Air Products Reports Fiscal 2025 Third Quarter Results
Air Products (NYSE:APD) reported its fiscal Q3 2025 results with GAAP EPS of $3.24, up 4%, and GAAP operating income of $791 million, up 7% year-over-year. Third quarter sales reached $3.0 billion, a 1% increase, driven by higher energy cost pass-through, pricing, and favorable currency, partially offset by lower volumes.
The company revised its fiscal 2025 full-year adjusted EPS guidance to $11.90-$12.10 and expects Q4 adjusted EPS of $3.27-$3.47. Capital expenditures are projected at $5 billion for fiscal 2025. The quarter included pre-tax gains of $99 million from asset sales, offset by shareholder activism costs and project exit charges.
Performance varied across segments, with Americas sales up 2%, Asia sales increasing 3%, and Europe showing strong growth of 11%. The Middle East and India equity affiliates' income decreased 4%.
Air Products (NYSE:APD) ha comunicato i risultati del terzo trimestre fiscale 2025 con un utile per azione GAAP di 3,24 dollari, in crescita del 4%, e un reddito operativo GAAP di 791 milioni di dollari, in aumento del 7% rispetto all'anno precedente. Le vendite del terzo trimestre hanno raggiunto 3,0 miliardi di dollari, con un incremento dell'1%, trainate da un maggior trasferimento dei costi energetici, aumenti di prezzo e un cambio favorevole, parzialmente compensati da volumi inferiori.
L'azienda ha rivisto le previsioni per l'intero anno fiscale 2025, indicando un utile per azione rettificato compreso tra 11,90 e 12,10 dollari e prevede un utile per azione rettificato nel quarto trimestre tra 3,27 e 3,47 dollari. Le spese in conto capitale sono stimate a 5 miliardi di dollari per l'anno fiscale 2025. Il trimestre ha incluso plusvalenze ante imposte di 99 milioni di dollari derivanti dalla vendita di asset, compensate da costi legati ad azioni di attivismo azionario e oneri per l'uscita da progetti.
Le performance sono state diverse tra i segmenti: le vendite nelle Americhe sono aumentate del 2%, in Asia del 3%, mentre l'Europa ha mostrato una forte crescita dell'11%. I ricavi delle affiliate in Medio Oriente e India sono diminuiti del 4%.
Air Products (NYSE:APD) reportó sus resultados del tercer trimestre fiscal 2025 con un EPS GAAP de $3.24, un aumento del 4%, y un ingreso operativo GAAP de $791 millones, un 7% más año tras año. Las ventas del tercer trimestre alcanzaron los $3.0 mil millones, un incremento del 1%, impulsado por un mayor traslado de costos energéticos, precios y un tipo de cambio favorable, parcialmente compensado por menores volúmenes.
La compañía revisó su guía de EPS ajustado para todo el año fiscal 2025 a $11.90-$12.10 y espera un EPS ajustado para el cuarto trimestre de $3.27-$3.47. Se proyectan gastos de capital de $5 mil millones para el año fiscal 2025. El trimestre incluyó ganancias antes de impuestos de $99 millones por ventas de activos, compensadas por costos relacionados con activismo accionarial y cargos por salida de proyectos.
El desempeño varió entre segmentos, con ventas en América aumentando un 2%, en Asia un 3%, y Europa mostrando un fuerte crecimiento del 11%. Los ingresos de las afiliadas en Medio Oriente e India disminuyeron un 4%.
Air Products (NYSE:APD)는 2025 회계연도 3분기 실적을 발표하며 GAAP 주당순이익(EPS) 3.24달러로 4% 증가했고, GAAP 영업이익 7억 9,100만 달러로 전년 대비 7% 상승했습니다. 3분기 매출은 30억 달러에 달해 1% 증가했으며, 이는 에너지 비용 전가, 가격 인상, 유리한 환율 효과에 힘입었으나 판매량 감소로 일부 상쇄되었습니다.
회사는 2025 회계연도 전체 조정 EPS 가이던스를 11.90~12.10달러로 상향 조정했으며, 4분기 조정 EPS는 3.27~3.47달러를 예상합니다. 자본 지출은 2025 회계연도에 50억 달러로 예상됩니다. 이번 분기에는 자산 매각으로 인한 세전 이익 9,900만 달러가 포함되었으나, 주주 행동주의 비용과 프로젝트 종료 비용으로 일부 상쇄되었습니다.
지역별 성과는 차이를 보였으며, 미주 매출은 2% 증가, 아시아 매출은 3% 증가, 유럽은 11%의 강한 성장세를 나타냈습니다. 중동 및 인도 지분 계열사의 수익은 4% 감소했습니다.
Air Products (NYSE:APD) a publié ses résultats du troisième trimestre fiscal 2025 avec un BPA GAAP de 3,24 $, en hausse de 4 %, et un résultat opérationnel GAAP de 791 millions de dollars, en progression de 7 % sur un an. Les ventes du troisième trimestre ont atteint 3,0 milliards de dollars, soit une augmentation de 1 %, portée par une meilleure répercussion des coûts énergétiques, des hausses de prix et un effet de change favorable, partiellement compensés par des volumes plus faibles.
