Air Liquide S.A.: The Story of Essential Molecules

I. Introduction & Episode Roadmap

Picture a Parisian laboratory in 1902, where a brilliant engineer named Georges Claude stands before a contraption of tubes and valves, watching as air itself transforms into liquid—a pale blue substance that defies every intuition about the gases we breathe. Claude was the first to successfully liquefy air in quantity independent of Carl von Linde in 1902, a breakthrough that would birth not just a company, but an entire industry that touches nearly every corner of modern life.

From that moment of scientific triumph emerged Air Liquide, today the second largest global supplier of industrial gases by revenues (after Linde plc), a €27 billion French multinational that has quietly become indispensable to everything from semiconductor manufacturing to medical oxygen, from rocket propulsion to the coming hydrogen economy. The paradox is striking: how did a 122-year-old company built on liquefying air become a leader in the technologies powering artificial intelligence and the energy transition?

This is a story that spans three centuries, two world wars, and countless technological revolutions. It's a tale of patient capital triumphing over quarterly capitalism, of technical excellence creating unassailable moats, and of strategic acquisitions that transformed a French industrial company into a global powerhouse. Present in 60 countries with approximately 66,500 employees, the Group serves more than 4 million customers and patients.

We'll trace Air Liquide's journey from Georges Claude's breakthrough to the hydrogen revolution, from the controversy of wartime collaboration to the triumph of the Airgas acquisition, from family control to institutional ownership, always returning to those essential molecules—oxygen, nitrogen, hydrogen—that have been at the core of the company's activities since 1902.

The key themes that emerge are as relevant for today's investors as they were for those original 24 subscribers who gathered in 1902: the power of owning the infrastructure of industry, the compounding value of technical expertise, the strategic importance of long-term contracts, and the ability to reinvent oneself while staying true to core competencies. As we'll see, Air Liquide didn't just adapt to change—it anticipated it, positioning itself decades in advance for transitions that are only now becoming obvious.

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II. The Science of Liquid Air: Founding Story (1902–1913)

The year was 1899, and a veritable colossal figure, tall, blond, with very clear eyes, Georges Claude presented himself at the offices of Compagnie Thomson-Houston in Paris. While employed there, he had become obsessed with an idea that seemed absurd to many: liquefying air and distilling it to separate its different constituents—oxygen, nitrogen, neon, argon, krypton, xenon—thanks to their difference in volatility at very low temperatures. The advantage: the process was very economical, relying on an inexhaustible and above all free raw material, atmospheric air.

The path to breakthrough was arduous. Still an employee of Compagnie Thomson-Houston, he could only conduct his research in the evenings, often sleeping on site, lying on a simple omnibus bench. His friends Paul Delorme and Frédéric Gallier believed in his vision, advancing nearly 14,000 francs within a year to allow Georges Claude to achieve his goal.

The pressure mounted. Despite all his efforts, the engineer could not maintain the compressed air in his engine cylinder at the right temperature. The game threatened to be definitively lost. Under pressure from their associates, Frédéric Gallier and Paul Delorme then decided to schedule a general meeting for Monday, May 26, 1902.

But just days before that fateful meeting, Claude achieved his breakthrough. In 1902 Claude devised what is now known as the Claude system for liquefying air, employing a principle of regenerative cooling that solved the temperature control problems that had plagued him. On April 23, 1905, Georges Claude managed to collect 280 cubic meters of oxygen with 97% purity—the doors to the future were thrown wide open.

On May 25, 1902, after two years of research, Georges Claude developed a process for liquefying air to separate the components. On November 8, 1902, Paul Delorme gathered twenty-four subscribers, mainly engineers, to financially support the project, and became the first president of "Air liquide, a company for the study and exploitation of Georges Claude processes". The company originally had a capital of 100,000 francs.

What distinguished Air Liquide from its inception was its international mindset. In 1906, Air Liquide began operations in Belgium and Italy, followed by Canada, Japan and Hong Kong. This wasn't merely export ambition—it was a fundamental understanding that gases are difficult to transport, requiring local production near customers. Build locally, serve globally.

