Air Liquide: Closing the margin divide

BofA Securities previews Air Liquide (AIRP.PA) ahead of its 5 Oct Capital Markets Day, titling the note "Closing the margin divide." The reported involvement of activist investor Elliott has amplified attention on margins. Air Liquide can point to a track record of delivery (360bp ex-energy over 2022-25), but a large gap to Linde persists—c900bp on headline margins, or c700bp on a more equivalent basis (Linde excludes PPA costs, AL does not). The firm estimates that the stock of zero-margin customer energy pass-through sales exerts a similar hit to each company's margin, implying AL may have more margin headroom than previously thought; consensus' +100bp/yr is seen as a sensible base case. AL revenue per employee trails Linde by c10%;