La société a révisé ses prévisions de BPA ajusté pour l'exercice 2025 à entre 11,90 $ et 12,10 $ et prévoit un BPA ajusté pour le quatrième trimestre entre 3,27 $ et 3,47 $. Les dépenses d'investissement sont estimées à 5 milliards de dollars pour l'exercice 2025. Le trimestre a inclus des gains avant impôts de 99 millions de dollars provenant de la vente d'actifs, compensés par des coûts liés à l'activisme actionnarial et des charges de sortie de projets.
La performance a varié selon les segments, avec une hausse des ventes de 2 % en Amériques, de 3 % en Asie, et une forte croissance de 11 % en Europe. Les revenus des filiales au Moyen-Orient et en Inde ont diminué de 4 %.
Air Products (NYSE:APD) meldete seine Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit einem GAAP-Gewinn je Aktie von 3,24 USD, ein Anstieg um 4 %, und einem GAAP-Betriebsergebnis von 791 Millionen USD, ein Plus von 7 % im Jahresvergleich. Der Umsatz im dritten Quartal erreichte 3,0 Milliarden USD, ein Anstieg um 1 %, getrieben durch höhere Energiekostenweitergabe, Preiserhöhungen und günstige Währungseffekte, teilweise ausgeglichen durch geringere Absatzmengen.
Das Unternehmen hat seine Prognose für das bereinigte Ergebnis je Aktie im Geschäftsjahr 2025 auf 11,90 bis 12,10 USD angehoben und erwartet für das vierte Quartal ein bereinigtes Ergebnis je Aktie von 3,27 bis 3,47 USD. Die Investitionsausgaben werden für das Geschäftsjahr 2025 auf 5 Milliarden USD geschätzt. Das Quartal beinhaltete vorsteuerliche Gewinne von 99 Millionen USD aus dem Verkauf von Vermögenswerten, die durch Kosten für Aktionärsaktivismus und Projektbeendigungen ausgeglichen wurden.
Die Leistung variierte je nach Segment: Die Umsätze in Amerika stiegen um 2 %, in Asien um 3 %, und Europa verzeichnete ein starkes Wachstum von 11 %. Die Erträge der Beteiligungen im Nahen Osten und Indien gingen um 4 % zurück.
- GAAP EPS increased 4% to $3.24
- GAAP operating income grew 7% to $791 million
- Europe segment showed strong performance with 11% sales growth
- Pre-tax gains of $99 million from asset sales
- Higher pricing and favorable currency impacts across regions
- Lower volumes across regions, primarily due to LNG sale and reduced helium demand
- Middle East and India equity affiliates' income declined 4%
- Americas operating margin decreased 200 basis points
- $25 million in shareholder activism-related costs
- Downward revision of full-year adjusted EPS guidance
Insights
Air Products delivered mixed Q3 results with GAAP EPS up 4%, adjusted EPS down 3%, maintained operational focus despite headwinds.
Air Products' Q3 results show a complex performance picture beneath the headline numbers. While GAAP EPS increased 4% to
Revenue grew marginally at
Geographically, performance varied significantly. The Americas segment faced headwinds with operating income declining
Management's revised full-year guidance to
What's particularly noteworthy is management's strategic pivot toward cost productivity, pricing optimization, and capital discipline - defensive measures typically employed when facing volume growth challenges. The
Air Products' Q3 shows strategic transition: divesting non-core assets while maintaining capex, pursuing operational efficiency amid volume challenges.
Air Products' third quarter results reveal a company in strategic transition, balancing portfolio optimization with operational efficiency initiatives. The sale of the LNG business in September 2024 and the current quarter's
The
Despite volume challenges across regions (especially in helium), the company maintains its substantial
Segment performance reveals differentiated strategic approaches by region. The Americas segment faces structural challenges requiring significant operational adjustments. Asia shows the benefits of productivity improvements and cost control, while Europe demonstrates pricing power in a recovering economic environment.
The previously announced project exits and updated cost estimates (
Q3 FY25 Summary of Results (comparisons versus prior year):
- GAAP earnings per share ("EPS")# of
$3.24 $791 million - Adjusted EPS* of
$3.09 $741 million
Guidance
- Revising fiscal 2025 full-year adjusted EPS guidance* to
$11.90 $12.10 $3.27 $3.47 - Expect fiscal year 2025 capital expenditures* of approximately
$5 billion
#Per share amounts are calculated and presented on a diluted basis from continuing operations attributable to Air Products.
*Certain results in this release, including in the highlights above, include references to non-GAAP financial measures on a consolidated, continuing operations basis and a segment basis. Additional information regarding these measures and reconciliations of GAAP to non-GAAP historical results can be found below. In addition, as discussed below, it is not possible, without unreasonable efforts, to identify the timing or occurrence of future events, transactions, and/or investment activity that could have a significant effect on the Company's future GAAP EPS or cash flow used for investing activities if any of these events were to occur.
Fiscal 2025 Third Quarter Consolidated Results
Air Products' third quarter GAAP results for the periods presented in this release include items that are adjusted in the non-GAAP financial measures discussed below. These items are described in the "Reconciliations of Non-GAAP Financial Measures" section beginning on page 9.
