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Air Products
🇺🇸 NYSE:APD
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Dec 31, 2024

Air Products Q1 2025 Earnings Report

Air Products reported Q1 2025 earnings with a slight increase in EPS and adjusted EPS, driven by higher pricing and favorable business mix, but offset by increased costs and lower volumes due to divestiture.

Key Takeaways

Air Products reported a mixed first quarter for fiscal year 2025. GAAP EPS increased by one percent to $2.77, and adjusted EPS also rose by one percent to $2.86. Net income saw a five percent increase, reaching $650 million. Sales, however, decreased by two percent to $2.9 billion, influenced by lower volumes due to the LNG business divestiture and unfavorable currency exchange, although higher pricing partially offset these declines.

GAAP EPS increased by one percent to $2.77; net income increased by five percent to $650 million.

Adjusted EPS increased by one percent to $2.86; adjusted EBITDA increased by one percent to $1.2 billion.

Sales decreased by two percent to $2.9 billion due to lower volumes, including the impact of the LNG divestiture.

Maintained fiscal year 2025 full-year adjusted EPS guidance of $12.70 to $13.00.

Total Revenue
$2.93B
Previous year: $3B
-2.2%
EPS
$2.86
Previous year: $2.82
+1.4%
Gross Profit
$915M
Previous year: $931M
-1.7%
Cash and Equivalents
$1.85B
Previous year: $1.96B
-6.0%
Free Cash Flow
-$1.31B
Previous year: -$819M
+59.5%
Total Assets
$40B
Previous year: $34.1B
+17.3%

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 2025 adjusted EPS guidance of $12.70 to $13.00. For the fiscal 2025 second quarter, Air Products' adjusted EPS guidance is $2.75 to $2.85. Air Products expects capital expenditures in the range of $4.5 billion to $5.0 billion for full-year fiscal 2025.

Positive Outlook

  • Full-year fiscal 2025 adjusted EPS guidance maintained at $12.70 to $13.00.
  • Fiscal 2025 second quarter adjusted EPS guidance is $2.75 to $2.85.
  • Expects capital expenditures in the range of $4.5 billion to $5.0 billion for full-year fiscal 2025.
  • Higher pricing, net of power and fuel costs, contributed positively to earnings.
  • Favorable business mix improved GAAP net income margin.

Challenges Ahead

  • Sales decreased by two percent due to lower volumes driven by the LNG divestiture.
  • Higher costs related to shareholder activism and incentive compensation impacted earnings.
  • Lower equity affiliates' income affected adjusted EBITDA.
  • Unfavorable currency exchange rates negatively impacted sales.
  • Divestiture of LNG business reduced sales.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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