L'Air Liquide (AI ) Q4 2023 earnings summary

Executive summary

• FY 2023 comparable sales grew 3.7%; recurring operating income rose 11.4% on a comparable basis, and operating margin improved 80 bps excluding energy impacts.

• Record efficiencies and investment momentum supported results; the investment backlog reached €4.4bn, with over 40% related to the energy transition.

Financial highlights

• Revenue was €27,608m, down 7.8% as published but up 3.7% on a comparable basis; currency and energy impacts reduced published revenue.

• Recurring operating income was €5,068m, up 4.2% as published and 11.4% comparable; published operating margin rose 220 bps to 18.4%.

• Net profit was €3,078m; recurring net income was €3,320m, up 13.3% excluding currency effects. EPS rose to €5.90 from €5.28.

• Operating cash flow after working-capital changes was €6,263m, up 12.8% excluding currency effects.

Outlook and guidance

• FY 2024 outlook: further operating-margin improvement and recurring net-income growth at constant exchange rates.

• ADVANCE objectives were reaffirmed: 5–6% comparable sales CAGR for 2021–2025, recurring ROCE above 10% from 2023, and CO₂ emissions inflection around 2025.

• Margin improvement ambition doubled to 320 bps over 2022–2025, excluding energy impacts; +170 bps is targeted over the remaining two years.

• Start-ups and ramp-ups are expected to add €270–290m to FY 2024 sales, at constant exchange rates and excluding energy passthrough.