Company to Discuss Today's Joint Announcement with Yara International ASA Regarding Advanced Negotiations to Partner on Low-emission Ammonia Projects LEHIGH VALLEY, Pa., Dec. 8, 2025 /PRNewswire/ -- Air Products (NYSE: APD) will host an investor teleconference today, Monday, December 8, 2025, at 9:00 a.m. USET to discuss its joint announcement with Yara International ASA (OSE:YAR) issued earlier this morning. The teleconference will be open to the public and the media in listen-only mode by telephone and I ...

Core Insights - Air Products and Yara International are collaborating to integrate low-emission ammonia projects in the U.S. and Saudi Arabia, leveraging Air Products' industrial gas capabilities and Yara's ammonia production network [1][6][10] Group 1: Project Overview - Air Products is developing the Louisiana Clean Energy Complex, which aims to produce over 750 million standard cubic feet per day of low-carbon hydrogen, capturing 95% of CO2 emissions during operation [2][4] - The total project cost for the ammonia plant is estimated between $8-9 billion, with Yara acquiring production, storage, and shipping facilities for approximately 25% of this cost [3][9] - The NEOM Green Hydrogen Project in Saudi Arabia is over 90% complete and expected to start commercial production in 2027, with Air Products as the sole offtaker of up to 1.2 million tonnes per year of renewable ammonia [5][9] Group 2: Agreements and Operations - Air Products will supply approximately 80% of the low-carbon hydrogen to Yara under a 25-year long-term offtake agreement, producing 2.8 million tonnes of low-carbon ammonia annually [4][10] - A marketing and distribution agreement is anticipated, allowing Yara to commercialize ammonia not sold by Air Products as renewable hydrogen in Europe, targeted for completion in the first half of 2026 [6][9] Group 3: Strategic Fit and Market Position - Yara is the world's largest trader and shipper of ammonia, transporting over four million metric tonnes annually, supported by its extensive shipping fleet and import terminals [7][10] - The collaboration aims to meet the increasing demand for low-emission ammonia, particularly in Europe, benefiting both companies [7][10] - Air Products' projects align with Yara's strategy for sustainable value growth and energy diversification, enhancing profitability while reducing emissions [10][11]

PresentationPatrick CunninghamCitigroup Inc., Research Division I'm Patrick Cunningham. I cover chemicals here at Citi. So for our first fireside chat today, we have Air Products. Air Products is a global industrial gases company with an 85-year history and advantaged supply positions operating in approximately 50 countries. The company supplies essential industrial gases, related equipment and applications expertise to customers in industries like refining, chemicals, metals, electronics, manufacturing, me ...

Summary of Air Products and Chemicals Conference Call Company Overview - **Company**: Air Products and Chemicals (NYSE: APD) - **Industry**: Industrial gases - **History**: 85 years of operation, active in approximately 50 countries - **Core Business**: Supplies industrial gases, equipment, and expertise to various sectors including refining, chemicals, metals, electronics, manufacturing, medical, and food - **Leadership**: CEO Eduardo Menezes and CFO Melissa Schaeffer, with Menezes having over 30 years of industry experience since joining in February 2025 [1][2] Key Projects Louisiana Project - **Scale**: Producing 750 million cubic feet of hydrogen daily, with 80% intended for ammonia production and 20% for hydrogen pipeline [4] - **Status**: Seeking agreements with ammonia producers to manage the ammonia facility; project is larger than similar projects in the Gulf Coast [5] - **Timeline**: Expecting to provide updates within two weeks regarding project direction [5] Neom Project - **Construction Progress**: On track for completion by 2027; plans to sell ammonia as an interim product until green hydrogen offtake begins later in the decade [8] - **Market Strategy**: Focus on arbitrage between power and capital costs between Saudi Arabia and Europe; potential to produce competitive green hydrogen in Europe [9][10] - **Regulatory Environment**: EU regulations on renewable fuel usage are evolving, with expectations for implementation by 2030 [11] Financial Outlook - **CapEx**: Projected at $4 billion for 2026, including investments in Louisiana and Neom; cash flow neutrality expected by 2026 [15][16] - **Deconsolidation**: Neom's debt will be removed from financials in 2027, improving balance sheet metrics [17] - **Cost Savings**: Aiming for $100 million in additional cost savings through efficiency measures [38] Market Conditions - **U.S. Market**: Low growth environment; challenges include tariffs and labor issues affecting new investments [31][32] - **Asia Market**: Strong growth in Korea and Taiwan driven by electronics; China remains competitive but with limited growth [33] - **Europe Market**: Affected by product influx from China; local manufacturers facing challenges due to regulatory complexities [34] Helium Market - **Current Status**: Helium market is long, affecting pricing; Air Products has a significant exposure due to its historical position as a leading supplier [37] Operational Efficiency - **AI Integration**: Air Products is exploring AI applications for operational efficiency, with initiatives in power management and vendor engagement [43][44][45] Conclusion - **Strategic Focus**: Air Products is refocusing on core industrial gas strengths while managing large-scale projects like Neom and Louisiana; the company aims to balance growth with operational efficiency amidst challenging market conditions [29][30]

