L'Air Liquide S.A.

Q2 2026 comparable sales growth was 3.5%, after 1.9% in Q1; reported Q2 sales growth excluding energy pass-through and currency was 5.2%, helped by the DIG Airgas scope effect. First-half established sales increased 0.8% reported, with currency headwinds of minus 3.6%, a plus 0.1% energy effect, and a plus 1.7% scope contribution; first-half comparable growth was 2.6%. H1 recurring net profit group share was EUR 1.9 billion, up 4.4% reported and 10% on a constant-currency basis; net profit was up 1.2% reported and 6.5% constant currency. H1 margin improved by 110 bps excluding energy pass-through and DIG Airgas PPI, or 100 bps including PPI. H1 efficiency savings reached EUR 299 million, and recurring ROCE was 11%. Net debt was EUR 13.9 billion at end-June 2026, up EUR 5.5 billion from December 2025, with gearing at 45% adjusted for dividend seasonality. Management reaffirmed 2026 and 2027 guidance, including a cumulative 560 bps margin improvement over six years.

François Jackow framed the half as proof of Air Liquide’s resilience: the company is growing, expanding margins, and simultaneously building a record project pipeline. He emphasized that the business is being supported by strong Electronics momentum, improving Industrial Merchant pricing, and major Large Industries wins in the U.S. and Kazakhstan. His tone was confident and constructive, repeatedly stressing that the company is ‘executing today and preparing for tomorrow.’

Jérôme Pelletan focused on the financial mechanics behind the quarter: price/mix, efficiencies, and portfolio actions drove the margin expansion, while DIG Airgas added to scope and financing costs. He said H1 efficiencies reached EUR 299 million, nonrecurring operating items were minus EUR 123 million, net financial costs were EUR 210 million, and net debt rose to EUR 13.9 billion partly because of the DIG acquisition, EUR 2.2 billion of dividends, EUR 1.8 billion of industrial investment, and the end of factoring programs. He also said working capital increased by EUR 1.4 billion, but only EUR 0.4 billion on an underlying basis excluding factoring, and that the company is continuing to manage capital selectively toward the highest-return opportunities.

Analysts focused on helium availability, Electronics growth versus semiconductor CapEx, merchant pricing differences by region, backlog sustainability, and net debt. Management said helium supply remains fluid but expects the impact to ease in H2, and stressed that Electronics customers are being supplied without volume limitations; France/Europe and the U.S. are seeing different pricing dynamics because inflation and cost pressures differ by geography. On Electronics, management said growth is being driven by current fab ramp-ups and carrier gas investments already made, while new project signings will take time to convert into sales. They also said the backlog may dip as projects start up in Q3/Q4, but the pipeline is strong enough that it should stay broadly flat.