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

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)