Core Insights - Air Products and Chemicals, Inc. (APD) is valued at a market cap of $58.1 billion, making it a leading player in the industrial gases sector, supplying various gases to multiple industries [1] - The company is classified as a large-cap stock, highlighting its significant size and influence in the specialty chemicals industry, supported by a strong project pipeline and long-term customer contracts [2] Financial Performance - APD's shares have decreased 23.5% from its 52-week high of $341.14, with an 11.5% decline over the past three months, underperforming the Dow Jones Industrial Average [3] - Over the past 52 weeks, APD has fallen 21.7%, contrasting with a 6.7% increase in the Dow Jones Industrial Average, and is down 10% year-to-date compared to the Dow's 12.2% return [4] - Following its Q4 earnings release, APD's shares rose 8.9%, despite a marginal revenue decline to $3.2 billion and a 4.8% drop in adjusted EPS to $3.39, indicating strong cost control measures [5]

Core Points - Lisa A. Davis will not stand for re-election at Air Products' 2026 Annual Meeting of Shareholders and will retire from the board [1] - Ms. Davis has served on the board for nearly six years, bringing over 35 years of industry experience [2] - She will continue her role as Chair of the Management Development and Compensation Committee until the Annual Meeting [3] - Air Products' Board Chairman praised Ms. Davis for her strategic insights and global perspective [4] Company Overview - Air Products is a leading industrial gases company with over 85 years of operation, focusing on energy, environmental, and emerging markets [4] - The company generated $12 billion in sales for fiscal 2025, operating in approximately 50 countries [5] - Air Products is the leading global supplier of hydrogen and is involved in large clean hydrogen projects [4]

Geopolitical Developments - Overnight, Russian missile and drone attacks on Kyiv resulted in at least two fatalities, raising immediate geopolitical concerns [2][7] Economic Data - Japan's retail sector showed significant strength in October, with nationwide department store sales climbing 4.3% year-over-year, a substantial improvement from the prior month's 1.4% growth [3][7] - Tokyo department store sales increased by 3.7% year-over-year, up from 2.5% previously, indicating a healthy rebound in consumer spending [3][7] Corporate News - Berenberg has revised its price target for Air Products and Chemicals Inc. (APD) down to $275 from $320, signaling a more cautious outlook on the stock [4][7]

