Air Products Q3 FY25 Results

Q3 Financial Performance

Air Products reported a 4% increase in GAAP EPS to $3.24 and a 7% rise in operating income to $791 million for the third quarter of fiscal 2025. Adjusted EPS decreased by 3% to $3.09, with adjusted operating income remaining flat at $741 million. The quarter included pre-tax gains of $99 million from asset sales, offset by costs related to shareholder activism and project exits.

Sales and Volume

Third quarter sales reached $3.0 billion, a 1% increase from the previous year. This was driven by higher energy cost pass-through, pricing, and favorable currency, despite a 4% decline in volumes. The volume drop was mainly due to the September 2024 LNG sale, reduced global helium demand, and project exits.

Segment Performance

In the Americas, sales rose 2% to $1.3 billion, but operating income fell 4% to $374 million due to higher costs and lower volumes. Asia saw a 3% sales increase to $810 million, with operating income up 8% to $217 million. Europe experienced an 11% sales growth to $771 million, with a 10% rise in operating income to $225 million. Middle East and India equity affiliates' income decreased by 4% to $86 million.

Outlook

Air Products revised its full-year fiscal 2025 adjusted EPS guidance to $11.90-$12.10 and expects capital expenditures of approximately $5 billion. The company remains focused on cost productivity, pricing, and operational excellence.