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Sep 30, 2024

Air Products Q4 2024 Earnings Report

Air Products reported Q4 2024 earnings with adjusted EPS up 13% and completed the divestiture of its LNG business.

Key Takeaways

Air Products reported a strong fiscal fourth quarter with adjusted EPS up 13% year over year and an industry-leading adjusted EBITDA margin of over 44%. The company completed the strategic divestiture of its LNG business and signed a 15-year agreement with TotalEnergies to supply green hydrogen.

Adjusted EPS increased by 13% year over year.

Adjusted EBITDA margin exceeded 44%.

Completed the divestiture of the LNG business.

Signed a 15-year agreement to supply green hydrogen to TotalEnergies.

Total Revenue
$3.19B
Previous year: $3.19B
-0.1%
EPS
$3.56
Previous year: $3.15
+13.0%
Gross Profit
$1.08B
Previous year: $984M
+10.1%
Cash and Equivalents
$2.98B
Previous year: $1.62B
+84.3%
Free Cash Flow
-$1.13B
Previous year: -$453M
+149.8%
Total Assets
$39.6B
Previous year: $32B
+23.7%

Air Products

Air Products

Air Products Revenue by Segment

Air Products Revenue by Geographic Location

Forward Guidance

Air Products expects full-year fiscal 2025 adjusted EPS of $12.70 to $13.00 and first quarter adjusted EPS of $2.75 to $2.85. Capital expenditures for fiscal year 2025 are expected to be in the range of $4.5 billion to $5.0 billion.

Positive Outlook

  • Full-year fiscal 2025 adjusted EPS guidance of $12.70 to $13.00.
  • Fiscal 2025 first quarter adjusted EPS guidance of $2.75 to $2.85.
  • Capital expenditures expected in the range of $4.5 billion to $5.0 billion for full-year fiscal 2025.
  • Completed the divestiture of its LNG business.
  • Focus on core industrial gas business.

Challenges Ahead

  • Unable to reconcile forecasted range of adjusted EPS to a comparable GAAP range without unreasonable effort.
  • Uncertainty regarding the timing or occurrence of future events that may impact future GAAP EPS.
  • Inability to reconcile forecasted capital expenditures to future cash used for investing activities without unreasonable effort.
  • Potential for transactions that may impact future GAAP EPS.
  • Uncertainty regarding the potential significance of events that could affect the company's future GAAP results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income