Air Products’ Q3 FY2024 sales declined.

In the third quarter of fiscal year 2024 (ended June 30), Air Products reported sales of $3.0 billion, a 2% decline year-on-year. Under U.S. Generally Accepted Accounting Principles (GAAP), net income was $709 million, up 16% year-on-year, primarily driven by favorable pricing and business mix. GAAP net profit margin was 23.7%, an increase of 360 basis points year-on-year. For the quarter, non-GAAP adjusted earnings per share (EPS) were $3.20, up 7% year-on-year. Adjusted EBITDA was $1.3 billion, with an adjusted EBITDA margin of 42.4%, up 260 basis points year-on-year. Sales declined across all global regions in the third quarter. Sales in the Americas were $1.2 billion, down 2% year-on-year. Sales in Asia were $790 million, down 4% year-on-year. In Europe, sales declined 2% to $693 million.

Air Products posted a massive $1.7 billion loss in Q2 FY2025.

Air Products announced its second-quarter fiscal year 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 stated the company would “return to fundamentals.” Under U.S. GAAP, Air Products reported a loss per share of $7.77 and a net loss of $1.7 billion for the quarter. By comparison, in FY2024 Q2, the company reported earnings per share of $2.57 and net income of $581 million. The loss stemmed largely from after-tax charges of $2.3 billion (or $10.28 per share) related to strategic business adjustments—including project cancellations—and other cost-reduction measures implemented during the quarter. On a non-GAAP basis, adjusted EPS was $2.69, down 6% year-on-year, reflecting lower volumes and higher costs. Price increases—primarily on non-helium products—partially offset these headwinds. Volume declines resulted from the September 2024 divestiture of the company’s LNG strategic assets and reduced global helium demand; however, on-site volume growth provided partial offset. Higher costs reflected the absence of favorable projects from the prior year, inflation, and elevated maintenance and depreciation expenses—partially mitigated by improved operational efficiency across regions. Adjusted EBITDA was $1.2 billion, down 3%. Second-quarter sales totaled $2.9 billion, flat year-on-year: a 4% increase from energy cost pass-through and a 1% price increase were offset by a 3% volume decline (mainly due to the LNG strategic divestiture) and a 2% foreign exchange impact. Business segment performance in Q2: Growth in the Americas and Europe; decline in Asia. Sales in the Americas were $1.3 billion, up 3% year-on-year. A 4% increase from energy cost pass-through and a 2% price increase were partially offset by a 2% volume decline and a 1% foreign exchange impact. Revenue was $366 million, down 2%; operating margin was 28.4%, down 150 basis points; adjusted EBITDA was $575 million, down 3%. Sales in Asia were $774 million, down 1% year-on-year—impacted by a 3% foreign exchange headwind and 1% lower pricing, partially offset by a 2% increase from energy cost pass-through and a 1% volume gain. 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. Helium pricing pressure lowered the operating margin to 24.7%, down 140 basis points. Adjusted EBITDA was $334 million, up 2%. Sales in Europe were $727 million, up 9% year-on-year—driven by a 5% increase from energy cost pass-through, a 4% price increase, and 2% volume growth, partially offset by a 2% foreign exchange impact.

Will Air Products and Chemicals (APD) Beat Estimates Again in Its Next Earnings Report?

4 days ago

Air Products and Chemicals is expected to beat next earnings estimates, backed by a 4.10% average surprise over the last two quarters. Zacks Equity Research assigns a Rank #2 Buy rating due to positive earnings ESP.