L'Air Liquide S.A.

Q2 2026 comparable sales growth was 3.5%, and reported sales growth excluding energy pass-through and FX was 5.2% including scope from DIG Airgas. For H1, established sales were up 0.8% reported, with currency headwinds of minus 3.6%, a positive energy impact of 0.1%, scope up 1.7%, and comparable growth of 2.6%. Recurring net profit group share was EUR 1.9 billion, up 4.4% as published and 10% at constant currency; net profit was up 1.2% published and 6.5% excluding currency. H1 margin improved by 110 bps excluding energy pass-through and DIG Airgas PPI, or 100 bps including PPI. Cash flow rose 8% excluding currency. Looking ahead, management reiterated 2026 and 2027 guidance tied to a cumulative 560 bps margin improvement over six years. They also said H2 group growth should be similar or slightly better than H1, with Electronics expected to remain in the 8% to 9% range.

François Jackow framed the first half as proof of Air Liquide’s resilience: the company grew, expanded margins, and built its future pipeline at the same time. He emphasized record project signings in Electronics and Large Industries, saying the group is “executing today and preparing for tomorrow.” His tone was confident but cautious on near-term helium availability, noting the situation is fluid even though supply from Qatar has restarted at reduced rate and should limit the impact in H2.

Jérôme Pelletan focused on the financial mechanics behind the quarter: 110 bps of H1 margin expansion excluding energy pass-through and DIG Airgas PPI, EUR 299 million of efficiencies in H1, and cost discipline across personnel, purchases, and other expenses. He said net debt was EUR 13.9 billion at end-June, up EUR 5.5 billion from December 2025 due to DIG Airgas financing, EUR 2.2 billion of dividends, EUR 1.8 billion of industrial investment, and the end of factoring programs. He also highlighted working capital up EUR 1.4 billion versus year-end 2025, but only EUR 0.4 billion underlying excluding factoring, and said the company remains comfortable with the balance sheet and capital allocation.

Analysts focused on helium supply, Electronics growth versus semiconductor capex, margin differences across regions, backlog sustainability, and the sizing of electronics projects. Management said helium should be less of a drag in H2 because Qatar supply has restarted at reduced rates and alternative sources are being used, and stressed that helium is not constraining Electronics deliveries under long-term contracts. On Electronics, they argued current sales reflect installed fab capacity with a lag, while Air Liquide’s own project investment and backlog are already well ahead of industry demand; they also said the pipeline is strongest in the company’s history and that larger electronics projects may come over time if they meet profitability criteria.