2024: Building on record margin improvement and major commercial successes fueling future growth, Air Liquide is once again raising its margin ambition

Commenting on 2024 results, François Jackow, Chief Executive Officer of the Air Liquide Group, stated:

“In 2024, our Group achieved a very solid performance, marked in particular by a record improvement in our operating margin excluding the energy impact, as well as sales growth on a comparable basis, in a subdued macroeconomic context. These results are accompanied by a significant increase in all the extra-financial indicators of our ADVANCE plan. The strength of our diversified model and the agility of our teams are key assets that enable us to continue to deliver strong performance regardless of the market environment. In 2024, we also signed major projects, providing an unparalleled source of growth. This dynamic reflects our ability to offer innovative technological solutions with high added value to our customers, both in traditional sectors as well as those driven by the energy transition and the rise of artificial intelligence, such as the semiconductor industry.

Building on this record improvement and confident in its prospects, Air Liquide today announces that it is both raising and extending its margin ambition, now targeting an increase of +200 basis points for the period 2025-2026, representing an unprecedented total increase of +460 basis points excluding the energy impact over five years (2022-2026).

In detail, our sales amounted to 27.06 billion euros in 2024, up +2.6%^([1]) on a comparable basis (-2.0% as published, reflecting a negative currency impact and the decline in energy prices, changes in which are passed through to our customers). All our Gas & Services businesses, representing 95% of Group sales, recorded growth.

In 2024, Air Liquide delivered another very strong operational performance. Our transformation plan, announced in mid-2024, is currently being rolled out across the entire Group. We generated record efficiencies of 497 million euros and continued the dynamic management of our business portfolio and the adjustment of our Industrial Merchant prices, based on our ability to create added value for our customers. These actions led to an unparalleled improvement in our operating margin of +110 basis points excluding the energy impact in 2024.

The Group's recurring net profit^([2]) excluding the currency impact increased by +11.5%. Recurring ROCE progressed at 10.7%, even though our investments to prepare for future growth are increasing. Demonstrating our confidence in the future, the dividend that will be submitted to the shareholders’ vote in May amounts to 3.30 euros per share, i.e. an increase of +13.7% following the allocation in 2024 of one free share for every 10 held.

On the extra-financial level, our results are solid on all indicators of our ADVANCE plan. On safety, which is of paramount importance, I would like to thank all of our teams for their remarkable mobilization, which allows us to make progress. On the environmental front, we have reduced our CO2 emissions by 11% compared with 2020, confirming that we are ahead of schedule in achieving our inflection target by 2025. Our carbon intensity has decreased by 41%^([3]) compared to 2015, already surpassing our reduction target of 30% set for 2025. In terms of diversity, women currently represent 33% of the Group’s Managers and Professionals, while all Air Liquide employees now benefit from a common basis of care coverage, one year ahead of our target.

Lastly, more than ever, we are continuing to prepare the future, with sources of growth fueled by our record investment decisions in 2024, reaching 4.4 billion euros. Our ability to provide innovative offers with a high technological content to our customers is reflected in major commercial successes in both traditional sectors and those driven by transformations related to the energy transition and semiconductors, particularly in the United States, Europe and Asia.

As a result, in 2025, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates^([4])."

Highlights

 

Corporate

• As part of the simplification of the Group organization to meet the growing needs of the market and increase its performance, an adjusted governance was announced with changes effective September 1, 2024.
• The divestiture of Air Liquide’s businesses in 12 countries in Africa was finalized on July 22, 2024, illustrating the Group’s strategy of regular review of its business portfolio.
• Air Liquide, the Official Hydrogen Supporter of the Paris 2024 Olympic and Paralympic Games, supplied hydrogen from renewable sources to power fleet vehicles and contribute to the acceleration of the development of sustainable hydrogen mobility infrastructures.

