François Jackow, Chief Executive Officer of the Air Liquide Group, recently offered insightful commentary on the company’s performance during the first quarter of 2025.
His remarks highlight a blend of current operational strength and strategic forward-looking initiatives, painting a picture of a business navigating a complex global landscape with notable success.
Mr. Jackow’s statement underscores the inherent resilience of Air Liquide’s business model, coupled with the agility of its teams in responding to an uncertain economic environment. This is evidenced by the reported progression in sales and the successful pursuit of actions aimed at increasing margin. This focus on both top-line growth and operational efficiency is a critical factor in maintaining momentum in today’s dynamic market.
Delving into the specifics, the first quarter saw total sales reach EUR 7.0 billion, a positive trajectory with a comparable basis increase of +1.7 percent. As reported, the growth stands at a more significant +5.7 percent, reflecting the influence of favorable currency fluctuations and the pass-through of energy price changes to customers – a testament to Air Liquide’s pricing power and ability to adapt to market dynamics. The Gas & Services segment, comprising a substantial 97 percent of Group sales, mirrored this positive trend with a +1.8 percent comparable basis increase. Within this core business, the performance of the Electronics and Healthcare sectors was particularly noteworthy, exhibiting robust growth of +3.6 percent and +5.3 percent respectively. The strong performance in Electronics is directly linked to the accelerating development of artificial intelligence, showcasing Air Liquide’s position as a key enabler of this transformative technology. Healthcare’s growth, distinct from broader industrial economic trends, further emphasizes the stability and independent growth drivers within this vital sector. 
Beyond sales performance, Air Liquide is actively engaged in strengthening its operational efficiency. The first quarter saw a significant increase in Group efficiencies, reaching a record EUR 131 million, a substantial +17 percent improvement. This focus on performance optimization, alongside the active management of the business portfolio and the strategic adjustment of Industrial Merchant prices, is directly supporting the company’s ambitious target of increasing its operating margin by +460 basis points (excluding the energy impact) over the five-year period from 2022 to 2026. These actions underscore a commitment to sustainable profitability and long-term value creation.
Looking ahead, a significant indicator of future growth is the record-level investment backlog, now standing at EUR 4.5 billion. This substantial backlog, characterized by a balanced and diversified project mix, represents a clear pipeline of future opportunities. The inclusion of projects across all geographies in Large Industries and Electronics, with the latter representing a full third of this backlog, further highlights Air Liquide’s strategic focus on high-growth, high-value sectors. This forward-looking investment strategy positions the company well to capitalize on emerging trends and expand its market presence.
Air Liquide’s first quarter of 2025 demonstrates a company that is not only navigating the present economic landscape effectively but is also actively investing in its future. The combination of resilient performance, operational efficiency gains, and a robust investment backlog provides a strong foundation for continued success. As Mr. Jackow states, Air Liquide remains confident in its ability to further enhance its operating margin and deliver recurring net profit growth, even in the face of ongoing global uncertainties.
The full report, available via the provided link, offers further in-depth analysis of these promising results.
Source: Air Liquide Group with additional information added by GlassBalkan