Third quarter sales of
For the quarter, on a non-GAAP basis, adjusted operating income of
Chief Executive Officer Eduardo Menezes said, "The Air Products team delivered solid results this quarter that exceeded guidance and were higher than last year on a comparable basis, excluding the impact of the LNG sale. We are staying focused on our cost productivity efforts, pricing, operational excellence and capital discipline."
Fiscal 2025 Third Quarter Results by Business Segment
Americas sales of$1.3 billion $374 million Asia sales of$810 million $217 million Europe sales of$771 million 11% from the prior year on five percent favorable currency, three percent higher volumes, two percent higher pricing, and one percent higher energy cost pass-through. The higher volumes were driven by on-sites, partially offset by lower helium demand. Operating income of$225 million 10% from the prior year, primarily on higher non-helium merchant pricing, net of power and fuel costs, and favorable currency. Operating margin of 29.2 percent decreased 30 basis points from the prior year.Middle East andIndia equity affiliates' income of$86 million Saudi Arabia .- Corporate and other sales of
$143 million 39% and operating loss of$83 million 46% compared to the prior year, primarily due to the September 2024 LNG sale. This headwind was partially offset by lower costs related to sale of equipment and productivity improvements.
Outlook
Air Products has provided revised full-year fiscal 2025 adjusted EPS guidance* in the range of
Air Products expects capital expenditures* of approximately
*Management is unable to reconcile, without unreasonable efforts, the Company's forecasted range of adjusted EPS or capital expenditures to a comparable GAAP range. Air Products provides adjusted EPS guidance on a continuing operations basis, excluding the impact of certain items that management believes are not representative of the Company's underlying business performance, such as those described in the "Reconciliations of Non-GAAP Financial Measures" section beginning on page 9 of this release. It is not possible, without unreasonable efforts, to predict the timing or occurrence of these events or the potential for other transactions that may impact future GAAP EPS. Similarly, it is not possible, without unreasonable efforts, to reconcile forecasted capital expenditures to future cash used for investing activities because management is not able to identify the timing or occurrence of future investment activity, which is driven by management's assessment of competing opportunities at the time the Company enters into transactions. Furthermore, it is not possible to identify the potential significance of these events in advance, but any of these events, if they were to occur, could have a significant effect on the Company's future GAAP results. |
Earnings Teleconference
Access the fiscal 2025 third quarter earnings teleconference scheduled for 8:00 a.m. Eastern Time on July 31, 2025 by calling 720-543-0220 and entering passcode 3763258 or by accessing the Event Details page on Air Products' Investor Relations website.
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global supplier of hydrogen, Air Products also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects, supporting the transition to low- and zero-carbon energy in the industrial and heavy-duty transportation sectors. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally.
Air Products had fiscal 2024 sales of
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings and capital expenditure guidance, business outlook and investment opportunities. Forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including, without limitation: changes in global or regional economic conditions, inflation, and supply and demand dynamics in the market segments we serve, including demand for technologies and projects to limit the impact of global climate change; changes in the financial markets that may affect the availability and terms on which we may obtain financing; the ability to execute agreements with customers and implement price increases to offset cost increases; disruptions to our supply chain and related distribution delays and cost increases; risks associated with having extensive international operations, including political risks, risks associated with unanticipated government actions and risks of investing in developing markets; project delays, scope changes, cost escalations, contract terminations, customer cancellations, or postponement of projects and sales; our ability to safely develop, operate, and manage costs of large-scale and technically complex projects; the future financial and operating performance of major customers, joint ventures, and equity affiliates; our ability to safely and effectively develop, implement, and operate new technologies and to market products produced utilizing new technologies; our ability to execute the projects in our backlog and refresh our pipeline of new projects; tariffs, economic sanctions and regulatory activities in jurisdictions in which we and our affiliates and joint ventures operate; the impact of environmental, tax, safety, or other legislation, as well as regulations and other public policy initiatives affecting our business and the business of our affiliates and related compliance requirements, including legislation, regulations, or policies intended to address global climate change; changes in tax rates and other changes in tax law; safety incidents relating to our operations; the timing, impact, and other uncertainties relating to acquisitions, divestitures, and joint venture activities, as well as our ability to integrate acquisitions and separate divested businesses, respectively; risks relating to cybersecurity incidents, including risks from the interruption, failure or compromise of our information systems or those of our business partners or service providers; catastrophic events, such as natural disasters and extreme weather events, pandemics and other public health crises, acts of war, including