On February 20, 1913, the company was listed on the Paris Stock Exchange, marking its transformation from entrepreneurial venture to public company. By then, Air Liquide had already established the pattern that would define its next century: technical innovation, international expansion, and patient capital deployment.

But Georges Claude's genius extended beyond industrial gases. In December 1910, at the Paris Motor Show, Claude demonstrated the first neon lights, having discovered how to utilize the neon produced as a byproduct of his air liquefaction business. Claude's first public demonstration of a large neon light was at the Paris Motor Show, December 3-18, 1910. Claude's first patent filing for his technologies in France was on March 7, 1910. This would become another profitable business line, with Claude holding a near-monopoly on neon lighting through the 1920s.

The most remarkable innovation, however, would come three decades later. The Aqua-Lung was invented in France during the winter of 1942-1943 by engineer Émile Gagnan and Jacques Cousteau, who was a Naval Lieutenant. It allowed Cousteau and Gagnan to film and explore underwater more easily. This revolutionary diving system emerged from Air Liquide's expertise in gas handling and pressure regulation—Émile Gagnan was an engineer for L'Air Liquide, specializing in high-pressure pneumatic design.

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III. Building the Foundation: Industrial Gas Pioneer (1913–1980s)

The Great War tested Air Liquide's resilience, but the company emerged stronger, having proven the strategic importance of industrial gases in modern warfare. The interwar period saw aggressive international expansion, with Air Liquide acquiring La oxígena S.A. in 1938 and starting its activities in Argentina, establishing a beachhead in Latin America that would prove crucial for decades to come.

The Second World War brought both opportunity and controversy. While Air Liquide's gases proved essential for the war effort, Georges Claude's actions would forever taint his legacy. Following World War II the French High Court accused Claude of collaborating with the Nazis. Unconfirmed charges claimed that the development of the "flying bomb" resulted from Claude's work. In his defense, Claude stated that he believed in German victory under the auspices of Pétain in Vichy France. The Court sentenced him to life imprisonment and stripped him of all honors. He was released from prison in 1950.

Despite this dark chapter, Air Liquide itself emerged from the war intact, with Paul Delorme's steady leadership guiding the company until 1945. The post-war reconstruction offered enormous opportunities, and Air Liquide was perfectly positioned to supply the gases needed for rebuilding Europe's industrial infrastructure.

The 1960s marked Air Liquide's entry into the space age. In 1962, Air Liquide launched its activities into the space industry. In 1970, the company inaugurated the Claude-Delorme Research & Development Center, located in Les Loges-en-Josas where over 250 researchers work in 35 laboratories. The company's cryogenic expertise, honed over decades of liquefying air, proved invaluable for rocket propulsion systems. Air Liquide would go on to contribute to every Ariane launcher iteration since 1973.

A pivotal moment came in 1916 with the creation of a joint venture with Rockefeller interests, forming L'Air Reduction Company in the United States. This early American presence would lay the groundwork for future expansion, though it would take seven decades before Air Liquide would truly conquer the U.S. market.

The industrial basin strategy that emerged during this period became a cornerstone of Air Liquide's business model. Rather than selling gases as commodities, the company would build pipeline networks connecting multiple industrial customers in concentrated geographic areas. These networks created powerful switching costs—once a steel plant or refinery was connected to Air Liquide's oxygen or hydrogen pipeline, changing suppliers became prohibitively expensive and operationally complex.

During the 1960s gas sales declined, and most of the major industrial gas manufacturers began to diversify their companies. But Jean Delorme, Paul Delorme's son, believed the potential market for gases remained strong, and under his leadership L'Air Liquide did not follow the movement to diversification. This contrarian bet on focusing on core competencies would prove prescient, as the company that stayed true to gases while competitors diversified would ultimately emerge as the industry leader.

