Core Insights - Johnson Matthey PLC (JMPLY) is currently viewed as a more attractive investment compared to Air Products and Chemicals (APD) for value investors seeking undervalued stocks [1][3]. Valuation Metrics - JMPLY has a forward P/E ratio of 13.03, significantly lower than APD's forward P/E of 23.01, indicating that JMPLY may be undervalued relative to APD [5]. - The PEG ratio for JMPLY is 2.92, while APD's PEG ratio is 6.17, suggesting that JMPLY offers better value when considering expected earnings growth [5]. - JMPLY's P/B ratio stands at 1.49, compared to APD's P/B ratio of 3.46, further supporting the notion that JMPLY is a more favorable investment option [6]. Investment Ratings - JMPLY holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to APD, which has a Zacks Rank of 3 (Hold) [3]. - The Value grade for JMPLY is A, while APD has a Value grade of D, highlighting JMPLY's superior valuation metrics and earnings outlook [6].

Core Insights - Air Products will showcase its Freshline food freezing solutions at the International Baking Industry Exposition (IBIE) in Las Vegas from September 14-17, 2025 [1][3] Product Features - The Freshline IQ Freezer is designed for freezing various bakery products, featuring 10-foot modular sections for easy installation and field expandability for increased throughput [2] - The IQ Freezer utilizes cryogenic gases, liquid nitrogen (LIN) and carbon dioxide (CO2), allowing rapid chilling or freezing of food products, significantly reducing yield losses and preserving product quality [3] Industry Event - IBIE is the largest baking industry event in the Western Hemisphere, promoting economic growth and education within the grain-based foods industry [3] Company Background - Air Products has over 60 years of experience supplying the food industry with gases, equipment, and technology, catering to both large manufacturers and small processors [5] - The company operates a food and grinding lab in Allentown, Pennsylvania, allowing customers to test cryogenic applications without capital investment [4] Financial Overview - Air Products reported fiscal 2024 sales of $12.1 billion and has a market capitalization exceeding $60 billion [7]

Core Insights - Air Products published its 2025 Sustainability Report, providing stakeholders with economic, environmental, and social performance data in line with Global Reporting Initiative (GRI) standards [1] - The company is a leading industrial gases provider, focusing on energy, environmental, and emerging markets, and aims to generate a cleaner future [2] - In fiscal 2024, Air Products reported sales of $12.1 billion and operates in approximately 50 countries, with a market capitalization exceeding $60 billion [3] Company Overview - Air Products has been in operation for over 80 years, supplying essential industrial gases and related equipment to various industries, including refining, chemicals, metals, electronics, manufacturing, medical, and food [2] - The company is recognized as the leading global supplier of hydrogen and is involved in developing and operating large-scale clean hydrogen projects [2] - Air Products also provides turbomachinery, membrane systems, and cryogenic containers globally through its equipment businesses [2] Financial Performance - The company achieved fiscal 2024 sales of $12.1 billion [3] - Air Products has a current market capitalization of over $60 billion [3] Recent Developments - Air Products announced the successful completion of the first liquid hydrogen fill of the world's largest hydrogen sphere at NASA's Kennedy Space Center [6] - The company has also launched a new air separation facility in Cleveland, Ohio, which is now operational and supplying onsite and regional customers [5]

Core Insights - Air Products has launched a new air separation facility in Cleveland, Ohio, which is now operational and supplying customers [1] - The company is also reinvesting in the same location to extend the life of an existing air separation unit and liquefier plant [2] - The new facility enhances Air Products' strategic footprint in a significant merchant market while serving a major onsite customer [3] - Air Products has been operating in Cleveland since the 1960s, supplying a diverse range of industries [3] - The company reported fiscal 2024 sales of $12.1 billion and has a market capitalization exceeding $60 billion [5] Company Overview - Air Products is a leading global industrial gases company with over 80 years of operation [4] - The company focuses on serving energy, environmental, and emerging markets, contributing to a cleaner future [4] - Air Products supplies essential industrial gases and related equipment to various industries, including refining, chemicals, and healthcare [4] - The company is the leading global supplier of hydrogen and is involved in large clean hydrogen projects [4]

Group 1 - Air Products and Chemicals (NYSE: APD) is one of the few remaining companies in the industrial gases industry following years of consolidation [1] - In 2016, Air Liquide acquired Airgas, indicating significant consolidation trends within the industry [1] Group 2 - The article emphasizes the importance of thorough analysis before making investment decisions, highlighting a long-term dividend growth investment strategy [1]

