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Air Products & Chemicals Inc. (NYSE:APD) announced mixed fourth-quarter FY25 results. Air Products and Chemicals Inc. is a global industrial gases company that supplies gases, equipment, and expertise to a wide range of industries, including refining, chemicals, metals, electronics, manufacturing, and food. It provides essential gases like hydrogen, nitrogen, and oxygen, and also develops clean hydrogen projects, manufactures equipment, and offers technical support to improve customer operations and sustainability. Also Read: This Air Products and Chemicals Analyst Turns Bullish; Here Are Top 5 Upgrades For Friday APD's EPS of $3.39, down 5% year-over-year (Y/Y), slightly beat the estimate of $3.38, while sales of $3.167 billion marginally missed the $3.176 billion estimate. Sales fell 1% year over year (Y/Y), due to lower volumes (-5%), partly offset by higher energy cost pass-through (+3%) and favorable currency impact (+1%). GAAP EPS came in at 2 cents, which was significantly lower than 8 cents a year ago in the same quarter, and operating income stood at $17 million, compared to $2.4 billion in the prior year's quarter. The results included pre-tax charges of around $795 million related to business and asset actions ($3.33 per share) in fourth-quarter FY25, and prior year earnings included a pre-tax gain of $1.6 billion ($5.38 per share) related to the September 2024 LNG sale. Adjusted operating income fell 4% Y/Y to $812 million, reflecting lower volumes. Segment Performance Air Products' Americas sales fell 1% Y/Y to $1.3 billion, on 7% lower volumes primarily due to a prior-year one-time asset sale related to an early contract termination. Operating income dropped 13% Y/Y to $392 million, with the margin contracting 380 basis points to 30.4%. In Asia, sales rose 1% Y/Y to $870 million on higher energy pass-through and favorable currency, despite a 1% pricing decline. Operating income declined 7% year-over-year to $227 million, primarily due to lower helium volumes and pricing, resulting in a 240-basis-point decrease in margin to 26.0%. Europe's sales increased 8% Y/Y to $789 million, fueled by favorable currency, higher volumes, and stronger pricing. Operating income increased 15% year-over-year to $238 million, driven by higher non-helium volumes and pricing, with the margin expanding 180 basis points to 30.1%. Income from Middle East and India equity affiliates remained flat Y/Y at $92 million in the quarter. Corporate and other sales plummeted 28% Y/Y to $186 million, and the operating loss rose 2% Y/Y to $49 million, largely due to the September 2024 LNG business sale. Management Commentary Chief Executive Officer Eduardo Menezes said, "As we move through fiscal 2026, we remain focused on high-return industrial gas projects with strong customer relationships, disciplined capital allocation, operational excellence and productivity, and right-sizing the organization to fit our project needs." Outlook Air Products sees FY26 adjusted EPS guidance of $12.85–$13.15 (vs. consensus of $12.01). Air Products projects approximately $4 billion in capital expenditures for FY26. For the upcoming fiscal first quarter, Air Products expects adjusted EPS of $2.95–$3.10 (compared to the Street view of $3.08). APD Price Action: Air Products shares were up 6.08% at $252.01 at the time of publication on Thursday, according to Benzinga Pro data. Read Next: Hedge Fund Viking Global Dumps UnitedHealth, Loads Up On AMD, Disney, JPMorgan In Q2 Shake-Up Photo: Andy Borysowski/Shutterstock