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IV. The First Wave of Globalization (1986–2000)

The appointment of new leadership in the 1980s marked a turning point. Air Liquide was ready to transform from a large European player into a true global force. The opening salvo was dramatic: In 1986, Air Liquide expanded into the United States with the acquisition of Big Three for $1.05 billion, a US-based company with operations in many countries across Europe and Asia. That same year, it acquired SEPPIC, a French specialty chemicals company, as part of its activities in the healthcare sector.

The Big Three acquisition was transformative—suddenly Air Liquide had meaningful U.S. operations and could compete directly with American industrial gas giants. Some sources cite the price as $1.6 billion, but regardless of the exact figure, it represented a massive bet on American industrial growth that would pay dividends for decades.

The electronics revolution of the late 1980s opened an entirely new market. In 1987, Air Liquide established its Tsukuba laboratory in Japan, developing ultra-high purity gases essential for semiconductor manufacturing. This wasn't just about selling a purer version of nitrogen or argon—it required developing entirely new purification technologies, delivery systems, and quality control processes. The margins in electronic gases dwarfed those in traditional industrial markets, and Air Liquide's early investment positioned it as a critical supplier to the chip industry.

The 1990s brought a series of strategic acquisitions that filled geographic and capability gaps. The company systematically acquired regional players, integrated their operations, and leveraged its global scale to improve efficiency. By 2000, Air Liquide had assembled an impressive global footprint, but challenges loomed.

In 2001, Suez-Lyonnaise des Eaux unsuccessfully attempted to acquire Air Liquide. The hostile takeover attempt was a wake-up call—Air Liquide was valuable enough to attract predators, but still vulnerable. The successful defense against Suez would catalyze a period of soul-searching about strategy and governance that would ultimately strengthen the company.

The late 1990s also saw Air Liquide double down on healthcare. Medical gases had always been part of the portfolio, but the company began to see healthcare as more than just another end market. The aging populations of developed countries, the rise of home healthcare, and the increasing sophistication of medical gas applications suggested this could become a major growth driver.

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V. Strategic Pivot to Hydrogen & Technology (2000–2015)

The arrival of Benoît Potier as CEO marked a new era. Benoît Potier was appointed Chief Executive in 1997. He was appointed to the Board of Directors of L'Air Liquide S.A. in 2000 and became Chairman of the Management Board in November 2001. He was Chairman and Chief Executive Officer of L'Air Liquide S.A. from May 2006 to May 2022.

Under Potier's leadership, Air Liquide made a prescient bet on hydrogen. Since the 2000 decade, Air Liquide increased significantly its investments in hydrogen production plants, with an increase by more than 50% between 2005 and 2008. This wasn't driven by environmental concerns—the hydrogen economy was still a distant dream. Instead, Potier recognized that refineries needed ever more hydrogen to process heavier, more sulfur-laden crude oils and meet tightening environmental regulations.

In 2004, Air Liquide acquired two-thirds of Messer Griesheim's global activities, consisting of operations in Germany, the United Kingdom and the United States, for $2.7 billion. In 2007, Air Liquide acquired the German engineering company, Lurgi, for €550 million, which doubled the engineering capacity of the group. The Lurgi acquisition was particularly strategic, bringing critical hydrogen and synthesis gas production technologies in-house.

The 2008 Financial Crisis tested Air Liquide's long-term contract model. While spot market prices for industrial gases plummeted and competitors struggled, Air Liquide's take-or-pay contracts provided stability. Customers might reduce consumption, but they still had to pay minimum fees, providing Air Liquide with cash flow even during the downturn.

Innovation became institutionalized during this period. In 2013, Air Liquide created ALIAD, a venture capital investor, with the objective to invest in start-ups and future technologies specializing in the energy transition, health and digital sectors. The company established the same year the Air Liquide innovation laboratory in Paris, the i-Lab, launched in 2013 to support and share innovation across the Group.