 

 Industry and Energy Transition 

• Air Liquide was selected for investment of up to 850 million US dollars in the largest low-carbon oxygen production in the Americas, as part of a long-term agreement with ExxonMobil for its low-carbon hydrogen project in Baytown, Texas.
• Investment of approximately 150 million US dollars to extend production capacities and the pipeline network in the United States, as part of a contract with LG Chem to supply oxygen to their battery plant for electric vehicles in Tennessee.
• Strengthening of the Group's presence in Japan thanks to a significant investment in a new Air Separation Unit (ASU) in order to meet the needs of Mitsubishi Materials and, more broadly, the demand driven by the energy transition and semiconductors.
• European Union support for Air Liquide and Dunkerque LNG through a grant of 160 million euros for the d'Artagnan CO2 infrastructure project designed to decarbonize the Dunkirk basin in France, as well as 220 million euros to support Air Liquide and Cementir Holding Group in their carbon capture and storage project in Denmark.
• Investment of nearly 60 million euros to acquire and operate an ASU in Yantai, China under a long-term contract with Wanhua Chemical Group.
• Investment of 100 million euros, including a new ASU in Bulgaria and the modernization of four units in Germany, as part of the renewed partnership with Aurubis AG to meet the demand for copper, a crucial element in the energy transition.
• Air Liquide's innovative CO2 liquefaction technology - Cryocap™ LQ, was selected by Stockholm Exergi, an energy supplier in Sweden, to contribute to its bioenergy project.
• As part of the renewal of a long-term agreement with Dow, Air Liquide will invest nearly 40 million euros to increase the efficiency and reduce the CO2 emissions of its industrial gas production site in Stade, Germany.
• Continued expansion of Air Liquide’s biomethane production capacities in the United States, with the construction of two production units based on a circular economy approach.

 

Renewable and low-carbon hydrogen

• Announcement of two large-scale projects in the Netherlands to produce renewable and low-carbon hydrogen in Europe: the ELYgator project, a 200MW Air Liquide electrolyzer, and the creation of a 50/50 joint venture between Air Liquide and TotalEnergies to build a 250MW electrolyzer.
• Renewable hydrogen production project for TotalEnergies in order to cover the hydrogen needs of its biorefinery in La Mède, France, under a long-term contract.
• European Union support for Air Liquide through a grant of 110 million euros to develop the first large-scale project for the production, liquefaction and distribution of low-carbon and renewable hydrogen from ammonia in the port of Antwerp-Bruges in Belgium.
• Investment of 50 million euros in a hydrogen supply chain to accelerate low-carbon mobility along the Seine Axis in France, leveraging the Normand'Hy electrolyzer, currently under construction, to supply the future packaging site with renewable hydrogen.
• Announcement by Air Liquide and TotalEnergies of their TEAL Mobility joint venture to create the leader in hydrogen distribution with a network of 100 truck stations in Europe.

 

Electronics

• Air Liquide will invest more than 250 million US dollars to build a production unit in Idaho in the United States, which will supply Micron Technology, Inc with high purity industrial gases for the manufacturing of memory chips, driven by the growth of artificial intelligence.
• Investment of more than 50 million euros to build an innovative production unit in Singapore and transform existing facilities in the United States, in order to drive greater energy efficiency in the supply of ultra-pure nitrogen to GlobalFoundries.

 

Healthcare

• Reflecting the growing interest from healthcare facilities in reducing their carbon footprint, contracts signed in 2024 with 20 hospitals and clinics in Europe and Brazil, less than a year after the launch of Air Liquide’s ECO ORIGIN™ offer.

 

Sustainable development

• Record volumes of power purchase agreements (PPAs) signed in 2024, securing over 2,500GWh of low-carbon electricity and reducing CO2 emissions by over 1.2 Mt per year.
• 500 million euro green bond issue to finance projects in the energy transition, in line with Air Liquide’s ambition to combine growth and sustainable development.
• Announcement by Air Liquide and Sasol of long-term contracts (PPA) with Enel Green Power RSA for a total capacity of 110 MW of renewable electricity for the Sasol site in Secunda, South Africa.

 

Financial performance

Group revenue stood at 27,058 million euros in 2024 and posted comparable growth of +2.6%^([5]) compared to 2023, identical in the 1^st and 2^nd half-year. The contribution of Argentina^([6]) to comparable growth was +1.9% (down in the 4^th quarter to +1.2%). The Group's published revenue decreased by -2.0%, impacted by unfavorable currency (-2.4%) and energy (-2.2%) impacts. There was no significant scope impact in 2024.

Gas & Services revenue reached 25,810 million euros in 2024, up by +2.7% on a comparable basis (including a contribution of +1.9% from Argentina). Published revenue in the Gas & Services businesses was down -2.1%, penalized by unfavorable currency (-2.5%) and energy (-2.3%) impacts. There was no significant scope impact in 2024.

