Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- Shares of Air Liquide (EPA:AIRP) rose on Thursday after the industrial gas giant reported first-quarter earnings that topped expectations on pricing strength and maintained its full-year guidance, supported by record investment backlog and steady margin expansion.
The company posted first-quarter revenue of €7.03 billion, in line with consensus estimates and 6% higher than a year earlier.
Comparable sales rose 1.7% from the prior year, slightly ahead of the 1.2% forecast compiled by Vara and Visible Alpha. Gains were helped by a 3.3% energy impact and a 0.7% positive currency effect.
Revenue in the core Gas & Services business reached €6.83 billion, representing 1.8% comparable growth.
That figure matched Jefferies’ estimate and came in ahead of Goldman Sachs and J.P. Morgan expectations. The segment was driven by higher pricing, with limited volume gains across business lines.
Healthcare led with 5.3% organic growth, fueled by continued strength in home healthcare and medical gases. Electronics rose 3.6%, supported by 10% growth in carrier gases and two new project start-ups.
Industrial Merchant climbed 1.4% on pricing gains of 2.5%, while volumes were flat. Large Industries fell 0.3%, missing estimates, despite start-ups and solid activity in European refining and U.S. chemicals.
By geography, comparable growth was strongest in the Americas at 3.2%, followed by Asia-Pacific at 2.7%. EMEA was flat.
In the Americas, Large Industries rose 5.9% and Healthcare jumped 12.3%, offsetting modest gains elsewhere.
EMEA performance was held back by a 3.6% decline in Large Industries, while Industrial Merchant rose 2.4%.
Asia-Pacific showed solid Electronics growth at 5%, but Industrial Merchant saw a pricing decline of 1.8%.
Sales in the Engineering & Construction division fell to €198 million, down 2.9% on a comparable basis and well below estimates. Jefferies had forecast €307 million for the segment, while consensus stood at €300 million.
Air Liquide reported €131 million in structural cost efficiencies during the quarter, a 17% increase from the prior year.
Start-ups and ramp-ups contributed €78 million in revenue, and are projected to contribute €310 million to €340 million for the full year.
Operating cash flow before working capital changes totaled €1.62 billion, slightly above last year’s €1.61 billion.
The investment project backlog reached a record €4.5 billion, up from €4.2 billion at the end of 2024.
More than 40% of near-term opportunities are linked to the energy transition, according to the company.
Air Liquide maintained its 2025 guidance, which includes recurring net profit growth and an annual adjusted EBIT margin improvement of 100 basis points over 2025 and 2026. The company said its decentralized model limits exposure to tariffs and global trade friction.
Valuation metrics remain elevated versus historical levels. J.P. Morgan estimates FY25 and FY26 EV/EBITDA multiples at 13.3x and 12x, while Goldman Sachs sees FY25 P/E at 25.9x. Free cash flow yields range from 2% to 2.5% across analyst forecasts.
Price targets also vary. J.P. Morgan maintains an “overweight” rating with a €195 target for December 2026.
Goldman Sachs rates the stock “buy” with a €183 12-month target. Jefferies has the most bullish stance, setting a €208 target based on a blended SOTP and DCF valuation.
Analysts flagged potential risks, including FX volatility, macroeconomic uncertainty, competitive pricing pressure, and delays in project execution.