Air Liquide Operating Margin Rises as Project Backlog Hits Record
The industrial gas maker reported a current operating result of 2,737 million euros for the first half of 2025.
Air Liquide reported a current operating result of 2,737 million euros for the first half of 2025, an increase of 5.2% compared to the same period in 2024. On a comparable basis, which excludes effects from exchange rates, energy, and significant perimeter changes, the current operating result rose 7.2%. This growth exceeded the comparable sales increase of 1.8%, which the company said underscores a strong leverage effect.
The company reported a published operating margin of 19.9%, an increase of 50 basis points. Excluding energy effects, the operating margin rose 100 basis points. The Gas & Services segment saw its published operating margin reach 22.0%, an improvement of 130 basis points when excluding energy effects. The company said the published margin was diluted by rising energy costs that are contractually rebilled to Large Industry customers, which increases published sales without impacting the absolute value of the current operating result.
Total revenue for the first half of 2025 was 13,722.2 million euros, up 2.6% from 13,378.6 million euros in the first half of 2024. Comparable revenue grew 1.8%. Within the Gas & Services segment, revenue reached 13,310 million euros. The Merchant Industrial activity saw comparable sales rise 1.3%, supported by a price effect of 2.6%. Healthcare sales grew 2.8%. In the Asia-Pacific region, revenue was 2,593 million euros, a 2.1% increase.
The company is expanding its industrial footprint, with payments on industrial investments totaling 1,836 million euros. Depreciation rose 5.9% excluding exchange effects to 1,287 million euros, reflecting the startup of new units. The company said its portfolio of projects under execution has reached a new record. Order intakes for Group projects and third-party customers totaled 1,307 million euros, a 38% increase compared to the first half of 2024.
Net debt stood at 9,794 million euros as of June 30, 2025, a decrease of 362 million euros compared to June 30, 2024. This figure represents an increase of 634 million euros from December 31, 2024, following the payment of nearly 2.0 billion euros in dividends in May. The net debt to equity ratio, adjusted for dividend seasonality, was 33.5%. To manage its financing, the company issued a 500 million euro green bond on March 21, 2025, and increased its commercial paper programs by 1,536 million euros.
Recurring return on employed capital (ROCE) reached 11.0%, up 30 basis points from the first half of 2024. The company said this remains significantly above the target of more than 10% set in its Advance strategic plan.
Air Liquide confirmed its ability to further increase its operating margin and achieve growth in recurring net income at constant exchange rates in 2025. The company maintains its ambition to increase its operating margin by 200 basis points over two years through the end of 2026, excluding energy effects.