Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for the third quarter was $3.09, exceeding guidance and higher than the previous year, excluding the impact of LNG business sales [4][8] - Sales volume decreased by 4% year-over-year, primarily due to the sale of the LNG business and lower helium demand [8][10] - Total company price increased by 1%, with a 2% improvement for the merchant business [8][10] - Adjusted operating income remained unchanged, with operating margin flat but improved by approximately 300 basis points sequentially due to favorable volume and productivity improvements [9][10] Business Line Data and Key Metrics Changes - The core industrial gas business showed resilience, with strong performance in non-helium products across all regions [4][9] - Helium EPS contributions were down about 4% versus the prior year, with an anticipated headwind of around 55 to 60 cents for the full year [24][25] - The company is executing a global cost reduction plan expected to generate annual savings of $185 to $195 million [5][30] Market Data and Key Metrics Changes - The Americas experienced a 6% decline in volume, primarily due to project exits and lower helium demand, although strong on-site volumes were noted [36][38] - The company anticipates that the helium market may stabilize in the coming years, despite current down cycles [66][70] Company Strategy and Development Direction - The company aims for high single-digit adjusted EPS growth starting in fiscal year 2026, with a target of operating margins of 30% and return on capital employed (ROCE) in the mid to high teens by 2030 [7][8] - Investments are being made in AI and digital transformation tools to enhance productivity [6][30] - The company is focused on disciplined capital allocation and project execution, particularly in hydrogen and electronics sectors [6][8] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic outlook, recognizing significant global uncertainties [11] - The company is optimistic about the competitiveness of its projects, particularly in the blue ammonia market [16][51] - Inflation and tariffs are ongoing concerns, impacting pricing strategies [82] Other Important Information - The company has committed to reducing headcount by about 10% as part of its productivity actions, with approximately 60% of this process completed [30] - Capital expenditures for the fiscal year are expected to be around $5 billion [11] Q&A Session Summary Question: Update on the plan to use third parties at Darrow for ammonia and carbon capturing - Management is optimistic about finalizing partnerships by the end of the current year, with competitive CapEx numbers for their projects [14][16] Question: Average prices year over year and dissociation characteristics - Management did not disclose specific numbers but indicated that helium continues to be a headwind, and the goal for dissociation remains a 10% loss [20][21][24] Question: Cost opportunities and digital initiatives - The cost opportunities discussed are in addition to previously outlined savings, with a focus on digital and energy management initiatives [28][30][32] Question: Volume performance in the Americas - The decline in volume was primarily due to project exits and lower helium demand, with strong performance in other areas [35][38] Question: Update on low-risk projects and bidding activity - Management continues to see project activity, particularly in electronics in Asia, and will provide updates on smaller projects in future calls [44][46] Question: Long-term return on capital employed goals - Current ROC is around 11.1%, with expectations to improve as capital expenditures are reduced and cash generation increases [78][80] Question: Helium market cycle outlook - Management believes the helium market may stabilize, but significant changes in supply and demand dynamics are expected [66][70] Question: Update on underperforming projects - Projects in Edmonton, Rotterdam, and Arizona are on schedule, with no significant changes anticipated [86][88]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for Q3 2025 was $3.09, exceeding guidance and higher than the previous year, excluding LNG business sales impact [2][6] - Sales volume decreased by 4% year-over-year, primarily due to the sale of the LNG business and lower helium demand [6][7] - Total company price increased by 1%, with a 2% improvement in the merchant business [6][7] - Adjusted operating income remained unchanged, with operating margin flat but improved by approximately 300 basis points sequentially due to favorable volume and productivity improvements [7][8] Business Line Data and Key Metrics Changes - The core industrial gas business showed resilience, with strong performance in non-helium products across all regions [2][7] - Helium EPS contributions were down about 4% versus the prior year, with an anticipated headwind of around 55 to 60 cents for the full year [23] Market Data and Key Metrics Changes - The Americas experienced a 6% decline in volume, primarily due to project exits and lower helium demand, although strong on-site volumes were noted [34][35] - The company expects to see improvements in overall merchant business outside of helium demand [35] Company Strategy and Development Direction - The company aims for high single-digit adjusted EPS growth starting in fiscal year 2026, with a target of achieving operating margins of 30% and return on capital employed (ROCE) in the mid to high teens by 2030 [5][6] - A global cost reduction plan is expected to generate annual savings of $185 to $195 million, with a focus on digital transformation and AI tools to enhance productivity [3][4][30] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic outlook, recognizing significant global uncertainties [10] - The company is optimistic about the competitiveness of its projects, particularly in the blue ammonia market, and is actively seeking partnerships for future projects [15][49] Other Important Information - The fiscal full-year adjusted EPS guidance is maintained at $11.90 to $12.10, with capital expenditures expected to be approximately $5 billion [10] - The company is committed to maintaining capital discipline while pursuing growth opportunities in its core industrial gas business [4][6] Q&A Session Summary Question: Update on the plan to use third parties at Darrow for ammonia and carbon capturing - Management is optimistic about finalizing partnerships by the end of the current year, with competitive CapEx numbers for their projects [14][15] Question: Average prices year-over-year and helium impact - Management indicated that they typically do not disclose specific numbers but acknowledged helium's impact on pricing [18][20] Question: Volume performance in the Americas - The decline was largely due to project exits and helium demand, with strong on-site volumes noted [34][35] Question: Update on larger project announcements in the Gulf Coast - Management believes there is still demand for clean ammonia, particularly in the Far East, and expects competitive positioning for their projects [48][49] Question: Trajectory to achieve long-term ROCE goals - Current ROCE is around 11.1%, with expectations to improve as capital expenditures are reduced and cash balances increase [70][72] Question: Inflation impact on costs - Management continues to see inflation as a concern, with ongoing efforts to manage pricing effectively [76][77] Question: Update on underperforming projects - Projects in Edmonton, Rotterdam, and Arizona are on schedule, with no significant changes expected [80][81]

