Air Products Sees Mixed Q1 Results: Lower Sales, Higher Dividends And Optimistic 2025 Outlook

Air Products & Chemicals Inc. APD reported that its first-quarter 2025 sales declined 2.2% year over year to $2.931 billion, missing the consensus of $2.94 billion.

Here’s a breakdown of the results:

• Quarterly sales fell due to lower volumes (-2%) and unfavorable currency (-1%), partially offset by higher pricing (+1%). LNG divestiture and weaker European demand impacted volumes.
• Adjusted EPS was $2.86 (+1% YoY), beating the consensus of $2.85.
• Sales by segments: Americas $1.287 billion (+3% YoY), Europe $697 million (-5% YoY), and Asia $817.1 million (+3% YoY).
• Operating income for the quarter slid to $643.3 million from $666.9 million a year ago, and the margin contracted to 21.9%, down from 22.3% a year ago.
• Adjusted EBITDA reached $1.2 billion, increasing by 1% YoY, while the adjusted EBITDA margin improved to 40.6%, rising by 140 basis points.
• Operating cash flow for the quarter totaled $811.7 million, up from $626.6 million in the same quarter in 2023.
• During the quarter, Air Products increased its quarterly dividend to $1.79 per share, marking 43 consecutive years of growth, and expects to return approximately $1.6 billion to shareholders in 2025.

Second-quarter Guidance: Air Products expects Adjusted EPS of $2.75 to $2.85 versus the consensus of $3.05.

2025 Guidance reaffirmed: Air Products continues to expect Adjusted EPS of $12.70-$13.00 versus a consensus of $12.80 and a capital expenditures outlook of $4.5 billion—$5 billion.

Price Action: Air Products & Chemicals shares are trading lower by 1.04% at $329.70 premarket at the last check Thursday.

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Image: Courtesy of Air Products & Chemicals