The healthcare expansion accelerated with targeted acquisitions. LVL Medical, and the Spanish company Gasmedi, the third company in Spain in the home health sector, for €330 million in 2012. These weren't just about buying revenue—Air Liquide was assembling capabilities in home healthcare that would position it for the shift from hospital to home-based care.

Portfolio optimization became a key theme. Air Liquide began systematically reviewing its businesses, divesting non-core assets while doubling down on areas of strength. The sale of welding equipment and the divestiture of Aqua Lung (despite its historical significance) freed up capital for more strategic investments.

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VI. The Airgas Acquisition: Transforming Scale (2015–2016)

November 17, 2015: Air Liquide announced its boldest move ever. Under the terms of the merger agreement, Airgas shareholders receive $143 in cash for each share of common stock of Airgas, valuing the company at $13.4 billion at the end of 2015 (closing in May 2016).

The strategic rationale was compelling. Airgas brought something Air Liquide had never successfully built in America: a dense distribution network reaching over one million customers, from large industrial plants to small welding shops. The transaction extends Air Liquide's customer base by more than one million customers. This was the capillary network that could distribute Air Liquide's global innovations to the American middle market.

But the price raised eyebrows. This price implies a premium of 50.6% to Airgas' one-month average share price prior to the announcement and a premium of 20.3% over its 52-week high share price. The offer values Airgas at 12.8x 2016e EV/EBITDA, a multiple higher than the peer group's average of approximately 11.5x. Air Liquide was paying up, and investors were nervous.

The financing was equally dramatic. Air Liquide completed refinancing with a 3.3 billion euro share capital increase with preferential subscription rights and a 4.5 billion US dollar bond issue. The final gross proceeds of the Rights Issue amount to 3,283 million euros resulting in the issuance of 43,202,209 new shares. The capital raise was oversubscribed by 191%, a vote of confidence from shareholders despite the bold price.

Peter McCausland, Airgas's founder and Executive Chairman, had spent 30 years building Airgas through over 400 acquisitions. In 2011, he had fought off Air Products' hostile takeover attempt, deploying a poison pill defense when he deemed their $70 per share offer too low. Now, at $143 per share, he was ready to sell—a 104% premium to that rejected offer just five years earlier.

The integration proceeded with military precision. Air Liquide had learned from decades of acquisitions that cultural integration mattered as much as operational synergies. Airgas will operate as a subsidiary of Air Liquide within the company's U.S. operations and, commercially, will go to market as Airgas, an Air Liquide company. The Airgas brand, built over three decades, would be preserved.

Through active preparation work prior to the closing, more than $300 million of pre-tax industrial, administrative and volume growth synergies have been identified. These synergies would come from multiple sources: procurement scale, optimized logistics networks, shared technology platforms, and cross-selling opportunities. By 2018, Airgas had completed its 500th acquisition—the integration hadn't slowed its entrepreneurial culture.

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VII. Digital Transformation & NEOS Strategy (2016–2021)

Fresh from the Airgas triumph, Air Liquide launched NEOS, its strategic plan focused on digital transformation. This wasn't just about modernizing IT systems—it was about fundamentally reimagining how an industrial gas company operates in the digital age.

The centerpiece was the Remote Operations Centers. In 2017, Air Liquide opened its facility in Saint-Priest, France, followed by Kuala Lumpur in 2018. From these nerve centers, engineers could monitor and control production facilities thousands of miles away, optimizing output in real-time based on energy prices, demand patterns, and equipment performance.

The Integrated Bulk Operations (IBO) program, launched in 2017, connected these remote operations with predictive analytics and automated logistics. Pilots in Canada, the U.S., France, Germany, and China demonstrated that Air Liquide could reduce delivery costs by 15% while improving customer service. Trucks were routed dynamically, tanks were refilled before customers even knew they were running low, and production was optimized across entire regional networks.

