Air Liquide (AIQUY) Divests 19% Stake in Hydrogenics to Cummins
Air Liquide AIQUY, a global leader in gases, technologies, and services for the industrial and health sectors, has announced the sale of its 19% stake in Hydrogenics Corporation to Cummins, which already owns the remaining 81%. This strategic move aligns with Air Liquide's commitment to the development of hydrogen and its focus on key strategic priorities.
Canada-based Hydrogenics is a leader in electrolysis hydrogen production equipment and fuel cells. Air Liquide acquired its stake in Hydrogenics in 2019 in a strategic transaction representing an investment of $20.5 million.
As a leader in developing and operating large-scale electrolyzers, Air Liquide has a significant portfolio of technologies related to hydrogen production. The divestment of its stake in Hydrogenics reflects the company's strategy of regularly reviewing its business portfolio to optimize its investments and align them with its long-term objectives. Under Cummins' full ownership, Hydrogenics will continue to serve as one of Air Liquide's suppliers for electrolyzer projects.
Air Liquide's decision to sell its stake in Hydrogenics is driven by its strategic plan for 2025, known as ADVANCE. This plan aims to achieve global performance by combining financial and extra-financial dimensions. Air Liquide is streamlining its portfolio to prioritize key strategic initiatives to focus on new markets and capitalize on its major assets, including a resilient business model, innovative capabilities and technological expertise.
The company's commitment to climate and the energy transition remains steadfast, with hydrogen playing a vital role in its solutions. Oxygen, nitrogen, and hydrogen have been central to Air Liquide's activities since its inception in 1902, embodying its scientific territory and driving its contributions to life, matter, and energy. Air Liquide's strategic plan also emphasizes progress in areas such as healthcare, digitalization, and high technologies.
With a global presence in 73 countries, around 67,100 employees, and a vast customer base of more than 3.9 million customers and patients, Air Liquide is well-equipped to pursue its strategic objectives and create value for its stakeholders.
AIQUY’s shares have shot up 41.8% in the past year against the 14.7% rise of its industry.
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The Zacks Consensus Estimate for the company’s current-year earnings has been revised 0.8% upward in the past 60 days. The consensus estimate for current-year earnings is currently pegged at $1.31, suggesting year-over-year growth of around 18%.
Air Liquide, in the first quarter of 2023, announced two projects in the hydrogen value chain. It launched a project for the construction of an industrial-scale pilot ammonia cracking plant in Belgium. The unit will allow the conversion of ammonia into hydrogen with an optimized carbon footprint. AIQUY also announced the creation of a joint venture with TotalEnergies to develop a network of more than 100 hydrogen refueling stations in Europe for trucks on major European highways. This move is expected to facilitate access to hydrogen and contribute to the strengthening of the hydrogen sector.
Air Liquide Price and Consensus
Air Liquide price-consensus-chart | Air Liquide Quote
Zacks Rank & Key Picks
AIQUY currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include L.B. Foster Company FSTR, Koppers Holdings Inc. KOP and Linde plc LIN.
L.B. Foster currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for FSTR's current-year earnings has been stable over the past 60 days.
L.B. Foster’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 140.5%, on average. FSTR shares have gained around 11% in a year.
The Zacks Consensus Estimate for Koppers’ current-year earnings has been stable over the past 60 days. KOP currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for current-year earnings for KOP is currently pegged at $4.40, indicating year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 57% in the past year.
Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.7% upward in the past 60 days.
Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. LIN shares have risen roughly 40% in the past year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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