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Dec 31, 2022

Air Products Q1 2023 Earnings Report

Reported first quarter fiscal 2023 results with GAAP EPS of $2.57 and adjusted EPS of $2.64.

Key Takeaways

Air Products reported a six percent increase in first quarter sales to $3.2 billion, driven by higher pricing and volumes. GAAP EPS increased by two percent to $2.57, while adjusted EPS rose by six percent to $2.64. The company is maintaining its full-year adjusted EPS guidance of $11.20 to $11.50.

GAAP EPS was $2.57, up two percent year-over-year.

Adjusted EPS was $2.64, up six percent year-over-year.

Sales increased six percent year-over-year to $3.2 billion.

Increased quarterly dividend by 13 cents per share to $1.75.

Total Revenue
$3.18B
Previous year: $2.99B
+6.0%
EPS
$2.64
Previous year: $2.52
+4.8%
Gross Profit
$902M
Previous year: $771M
+17.1%
Cash and Equivalents
$3.13B
Previous year: $2.95B
+6.0%
Free Cash Flow
-$115M
Previous year: $121M
-194.6%
Total Assets
$28.3B
Previous year: $27.1B
+4.3%

Air Products

Air Products

Air Products Revenue by Segment

Air Products Revenue by Geographic Location

Forward Guidance

Air Products continues to expect full-year fiscal 2023 adjusted EPS guidance of $11.20 to $11.50, up nine to 12 percent over prior year adjusted EPS. For the fiscal 2023 second quarter, Air Products' adjusted EPS guidance is $2.50 to $2.70, up seven to 15 percent over fiscal 2022 second quarter adjusted EPS. Air Products continues to expect capital expenditures of $5.0 - $5.5 billion for full-year fiscal 2023.

Positive Outlook

  • Maintaining fiscal 2023 full-year adjusted EPS guidance of $11.20 to $11.50.
  • Fiscal 2023 second quarter adjusted EPS guidance of $2.50 to $2.70.
  • Expecting capital expenditures of $5.0 - $5.5 billion for full-year fiscal 2023.
  • Adjusted EPS is expected to increase by 9-12% for the full year.
  • Adjusted EPS is expected to increase by 7-15% for the second quarter.

Challenges Ahead

  • Unfavorable currency impacts due to the strengthening of the U.S. Dollar.
  • Higher costs partially offset higher pricing and volumes.
  • Economic weakness creates challenges.
  • Currency challenges create headwinds.
  • Other headwinds impact results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income