Air Products Q1 2024 Earnings Report
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.
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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
- Currency devaluation in Argentina
- Reported results were lower than our expectations