All Gas & Services business lines grew. Revenue from Large Industries posted an increase of +1.2%, supported by the start-up of two large units at the beginning of the year but impacted by the divestiture of a cogeneration unit in Europe in early January 2024 and by numerous customer maintenance turnarounds. The development of the Industrial Merchant business (+1.6%) continued in 2024, illustrating the resilience of the business model in a difficult economic environment: a solid price effect of +4.0% offset a marked decline in Hardgoods in the United States and slightly lower gas volumes. Sales of Electronics increased by +3.3%, supported by all business segments with the exception of Specialty Materials. The Healthcare business (+8.6%), independent of the industrial context, was the first contributor to growth; it benefited from the dynamic development of Home Healthcare, and the increase in volumes and prices of medical gases in an inflationary environment, particularly in Latin America.

• In the Americas, Gas & Services revenue amounted to 10,321 million euros in 2024, with all businesses contributing to the growth of +7.3% (including a +5.0% contribution from Argentina). Large Industries (+8.1%) benefited from the start-up of a major unit at the beginning of the year and the strengthening of demand from Chemical customers in the United States. The increase in Industrial Merchant sales (+4.9%) was supported by a price effect that remained very high (+6.9%). Growth was very dynamic in Healthcare (+22.7%). In the Electronics business (+8.2%), revenue from Carrier Gases posted double-digit growth and sales in Equipment & Installation were very high.
• Revenue in the Europe, Middle East & Africa (EMEA) region^([7]) amounted to 10,186 million euros in 2024, down -1.1%. Sales in Large Industries (-1.9%) were up excluding the impact of the divestiture of a cogeneration unit in Germany in the 1^st quarter. The Industrial Merchant business (-4.0%) was impacted by the contraction in volumes and the divestiture of businesses in 12 countries in Africa, with the price effect being neutral over the year. The Healthcare business posted solid sales growth (+4.0%), supported by the development of Home Healthcare and medical gases.
• Revenue for the Asia Pacific region in 2024 amounted to 5,303 million euros, an increase of +1.6%. Stable in the 1^st half-year, sales returned to growth in the 2^nd half (+4.1%). Sales in Large Industries in 2024 (+2.4%) benefited in particular from the start-up of a large hydrogen unit in China in March. Industrial Merchant revenue (-1.2%) was impacted by the marked decline in helium sales in China. Carrier Gases and Advanced Materials, whose growth was strong, were the main contributors to sales growth in Electronics (+3.4%).

Global Markets & Technologies posted a -2.5% decrease in revenue on a comparable basis, to 836 million euros in 2024. Excluding the divestiture of the technological activities for the Aeronautics sector in the 1^st quarter, revenue from the business increased compared to 2023. Order intake for Group projects and third-party customers amounted to 775 million euros in 2024.

Consolidated revenue from Engineering & Construction totaled 412 million euros in 2024, an increase of +5.8%. Consolidated revenue excludes internal projects, in particular for Large Industries and Electronics, which are growing. Order intake for the Group and third-party customers reached a record level of 1,804 million euros in 2024.

The Group's operating income recurring (OIR) reached 5,391 million euros in 2024, an increase of +6.4% as published. Excluding the currency impact (on a comparable basis), it increased by +10.7% (and +6.8% excluding Argentina), which is significantly higher than the comparable sales growth, highlighting a strong leverage effect. This performance reflects the progress of the action plan deployed around 3 levers: efficiencies, pricing management in particular in Industrial Merchant and a dynamic asset portfolio management. Thus, Efficiencies^([8]) reached a record level of 497 million euros in 2024, compared to 466 million euros in 2023. They significantly exceeded the annual target of 400 million euros in the Advance plan.

Excluding energy impact, the operating margin posted a record increase of +110 basis points (Argentina not contributing to this improvement). Thus, from 2022 to 2024, cumulated annual improvements in the operating margin excluding the energy impact reached +260 basis points. It is ahead of the target of +320 basis points over the 4-year period of the Advance plan (2022-2025). Indeed, communicated in March 2022, the ADVANCE plan’s initial ambition for improving operating margin was +160 basis points over 4 years from 2022 to 2025. In February 2024, it was revised upwards to +320 basis points, a doubling of the initial target.

