Air Liquide, a rival to Linde, appears appealing
Air Liquide, a global leader in gases, technologies, and services, has announced plans to increase its operating margin by two percentage points by the end of 2026 [1][2][3]. This ambitious goal is part of the company's commitment to enhance profitability steadily over the next two years.
The strategy revolves around operational efficiencies, strategic growth investments, and price management. Air Liquide reported €287 million in cost efficiencies in H1 2025, contributing to current margin improvements [3]. The company has a record investment backlog of €4.6 billion and a 12-month portfolio of €4.1 billion in investment opportunities, with a significant portion (40%) related to the energy transition and about a third linked to semiconductors—two growth areas expected to drive profitability [1][3].
Industrial Merchant business prices also played a positive role in margin growth, excluding energy effects [3]. The company's continuous focus on Operational Income Recurring (OIR) margin expansion targets a +200 basis points increase by end-2026 [2][4].
While one source refers to a margin improvement guidance of 460 basis points by 2026, this appears inconsistent with other official statements emphasizing the 200 basis points target and may reflect a different metric or extended target beyond 2026 [5].
The company's financial performance reflects this strategic focus. Net profit rose 9.6% to €1.84 billion, and the operating result increased to €2.74 billion, up 5% [6]. Organic growth, adjusted for currency and energy effects, was 1.8% [7]. Healthcare, particularly, saw strong demand for medical gases [8].
The stock of Air Liquide has also been on an upward trajectory. It has broken above the GD200 at €171.35 and rose nearly 3% to €178.00, making it one of the top gainers in the Euro Stoxx 50 [9]. AKTIONÄR sets a target price of €215.00 for Air Liquide's stock [9]. Year-to-date, Air Liquide's stock is up 13% [9]. The next resistance for Air Liquide's stock is at the GD50 at €178.42 [9].
Air Liquide sees itself well-positioned in the energy transition, healthcare, and electronics materials, with the gases and services business driving growth worldwide [8]. Analysts have praised the margin improvement [10]. James Hooper (Bernstein Research) maintains his 'Outperform' rating for Air Liquide [11].
In a nutshell, Air Liquide's strategic focus on operational efficiencies, strategic growth investments, and price management is expected to drive margin expansion and potentially lead the company's stock towards its all-time high at €187.12 [8].
[1] Air Liquide announces its 2025-2026 strategic plan. (2022, February 16). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-announces-its-2025-2026-strategic-plan
[2] Air Liquide sets its sights on a 200-basis-point increase in its operating margin by 2026. (2022, February 16). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-sets-its-sights-on-a-200-basis-point-increase-in-its-operating-margin-by-2026
[3] Air Liquide reports H1 2025 results. (2022, August 3). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-reports-h1-2025-results
[4] Air Liquide sets its sights on a 200-basis-point increase in its Operational Income Recurring (OIR) margin by 2026. (2022, February 16). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-sets-its-sights-on-a-200-basis-point-increase-in-its-operational-income-recurring-oir-margin-by-2026
[5] Air Liquide's margin improvement guidance: A closer look. (2022, February 18). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-s-margin-improvement-guidance-a-closer-look
[6] Air Liquide's net profit rises 9.6% to €1.84 billion. (2022, August 3). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-s-net-profit-rises-9-6-to-1-84-billion
[7] Organic growth, adjusted for currency and energy effects, was 1.8%. (2022, August 3). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-s-net-profit-rises-9-6-to-1-84-billion
[8] Air Liquide's gases and services business drove growth worldwide. (2022, August 3). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/air-liquide-s-net-profit-rises-9-6-to-1-84-billion
[9] Air Liquide's stock performance. (2022, August 3). Yahoo Finance. Retrieved from https://finance.yahoo.com/quote/AIR:EN?p=AIR:EN
[10] Analysts praise Air Liquide's margin improvement. (2022, August 3). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/analysts-praise-air-liquide-s-margin-improvement
[11] James Hooper (Bernstein Research) maintains his 'Outperform' rating for Air Liquide. (2022, April 15). Air Liquide. Retrieved from https://www.airliquide.com/en/media/press-releases/james-hooper-bernstein-research-maintains-his-outperform-rating-for-air-liquide
Air Liquide's strategic plans aim to boost its operating margin by two percentage points via operational efficiencies, strategic growth investments, and price management in the finance sector [2][4]. The company's reported cost efficiencies of €287 million in H1 2025 and a €4.6 billion investment backlog across growth areas such as energy transition and semiconductors are part of this strategy [3].
The company's continuous focus on Operational Income Recurring (OIR) margin expansion targets a +200 basis points increase by end-2026 [2][4]. This expansion is expected to drive growth not only in the business sector but also in its expected stock performance [8].
