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Dec 31, 2023
Air Products Q1 2024 Earnings Report
Air Products reported Q1 2024 earnings with increased GAAP EPS and adjusted EPS, driven by higher equity affiliates' income, pricing, and volumes, despite headwinds from geopolitical and economic factors.
Key Takeaways
Air Products reported a decrease in sales by 6% to $3.0 billion, but increased GAAP EPS by 6% to $2.73 and adjusted EPS by 7% to $2.82. Net income also increased by 6% to $622 million. The company is facing headwinds including a slowdown in manufacturing in Asia, lower helium demand, cost headwinds from a sale of equipment project, and currency devaluation in Argentina.
GAAP EPS increased by six percent to $2.73; GAAP net income increased by six percent to $622 million.
Adjusted EPS increased by seven percent to $2.82; adjusted EBITDA increased by eight percent to $1.2 billion.
Adjusted EBITDA margin increased 510 basis points to 39.2 percent.
Full-year adjusted EPS guidance updated to $12.20 to $12.50, up six to nine percent over prior year adjusted EPS.
Revenue by Segment
Forward Guidance
Air Products expects full-year fiscal 2024 adjusted EPS of $12.20 to $12.50, and second quarter adjusted EPS of $2.60 to $2.75. Capital expenditures are expected to be $5.0 billion to $5.5 billion for the full year.
Positive Outlook
- Full-year adjusted EPS guidance of $12.20 to $12.50, up six to nine percent over prior year adjusted EPS.
- Second quarter adjusted EPS guidance of $2.60 to $2.75.
- Expects capital expenditures of $5.0 billion to $5.5 billion for full-year fiscal 2024.
- Increasing adjusted EPS by seven percent over last year.
- Successfully implement our ambitious, long-term growth strategy through our core industrial gases business and as a leader in low-carbon intensity hydrogen to generate a cleaner future for the world.
Challenges Ahead
- Slowdown in manufacturing in Asia, particularly in China
- Lower helium demand
- Cost headwinds from a sale of equipment project
Historical Earnings Impact
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Avg. Return Before/After Earnings
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