Air Liquide S.A.

Air Liquide, founded in 1902 and headquartered in Paris, is a global leader in industrial and medical gases, technologies, and services. Operating across ~72 countries with ~67,800 employees, it serves over 4 million customers, from hospitals to semiconductor fabs and industrial manufacturers.

🚀 Core Business Segments

• Large Industries & Merchant Gases: Oxygen, nitrogen, argon via large-scale production and merchant networks.

• Healthcare: Medical gases and at-home respiratory care.

• Electronics: Ultra-pure gases for semiconductor and electronics manufacturing.

• Global Markets & Technologies: Focused on emerging sectors like hydrogen, carbon capture, space technology.

📊 Financial Snapshot (2024)

• Revenue: €27.06 bn (comparable +2.6%).

• Recurring Operating Margin: 19.9%, with mid-term target to improve by 460 bp vs 2022.

• Net Profit: €3.31 bn (+7.4%),

• Dividend: Proposed €3.30/share (+13.7%)

• CapEx: Record €4.4 bn across energy-transition and tech projects

📈 Investment Deck Overview

1. 📌 Executive Summary

Air Liquide is an industrial gas infrastructure powerhouse with deep technological expertise, high barriers to entry, recurring revenues, and a strong presence in growth segments like hydrogen and semiconductors.

2. 🧩 Market Position & Moat

• Scale & Reach: Operating in 72 countries, serving 4 million+ clients.

• High Barriers: Infrastructure-heavy business tied to long-term, utility-like contracts.

3. 💰 Financial Strength & Dividend

• Stable revenue and high margins (~20%).

• €3.3 bn net profit and substantial cash flow (~€6.5 bn operating pre–WC).

• Strong dividend yield with progressive payouts.

4. 🌱 Growth Strategy & Innovation

• ADVANCE 2025 plan focusing on margin lift (+460 bps by 2026), energy transition and performance.

• Hydrogen focus: Green hydrogen stations (e.g., for Paris 2024).

• Semiconductor expansion: $250+ m investment in Idaho plant supporting Micron fab.

• Deep R&D: 366 patents, sizable venture fund ALIAD, CO₂ capture tech.

5. ⚠️ Risks & Mitigations

• Q1 2025 revenue up 1.7%, strong in healthcare and electronics.

• Continued margin expansion and execution of ADVANCE incentives.

• Upcoming hydrogen and semicon facility operational ramp-ups.

7. 💼 Investment Thesis

Buy / Core Industrial Holding
Reasons to invest:

• Mission-critical infrastructure with high recurring revenues.

• Margin expansion and leaner cost structure.

• Growth via energy transition (hydrogen, carbon capture).

• Shareholder-friendly approach (dividends, buybacks).

8. 🔍 Valuation & Entry Strategy

• Trading at ~20% operating margin.

• Entry on modest dips attractive given stable earnings and solid yields.

• Monitor macro sensitivities—energy and industrial demand.