Air Products and Chemicals, Inc. and Subsidiaries | |||||
Three Months Ended | Nine Months Ended | ||||
30 June | 30 June | ||||
(Millions of | 2025 | 2024 | 2025 | 2024 | |
Sales | |||||
Cost of sales | 2,040.1 | 2,005.6 | 6,110.5 | 6,064.3 | |
Selling and administrative expense | 222.6 | 235.4 | 687.0 | 714.4 | |
Research and development expense | 24.1 | 27.0 | 69.0 | 78.1 | |
Business and asset actions | 24.1 | — | 2,952.0 | 57.0 | |
Shareholder activism-related costs | 25.0 | — | 86.3 | — | |
Gain on sale of business | 67.3 | — | 67.3 | — | |
Other income (expense), net | 36.5 | 20.1 | 73.3 | 42.4 | |
Operating Income (Loss) | 790.6 | 737.6 | (893.8) | 2,041.7 | |
Equity affiliates' income | 167.6 | 168.9 | 463.7 | 470.6 | |
Interest expense | 61.4 | 55.7 | 146.2 | 169.1 | |
Other non-operating income (expense), net | (6.0) | (1.3) | 14.3 | (25.3) | |
Income (Loss) From Continuing Operations Before Taxes | 890.8 | 849.5 | (562.0) | 2,317.9 | |
Income tax expense (benefit) | 159.6 | 140.6 | (205.5) | 406.5 | |
Income (Loss) From Continuing Operations | 731.2 | 708.9 | (356.5) | 1,911.4 | |
Loss from discontinued operations, net of tax | (8.0) | — | (8.0) | — | |
Net Income (Loss) | 723.2 | 708.9 | (364.5) | 1,911.4 | |
Net income attributable to noncontrolling interests | 9.4 | 12.3 | 34.9 | 33.1 | |
Net Income (Loss) Attributable to Air Products | ( | ||||
Net Income (Loss) Attributable to Air Products | |||||
Net income (loss) from continuing operations | ( | ||||
Net loss from discontinued operations | (8.0) | — | (8.0) | — | |
Net Income (Loss) Attributable to Air Products | ( | ||||
Per Share Data(A) ( | |||||
Basic earnings (loss) per share from continuing operations | ( | ||||
Basic loss per share from discontinued operations | (0.04) | — | (0.04) | — | |
Basic Earnings (Loss) Per Share Attributable to Air Products | ( | ||||
Diluted earnings (loss) per share from continuing operations | ( | ||||
Diluted loss per share from discontinued operations | (0.04) | — | (0.04) | — | |
Diluted Earnings (Loss) Per Share Attributable to Air Products | ( | ||||
Weighted Average Common Shares (in millions) | |||||
Basic | 222.8 | 222.5 | 222.7 | 222.5 | |
Diluted | 222.9 | 222.8 | 222.7 | 222.8 | |
(A) Earnings (loss) per share is calculated independently for each component and may not sum to total earnings (loss) per share due to rounding. |
Air Products and Chemicals, Inc. and Subsidiaries | |||
30 June | 30 September | ||
(Millions of | 2025 | 2024 | |
Assets | |||
Current Assets | |||
Cash and cash items | |||
Short-term investments | — | 5.0 | |
Trade receivables, net | 1,943.5 | 1,821.6 | |
Inventories | 797.7 | 766.0 | |
Prepaid expenses | 234.0 | 179.9 | |
Other receivables and current assets | 848.1 | 610.8 | |
Total Current Assets | |||
Investment in net assets of and advances to equity affiliates | 5,227.8 | 4,792.5 | |
Plant and equipment, at cost | 42,985.2 | 39,950.9 | |
Less: accumulated depreciation | 17,345.2 | 16,580.0 | |
Plant and equipment, net | |||
Goodwill, net | 969.7 | 905.1 | |
Intangible assets, net | 302.4 | 311.6 | |
Operating lease right-of-use assets, net | 976.9 | 1,047.7 | |
Noncurrent lease receivables | 318.2 | 392.1 | |
Financing receivables | 983.3 | 1,220.2 | |
Other noncurrent assets | 1,093.2 | 1,171.5 | |
Total Noncurrent Assets | |||
Total Assets | |||
Liabilities and Equity | |||
Current Liabilities | |||
Payables and accrued liabilities | |||
Accrued income taxes | 156.3 | 558.5 | |
Short-term borrowings | 536.2 | 83.5 | |
Current portion of long-term debt | 699.0 | 611.4 | |
Total Current Liabilities | |||
Long-term debt | 16,411.7 | 13,428.6 | |
Long-term debt – related party | 47.5 | 104.4 | |
Noncurrent operating lease liabilities | 646.6 | 677.9 | |
Other noncurrent liabilities | 1,351.8 | 1,350.5 | |
Deferred income taxes | 673.9 | 1,159.9 | |
Total Noncurrent Liabilities | |||
Total Liabilities | |||
Air Products Shareholders' Equity | 15,537.5 | 17,036.5 | |
Noncontrolling Interests | 2,230.5 | 1,637.2 | |
Total Equity | |||
Total Liabilities and Equity | |||
Air Products and Chemicals, Inc. and Subsidiaries | ||
Nine Months Ended | ||
30 June | ||
(Millions of | 2025 | 2024 |
Operating Activities | ||
Net income (loss) | ( | |
Less: Net income attributable to noncontrolling interests of continuing operations | 34.9 | 33.1 |
Net income (loss) attributable to Air Products | ( | |
Net loss from discontinued operations | 8.0 | — |
Income (loss) from continuing operations attributable to Air Products | (391.4) | 1,878.3 |
Adjustments to reconcile income to cash provided by operating activities: | ||
Depreciation and amortization | ||
Deferred income taxes | (497.2) | (74.3) |
Tax reform repatriation | (34.9) | — |
Gain on sale of business | (67.3) | — |
Business and asset actions | 2,952.0 | 57.0 |