In February 2025, the ambition for improving the margin excluding energy impact is raised for the second time, over a period extended by one year. It now stands at +460 basis points over a 5-year period, from 2022 to 2026.

Structural transformation actions of the Group, initiated in 2024, will continue to support the achievement of this new performance ambition. They are structured around 4 key areas, leveraging data: simplification of the organization, extension of business service centers, industrial and commercial initiatives.

Net profit (Group share) stood at 3,306 million euros in 2024, showing growth of +7.4% as published. Net profit recurring^([9]) (Group share) amounted to 3,466 million euros, up by +4.4% as published and +11.5% excluding the currency impact. It increased by +5.2% excluding the currency impact and excluding Argentina's contribution.

Earnings per share stood at 5.74 euros, up +7.3%^([10]) as published compared with 2023, in line with the increase in net profit (Group share).

Cash flows from operating activities before changes in working capital amounted to 6,539 million euros, up +2.9% as published, +5.4% excluding the currency impact and +3.7% excluding the currency impact and excluding Argentina. It includes the cash impact of a large part of the exceptional restructuring charges which amount to approximately 200 million euros.

Net debt at December 31, 2024 amounted to 9,159 million euros. Cash flows from operating activities after changes in working capital allowed to slightly reduce the net debt after the payment of 1.8 billion euros in dividends and over 3.8 billion euros in industrial and financial investments.

The return on capital employed after tax (ROCE) was 10.3% in 2024, up +50 basis points compared with 2023. Recurring ROCE^([11]) stood at 10.7%, an improvement compared with 10.6% in 2023 despite the dilutive impact of the acceleration in investments.

Industrial and financial investment decisions reached a record level of 4.4 billion euros in 2024. The investment backlog stood at a very high level of 4.2 billion euros. The portfolio of 12-month investment opportunities reached a record level of 4.1 billion euros at the end of 2024, up significantly compared to 3.4 billion euros at the end of 2023.

At the Annual General Meeting on May 6, 2025, the payment of a dividend of 3.30 euros per share will be proposed to shareholders for the fiscal year 2024. The proposed dividend shows a strong growth of +13.7% compared with the 2023 dividend, adjusted to take into account the 1 for 10 free share attribution of June 2024. The ex-dividend date is scheduled for May 19, 2025 and the payment is scheduled for May 21, 2025.

 

Extra-financial performance

The lost time accident frequency rate^([12]) stands at a record level of 0.7 in 2024, down -32% compared to 1.0 in 2023.

Scopes 1 and 2 CO2 emissions for the Group amounted to 34.9 million tonnes of CO2 equivalent^([13]) in 2024 and decreased by -2 million tonnes compared to 2023. They are thus down sharply by -11.1% compared to the 2020 baseline⁽¹³⁾.

In accordance with its climate transition plan, the Group is taking action to reduce its emissions in the coming years. They are based on 3 levers: low-carbon energy supply, asset management and CO2 capture. The Group also has effective solutions to decarbonize its customers' production units and is actively involved in their deployment, as illustrated elsewhere in this activity report.

On the social side, the share of employees benefiting from a common base of social coverage reached the target of 100% one year ahead of schedule. The gender diversity indicator progressed in 2024, to 33% women among managers and professionals.

 

Advance strategic plan objectives

One year before the end of the Advance strategic plan, the Group's performance positions it very favorably to achieve its 3 strategic objectives by the end of 2025:

• The compound annual comparable growth rate of the revenue over the 2022-2024 period, corresponding to the first 3 years of the ADVANCE strategic plan, reached +6.5%^([14]). It is calculated based on 2021 revenue, at the 2021 currency rate and energy price, excluding the impact of significant scope (acquisition of Sasol’s ASUs and deconsolidation of Russia). This growth is in line with the Advance plan's target of +5% to +6% over 4 years, from 2022 to 2025.
• Recurring ROCE^([15]) increased to 10.7% in 2024 and exceeded the ADVANCE target of a recurring ROCE above 10% as early as 2022, one year ahead of schedule.
• After 2 consecutive years of significant decrease in CO2 emissions in absolute value in 2023 and 2024, achieving the inflection point planned around 2025 in the ADVANCE strategic plan is confirmed. In 2025, the evolution of CO2 emissions should be limited.

Moreover, total investment decisions from 2022 to 2024 amounted to 12.7 billion euros, in line with the ADVANCE plan's projection of 16 billion euros over 4 years, from 2022 to 2025.

