company stated in its release.
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