Air Products Reports Mixed Q4 With EPS Gains, Revenue Miss, And Solid Cash Flow

Air Products & Chemicals Inc APD reported fourth-quarter 2024 adjusted EPS of $3.56, beating the consensus of $3.48.

Quarterly sales reached $3.187 billion, a slight 0.10% year-over-year decline, missing the $3.21 billion consensus, as volume and price gains were offset by lower energy cost pass-through.

Sales by segments: Americas $1.307 billion (-3% YoY), Europe $730.9 million (+3% YoY), and Asia $861.2 million (+7% YoY).

Operating income for the quarter rose to $2.424 billion from $738.6 million a year ago, and the margin expanded to 76.1%, up from 23.1% a year ago.

Adjusted EBITDA rose 12% YoY to $1.4 billion, with margins expanding 460 basis points to 44.1%. Air Products’ operating cash flow for the fiscal totaled $3.646 billion, up from $3.205 billion in 2023.

Fiscal 2024 sales declined 4% YoY to $12.10 billion, while adjusted EPS rose 8% to $12.43.

Q1 Guidance: Air Products expects Adjusted EPS of $2.75 to $2.85 versus the consensus of $3.20.

2025 Guidance: Air Products sees Adjusted EPS of $12.70-$13.00 versus a consensus of $12.33 and a capital expenditures outlook of $4.5 billion – $5.0 billion.

Air Products Chairman, President, and Chief Executive Officer Seifi Ghasemi commented, “We also completed the strategic divestiture of the LNG business at the end of September, demonstrating our commitment to our core industrial gas business while providing clean hydrogen at scale to serve significant demand in the heavy transportation and industrial sectors.”

“Air Products also continues to generate strong and steady cash flow that supports disciplined capital allocation and our long history of returning cash to shareholders. This year, we expect to pay out approximately $1.6 billion in dividends to our shareholders.”

Price Action: APD shares are trading higher by 3.33% at $316.93 at the last check Thursday.