•
Jun 30, 2020

Air Products Q3 2020 Earnings Report

Reported a decrease in GAAP EPS and adjusted EPS amidst COVID-19 challenges, while successfully executing growth strategy.

Key Takeaways

Air Products reported a decrease in GAAP EPS and adjusted EPS due to the negative impacts of COVID-19, but the company continued to execute its growth strategy with new megaprojects and maintained a resilient business model.

GAAP EPS of $2.01, down nine percent, including an estimated $0.35-$0.40 negative impact from COVID-19.

Adjusted EPS of $2.01, down seven percent, including an estimated $0.35-$0.40 negative impact from COVID-19.

Adjusted EBITDA margin of 42.7 percent, up 260 basis points.

Announced ground-breaking $7 billion NEOM project and ~$2 billion investment to build a world-scale coal-to-methanol production facility in Indonesia.

Total Revenue
$2.07B
Previous year: $2.22B
-7.1%
EPS
$2.01
Previous year: $2.17
-7.4%
Gross Profit
$720M
Previous year: $758M
-5.0%
Cash and Equivalents
$3.92B
Previous year: $2.7B
+45.4%
Free Cash Flow
-$340M
Previous year: $174M
-295.9%
Total Assets
$24.8B
Previous year: $19.5B
+26.9%

Air Products

Air Products

Air Products Revenue by Segment

Air Products Revenue by Geographic Location

Forward Guidance

Significant uncertainty in the global economy remains, and the COVID-19 recovery is showing mixed results around the world. Despite these challenges, the company can and will continue creating value for shareholders over the long term, growing its dividend and investing in world-scale, sustainability-focused projects.

Positive Outlook

  • Stable business model
  • Strong financial position
  • Significant growth opportunities
  • Total commitment of our people
  • Continue creating value for shareholders over the long term

Challenges Ahead

  • Significant uncertainty in the global economy remains
  • COVID-19 recovery is showing mixed results around the world
  • Lower merchant demand impacts from COVID-19
  • Unfavorable currency impacts
  • Planned maintenance outages

Revenue & Expenses

Visualization of income flow from segment revenue to net income