Core Viewpoint - Air Products and Chemicals, Inc. (NYSE:APD) is recognized as one of the top commodity stocks to consider for investment, despite a recent price target reduction by Evercore ISI from $375 to $325 while maintaining an "Outperform" rating [1][2]. Financial Performance - For Q4 FY25, Air Products reported an EPS of $3.39, slightly above the forecast of $3.38, with a full-year EPS of $12.03, reflecting a 3% year-over-year decline [3]. - The company implemented a cost-reset strategy, resulting in a 16% reduction in workforce and maintaining stable operating margins at 23.7% [3]. - Air Products returned $1.6 billion to shareholders, demonstrating a commitment to capital efficiency [3]. Future Outlook - Management indicated that the NEOM green hydrogen project is nearly 90% complete, with plans to achieve ammonia output by 2027 [4]. - For FY26, the company anticipates a 9% growth in EPS, modestly positive cash flow, and approximately $4 billion in capital spending [4]. Business Operations - Air Products operates a global network across North America, Europe, Asia, and the Middle East, focusing on industrial gases, hydrogen, and large-scale energy transition projects [5].

Market Overview - The current market environment is characterized by changing global supply, demand, and investor sentiment, with precious metals leading gains alongside industrial metals, as indicated by a 10% increase in the Bloomberg Commodity Index (BCOM) as of November 19, 2025 [2] - Four out of six BCOM sectors reported gains in Q3, while petroleum rose by 4%, with grains and energy sectors being exceptions [2] - China's major commodity imports eased in October, with iron ore showing resilience despite declines in crude oil, natural gas, and coal [3] - The World Bank's Commodity Markets Outlook predicts a 7% decline in global commodity prices in 2026 due to subdued economic activity, trade tensions, and excess oil supplies, while precious metals are expected to grow by 5% [4] LNG Supply Growth - Global LNG supply is projected to grow by 10.2% in 2026, driven by U.S. expansions, with capacity expected to rise to 130 million tons in 2026 from 90 million tons in 2024 [5] Investment Strategy - The list of the 12 best commodity stocks is curated based on hedge fund interest, utilizing data from Insider Monkey's hedge fund database, which tracks 983 stocks as of Q2 2025 [8] - Research indicates that imitating top stock picks of leading hedge funds can lead to market outperformance [9] Company Highlights Air Products and Chemicals, Inc. (NYSE:APD) - Air Products and Chemicals, Inc. is among the top commodity stocks, with 53 hedge fund holders [11] - The company reported Q4 FY25 EPS of $3.39, slightly above the forecast of $3.38, with a full-year EPS of $12.03, down 3% year-over-year [13] - Management highlighted a focus on cost-reset strategies, including a 16% workforce reduction, and stable operating margins at 23.7% [13] - The NEOM green hydrogen project is nearly 90% complete, with expectations for ammonia output in 2027 [14] EOG Resources, Inc. (NYSE:EOG) - EOG Resources, Inc. also has 53 hedge fund holders and maintained a price target of $145 with a "Buy" rating [16] - The company reported Q3 net income of $1.5 billion and free cash flow of $1.4 billion, with adjusted EPS of $2.71 [17] - EOG returned $1 billion to shareholders through dividends and repurchases, with regular dividend payments increasing by 8% year-over-year [18] - The company raised its free cash flow guidance to $4.5 billion, ending the quarter with $3.5 billion in cash [19] The Mosaic Company (NYSE:MOS) - The Mosaic Company has 54 hedge fund holders and received a "Buy" rating from Goldman Sachs, with a lowered price target from $37 to $33 [21][22] - The company reported Q3 net income of $411 million, up from $122 million year-over-year, and adjusted EBITDA of $806 million [23] - Mosaic aims to achieve $250 million in cost savings by 2026, having already recorded $150 million in reductions [25]

