Building on its resilience, Air Liquide is staying the course in the first quarter of 2025

• Sales growth

• Continuing actions to increase margin

• Record investment backlog to build the future

Commenting on the 1^st quarter of 2025, François Jackow, Chief Executive Officer of the Air Liquide Group, stated:

“Demonstrating the resilience of our business model and the agility of our teams in an uncertain environment, sales are progressing and we are successfully pursuing actions to increase our margin. Our Group is also continuing to prepare for the future with a record investment backlog, a source of future growth.

In detail, sales amounted to 7.0 billion euros in the first quarter of 2025, up +1.7% on a comparable basis (+5.7% as published, reflecting a positive currency impact and the rise in energy prices, changes in which are passed through to our customers). Sales in our Gas & Services businesses, which represent 97% of Group sales, were up +1.8% on a comparable basis. In particular, sales increased by +3.6% and +5.3%, respectively, in the areas of Electronics and Healthcare. Electronics is driven by the rapid development of artificial intelligence, while the activity in Healthcare follows a dynamic that is distinct from economic developments in the industrial sector.

At the same time, we are continuing to carry out actions aimed at strengthening our performance. Group efficiencies increased by +17% and amounted, for the first time, to 131 million euros in the first quarter; we also pursued the active management of our business portfolio and the adjustment of Industrial Merchant prices, based on our ability to create added value for our customers. These actions sustain our confirmed ambition to increase our margin by +460 basis points, excluding the energy impact, over five years (2022-2026).

A source of future growth, the investment backlog reached a record level of 4.5 billion euros, thanks to a balanced and diversified project mix. This includes projects in all geographies in Large Industries and Electronics - the latter of which represents one-third of this backlog.

As a result, in 2025, Air Liquide stays the course and is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates^([1])."

Highlights

Industry and Decarbonization

• Strengthening of the Group's presence in Japan with a significant investment in a new Air Separation Unit in order to meet the needs of Mitsubishi Materials and, more broadly, the demand driven by the energy transition and semiconductors.
• 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.

Sustainable Development

• Successful completion of a 500 million euros green bond issue to finance or refinance flagship energy transition projects.

Group revenue stood at 7,028 million euros in the 1^st quarter of 2025, representing comparable growth^([2]) of +1.7%^([3]) compared to the 1^st quarter of 2024. The Group's published sales increased by +5.7% in the 1^st quarter of 2025. They benefited from a favorable energy impact of +3.3% and a slightly positive currency impact of +0.7%. There was no significant scope impact.

As part of the Group's transformation initiatives, the Engineering & Construction and Global Markets & Technologies activities were merged on January 1, 2025 into a new Engineering & Technologies activity. Under a unified management, with a shared vision and common objectives, this new organization aims to enhance the Group's competitiveness and contribute to its growth by providing a more integrated innovation cycle, leveraging scale and complementarity strengths. Certain businesses, mainly Biogas and Maritime, were transferred from the Global Markets & Technologies activity to the Industrial Merchant activity.

In the 1^st quarter of 2025, Gas & Services revenue reached 6,831 million euros, up +1.8%^(3)([4]) on a comparable basis. The Gas & Services published revenue increased by +7.4%^([5]) in the 1^st quarter of 2025, with favorable energy (+3.4%) and currency (+0.7%) impacts. There was no significant scope impact in the 1^st quarter.

Industrial Merchant sales grew by +1.4%^([6]) in the 1^st quarter: the price effect (+2.5%) remained the growth driver, while gas volumes excluding helium were flat, and hardgoods sales were down in the United States. Large Industries revenue was stable (-0.3%), with the ramp-up of new production units offsetting low demand. The Healthcare business, whose growth is decoupled from industry trends, showed a sustained increase in revenue (+5.3%), with a growth well balanced between Home Healthcare and Medical Gases. Finally, in Electronics (+3.6%), the growth in Carrier Gas sales reached +10%, offsetting other less dynamic business segments.

