Air Liquide Reiterates Margin Targets Ahead of Expected Returns from Order Backlog

French industrial gas company Air Liquide has reaffirmed its margin targets as investors monitor the anticipated returns from the company's substantial order backlog. The company announced it is maintaining its operating margin target for the current fiscal year. Air Liquide holds a strong order backlog, particularly from projects in the energy transition and healthcare sectors. Management expects this backlog to significantly contribute to revenue and profitability in the coming period. The company reiterated its goal of raising its operating margin above 20% by 2025. Analysts note that Air Liquide's long-term contracts and steady demand for industrial gases make the company resilient to economic fluctuations. However, investors are closely watching when and to what extent the order backlog will translate into financial results. The company continues to invest in growth areas such as green hydrogen and carbon capture. These investments are expected to enhance profitability in the medium term. Air Liquide reported revenue of €27 billion in 2023. This is not investment advice.