In This Article:
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Adjusted Earnings Per Share (EPS): $2.86, exceeding the guidance range of $2.75 to $2.85, up 1% over last year.
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Adjusted EBITDA Margin: Increased by 140 basis points.
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Adjusted Operating Margin: Increased by 80 basis points versus prior year.
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Volume: Overall volume down 2%, primarily due to the LNG business divestment.
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Total Company Price: Up 1%, equating to a 2% improvement for the merchant business.
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Americas Segment: Pricing up 2%, volume up 3%, adjusted EBITDA up 6%, adjusted EBITDA margin improved by 150 basis points.
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Asia Segment: Volume up 2%, adjusted EBITDA increased 7%, adjusted EBITDA margin up 160 basis points.
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Europe Segment: Pricing improved 1%, volume down 5%, adjusted EBITDA down 3%.
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Middle East and India Segment: Lower merchant volume impacted sales and adjusted EBITDA negatively.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Air Products & Chemicals Inc (NYSE:APD) reported first quarter adjusted earnings per share of $2.86, exceeding the upper end of their guidance range.
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The company achieved a 140 basis point increase in adjusted EBITDA margin, driven by favorable business mix and pricing.
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The Americas segment showed strong performance with a 6% increase in adjusted EBITDA and a 150 basis point improvement in adjusted EBITDA margin.
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The Asia segment experienced a 2% volume improvement due to contributions from new assets, leading to a 7% increase in adjusted EBITDA.
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Air Products & Chemicals Inc (NYSE:APD) maintained its fiscal 2025 full-year guidance, indicating confidence in its financial outlook despite external challenges.
Negative Points
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Overall volume was down 2% compared to last year, primarily due to the divestment of the LNG business.
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The Europe segment faced a 5% decline in volume, driven by lower upside and continued weakness in merchant demand, particularly helium.
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The Middle East and India segment experienced lower merchant volume and unfavorable equity affiliate income, impacting adjusted EBITDA negatively.
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The Uzbekistan project is undergoing planned facility upgrades, which may affect its contribution until the third quarter.
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The company is monitoring the strengthening US dollar and tariffs, which could potentially impact financial performance for the remainder of the year.
Q & A Highlights
Q: Given the moving parts in Asia, how should we think about the outlook considering past headwinds in the helium business and electronics recovery in China? A: (Melissa Schaeffer, CFO) China was supported by new assets and productivity actions this quarter, but the market remains challenging with no material improvement. We are monitoring tariffs and the impact of China's in-country stimulus while focusing on productivity and customer delivery.