Radical investors pressure Air Products to nominate two independent directors.

Air Products is facing mounting pressure from hedge fund managers Mantle Ridge and D.E. Shaw, who have criticized the company’s poor stock performance, senior leadership, and capital allocation policies—and are urging a board overhaul, enhanced management vitality, and a renewed focus on core business operations. In October, activist investors Mantle Ridge and globally renowned hedge fund D.E. Shaw separately announced they had collectively acquired $1 billion worth of Air Products shares, calling for cost reductions, sharper focus on core businesses, and paving the way for new leadership. A shared objective of both activist investors is to push Air Products to establish a clear succession plan for its 80-year-old CEO, Seifi Ghasemi—one of the oldest CEOs among S&P 500 constituents. Earlier, Reuters cited informed sources reporting that Dennis Reilley and Eduardo Menezes—two former executives of Linde—would join Mantle Ridge’s campaign to restructure Air Products’ management and board. D.E. Shaw has targeted several of Air Products’ major transactions, noting the company has launched multi-billion-dollar hydrogen projects lacking “off-take agreements,” exposing them to significant risk. In another letter issued in September, D.E. Shaw stated that Air Products’ clean hydrogen strategy has eroded approximately $15 billion in equity value from its core industrial gases business. Anticipating governance reform, investment banks have upgraded Air Products’ stock ratings and price targets, viewing activist investors as potentially constructive forces in advocating corporate governance reform and strategic realignment. Mizuho Securities raised its target price to $360; Jefferies upgraded its rating to “Buy” with a $364 target price. Evercore ISI also upgraded its rating to “Outperform” and raised its target price to $365. BMO Capital maintained its “Outperform” rating with a $323 target price, while Citigroup lifted its target price to $345. In terms of share price performance, Air Products has underperformed the S&P 500 index for two consecutive years. However, its stock has recently surged following the entry of activist investors. As of Monday’s (November 18) close, Air Products rose 3.4% to $327.89, with a market capitalization of $72.8 billion. Year-to-date, the stock is up 20%, still trailing the S&P 500’s同期 gain of 23.5%. 2024 Fiscal Year Net Income Soars: $1.2 Billion Gain from Asset Sale Air Products recently released its Q4 and full-year fiscal 2024 results, showing substantial growth—primarily driven by an after-tax gain of $1.2 billion from the sale of its LNG business to Honeywell at the end of Q4. Under U.S. GAAP, Q4 earnings per share (EPS) were $8.81, up 186% year-on-year.

Air Products reports a $1.7 billion net loss for the second quarter of fiscal year 2025.

Air Products announced its second-quarter fiscal 2025 financial results, reporting a net loss of $1.7 billion—primarily attributable to the cancellation of three projects, resulting in total charges of $2.3 billion. The new CEO pledged to “return to fundamentals.” Under U.S. GAAP, Air Products reported a Q2 EPS loss of $7.77 and a net loss of $1.7 billion. By comparison, in fiscal 2024 Q2, EPS was $2.57 and net income totaled $581 million. The loss stemmed mainly from $2.3 billion in after-tax charges (or $10.28 per share) related to strategic business adjustments—including project cancellations—as well as other cost-cutting measures implemented during the quarter. On a non-GAAP basis, adjusted EPS stood at $2.69, down 6% year-on-year, due to lower volumes and higher costs. Price increases—primarily on non-helium products—partially offset these headwinds. Volume declines resulted from the September 2024 strategic divestiture of the LNG business and reduced global helium demand; however, on-site volume growth provided partial offset. Rising costs reflected the absence of favorable prior-year projects, inflation, and higher maintenance and depreciation expenses—partially mitigated by improved production efficiency across regions. Adjusted EBITDA totaled $1.2 billion, down 3%. Q2 sales amounted to $2.9 billion, flat year-on-year: a 4% increase from energy cost pass-through and a 1% pricing gain were offset by a 3% volume decline (mainly due to the LNG strategic divestiture) and a 2% foreign exchange impact. Q2 Business Segment Performance: Growth in Americas and Europe, Decline in Asia Americas segment sales totaled $1.3 billion, up 3% year-on-year. A 4% gain from energy cost pass-through and a 2% pricing increase were partially offset by a 2% volume decline and a 1% foreign exchange impact. Revenue was $366 million, down 2%; operating margin fell 150 basis points to 28.4%; adjusted EBITDA was $575 million, down 3%. Asia segment sales totaled $774 million, down 1% year-on-year: a 3% foreign exchange impact and 1% lower pricing were partially offset by a 2% gain from energy cost pass-through and a 1% volume increase. Operating income was $191 million, down 6%, driven by lower helium pricing, net energy and fuel costs, and foreign exchange impacts—partially offset by lower costs. Due to lower helium pricing, operating margin stood at 24.7%, down 140 basis points. Adjusted EBITDA rose 2% to $334 million. Europe segment sales totaled $727 million, up 9% year-on-year—driven by a 5% gain from energy cost pass-through, a 4% pricing increase, and a 2% volume gain—partially offset by a 2% foreign exchange impact.

Air Products Schedules November 5 Results; Stock Trades 9.42% Below High

4 days ago

Air Products & Chemicals Inc will report fiscal 2026 fourth-quarter results on November 5, 2026. Its stock currently trades 9.42% below its 52-week high after reporting USD 3.16 billion in revenue for the previous quarter.

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