Air Liquide launches €4 billion buyback, targets margin gains under 2030 strategy

By Reuters News

Oct 5 (Reuters) - French industrial gases company Air Liquide AIRP.PA on Monday launched a €4 billion ($4.5 billion) share buyback plan and said it aimed to raise its operating margin by 400 to 600 basis points by 2030 as part of a new mid-term strategy.

The buyback marks Air Liquide's first large-scale shareholder-return programme of its kind and is set to be completed by the end of 2028 alongside continued dividend growth. It forms part of a planned capital allocation of more than €40 billion for 2026-2030, of which over half is earmarked for industrial investment and acquisitions.

"Our profitability allows us to evolve our capital allocation beyond investments and acquisitions in our core businesses," CEO François Jackow said in a statement published ahead of the company's Capital Markets Day event.

Elliott Investment Management has reportedly built an undisclosed stake in Air Liquide and has been engaging with the French industrial-gases group for months, calling for margin improvements and a sharper focus on efficiency and capital returns.

Air Liquide, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, also forecast average sales growth of 5% a year, plus or minus 1 percentage point, through 2030.

($1 = €0.8935)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.