Portfolio optimization accelerated. The sale of Air Liquide Welding to Lincoln Electric and the divestiture of Aqua Lung freed up capital while sharpening focus. These weren't distressed sales—Air Liquide was proactively reshaping its portfolio, selling good businesses that were better owned by others to fund investments in great businesses where it had competitive advantages.

Then COVID-19 struck. Suddenly, Air Liquide's medical oxygen wasn't just important—it was literally vital. The company's global production network was mobilized to meet unprecedented demand for medical oxygen. Hospitals from Wuhan to Milan to New York depended on Air Liquide's ability to rapidly scale production and logistics. The company's response—increasing medical oxygen production by 50% in some regions within weeks—demonstrated the resilience and flexibility of its global infrastructure.

The pandemic also accelerated digital adoption. Customers who had resisted digital ordering platforms suddenly embraced them. Remote monitoring technologies, already in development, were fast-tracked. The crisis became a catalyst for transformation that might have otherwise taken years.

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VIII. The Hydrogen Revolution & ADVANCE (2017–Present)

January 2017, Davos: Air Liquide and Toyota co-founded the Hydrogen Council, bringing together 13 CEOs to promote hydrogen's role in the energy transition. This wasn't greenwashing—it was strategic positioning for a transition Air Liquide had been preparing for since Benoît Potier's hydrogen investments a decade earlier.

The ADVANCE strategic plan, launched in March 2022, placed sustainable development at the heart of Air Liquide's strategy. Investment decisions will reach 16 billion euros over the 2022-2025 period, half of the industrial investments being dedicated to the energy transition. The commitment was staggering: targets to triple hydrogen revenues to reach more than €6 billion by 2035 by investing approximately €8 billion in hydrogen supply chain by 2035.

The technical ambition matched the financial commitment. The company aims to bring its total electrolysis capacity to 3 GW by 2030. To put this in context, 3 GW of electrolysis capacity could produce enough hydrogen to power 40,000 buses or reduce steel industry emissions by millions of tons annually.

The Normand'Hy project exemplifies this ambition. In Port-Jérôme (France), the Air Liquide Normand'Hy project involves the installation of a 200 MW electrolyzer for large-scale production of renewable hydrogen. The site is scheduled for commissioning in 2026. This single facility will be among the world's largest green hydrogen production sites, supplying both existing refinery customers and new mobility applications.

Strategic partnerships multiplied. With TotalEnergies, Air Liquide formed TEAL Mobility to develop over 100 hydrogen stations across Europe. With thyssenkrupp and ArcelorMittal, pilot projects demonstrated how hydrogen could replace coal in steel production. With Siemens Energy, the world's first PEM gigawatt electrolyzer factory was announced for 2023.

The leadership transition in 2022 was carefully orchestrated. François Jackow was appointed Chief Executive Officer, taking over from Benoît Potier whose term as CEO ended May 31, 2022. François Jackow oversaw the development of the NEOS strategic plan and contributed to the Airgas acquisition in 2016. François Jackow has been the Group's Executive Vice President supervising notably Europe Industries, Europe Healthcare as well as the Africa, Middle East & India hubs. Potier remained as Chairman, ensuring continuity while bringing fresh energy to execution.

The results have been impressive. The Group's scopes 1 and 2 CO2 emissions totaled 39 million metric tonnes of CO2-equivalent in 2022. Thus, CO2 emissions remained stable for the 2nd consecutive year, in line with the objective of reaching an inflection point in 2025. By 2023, emissions had fallen to 37.6 million tonnes, down 4.9% from the 2020 baseline.

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IX. Technology Leadership & Future Markets

The semiconductor shortage of 2021-2022 highlighted Air Liquide's critical position in the electronics supply chain. Every chip fabrication plant depends on ultra-pure gases—nitrogen for purging, specialized etching gases, dopant carriers. Air Liquide's ability to deliver 99.9999999% pure gases (nine nines of purity) makes it indispensable to an industry where a few atoms of contamination can ruin millions of dollars worth of chips.