Undistributed earnings of equity method investments | (137.8) | (124.1) |
Gain on sale of assets and investments | (46.9) | (23.3) |
Share-based compensation | 65.7 | 46.2 |
Noncurrent lease receivables | 40.1 | 59.2 |
Other adjustments | 31.4 | 36.4 |
Working capital changes that provided (used) cash, excluding effects of acquisitions: | ||
Trade receivables | (91.4) | (10.4) |
Inventories | (35.6) | (111.0) |
Other receivables | (102.8) | 82.4 |
Payables and accrued liabilities | (215.1) | (175.1) |
Other working capital | (624.6) | (21.9) |
Cash Provided by Operating Activities | ||
Investing Activities | ||
Additions to plant and equipment, including long-term deposits | ( | ( |
Acquisitions, less cash acquired | (59.9) | — |
Investment in and advances to unconsolidated affiliates | (365.4) | — |
Investment in financing receivables | (53.8) | (396.2) |
Proceeds from sale of assets and investments | 185.4 | 26.3 |
Purchases of short-term investments | (117.6) | (141.4) |
Proceeds from short-term investments | 122.5 | 413.1 |
Other investing activities | 112.7 | 45.9 |
Cash Used for Investing Activities | ( | ( |
Financing Activities | ||
Long-term debt proceeds | ||
Payments on long-term debt | (380.1) | (76.7) |
Net increase (decrease) in commercial paper and short-term borrowings | 214.7 | (183.3) |
Dividends paid to shareholders | (1,185.7) | (1,171.4) |
Proceeds from stock option exercises | 1.1 | 6.2 |
Investments by noncontrolling interests | 485.9 | 278.7 |
Other financing activities | (79.8) | (125.7) |
Cash Provided by Financing Activities | ||
Effect of Exchange Rate Changes on Cash | (4.3) | (4.9) |
(Decrease) Increase in cash and cash items | ( | |
Cash and cash items – Beginning of year | 2,979.7 | 1,617.0 |
Cash and Cash Items – End of Period | ||
Supplemental Cash Flow Information | ||
Cash paid for taxes, net of refunds | ||
Air Products and Chemicals, Inc. and Subsidiaries | |||||||
(Millions of | and | Corporate and other | Total | ||||
Three Months Ended 30 June 2025 | |||||||
Sales | |||||||
Operating income (loss) | 374.1 | 216.8 | 225.2 | 8.1 | (83.1) | 741.1 | (A) |
Depreciation and amortization | 192.4 | 126.7 | 64.9 | 6.8 | 10.2 | 401.0 | |
Equity affiliates' income | 37.8 | 9.5 | 29.7 | 86.0 | 4.6 | 167.6 | (A) |
Three Months Ended 30 June 2024 | |||||||
Sales | |||||||
Operating income (loss) | 391.1 | 200.1 | 204.7 | (1.4) | (56.9) | 737.6 | (A) |
Depreciation and amortization | 175.6 | 115.5 | 52.2 | 6.8 | 10.2 | 360.3 | |
Equity affiliates' income | 37.5 | 8.7 | 26.3 | 89.2 | 7.2 | 168.9 | (A) |
Nine Months Ended 30 June 2025 | |||||||
Sales | |||||||
Operating income (loss) | 1,128.0 | 624.6 | 607.2 | 4.6 | (318.5) | 2,045.9 | (A) |
Depreciation and amortization | 544.2 | 381.4 | 176.2 | 19.7 | 29.9 | 1,151.4 | |
Equity affiliates' income | 104.1 | 30.3 | 75.6 | 249.2 | 11.3 | 470.5 | (A) |
Nine Months Ended 30 June 2024 | |||||||
Sales | |||||||
Operating income (loss) | 1,117.4 | 614.9 | 603.3 | 8.1 | (245.0) | 2,098.7 | (A) |
Depreciation and amortization | 519.4 | 343.7 | 151.2 | 20.1 | 35.9 | 1,070.3 | |
Equity affiliates' income | 118.8 | 21.2 | 58.7 | 256.0 | 15.9 | 470.6 | (A) |
Total Assets | |||||||
30 June 2025 | |||||||
30 September 2024 | 12,383.8 | 7,436.5 | 5,849.2 | 8,477.4 | 5,427.7 | 39,574.6 | |
(A) | Refer to the "Reconciliation to Consolidated Results" section on page 8. |
Reconciliation to Consolidated Results
The table below reconciles total operating income disclosed in the table above to consolidated operating income (loss) as reflected on our consolidated income statements:
Three Months Ended | Nine Months Ended | ||||
30 June | 30 June | ||||
Operating Income (Loss) | 2025 | 2024 | 2025 | 2024 | |
Total | |||||
Business and asset actions | (24.1) | — | (2,952.0) | (57.0) | |
Shareholder activism-related costs | (25.0) | — | (86.3) | — | |
Gain on sale of business | 67.3 | — | 67.3 | — | |
Gain on sale of other assets(A) | 31.3 | — | 31.3 | — | |
Consolidated Operating Income (Loss) | ( | ||||
(A) | Reflected on the consolidated income statements within "Other income (expense), net." |
The table below reconciles total equity affiliates' income disclosed in the table above to consolidated equity affiliates' income as reflected on our consolidated income statements: | ||||
Three Months Ended | Nine Months Ended | |||
30 June | 30 June | |||
Equity Affiliates' Income | 2025 | 2024 | 2025 | 2024 |
Total | ||||
Equity method investment impairment associated with business and asset actions | — | — | (6.8) | — |
Consolidated Equity Affiliates' Income | ||||
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(Millions of
We present certain financial measures, other than in accordance with
We provide these non-GAAP financial measures to allow investors, potential investors, securities analysts, and others to evaluate the performance of our business in the same manner as our management. We believe these measures, when viewed together with financial results computed in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our historical financial performance and projected future results. However, we caution readers not to consider these measures in isolation or as a substitute for the most directly comparable measures calculated in accordance with GAAP. Readers should also consider the limitations associated with these non-GAAP financial measures, including the potential lack of comparability of these measures from one company to another.
