L'Air Liquide S.A.

Q2 2026 comparable sales growth was 3.5%, with reported sales growth at 5.2% excluding FX and energy and including DIG Airgas scope effects net of Biogal divestiture. For H1, reported sales were up 0.8%, comparable growth was 2.6%, recurring net profit was EUR 1.9 billion, up 4.4% as published and 10% at constant currency, and cash flow was up 8% excluding currency. H1 group margin expanded by 110 bps excluding energy pass-through and DIG Airgas PPI impact, or 100 bps including PPI. Full-year guidance was reaffirmed, including confirmation of the 2026 and 2027 guidance and a cumulative 560 bps margin improvement over a 6-year period. Management also said H2 group growth should be similar or slightly better than H1.

François Jackow emphasized that the business is showing resilience despite a challenging macro backdrop, with growth and profitability improving at the same time. He highlighted record project signings, especially in Electronics and Large Industries, as evidence that Air Liquide is securing its next phase of growth. His tone was confident and strategic, repeatedly stressing execution today and preparation for tomorrow.

Jérôme Pelletan said H1 margin expansion reached 110 bps excluding energy pass-through and DIG Airgas PPI, with efficiencies totaling EUR 299 million in the half. He said net debt ended June at EUR 13.9 billion, up EUR 5.5 billion from December 2025, driven by DIG acquisition financing, EUR 2.2 billion of dividends, EUR 1.8 billion of industrial investment, and the end of factoring programs; gearing was 45% adjusted for dividend seasonality. He also noted nonrecurring items of minus EUR 123 million, net financial costs of EUR 210 million, and recurring net profit of EUR 1.9 billion, and said the company reaffirmed its 2026 and 2027 guidance.

Analysts pressed on helium availability, asking whether it could constrain second-half growth or Electronics. Management said Qatar helium output has restarted at reduced capacity, alternative sources are being used, and helium should limit sales less in H2; they also said it is not a constraint on servicing Electronics customers. Questions also focused on whether H2 growth can sustain Q2-like run rates, why Electronics growth trails semiconductor capex, and backlog trends; management replied that sales lag project investment by years, Electronics demand is strong, and the backlog may fluctuate quarter to quarter but the pipeline remains at a record level.