The AI boom has created unprecedented demand for advanced semiconductors, and Air Liquide is riding this wave. The company's electronic gases division saw strong growth through 2024, with new long-term contracts signed with major chip manufacturers expanding production capacity globally.

In steel decarbonization, Air Liquide's partnerships are bearing fruit. Since 2019, Air Liquide and thyssenkrupp Steel have been collaborating on an innovative project to produce low carbon steel. Hydrogen is injected on a large scale to partially replace the coal sprayed in the blast furnace during steel production. These aren't demonstration projects anymore—they're commercial-scale implementations that will reduce emissions by millions of tons annually.

The space industry, where Air Liquide has operated since 1962, is experiencing a renaissance. From Ariane to SpaceX, from satellite constellations to lunar missions, the demand for rocket-grade liquid oxygen and hydrogen is soaring. Air Liquide's extreme cryogenics expertise, refined over six decades, positions it perfectly for the new space economy.

Healthcare has evolved from industrial medical gases to sophisticated home care services. Air Liquide now manages complex therapies for sleep apnea, diabetes, and chronic respiratory diseases. The company serves patients in their homes with connected devices that monitor treatment compliance and outcomes, creating recurring revenue streams with high switching costs.

Perhaps most intriguingly, Air Liquide is positioning itself for the quantum computing revolution. These machines operate at temperatures near absolute zero, requiring sophisticated cryogenic systems that few companies can provide. It's a small market today, but Air Liquide is betting that quantum computing will eventually transform industries—and need lots of liquid helium.

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X. Playbook: Business & Investing Lessons

The Air Liquide story offers a masterclass in industrial strategy. First, the power of patient capital stands in stark contrast to quarterly capitalism. While American competitors faced pressure for immediate returns, Air Liquide could make decade-long bets on hydrogen infrastructure or semiconductor technologies. The company's shareholder base, with significant French institutional ownership and retail investors holding shares for generations, provided the stability for long-term thinking.

The network effects in industrial gases are often underappreciated. Once Air Liquide builds a pipeline network in an industrial basin, it becomes the natural supplier for any new plant. The incremental cost of adding a customer to an existing network is minimal, while the cost for a competitor to duplicate that infrastructure is prohibitive. These aren't winner-take-all network effects like social media, but they create durable regional monopolies.

M&A excellence comes from repetition and discipline. Air Liquide has completed over 500 acquisitions, developing a playbook for integration that preserves entrepreneurial culture while capturing synergies. The company doesn't chase transformative deals (Airgas being the exception)—it makes dozens of small, strategic acquisitions that compound over time.

The technology moats are deeper than they appear. Producing industrial gases seems simple, but delivering nine-nines purity nitrogen or maintaining liquid helium at -269°C requires expertise accumulated over decades. These capabilities can't be acquired; they must be developed through thousands of small innovations and learning from failure.

Managing energy transitions requires anticipation, not reaction. Air Liquide invested in hydrogen infrastructure years before the hydrogen economy became fashionable. When the transition accelerates, Air Liquide won't need to scramble for capabilities—it will already have them.

The French model offers unique advantages. The relationship between Air Liquide and the French state is collaborative rather than adversarial. Long-term shareholders, including French institutions and employee shareholders, align with management's patient approach. This isn't without drawbacks—French labor laws and bureaucracy create challenges—but on balance, it has enabled Air Liquide to think in decades while competitors think in quarters.

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XI. Analysis & Bear vs. Bull Case

The bull case for Air Liquide rests on multiple pillars. The hydrogen economy is moving from promise to reality, with governments committing trillions to energy transition. Air Liquide's early positioning, technical capabilities, and existing infrastructure provide competitive advantages that will take competitors years to replicate. The semiconductor super-cycle, driven by AI and digitalization, ensures growing demand for electronic gases with attractive margins. Demographics favor the healthcare business as populations age and care shifts from hospitals to homes.