NON-GAAP ADJUSTMENTS
In many cases, non-GAAP financial measures are determined by adjusting the most directly comparable GAAP measure to exclude gains or losses that we believe are not representative of our underlying business performance. For example, we exclude the impact of the non-service components of net periodic benefit/cost for our defined benefit pension plans. Non-service related components are recurring, non-operating items that include interest cost, expected returns on plan assets, prior service cost amortization, actuarial loss amortization, as well as special termination benefits, curtailments, and settlements. The net impact of non-service related components is reflected within "Other non-operating income (expense), net" on our consolidated income statements. Adjusting for the impact of non-service pension components provides management and users of our financial statements with a more accurate representation of our underlying business performance because these components are driven by factors that are unrelated to our operations, such as volatility in equity and debt markets. Further, non-service related components are not indicative of our defined benefit plans' future contribution needs due to the funded status of the plans. Additionally, as further discussed below, our adjustments in this release include other gains and losses that are not associated with the ongoing operation of our business. These items are oftentimes difficult to predict; however, the reader should be aware that we may recognize similar gains or losses in the future.
When applicable, the tax impact of our pre-tax non-GAAP adjustments reflects the expected current and deferred income tax impact of our non-GAAP adjustments. These tax impacts are primarily driven by the statutory tax rate of the various relevant jurisdictions and the taxability of the adjustments in those jurisdictions.
Business and Asset Actions
During the second quarter of fiscal year 2025, our Board of Directors and Chief Executive Officer initiated a project review in an effort to streamline our backlog and allow us to focus resources on projects that we believe will enhance value for our shareholders. In connection with this review, we decided to exit various projects related to clean energy generation and distribution. At the time of the announcement, we recorded an initial pre-tax charge of approximately
During the third quarter, we recognized an additional net charge of
The charges we record for business and asset actions are not allocated to our reportable segments.
Shareholder Activism-Related Costs
In fiscal year 2025, we recorded total costs of
Gain on Sale of Business
In April 2025, we completed the sale of our
Gain on Sale of Other Assets
In June 2025, we sold a regional office in Hersham,
De-designation of Cash Flow Hedges
During the third quarter of fiscal year 2024, we discontinued cash flow hedge accounting for certain interest rate swaps designed to hedge long-term variable rate debt facilities during the construction period of the NEOM Green Hydrogen Project. These swaps are held by NEOM Green Hydrogen Company, a consolidated joint venture accounted for under the variable interest model, of which Air Products owns a one-third interest. We expect the affected swaps to remain de-designated until outstanding borrowings from the available project financing are commensurate with the notional value of the instruments, at which time these instruments may re-qualify for cash flow hedge accounting. As a result of the de-designation, unrealized gains and losses are recorded to "Other non-operating income (expense), net". Gains and losses recorded during the third quarter of fiscal years 2025 and 2024 are summarized in the table below:
Other non-operating income (expense), net | Gain (loss) attributable to noncontrolling partners | Gain (loss) attributable to Air Products after tax | Earnings (loss) per share attributable to Air Products | |
Three months ended 30 June 2025 | ( | (0.1) | (0.1) | $— |
Three months ended 30 June 2024 | 7.3 | 3.0 |
We expect to recognize changes to the fair value of the impacted instruments through earnings in future periods until they re-qualify for cash flow hedge accounting. It is not possible to predict the significance of adjustments in future periods given potential interest rate volatility.
Non-Service Related Pension Items
As discussed above, we exclude the impact of the non-service components of our defined benefit pension plans because they are driven by factors that are unrelated to our operations, such as volatility in equity and debt markets. Non-service related pension items resulted in net non-operating costs of
Discontinued Operations
Our non-GAAP financial measures are presented on a continuing operations basis, which excludes a pre-tax loss from discontinued operations of
ADJUSTED OPERATING INCOME AND ADJUSTED EPS
In addition to adjusted EPS, adjusted operating income is an important measure to evaluate our business performance following the appointment of our new Chief Executive Officer in February 2025. The table below provides a reconciliation to the most directly comparable GAAP measure for adjusted operating income, as well as for each of the major components used to calculate adjusted EPS. In periods that we have non-GAAP adjustments, we believe it is important for readers to understand the impact of each such adjustment because management does not consider these impacts when evaluating underlying business performance. Per share impacts are calculated independently and may not sum to total GAAP EPS and total adjusted EPS due to rounding.