 

Governance

On the recommendation of the Appointments and Governance Committee, the Board of Directors also approved the draft resolutions which will be submitted to the General Meeting of May 6, 2025 in order to renew for a period of four years, the term of office of three Directors:

• Mr. Xavier Huillard, a French national, Director since May 2017, Chairman of the Remuneration Committee since May 2018 (of which he had already been a member since 2017) and Chairman of the Appointments and Governance Committee since May 2022 (of which he had also already been a member since 2020). Mr. Xavier Huillard has been Lead Director since May 2022. In addition to the duties he performs in this capacity, he brings to the Board of Directors his experience as a senior executive of a large international company, his in-depth knowledge of the construction, transport infrastructure, service and energy sectors, as well as his skills in the area of sustainability.

• Mr. Aiman Ezzat, a French national, Director since May 2021 and member of the Audit and Accounts Committee since May 2022. In addition to the vision of a senior executive of a large international group, Mr. Aiman Ezzat brings to the Board of Directors his in-depth knowledge in the fields of digital and cybersecurity, his financial expertise, and his skills in matters related to sustainability.

• Mr. Bertrand Dumazy, a French national, Director since May 2021, member of the Appointments and Governance Committee since May 2022 and member of the Audit and Accounts Committee since May 2023. Mr. Bertrand Dumazy brings to the Board of Directors his expertise in digital transformation, his knowledge in the areas of finance, cybersecurity, sustainability and marketing, as well as his experience as a senior executive in a large international company.

The Board of Directors has qualified Messrs. Xavier Huillard, Aiman Ezzat and Bertrand Dumazy as independent Directors. The Board of Directors has already taken the decision in principle to reappoint Mr. Xavier Huillard as Lead Director at the end of the General Meeting, subject to the renewal of his term of office as Director.

At the close of the General Meeting, subject to the approval of all the proposed resolutions, the composition of the Board would remain unchanged with 14 members (including two Directors representing the employees). The 12 members appointed by the Shareholders’ General Meeting are mostly independent (83% of Independent Directors). Parity is 42% women and 58% men and 5 members are of foreign nationality (i.e. 42%).

Finally, the Board of Directors will submit to the vote of the General Meeting the elements of remuneration of Mr. François Jackow, Chief Executive Officer, and of Mr. Benoît Potier, Chairman of the Board of Directors, together with  the information relating to the remuneration of all the corporate officers for 2024. The General Meeting will also be invited to decide upon the remuneration policy for the corporate officers which will apply to Mr. François Jackow, Chief Executive Officer, to Mr. Benoît Potier, Chairman of the Board of Directors and to the Directors.

Air Liquide’s Board of Directors, which met on February 20, 2025, approved the audited financial statements for the 2024 fiscal year. The Statutory Auditors are in the process of issuing a report with an unqualified opinion.

 

 

Footnotes

1. ^{^} See the appendix for the impact of Argentina.
2. ^{^} Excluding exceptional and significant transactions that have no impact on the operating income recurring. See the appendix for impact of Argentina.
3. ^{^} See definition and reconciliation in the appendices of the report.
4. ^{^} Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that have no impact on the operating income recurring.
5. ^{^} Unless otherwise stated, all variations in revenue outlined below are on a comparable basis on a one year basis, excluding currency, energy (natural gas and electricity) and significant scope impacts.
6. ^{^} See impact of Argentina in the appendices.
7. ^{^} Performance monitoring for Europe, the Middle East & Africa (including India) is now provided within the same operational sector. Data for 2024 according to the previous operational structure (Europe on the one hand, Middle East & Africa on the other) is available in the appendices of this report.
8. ^{^} See definition in the appendices.
9. ^{^} See definition and reconciliation in the appendices.
10. ^{^} 2023 earnings per share amounted to 5.35 euros taking into account the impact of the free share attribution carried out in June 2024.
11. ^{^} See definition and reconciliation in the appendices.
12. ^{^} Frequency rate of accidents with lost time for Air Liquide’s employees and temporary workers. In number of accidents with at least one day’s absence per million hours worked.
13. ^{^} In tonnes of CO2 equivalent for the Scopes 1 and 2, see definition in the appendices.
14. ^{^} Including a contribution of Argentina for +2.5%.
15. ^{^} See definition and reconciliation in the appendices.