Core Insights - Air Products has successfully completed the first fill of the world's largest hydrogen sphere at NASA's Kennedy Space Center, which will be used for future Artemis missions to the Moon [1][2][3] Company Overview - Air Products is a leading industrial gases company with over 80 years of experience, focusing on energy, environmental, and emerging markets [5] - The company generated fiscal 2024 sales of $12.1 billion and operates in approximately 50 countries, with a market capitalization exceeding $60 billion [6] Historical Context - Air Products has a long-standing relationship with NASA dating back to 1957, supplying liquid hydrogen and other industrial gases for various space programs, including Apollo and Orion [3][4] Operational Highlights - The hydrogen fill for NASA involved over 50 trailer loads, totaling more than 730,000 gallons, demonstrating Air Products' capability to supply large-scale industrial gases safely and reliably [2][3] - The hydrogen sphere measures 90 feet tall and 83 feet in diameter, making it the largest liquid hydrogen tank in the world [2] Strategic Importance - Astronautic applications are a key business segment for Air Products, which is also involved in supporting privatized space launches and missions [4]

Core Viewpoint - Air Products has elected Howard Ungerleider to its Board of Directors, effective September 1, 2025, to enhance its leadership with his extensive experience in the chemicals and specialty materials industries [1][2]. Company Overview - Air Products is a leading industrial gases company with over 80 years of operation, focusing on energy, environmental, and emerging markets to create a cleaner future [4]. - The company supplies essential industrial gases and related equipment to various industries, including refining, chemicals, metals, electronics, manufacturing, medical, and food [4]. - Air Products is the leading global supplier of hydrogen and is involved in developing and operating large clean hydrogen projects to support the transition to low- and zero-carbon energy [4]. Financial Performance - For fiscal 2024, Air Products reported sales of $12.1 billion from operations in approximately 50 countries [5]. - The company currently has a market capitalization of over $60 billion [5]. Leadership Experience - Howard Ungerleider brings over three decades of global business and financial leadership experience, having served in various roles at Dow Inc. and its predecessors, including President and Chief Financial Officer [2][3]. - He has been an Operating Advisor for Clayton, Dubilier & Rice since 2024 and is also a board member of American Airlines Group Inc. and Kyndryl Holdings Inc. [2][3].

Core Insights - The article compares Johnson Matthey PLC (JMPLY) and Air Products and Chemicals (APD) to determine which stock is more attractive to value investors [1] - JMPLY has a stronger earnings outlook and a better Zacks Rank compared to APD, indicating a more favorable investment opportunity [3] Valuation Metrics - JMPLY has a forward P/E ratio of 12.60, significantly lower than APD's forward P/E of 23.98, suggesting JMPLY is undervalued [5] - The PEG ratio for JMPLY is 3.10, while APD's PEG ratio is 6.43, indicating JMPLY offers better value relative to its expected earnings growth [5] - JMPLY's P/B ratio is 1.43 compared to APD's P/B of 3.61, further supporting the conclusion that JMPLY is the superior value option [6] Value Grades - JMPLY holds a Value grade of A, while APD has a Value grade of D, highlighting JMPLY's stronger position in terms of valuation metrics [6]

Core Insights - Air Products has appointed Megan Britt as the new Vice President of Investor Relations, bringing nearly 25 years of experience in the field [1][2] - Britt's previous roles include leading Investor Relations at Archer-Daniels Midland, Tyson Foods, and Corteva Agriscience, along with finance and strategy positions at DuPont [1] - Air Products is focused on enhancing shareholder value through core capabilities, capital discipline, and productivity, with Britt's expertise expected to strengthen relationships with analysts and investors [2] Company Overview - Air Products is a leading industrial gases company with over 80 years of operation, serving energy, environmental, and emerging markets [3] - The company supplies essential industrial gases and related equipment to various industries, including refining, chemicals, metals, electronics, manufacturing, medical, and food [3] - Air Products is the leading global supplier of hydrogen and is involved in developing large-scale clean hydrogen projects to support the transition to low- and zero-carbon energy [3] Financial Performance - For fiscal 2024, Air Products reported sales of $12.1 billion from operations in approximately 50 countries [4] - The company has a current market capitalization exceeding $60 billion [4]

[Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Forward-looking statements are not guarantees, with actual results potentially differing due to economic, operational, and regulatory risks - This report contains forward-looking statements based on management's current expectations and assumptions, which are not guarantees of future performance. These statements are identified by words like "anticipate," "believe," "expect," etc[9](index=9&type=chunk) - Actual results may differ materially due to numerous factors, including economic conditions, project execution risks, international operational risks, supply chain disruptions, and changes in legislation or tax rates[10](index=10&type=chunk)[13](index=13&type=chunk) PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Q3 and nine months ended June 30, 2025, show a significant net loss for the nine-month period, driven by substantial charges, increased assets and liabilities from NGHC VIE consolidation, and decreased operating cash flow [Consolidated Income Statements](index=5&type=section&id=Consolidated%20Income%20Statements) Q3 2025 sales and net income increased, but the nine-month period resulted in a $399.4 million net loss, primarily due to a $2.95 billion charge for business and asset actions Consolidated Income Statement Highlights (in millions) | Metric | Q3 2025 | Q3 2024 | 9 Months 2025 | 9 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $3,022.7 | $2,985.5 | $8,870.4 | $8,913.1 | | **Operating Income (Loss)** | $790.6 | $737.6 | ($893.8) | $2,041.7 | | **Net Income (Loss) Attributable to Air Products** | $713.8 | $696.6 | ($399.4) | $1,878.3 | | **Diluted EPS (Loss)** | $3.20 | $3.13 | ($1.79) | $8.43 | - A significant charge of **$2.95 billion** for "Business and asset actions" was recorded in the first nine months of 2025, compared to only **$57.0 million** in the prior-year period, driving the company to a net loss[15](index=15&type=chunk) [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $41.66 billion, driven by plant and equipment, while total liabilities grew to $23.89 billion due to long-term debt, decreasing shareholders' equity Balance Sheet Summary (in millions) | Metric | 30 June 2025 | 30 September 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $6,147.6 | $6,363.0 | | **Plant and equipment, net** | $25,640.0 | $23,370.9 | | **Total Assets** | $41,659.1 | $39,574.6 | | **Total Current Liabilities** | $4,759.6 | $4,179.6 | | **Long-term debt** | $16,411.7 | $13,428.6 | | **Total Liabilities** | $23,891.1 | $20,900.9 | | **Total Air Products Shareholders' Equity** | $15,537.5 | $17,036.5 | - Assets and liabilities of the consolidated VIE, NEOM Green Hydrogen Company (NGHC), are included. As of June 30, 2025, these VIE assets totaled **$6.76 billion** and liabilities were **$4.69 billion**, for which creditors have no recourse to Air Products' general credit[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $2.0 billion for the nine months ended June 30, 2025, while investing activities increased and financing activities provided $3.0 billion, leading to an overall cash decrease of $655.4 million Cash Flow Summary - Nine Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash Provided by Operating Activities** | $1,995.6 | $2,689.7 | | **Cash Used for Investing Activities** | ($5,681.0) | ($4,773.8) | | **Cash Provided by Financing Activities** | $3,034.3 | $2,847.7 | | **(Decrease) Increase in cash and cash items** | ($655.4) | $758.7 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies and significant events, including NGHC VIE consolidation, a nearly $3 billion charge for exiting clean energy projects, shareholder activism costs, acquisitions, divestitures, and changes in debt and goodwill - **Variable Interest Entities (VIEs):** The company is the primary beneficiary of the NEOM Green Hydrogen Company (NGHC) joint venture and consolidates it. It also decided to exit the World Energy sustainable aviation fuel (SAF) project, resulting in project exit charges of approximately **$1.8 billion**, including a **$1.4 billion** asset write-down and a **$300 million** allowance for credit loss[38](index=38&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - **Business and Asset Actions:** In the first nine months of 2025, the company recorded charges of **$2.96 billion**, primarily for project exit costs related to a review of its project backlog, with the majority related to projects in the Americas segment. This included a **$2.89 billion** charge to operating results[55](index=55&type=chunk)[56](index=56&type=chunk) - **Acquisitions and Divestitures:** In April 2025, the company acquired Ijsfabriek Strombeek for **$74.2 million** and sold a subsidiary in Singapore for **$104.3 million**, recognizing a gain of **$67.3 million**[62](index=62&type=chunk)[64](index=64&type=chunk) - **Shareholder Activism-Related Costs:** The company incurred **$86.3 million** in costs related to a proxy