Three Months Ended 30 June | |||||||
Q3 2025 vs. Q3 2024 | Operating Income/Loss | Equity | Other Non-Operating Inc/Exp, Net | Income Tax Benefit/Expense | Net Income/Loss Attributable to Air Products | Earnings/Loss per Share(A) | |
Q3 2025 GAAP | ( | ||||||
Q3 2024 GAAP | 737.6 | 168.9 | (1.3) | 140.6 | 696.6 | 3.13 | |
$ GAAP Change | |||||||
% GAAP Change | 7 % | 4 % | |||||
Q3 2025 GAAP | ( | ||||||
Business and asset actions | 24.1 | — | — | 8.7 | 15.4 | 0.07 | |
Shareholder activism-related costs | 25.0 | — | — | 6.2 | 18.8 | 0.08 | |
Gain on sale of business | (67.3) | — | — | (15.4) | (51.9) | (0.23) | |
Gain on sale of other assets(B) | (31.3) | — | — | (7.5) | (23.8) | (0.11) | |
Loss on de-designation of cash flow hedges(C) | — | — | 0.3 | 0.1 | 0.1 | — | |
Non-service pension cost, net | — | — | 10.9 | 2.8 | 8.1 | 0.04 | |
Q3 2025 Adjusted Measures | |||||||
Q3 2024 GAAP | ( | ||||||
Gain on de-designation of cash flow hedges(C) | — | — | (11.2) | (0.9) | (3.0) | (0.01) | |
Non-service pension cost, net | — | — | 25.3 | 6.2 | 19.1 | 0.09 | |
Q3 2024 Adjusted Measures | |||||||
$ Adjusted Change | ( | ||||||
% Adjusted Change | — % | (3 %) | |||||
(A) | Calculated and presented on a diluted basis from continuing operations attributable to Air Products. |
(B) | Reflected on the consolidated income statements within "Other income (expense), net." |
(C) | The loss (gain) attributable to noncontrolling interests was |
ADJUSTED EBITDA
We define adjusted EBITDA as net income or loss less income or loss from discontinued operations, net of tax, and excluding non-GAAP adjustments, which we do not believe to be indicative of underlying business trends, before interest expense, other non-operating income (expense), net, income tax expense (benefit), and depreciation and amortization expense. Adjusted EBITDA provides a useful metric for management to assess operating performance on both a consolidated and a segment basis.
The tables below present a reconciliation of consolidated net income on a GAAP basis to consolidated adjusted EBITDA:
2025 | Q1 | Q2 | Q3 | Q4 | Q3 YTD Total | |||||
Net income (loss) | ( | ( | ||||||||
Less: Loss from discontinued operations, net of tax | — | — | (8.0) | (8.0) | ||||||
Add: Interest expense | 42.6 | 42.2 | 61.4 | 146.2 | ||||||
Less: Other non-operating income (expense), net | 38.9 | (18.6) | (6.0) | 14.3 | ||||||
Add: Income tax expense (benefit) | 140.7 | (505.8) | 159.6 | (205.5) | ||||||
Add: Depreciation and amortization | 366.8 | 383.6 | 401.0 | 1,151.4 | ||||||
Add: Business and asset actions | — | 2,927.9 | 24.1 | 2,952.0 | ||||||
Add: Shareholder activism-related costs | 29.9 | 31.4 | 25.0 | 86.3 | ||||||
Less: Gain on sale of business | — | — | 67.3 | 67.3 | ||||||
Less: Gain on sale of other assets | — | — | 31.3 | 31.3 | ||||||
Add: Equity method investment impairment associated with business and asset actions | — | 6.8 | — | 6.8 | ||||||
Adjusted EBITDA | ||||||||||
2024 | Q1 | Q2 | Q3 | Q4 | Q3 YTD Total | |||||
Net income | ||||||||||
Less: Loss from discontinued operations, net of tax | — | — | — | (13.9) | — | |||||
Add: Interest expense | 53.5 | 59.9 | 55.7 | 49.7 | 169.1 | |||||
Less: Other non-operating income (expense), net | (14.8) | (9.2) | (1.3) | (48.5) | (25.3) | |||||
Add: Income tax expense | 135.4 | 130.5 | 140.6 | 538.4 | 406.5 | |||||
Add: Depreciation and amortization | 349.2 | 360.8 | 360.3 | 380.8 | 1,070.3 | |||||
Less: Gain on sale of business | — | — | — | 1,575.6 | — | |||||
Add: Business and asset actions | — | 57.0 | — | — | 57.0 | |||||
Adjusted EBITDA | ||||||||||
2025 vs. 2024 | Q1 | Q2 | Q3 | Q3 YTD Total | ||||||
Change GAAP | ||||||||||
Net income (loss) $ change | ( | ( | ||||||||
Net income (loss) % change | 5 % | ** | 2 % | ** | ||||||
Change Non-GAAP | ||||||||||
Adjusted EBITDA $ change | ( | |||||||||
Adjusted EBITDA % change | 1 % | (3 %) | 3 % | 1 % |
** | Change versus prior period is not meaningful due to pre-tax charges for business and asset actions of |
The tables below present a reconciliation of operating income to adjusted EBITDA for the Company's three largest regional segments for the three months ended 30 June 2025 and 2024:
Q3 FY25 | Q3 FY24 | $ Change | % Change | ||
Operating income | ( | (4 %) | |||
Add: Depreciation and amortization | 192.4 | 175.6 | |||
Add: Equity affiliates' income | 37.8 | 37.5 | |||
Adjusted EBITDA | — % | ||||
Q3 FY25 | Q3 FY24 | $ Change | % Change | ||
Operating income | 8 % | ||||
Add: Depreciation and amortization | 126.7 | 115.5 | |||
Add: Equity affiliates' income | 9.5 | 8.7 | |||
Adjusted EBITDA | 9 % | ||||
Q3 FY25 | Q3 FY24 | $ Change | % Change | ||
Operating income | 10 % | ||||
Add: Depreciation and amortization | 64.9 | 52.2 | |||
Add: Equity affiliates' income | 29.7 | 26.3 | |||
Adjusted EBITDA | 13 % |
