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5 min ago 2 min read
Activist investor Elliott Management has welcomed Air Liquide’s plans to improve its margins by up to 600 basis points (bps) by 2030 but said its planned €4bn ($4.5bn) share buyback should start “immediately.”
The public statement comes after the French industrial gas major unveiled its 2026–2030 , targeting a compound annual growth rate in recurring net earnings per share (EPS) of +10% over the period.
Elliott and its UK subsidiary, which advise funds that together hold a “significant economic interest” in Air Liquide, described the announcement as a “positive first step.”
During its capital markets day, the company said it expects its electronics business, which currently accounts for 10% of sales, to grow from €2.5bn ($2.8bn) in 2025 to by 2030.
“The company’s targets for annual growth of 5% in revenue and 10% in EPS through 2030 highlight the strength of its business and the opportunities in AI, electronics, healthcare, and space,” the investor said.
Elliott has reportedly to Air Liquide amid pressure on the company to close its margin gap with rival Linde, and said the new targets reflected the firm’s “traditionally prudent approach” and leave room for “significant outperformance.”
Under the strategy, Air Liquide said it would launch a €4bn share buyback programme across 2027 and 2028, as part of more than €40bn ($44.8bn) it expects to allocate over the period.
Elliott said it believed the programme should “start immediately.”
The buyback is expected to be funded through cash flow and higher debt leverage, while maintaining an A-category credit rating, according to CFO Jérôme Pelletan. At the end of June, Air Liquide’s net debt was 1.5 times EBITDA.
Elliott said it expects to continue its dialogue with Air Liquide as the company works to close its margin and valuation gaps with peers.
