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Mar 31, 2024
Air Products Q2 2024 Earnings Report
Air Products reported mixed results with increased GAAP EPS but a slight decrease in sales, driven by pricing strategies and cost management amidst challenging economic conditions.
Key Takeaways
Air Products reported a GAAP EPS of $2.57, a 30% increase year-over-year, and adjusted EPS of $2.85, a 4% increase. Net income rose by 29% to $581 million. Sales decreased by 8% to $2.9 billion due to lower energy cost pass-through and volumes, despite higher pricing. The company maintains its full-year adjusted EPS guidance of $12.20 to $12.50.
GAAP EPS increased by 30% to $2.57, and GAAP net income rose by 29% to $581 million.
Adjusted EPS increased by 4% to $2.85, exceeding the high end of guidance.
Adjusted EBITDA margin increased by 490 basis points to 40.9%.
Full-year adjusted EPS guidance maintained at $12.20 to $12.50, reflecting a 6% to 9% increase over the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Air Products anticipates an adjusted EPS between $3.00 and $3.05 for the third quarter of fiscal year 2024 and maintains full-year adjusted EPS guidance between $12.20 and $12.50. Capital expenditures are expected to be between $5.0 billion and $5.5 billion for the full fiscal year.
Positive Outlook
- Maintaining fiscal 2024 full-year adjusted EPS guidance of $12.20 to $12.50, up six to nine percent over prior year adjusted EPS.
- Fiscal 2024 third quarter adjusted EPS guidance of $3.00 to $3.05.
- Continue to expect fiscal year 2024 capital expenditures of $5.0 billion to $5.5 billion.
- Focused on pricing and reducing our costs.
- Solidifying our energy transition leadership as we continue to execute our strategic portfolio of low- and zero-carbon hydrogen projects around the world
Challenges Ahead
- Management is unable to reconcile, without unreasonable effort, the Company’s forecasted range of adjusted EPS or capital expenditures to a comparable GAAP range.
- It is not possible, without unreasonable efforts, to predict the timing or occurrence of these events or the potential for other transactions that may impact future GAAP EPS.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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