The bears counter with legitimate concerns. Linde, following its merger with Praxair, is now larger than Air Liquide with greater resources for investment. Regional competitors in China and India are moving up the technology curve, potentially threatening Air Liquide's margins in these growth markets. The hydrogen economics remain uncertain—green hydrogen is still far more expensive than grey hydrogen, and the pace of adoption could disappoint.

Capital allocation challenges loom large. The energy transition requires massive upfront investment with uncertain returns. Air Liquide is committing €8 billion to hydrogen by 2035, but if adoption is slower than expected, returns could disappoint. Meanwhile, maintaining competitiveness in traditional industrial gases and electronics requires continued investment.

Geopolitical risks have intensified. Air Liquide's global footprint, once purely an advantage, now creates exposure to US-China tensions, European energy security concerns, and potential industrial reshoring that could strand assets. The company must navigate these tensions while maintaining operations and relationships across geopolitical divides.

Technology disruption presents both opportunity and threat. Direct air capture could revolutionize carbon management but might also reduce demand for traditional industrial gases. Alternative energy carriers like ammonia could compete with hydrogen. New semiconductor manufacturing techniques might require different gases or less gas consumption.

ESG leadership provides competitive advantage but also increases costs. Air Liquide's commitment to carbon neutrality by 2050 requires massive investment in renewable energy and process changes. While this positions the company well for carbon taxes and environmental regulations, it also increases near-term costs relative to less ambitious competitors.

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XII. Epilogue & Strategic Reflections

The 2024 results tell a story of successful transformation amid challenge. Group revenue stood at 27,058 million euros in 2024 with comparable growth of +2.6% compared to 2023. The Group's published revenue decreased by -2.0%, impacted by unfavorable currency (-2.4%) and energy (-2.2%) impacts. More impressively, Air Liquide recorded a record net profit of €3.31 billion in 2024, marking a 7.4% increase compared to the previous year. This performance is primarily attributed to an improvement in operating margins.

The margin improvement has been exceptional. Carbon intensity has decreased by 41% compared to 2015, already surpassing the reduction target of 30% set for 2025. The company has demonstrated it can grow while reducing absolute emissions, a feat few industrial companies have achieved.

Looking forward, the investment momentum is unprecedented. Industrial and financial investment decisions saw a record level of 1.4 billion euros in the 3rd quarter of 2024. The investment backlog stood at a very high level of 4.2 billion euros. These aren't maintenance investments—they're growth projects in hydrogen, electronics, and energy transition technologies.

The next decade will determine whether hydrogen becomes "the new oxygen" for Air Liquide—a ubiquitous industrial gas generating billions in recurring revenue. Early signs are encouraging. Major industrial customers are committing to hydrogen for steel production. Governments are mandating hydrogen adoption in transportation. The infrastructure Air Liquide is building today could generate returns for decades.

What would we do as management? Continue the strategy but accelerate the portfolio optimization. Divest remaining non-core assets more aggressively. Double down on the highest-return opportunities in electronics and hydrogen. Most critically, maintain the balance between growth investment and return on capital that has served Air Liquide well for 122 years.

The French industrial gas company that began with Georges Claude liquefying air in a Parisian laboratory has become indispensable to the modern economy. From the oxygen in hospital ventilators to the nitrogen protecting computer chips, from the hydrogen that might decarbonize steel to the helium cooling quantum computers, Air Liquide's molecules are everywhere, essential but invisible.

That invisibility is perhaps Air Liquide's greatest strength. While flashier companies capture headlines, Air Liquide quietly compounds value, serving customers whose switching costs increase every year, operating assets that would cost billions to replicate, and developing capabilities that take decades to master. It's not exciting, but it's excellent—and in industrial gases, excellence compounds over centuries.

The story of Air Liquide is far from over. As François Jackow leads the company into its next chapter, the challenges are immense: navigating the energy transition, maintaining technological leadership, managing geopolitical tensions. But if history is any guide, Air Liquide will adapt, evolve, and endure, continuing to supply the essential molecules that make modern life possible.