contest with Mantle Ridge LP, which concluded in January 2025. This included a **$24.7 million** reimbursement to Mantle Ridge and **$29.7 million** in executive separation costs for the former CEO[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2025 sales and net income growth, contrasting it with a nine-month net loss driven by $3 billion in project exit charges, alongside segment performance, strong liquidity, and increased capital expenditures [Third Quarter 2025 Results of Operations](index=47&type=section&id=Third%20Quarter%202025%20Results%20of%20Operations) Q3 2025 sales rose 1% to $3.0 billion, operating income increased 7% to $790.6 million due to asset sale gains, while Adjusted EPS decreased 3%, reflecting mixed segment performance Q3 2025 vs. Q3 2024 Performance | Metric | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | **Sales** | $3,022.7M | $2,985.5M | 1% | | **Operating Income** | $790.6M | $737.6M | 7% | | **Net Income** | $723.2M | $708.9M | 2% | | **Adjusted EBITDA** | $1,309.7M | $1,266.8M | 3% | | **Adjusted EPS** | $3.09 | $3.20 | (3%) | - Q3 results were significantly impacted by several one-time items: a **$67.3 million** gain on sale of a business, a **$31.3 million** gain on sale of other assets, a **$24.1 million** charge for business and asset actions, and **$25.0 million** in shareholder activism-related costs[185](index=185&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) [First Nine Months 2025 Results of Operations](index=56&type=section&id=First%20Nine%20Months%202025%20Results%20of%20Operations) For the first nine months of 2025, sales were flat, resulting in an operating loss of $893.8 million and a net loss of $364.5 million, primarily due to a $3.0 billion charge for business and asset actions, despite a 1% increase in Adjusted EBITDA Nine Months 2025 vs. Nine Months 2024 Performance | Metric | 9 Months 2025 | 9 Months 2024 | % Change | | :--- | :--- | :--- | :--- | | **Sales** | $8,870.4M | $8,913.1M | 0% | | **Operating Income (Loss)** | ($893.8M) | $2,041.7M | N/M | | **Net Income (Loss)** | ($364.5M) | $1,911.4M | N/M | | **Adjusted EBITDA** | $3,667.8M | $3,639.6M | 1% | | **Adjusted EPS** | $8.63 | $8.87 | (3%) | - The primary driver of the net loss was a **$3.0 billion** charge for business and asset actions, mainly from exiting clean energy projects. The company also incurred **$86.3 million** in shareholder activism costs[227](index=227&type=chunk)[231](index=231&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $2.3 billion in cash, reporting $2.0 billion in operating cash flow and $4.0 billion in capital expenditures for the first nine months of 2025, primarily for clean energy projects Capital Expenditures (Non-GAAP, in millions) | Component | 9 Months 2025 | 9 Months 2024 | | :--- | :--- | :--- | | Additions to plant and equipment | $5,504.9 | $4,721.5 | | Acquisitions, less cash acquired | $59.9 | — | | Investment in unconsolidated affiliates | $365.4 | — | | Investment in financing receivables | $53.8 | $396.2 | | NGHC expenditures not funded by Air Products | ($1,981.2) | ($1,242.0) | | **Total Capital Expenditures** | **$4,002.8** | **$3,875.7** | - Total debt increased to **$17.7 billion** from **$14.2 billion** at fiscal year-end 2024, partly due to new senior note issuances and incremental borrowings for the NEOM Green Hydrogen Project[300](index=300&type=chunk) - The quarterly dividend was increased by **$0.02 per share** in fiscal 2025, marking the **43rd consecutive year** of dividend increases[307](index=307&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=82&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's net financial instrument liability position increased to $16.6 billion due to new debt, with 92% fixed-rate, showing sensitivity to interest rate and foreign currency fluctuations - The debt portfolio shifted more towards fixed-rate debt, moving from **87% fixed-rate** at FYE 2024 to **92%** at the end of Q3 2025, primarily due to new fixed-rate note issuances[321](index=321&type=chunk) - Sensitivity to foreign currency exchange rate risk has increased, with a **10% change** in rates now impacting the net liability position by **$571 million**, up from **$408 million** at FYE 2024, due to new Euro-denominated debt[324](index=324&type=chunk) [Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[325](index=325&type=chunk) PART II—OTHER INFORMATION [Item 5. Other Information](index=83&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 fiscal year 2025 - No new director or officer trading plans under Rule 10b5-1 were adopted or terminated during the quarter[327](index=327&type=chunk) [Item 6. Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including material contracts, officer certifications required by Sarbanes-Oxley, and Interactive Data Files (Inline XBRL) - The exhibits include certifications by the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[329](index=329&type=chunk)