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Air Products and Chemicals, Inc. APD logged a second-quarter fiscal 2025 (ended March 31, 2025) loss of $7.77 per share. This compares unfavorably with earnings of $2.57 per share recorded in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $2.69, missing the Zacks Consensus Estimate of $2.84. Adjusted earnings fell 6% from the prior-year quarter due to lower volumes and higher costs, partly offset by favorable pricing.
The industrial gases giant reported revenues of $2,916.2 million, which was about 0.5% lower than the same period last year. This figure fell short of the Zacks Consensus Estimate of $2,950.1 million.
The flat sales resulted from 4% higher energy costs pass-through and 1% higher pricing, offset by 3% lower volumes from the LNG divestiture and 2% unfavorable currency.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. price-consensus-eps-surprise-chart | Air Products and Chemicals, Inc. Quote
APD’s Segment Highlights
Revenues in the Americas segment rose 3.3% from the previous-year quarter to $1,287.2 million, missing the consensus estimate of $1,350 million.
The operating income of $366 million declined 2% due to higher expenses from planned maintenance, partly offset by a favorable one-time customer contract amendment and non-helium pricing.
In the Europe segment, revenues rose 8.9% year over year to $727.4 million, beating the consensus estimate of $686 million. Operating income declined 3% to $196 million due to higher costs, negative business mix and currency. However, higher pricing, excluding power and fuel costs, somewhat offset the loss.
Revenues in the Asia segment declined 0.7% from the prior-year quarter to $774.1 million, falling short of the consensus estimate of $782 million. Operating income of $191 million declined 6% due to reduced helium pricing, net of power and fuel expenses and currency, slightly offset by cost reductions.
APD’s Financials
Air Products ended the quarter with cash and cash items of $1,491.4 million, down about 19% from the prior quarter. Long-term debt was up around 7.5% sequentially to $14,153.1 million.
APD’s Outlook
Air Products has revised its full-year fiscal 2025 adjusted EPS outlook to the band of $11.85 to $12.15. Air Products expects adjusted EPS to be between $2.90 and $3.00 for the third quarter of fiscal 2025.
Air Products anticipates roughly $5 billion in capital expenditures for fiscal 2025.