Air Liquide (AI) Q2 2024 earnings summary

Executive summary

• Delivered resilient H1 2024 performance with strong margin improvement, 2.6% comparable sales growth, and continued execution of the ADVANCE strategic plan.

• Major project wins and investments in energy transition, decarbonization, and electronics, including the ExxonMobil hydrogen project, Micron partnership, and D'Artagnan CO2 capture project.

• Launched organizational simplification and completed governance changes, including divestiture of activities in 12 African countries, to enhance agility and portfolio optimization.

• Active deployment of the ADVANCE plan, focusing on structural transformation, sustainability, and future growth platforms.

Financial highlights

• Group revenue: €13,379m in H1 2024 (-4.3% as published, +2.6% comparable); Gas & Services: €12,796m (-4.5% as published, +2.6% comparable).

• Operating income recurring (OIR) rose 4.9% to €2,601m, with OIR margin up 100bps to 19.4% (Gas & Services at 21.2%, +110bps), excluding energy pass-through.

• Recurring net profit increased 3.3% to €1,681m; EPS at €2.92, down 2.3% as published but up 16% excluding FX and Argentina.

• Cash flow strong at 24% of sales; net debt at €10.2bn, net debt-to-equity ratio at 35.2%, and recurring ROCE improved to 10.7%.

Outlook and guidance

• Confident in delivering 2024 performance targets, with further operating margin and recurring net profit growth at constant exchange rates.

• Enhanced 2025 objectives under the ADVANCE plan, including doubling initial margin improvement ambition and focus on sustainability.

• Investment backlog remains high at €4.1bn, with robust pipeline in energy transition and semiconductors.