Sales and Revenue - Air Products generated over 90% of consolidated sales from its regional industrial gases business in fiscal years 2025, 2024, and 2023, with approximately half attributed to atmospheric gases[22]. - Approximately half of total revenue is generated through long-term on-site supply contracts, allowing for pass-through of energy cost changes[148]. - Sales for fiscal year 2025 were $12.0 billion, a decrease of 1% or $63.3 million, primarily due to a 4% decline in volumes, partially offset by a 2% increase in energy cost pass-through and a 1% increase in pricing[162]. - Sales in the Americas segment increased by 2% to $5.1 billion, driven by a 4% increase in energy cost pass-through to customers and a 2% increase in pricing, despite a 3% decline in volumes[203]. - Sales in the Asia segment increased by 1% to $3.3 billion, with equity affiliates' income rising by 29% to $42.3 million[206][208]. - Europe segment sales increased by 6% to $2,984.5 million, driven by higher pricing (2%), favorable currency impact (2%), and volume growth (1%)[209]. - Middle East and India segment sales grew by 1% to $135.9 million, mainly due to higher volumes[213]. - Corporate and other segment sales fell by 41% to $520.0 million, primarily due to the divestiture of the LNG business[215]. Financial Performance - Operating loss for fiscal year 2025 was $877.0 million, compared to an operating income of $4.5 billion in fiscal year 2024, reflecting approximately $3.7 billion in pre-tax charges related to business and asset actions[162]. - Adjusted operating income decreased by 3% to $2.9 billion, down $89.8 million, driven by lower volumes and higher costs, partially offset by increased non-helium pricing[162]. - Net loss for fiscal year 2025 was $354.4 million, a significant decrease from net income of $3.9 billion in fiscal year 2024, primarily due to higher charges for business and asset actions[162]. - Adjusted EBITDA for fiscal year 2025 increased by 1% to $5.1 billion, up $30.1 million[162]. - Loss per share for fiscal year 2025 was $1.74, influenced by an after-tax charge of $3.0 billion for business and asset actions, while adjusted EPS was $12.03, down 3% from $12.43 in the prior year[157]. - Total pre-tax charges related to business and asset actions in fiscal year 2025 were approximately $3.7 billion, significantly higher than $57.0 million in fiscal year 2024[168]. - The effective tax rate for fiscal year 2025 was 21.4%, compared to 19.6% in the prior year, influenced by charges for business and asset actions[191]. Innovation and Technology - The company produced approximately 560 U.S. patents and around 2,650 foreign patents during fiscal year 2025, indicating a strong focus on innovation and technology development[45]. - The company is continually developing new technologies, and failure to do so may harm its competitive position and financial results[88]. Market and Competition - The company faces strong competition from both large global and smaller regional competitors, which could impact pricing and demand for its products[104]. - Future demand for the company's products may be affected by economic conditions and the focus on reducing carbon emissions[63]. Environmental and Regulatory Compliance - Air Products is committed to environmental stewardship and compliance with various environmental regulations, which may result in higher capital expenditures[46]. - The company operates under various regulatory regimes for greenhouse gas emissions, including the European Union Emission Trading System and California's Cap-and-Trade Program, which may increase operational costs[47]. - The company is subject to extensive environmental regulations, which may require unforeseen expenditures and could adversely affect financial results[99]. - Changes in regulatory environments regarding greenhouse gas emissions could negatively impact the company's growth and operating costs[93]. Operational Risks - Delays in project approvals and execution can lead to increased costs and potential project cancellations, adversely affecting financial results[72]. - Operational risks, including pipeline leaks and cyber incidents, could negatively impact production and financial results[74]. - The security of information technology systems is critical, as breaches could lead to significant legal and financial liabilities[81]. Employee and Workforce Development - As of September 30, 2025, the company employed approximately 21,300 employees, with over 99% working full-time and about 75% based outside the United States[53]. - The company continues to invest in employee development and learning platforms to enhance workforce capabilities[54]. - The company is committed to ethical pay practices, ensuring equitable compensation for all employees regardless of personal characteristics[57]. Strategic Focus and Future Outlook - Fiscal year 2025 was a transitional year for Air Products, marked by a renewed focus on the core industrial gas business under new leadership[151]. - The company aims to improve execution and support reductions in capital expenditures and debt over time[151]. - The company expects earnings growth in fiscal year 2026 from new plant onstreams, continued pricing discipline, and productivity improvements, while maintaining cost control and reducing capital expenditures[161]. - The NEOM Green Hydrogen Project is expected to come online in 2027, contributing to the company's long-term growth strategy in clean energy solutions[160].