Air Liquide Results: A Mixed Q1 but Record 1.5 Billion Euros in Investments
Air Liquide released its first quarter results showing moderate comparable growth of 1.9% and a decline of 3.5% in reported data, hindered by currency and energy effects. Concurrently, the group has committed to a record level of industrial investments of 1.5 billion euros and maintains its confidence for 2026, aided by the accelerated finalization of the DIG Airgas acquisition and an opportunity portfolio of 4.5 billion euros.
Growth Tempered by Currency and Energy Costs
The group's revenue stood at 6,786 million euros in the first quarter of 2026. In reported data, it fell by 3.5%, penalized by unfavorable currency effects (-5.9%) and energy (-1.0%), partially offset by a scope effect of +1.5%. On a comparable basis, excluding significant currency, energy, and scope effects, sales increased by 1.9% compared to the same period in 2025. Removing only the currency and energy effects, growth was +3.4%, which includes the contribution from the acquisition of DIG Airgas finalized in early January 2026. Gas & Services, the core of the group, generated 6,595 million euros, showing comparable growth of 1.9%, while Engineering & Technologies remained stable at 190 million euros (+0.1%). Geographically, the Americas stood out as the most dynamic region with an increase of 5.5%, while Europe Middle East & Africa was almost stable (-0.4%) and Asia-Pacific grew by 8.3% due to the integration of DIG Airgas, although on a comparable basis it declined by 0.7%.
Operational Efficiencies and Price Management: Levers of Stability
Despite a context marked by geopolitical tensions in the Middle East, the group generated 142 million euros in operational efficiencies in the first quarter, up 8% compared to the same period in 2025. These gains reflect the ongoing transformation program, including organizational streamlining and the deployment of digital tools. Price management in the Industrial Merchant activity strengthened, reaching +3.4% in the first quarter, supported notably by a rise in bottled gas prices and tariff adjustments due to inflationary pressure. This ability to pass costs onto customers remains a key element in protecting margins. The cash flow stood at 1,613 million euros, remaining stable compared to the first quarter of 2025 (-0.4%), but showing a 6.7% increase excluding currency effects. The acquisition of DIG Airgas is expected to generate about 900 million euros in annual revenue and doubles the group's workforce in South Korea, a transaction finalized ahead of schedule and deemed value-creating by management.
Record Investments and Backlog at 5.5 Billion Euros
In the first quarter of 2026, industrial and financial investment decisions reached 1.5 billion euros; industrial investment decisions alone amounted to 1,481 million euros compared to 1,019 million euros in the first quarter of 2025. These investments are based on several major commercial successes: in the United States, the group has committed to investing over 350 million dollars in an air separation unit for the Hyundai-Posco Louisiana LLC low-carbon steel mill, while in Japan, it has decided to invest 200 million euros to build two ultra-pure gas production units for manufacturing artificial intelligence chips. The ongoing investment (backlog) reached a new record of 5.5 billion euros, up from 4.9 billion euros at the end of 2025, and remains balanced between Large Industry and Electronics, mainly in Asia, Europe, and America. The 12-month investment opportunity portfolio remains at 4.5 billion euros despite the record level of decisions, reflecting a strong momentum in the development of new projects. For 2026, Air Liquide confirms its confidence in its ability to increase its operating margin by 100 basis points excluding energy effects and to achieve growth in recurring net income at constant exchange rates. The group has also announced a new target for 2027 to improve the operating margin by 100 basis points excluding energy effects, bringing its cumulative ambition to 560 basis points over the period 2022-2027.
