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Sep 30, 2023

Air Products Q4 2023 Earnings Report

Air Products reported Q4 2023 earnings with increased GAAP EPS and adjusted EPS, driven by its growth strategy and execution of clean hydrogen megaprojects.

Key Takeaways

Air Products reported a decrease in sales, but an increase in net income. GAAP EPS increased by 20% and adjusted EPS increased by 11%. The company continues to advance its clean hydrogen megaprojects and increase dividends.

GAAP EPS of $3.08, up 20 percent.

Adjusted EPS of $3.15, up 11 percent.

Net income of $694 million, up 17 percent.

Increased quarterly dividend eight percent to $1.75 per share in January, the 41st consecutive year of increases.

Total Revenue
$3.19B
Previous year: $3.57B
-10.6%
EPS
$3.15
Previous year: $2.89
+9.0%
Gross Profit
$984M
Previous year: $949M
+3.7%
Cash and Equivalents
$1.62B
Previous year: $2.71B
-40.4%
Free Cash Flow
-$453M
Total Assets
$32B
Previous year: $27.2B
+17.7%

Air Products

Air Products

Air Products Revenue by Segment

Forward Guidance

Air Products expects full-year fiscal 2024 adjusted EPS guidance of $12.80 to $13.10, up 13 percent at the midpoint over prior year adjusted EPS. For the fiscal 2024 first quarter, Air Products' adjusted EPS guidance is $2.90 to $3.05, up 13 percent at the midpoint over fiscal 2023 first quarter adjusted EPS. Air Products expects capital expenditures of $5.0 billion to $5.5 billion for full-year fiscal 2024.

Positive Outlook

  • Full-year fiscal 2024 adjusted EPS guidance of $12.80 to $13.10, up 13 percent at the midpoint over prior year adjusted EPS.
  • Fiscal 2024 first quarter adjusted EPS guidance of $2.90 to $3.05, up 13 percent at the midpoint over fiscal 2023 first quarter adjusted EPS.
  • Capital expenditures of $5.0 billion to $5.5 billion for full-year fiscal 2024.
  • Increased quarterly dividend eight percent to $1.75 per share in January, the 41st consecutive year of increases
  • Advanced the energy transition

Challenges Ahead

  • Changes in global or regional economic conditions, inflation, and supply and demand dynamics in the market segments served
  • Changes in the financial markets that may affect the availability and terms on which financing may be obtained
  • Disruptions to the supply chain and related distribution delays and cost increases
  • Risks associated with having extensive international operations, including political risks, risks associated with unanticipated government actions and risks of investing in developing markets
  • Project delays, scope changes, cost escalations, contract terminations, customer cancellations, or postponement of projects and sales