• Gas & Services revenue in the Americas amounted to 2,716 million euros in the 1^st quarter of 2025, with all businesses contributing to growth of +3.2%^([7]). Large Industries (+5.9%) benefited from the start-up of a large Air Separation Unit in the United States in February 2024 and from a favorable basis of comparison. In Industrial Merchant, revenue increased by +1.1%, supported by a solid price effect of +3.1% and resilient gas volumes, while hardgoods sales were down. The strong growth in Healthcare (+12.3%) was notably driven by price increases in Medical Gases in the United States and the development of Home Healthcare in Latin America. In Electronics, high sales of advanced materials and the ramp-up of carrier gas production units contributed to business growth of +5.5%.
• Revenue in the Europe, Middle East & Africa region amounted to 2,788 million euros, stable (0.0%) compared to the 1^st quarter of 2024. The increase in sales from transferred businesses while creating the Engineering & Technologies activity contributed +0.9% to comparable growth. In Large Industries (-3.6%), revenue was impacted by a decline in sales of cogeneration units in Benelux and air gases in Italy. Following several quarters of decline, sales in the Industrial Merchant business posted an increase of +2.4% on a comparable basis. They were stable (-0.2%) excluding the growth in the 1^st quarter 2025 of transferred businesses: the +3.0% price effect offset the impact of the divestiture of businesses in 12 African countries in July 2024 and demand that remained soft. In the Healthcare business, sales growth remained solid (+2.5%), boosted by Home Healthcare and Medical Gases.
• Revenue for the Asia Pacific region totaled 1,326 million euros in the 1^st quarter of 2025, an increase of +2.7%. In Large Industries, the start-up of a large hydrogen production unit in China in March 2024 contributed to a +1.6% increase in sales. Industrial Merchant sales (+0.8%) returned to growth and benefited from a very solid increase in revenue in China despite a decline in helium sales. Revenue from the Electronics business was up sharply (+5.0%), with carrier gas sales up in particular.

The consolidated revenue of the Engineering & Technologies business reached 198 million euros in the 1^st quarter, down -2.9% on a comparable basis. Sales of technological equipment were impacted by the divestiture of the Aeronautics & Defense business in March 2024. Consolidated Engineering sales were stable, with priority given to internal projects. Order intake for Group projects and third-party clients amounted to 665 million euros, a sharp increase of +34% compared to the 1^st quarter of 2024.

The Group reiterated its ambition to improve the operating margin^([8]) despite the uncertain environment. This ambition was revised upwards in February 2025 to +460 basis points over 5 years until the end of 2026, supported by the three levers which are price management, efficiencies, and the optimization of the portfolio of activities. The price effect in the Industrial Merchant business stood at +2.5%. Efficiencies^([9]) amounted to 131 million euros, a record level for a 1^st quarter, up sharply by +17.4%, adding to a +22.2% increase in the 1^st quarter of 2024. The portfolio management of activities continued in the 1^st quarter of 2025 with 3 acquisitions in Industrial Merchant in the United States, Brazil, and Spain, and the divestiture of the Home Healthcare business in Japan.

Cash flows from operating activities before changes in working capital amounted to 1,620 million euros, up by +0.7% compared to the 1^st quarter of 2024, and by +4.9% excluding an exceptional indemnity from a customer recorded in the 1^st quarter of 2024 and an exceptional tax surcharge in France in the 1^st quarter of 2025.

In the 1^st quarter of 2025, industrial and financial investment decisions amounted to 1.0 billion euros, an increase of +16.3% compared to the 1^st quarter of 2024. The investment backlog hit a record high of 4.5 billion euros, up from 4.2 billion euros at the end of 2024.

The additional contribution to sales of unit start-ups and ramp-ups totaled 78 million euros in the 1^st quarter of 2025. Over the year, it is expected to be between 310 and 340 million euros.

The portfolio of 12-month investment opportunities remained at a high level of 4.1 billion euros at the end of March. Projects that support the energy transition represent around 40% of the portfolio, mainly in Europe and the United States, and those in the Electronics business, a little more than a third.

Footnotes

1. ^{^} Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that have no impact on the operating income recurring.
2. ^{^} Unless otherwise stated, all variations in revenue outlined below are on a comparable basis, excluding currency, energy (natural gas and electricity) and significant scope impacts. The comparable growth excludes the impact of internal transfer of transferred activities but includes the contribution related to the growth in the 1st quarter of 2025 of the transferred activities.
3. ^{^} Includes Argentina’s contribution of +0.4%, declining sharply in the 1st quarter of 2025 compared to 2024. See Appendix.
4. ^{^} Includes a contribution of +0.4% related to the growth in the 1st quarter of 2025 of transferred activities. See Appendix.
5. ^{^} Growth calculated on 2024 published sales, not restated for the transfer of certain activities from GM&T in the 1st quarter of 2025. See Appendix.
6. ^{^}  Includes a contribution of +0.6% related to the growth in the 1st quarter of 2025 of transferred activities. See Appendix.
7. ^{^}  Includes Argentina’s contribution of +1.0%, declining sharply in the 1st quarter of 2025 compared to 2024. See Appendix.
8. ^{^}  Operating margin excluding the energy impact.
9. ^{^}  See definition in the appendix of the activity report.