AI-driven electronics growth powers Air Liquide's sales acceleration

By Olivier Cherfan

Oct 29 (Reuters) - French industrial gases supplier Air Liquide reported quarterly sales above market expectations on Thursday, as its electronics business establishes itself as a key growth driver fuelled by the global AI boom.

Air Liquide is increasingly betting on AI-driven demand for gases used in chipmaking, a strategy supported by its €2.85 billion ($3.18 billion) acquisition of South Korea's DIG Airgas, a new plant in Taiwan and a nearly €200 million commitment to an SK hynix project.

Its third-quarter revenue rose 3% on a comparable basis to €7.26 billion, above a Vara consensus of €7.16 billion, with the Electronics unit posting 12% growth and the Industrial Merchant unit 5.3% growth.

The accelerating volume growth in these two divisions goes beyond positive pricing effects, CEO François Jackow said in a statement. "While subject to fluctuations in this volatile environment, this is a very positive sign."

Air Liquide reiterated its targets for 100-basis-point margin increases in 2026 and 2027, excluding effects of energy costs, and for recurring net profit growth this year.

Its investment backlog, which covers a pipeline of nearly 70 projects, hit a record €6.2 billion at the end of September. Electronics investments had almost doubled in the first nine months of 2026 compared with all of last year, Jackow said.

It is also launching the first €1 billion tranche of its €4 billion share buyback programme on Friday, with purchases set to be completed by the end of 2026.

Air Liquide shares rose 2.7% by 0918 GMT, with analysts from AlphaValue and JPMorgan pointing to improving organic sales growth, while Jefferies cited the early buyback launch and forecast-beating growth in the Gas & Services unit.

($1 = 0.8971 euros)

(Reporting by Olivier Cherfan in Gdansk, editing by Milla Nissi-Prussak)