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Investing.com -- Air Liquide (EPA:AIRP) shares rose more than 2% on Tuesday after the company reported second-quarter revenue and earnings that were broadly in line with expectations, supported by margin improvement and steady growth in key business segments.
The French company posted group revenue of €6.69 billion for the second quarter of 2025, up 1.9% on a comparable basis.
The result was slightly above the Jefferies estimate of €6.640 billion and close to the consensus forecast of €6.73 billion.
Foreign exchange effects weighed on revenue by 3.7%, while natural gas prices added 1.2% and electricity had a 0.1% positive effect. Scope impact was flat.
Gas & Services revenue, the company’s largest segment, totaled €6.479 billion in the quarter, reflecting a 1.8% increase on a comparable basis.
By business line, Large Industries rose 1%, Industrial Merchant increased 1.8% with pricing up 2.7%, and Healthcare advanced 4.8%. Electronics declined 1.6%.
By region, revenue in the Americas was €2.57 billion, up 2.7% on a comparable basis. Industrial Merchant in the region posted 3.6% pricing growth, which included a 45 basis point contribution from currency-related pricing in Argentina.
Electronics fell 9% in the region, while Healthcare rose 11% and Large Industries increased 2%.
In the EMEA region, revenue reached €2.638 billion, with 1% comparable growth. Industrial Merchant pricing rose 2.5%, while Large Industries was flat and Healthcare grew 3%.
Revenue in Asia-Pacific was €1.27 billion, reflecting 1.4% comparable growth. Electronics rose 2%, Large Industries grew 3%, and Industrial Merchant was flat on a comparable basis, though pricing improved.
For the first half of 2025, adjusted EBIT was €2.74 billion, 4% above Jefferies’ estimate of €2.63 billion and slightly below the consensus of €2.75 billion.
The figure represents a 5% increase from the same period last year. EBIT margin rose 50 basis points year over year to 19.9%.
The Gas & Services division posted first-half adjusted EBIT of €2.93 billion, 6% higher than the Jefferies estimate and 1% above consensus. The EBIT margin for the segment was 22%, up 70 basis points from the prior year.
Engineering and Construction revenue came in at €215 million for the second quarter, an increase of 6.4% on a comparable basis.
The result exceeded the Jefferies estimate of €206 million and was slightly below consensus of €218 million.
Operating cash flow before working capital changes stood at €3.25 billion at the end of the first half, compared with €3.16 billion a year earlier.
Capital spending decisions totaled €2.3 billion for the period. Startups contributed €157 million, with the company maintaining its full-year target of €310 million to €340 million.
The investment backlog increased to €4.6 billion, up from €4.5 billion in the first quarter. Net debt was €9.8 billion at the end of the half, representing 1.8 times net debt to EBIT before special items.
The company reaffirmed its outlook, which includes operating margin improvement and recurring profit growth, and continues to target a 200 basis point increase in operating margin by 2026.