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Mar 31
Air Products Q2 2025 Earnings Report
Air Products reported a significant GAAP net loss in Q2 2025 due to strategic charges, despite stable adjusted earnings.
Key Takeaways
Air Products posted a GAAP net loss of $1.73 billion driven by $2.3 billion in after-tax charges related to project exits and workforce reductions. However, adjusted EPS remained solid at $2.69, and revenue held steady at $2.92 billion.
GAAP EPS was -$7.77 due to $2.3 billion in after-tax charges.
Adjusted EPS came in at $2.69, reflecting core business stability.
Revenue was $2.92 billion, essentially flat year-over-year.
Three major U.S. projects were exited, triggering strategic write-downs.
Air Products
Air Products
Air Products Revenue by Segment
Air Products Revenue by Geographic Location
Forward Guidance
Air Products expects adjusted EPS of $11.85 to $12.15 for FY25 and $2.90 to $3.00 for Q3 FY25, with $5 billion in capital expenditures planned.
Positive Outlook
- Adjusted EPS outlook for Q3 remains solid at $2.90–$3.00.
- Full-year adjusted EPS guidance narrowed but remains strong.
- Capex commitment of ~$5B signals continued investment.
- Strong pricing trends in non-helium merchant products.
- Productivity improvements partially offset cost pressures.
Challenges Ahead
- Exiting major U.S. projects led to $2.3B in after-tax charges.
- LNG divestiture and weak helium demand lowered volumes.
- Cost inflation and maintenance expenses pressured margins.
- Currency headwinds impacted international segments.
- Shareholder activism costs added to non-operating expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income