Air Products (APD) Reports 2025 Fourth Quarter Results

Air Products (NYSE: APD) has released its fiscal 2025 full-year and fourth-quarter results, highlighting solid operational performance despite business and asset-related charges. The company also provided its fiscal 2026 outlook, emphasizing growth, efficiency, and disciplined capital allocation.

Adjusted EPS Beats Guidance Midpoint as Company Navigates Headwinds

In the fourth quarter of fiscal 2025, Air Products reported a GAAP earnings per share (EPS) of $0.02 and an operating income of $17 million, reflecting the impact of various business and asset actions. However, on a non-GAAP basis, the company achieved an adjusted EPS of $3.39, surpassing the guidance midpoint. This performance was slightly below the market expectations set at $3.41, yet it remained a testament to the company’s ability to navigate challenging conditions.

Air Products’ sales for the fourth quarter reached $3.2 billion, a slight decrease of one percent compared to the previous year. This was primarily due to lower volumes, which were partially offset by higher energy cost pass-through and favorable currency effects. The company’s adjusted operating income stood at $812 million, a four percent decline from the prior year, attributed mainly to lower volumes and higher maintenance-related expenses.

Comparing the actual performance against expectations, Air Products came close to meeting the anticipated revenue of $3.21 billion. Despite a challenging economic environment and strategic project exits, the company managed to maintain a robust operational framework, focusing on pricing improvements and operational efficiencies to mitigate the impact of reduced volumes.

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Optimistic Outlook Targets 7–9% EPS Growth for Fiscal 2026

Looking ahead to fiscal 2026, Air Products has set an optimistic tone with its adjusted EPS guidance ranging from $12.85 to $13.15 for the full year. For the first quarter of fiscal 2026, the company projects an adjusted EPS between $2.95 and $3.10. This guidance reflects a potential increase of 7% to 9% over the previous year’s adjusted EPS of $12.03, showcasing confidence in its strategic initiatives and market positioning.

The company anticipates capital expenditures of approximately $4 billion for fiscal 2026, underscoring its commitment to high-return industrial gas projects and strategic capital allocation. Air Products aims to leverage its strong customer relationships and focus on operational excellence to drive growth and enhance shareholder value. The company remains committed to right-sizing its organization to align with project needs, ensuring efficient resource utilization.

CEO Eduardo Menezes expressed confidence in the company’s ability to deliver on its commitments, emphasizing the focus on projects with strong customer relationships and disciplined capital allocation. With a solid roadmap in place, Air Products is well-positioned to improve operating margins and unlock significant value for its shareholders, navigating the complexities of the industrial gases market with strategic foresight and operational acumen.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.