#United States #Q3 Results #Air Products #Lehigh Valley #EPS Growth

Air Products Reports Third Quarter Results for Fiscal Year 2025

On July 31, 2025, Air Products (NYSE: APD) announced its fiscal 2025 third quarter results, showcasing a robust financial performance despite facing challenges in demand and operational disruptions. The company reported a GAAP earnings per share (EPS) of $3.24, marking a 4% increase from the same period last year. The operating income for the quarter stood at $791 million, reflecting a 7% growth compared to the previous year.

Key Financial Highlights

In its quarterly report, Air Products emphasized several key financial metrics:

• - Sales: $3.0 billion, a modest increase of 1% from the previous year.
• - Operating Income: Reached $791 million, marking a 7% improvement year-over-year.
• - Adjusted EPS: Reported at $3.09, reflecting a slight decrease of 3% when compared with the same period in the previous year.

The company's financial results benefited significantly from pre-tax gains totaling $99 million ($0.34 per share) derived from the sale of a consolidated subsidiary and other assets. However, these gains were partially mitigated by shareholder activism-related expenses, which amounted to $25 million ($0.08 per share), alongside updated project exit costs contributing an additional $24 million charge ($0.07 per share).

Performance by Region

Air Products' sales performance varied across different geographical segments:

• - Americas: Sales were reported at $1.3 billion, a 2% increase from the previous year. However, operating income decreased by 4% to $374 million, driven by lower on-site volumes and helium market challenges.
• - Asia: This region saw a 3% increase in sales, totaling $810 million, benefiting from improved on-site volumes, which led to an 8% rise in operating income to $217 million.
• - Europe: Recorded sales of $771 million, an 11% increase primarily due to favorable currency rates and higher volumes. Operating income for the region increased by 10% to $225 million.
• - Middle East and India: The income from equity affiliates decreased by 4% to $86 million, reflective of challenges faced by a major affiliate in Saudi Arabia.

Looking Ahead

Air Products' forecast for the remainder of fiscal 2025 suggests optimism, with revised guidance indicating expected adjusted EPS between $11.90 to $12.10. Capital expenditures for the fiscal year are anticipated to reach approximately $5 billion.

President and CEO Eduardo Menezes commented on the company's performance, stating, "Our team delivered solid results this quarter, exceeding guidance and achieving higher comparable earnings. We remain focused on enhancing operational efficiencies while addressing market demands and shareholder expectations."

With a commitment to supporting energy transition and sustainability, Air Products continues to make significant strides in the industrial gases market. As a leader in providing hydrogen and clean energy solutions, the company is strategically positioned to navigate the evolving energy landscape.

Air Products’ ability to balance operational excellence with strategic investments will be crucial as it moves through the remainder of fiscal 2025 and beyond.

For more insights into Air Products' financial performance and future outlook, visit Air Products Investor Relations.