Air Liquide: Mapping the future project growth potential

This report is the second in a series examining the earnings contribution from announced projects across global industrial gases. We continue the series with Air Liquide, where our analysis shows many relatively small projects starting up in FY27 and FY28. We expect +LSD earnings contribution from these projects. But Air Liquide's different strategic approach relative to peers, of more but smaller announced projects, means that there will likely be more announcements in the coming months/years. These projects, plus the ongoing margin improvement opportunity, underpinsolid EPS growth. We see scope for upgrades to this, through more project wins and more margin improvement; in this context, perhaps the recent activist investment is helpful to other shareholders. And the Oct 5 strategy update likely won't hurt either. While our PT decreases to €192, we maintain our Outperform rating.