CAPITAL EXPENDITURES
Capital expenditures is a non-GAAP financial measure that we define as the sum of cash flows for additions to plant and equipment, including long-term deposits, acquisitions (less cash acquired), investment in and advances to unconsolidated affiliates, and investment in financing receivables on our consolidated statements of cash flows. Additionally, we adjust additions to plant and equipment to exclude NEOM Green Hydrogen Company ("NGHC") expenditures funded by the joint venture's project financing, which is non-recourse to Air Products, as well as our partners' equity contributions to arrive at a measure that we believe is more representative of our investment activities. Substantially all the funding we provide to NGHC is limited for use by the venture for its capital expenditures.
A reconciliation of cash used for investing activities to our reported capital expenditures is provided below:
Nine Months Ended | ||
30 June | ||
2025 | 2024 | |
Cash used for investing activities | ||
Proceeds from sale of assets and investments | 185.4 | 26.3 |
Purchases of short-term investments | (117.6) | (141.4) |
Proceeds from short-term investments | 122.5 | 413.1 |
Other investing activities | 112.7 | 45.9 |
NGHC expenditures not funded by Air Products' equity(A) | (1,981.2) | (1,242.0) |
Capital expenditures | ||
(A) | Reflects the portion of "Additions to plant and equipment, including long-term deposits" that is associated with NGHC, less our approximate cash investment in the joint venture. |
The components of our capital expenditures are detailed in the table below:
Nine Months Ended | ||
30 June | ||
2025 | 2024 | |
Additions to plant and equipment, including long-term deposits | ||
Acquisitions, less cash acquired | 59.9 | — |
Investment in and advances to unconsolidated affiliates | 365.4 | — |
Investment in financing receivables | 53.8 | 396.2 |
NGHC expenditures not funded by Air Products' equity(A) | (1,981.2) | (1,242.0) |
Capital expenditures | ||
(A) | Reflects the portion of "Additions to plant and equipment, including long-term deposits" that is associated with NGHC, less our approximate cash investment in the joint venture. |
Outlook for Investing Activities
It is not possible, without unreasonable efforts, to reconcile our forecasted capital expenditures to future cash used for investing activities because we are unable to identify the timing or occurrence of our future investment activity, which is driven by our assessment of competing opportunities at the time we enter into transactions. These decisions, either individually or in the aggregate, could have a significant effect on our cash used for investing activities.
We expect capital expenditures of approximately
OUTLOOK
The adjusted EPS guidance below is provided on a diluted basis from continuing operations attributable to Air Products and is compared to historical adjusted EPS. These adjusted measures exclude the impact of certain items that we believe are not representative of our underlying business performance, such as the non-service components of net periodic benefit/cost for our defined benefit pension plans, the incurrence of costs for business, asset, and cost reduction actions and impairment charges, or the recognition of gains or losses on certain disclosed items. The per share impact for each of our non-GAAP adjustments is calculated independently and may not sum to total adjusted EPS due to rounding.
It is not possible, without unreasonable efforts, to identify the timing or occurrence of similar future events or the potential for other transactions that may impact future GAAP EPS. Furthermore, it is not possible to identify the potential significance of these events in advance; however, any of these events, if they were to occur, could have a significant effect on our future GAAP EPS. Accordingly, management is unable to fully reconcile, without unreasonable efforts, our forecasted range of adjusted EPS to a comparable GAAP range.
Q4 | Full Year | |
2024 EPS(A) | ||
Gain on sale of business | (5.38) | (5.38) |
Business and asset actions | — | 0.20 |
Loss on de-designation of cash flow hedges | 0.03 | 0.02 |
Non-service pension cost, net | 0.09 | 0.34 |
2024 Adjusted EPS(A) | ||
2025 Adjusted EPS Outlook | ||
$ Change | (0.29) – (0.09) | (0.53) – (0.33) |
% Change | ( | ( |
(A) | We completed the divestiture of our LNG business on September 30, 2024; therefore, this business will not contribute to fiscal year 2025 results and, accordingly, is not reflected in our fiscal year 2025 guidance. In fiscal year 2024, the LNG business generated operating income for our Corporate and other segment of approximately |
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SOURCE Air Products
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