Core Viewpoint - Air Products and Chemicals (APD) reported quarterly earnings of $3.09 per share, exceeding the Zacks Consensus Estimate of $2.98 per share, but down from $3.20 per share a year ago [1][2] Financial Performance - The company achieved revenues of $3.02 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.18% and showing an increase from $2.99 billion year-over-year [3] - The earnings surprise for the quarter was +3.69%, while the previous quarter saw a surprise of -5.28% [2] Market Performance - Air Products and Chemicals shares have remained flat since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.48 on revenues of $3.22 billion, and for the current fiscal year, it is $12.03 on revenues of $12.07 billion [8] - The industry outlook is unfavorable, with the Chemical - Diversified sector ranking in the bottom 6% of over 250 Zacks industries, which may impact stock performance [9]

Financial Performance - Q3 2025 adjusted EPS was $3.09, a decrease of 3% compared to Q3 2024[14, 19] - Q3 2025 adjusted operating income was $741 million, flat compared to Q3 2024[14] - Q3 2025 adjusted operating income margin was 24.5%, flat compared to Q3 2024[14] - The company forecasts FY2025 capital expenditures to be approximately $5.0 billion[25] Sales Analysis - Overall sales increased by 1% compared to Q3 2024 and 4% compared to Q2 2025[16] - Volume decreased by 4% compared to Q3 2024 but increased by 4% compared to Q2 2025[16] - Sales in Americas increased 2% vs Q3FY24 but decreased 2% vs Q2FY25[33] - Sales in Asia increased 3% vs Q3FY24 and 5% vs Q2FY25[38] - Sales in Europe increased 11% vs Q3FY24 and 6% vs Q2FY25[43] Future Outlook - The company projects FY2025 adjusted EPS to be in the range of $11.90 to $12.10, a decrease of 4% to 3% compared to FY24[10, 25] - Q4 FY2025 adjusted EPS is projected to be between $3.27 and $3.47, representing an 8% to 3% decrease compared to Q4 FY24[25]

Fiscal 2025 Third Quarter Performance Overview [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) Air Products reported **$3.0 billion** sales (+1%), GAAP EPS up **4%** to **$3.24**, and Adjusted EPS down **3%** to **$3.09** in Q3 FY25 Consolidated Financial Performance | Metric | Q3 FY25 | Q3 FY24 | Change | | :--- | :--- | :--- | :--- | | Sales | $3.0B | $2.99B | +1% | | GAAP EPS | $3.24 | $3.13 | +4% | | Adjusted EPS | $3.09 | $3.20 | -3% | | GAAP Operating Income | $791M | $738M | +7% | | Adjusted Operating Income | $741M | $741M | Flat | - Sales growth was primarily driven by **3% higher energy cost pass-through**, **1% higher pricing**, and **1% favorable currency**, partially offset by **4% lower volumes** due to the **September 2024 LNG sale**, **lower global helium demand**, and **project exits**[5](index=5&type=chunk) - GAAP results included **$99 million pre-tax gains from asset sales**, partially offset by **$25 million shareholder activism-related costs** and a **$24 million charge for project exit cost updates**[3](index=3&type=chunk) - CEO Eduardo Menezes highlighted that results exceeded guidance and were higher than the previous year on a comparable basis, excluding the LNG sale impact, with a focus on cost productivity, pricing, operational excellence, and capital discipline[7](index=7&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) Americas operating income declined **4%** despite a **2%** sales increase, while Asia and Europe segments reported sales and operating income growth Q3 FY25 Business Segment Performance Overview | Region | Sales Change (YoY) | Operating Income Change (YoY) | Key Drivers | | :--- | :--- | :--- | :--- | | Americas | +2% | -4% | Higher energy pass-through offset by lower volumes and higher maintenance costs | | Asia | +3% | +8% | Higher on-site volumes and favorable costs from productivity | | Europe | +11% | +10% | Favorable currency, higher volumes, and higher pricing | | Corporate & Other | -39% | +46% (Loss) | Primarily due to the September 2024 LNG sale | [Company Outlook and Guidance](index=1&type=section&id=Company%20Outlook%20and%20Guidance) Air Products revised its full-year FY25 Adjusted EPS guidance to **$11.90-$12.10** and forecasts approximately **$5 billion** in capital expenditures Fiscal 2025 Company Guidance | Guidance Metric | Period | Range/Amount | | :--- | :--- | :--- | | Adjusted EPS | Q4 FY25 | $3.27 - $3.47 | | Adjusted EPS | Full-Year FY25 | $11.90 - $12.10 (Revised) | | Capital Expenditures | Full-Year FY25 | ~$5 billion | Financial Statements [Consolidated Income Statements](index=4&type=section&id=Consolidated%20Income%20Statements) Q3 FY25 sales reached **$3.02 billion**, with net income attributable to Air Products at **$713.8 million** and diluted EPS of **$3.24** Consolidated Income Statement Highlights | (In Millions USD, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sales | $3,022.7 | $2,985.5 | | Operating Income | $790.6 | $737.6 | | Net Income Attributable to Air Products | $713.8 | $696.6 | | Diluted EPS from Continuing Operations | $3.24 | $3.13 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$41.7 billion**, total liabilities rose to **$23.9 billion**, and cash decreased to **$2.3 billion** Consolidated Balance Sheet Highlights | (In Millions USD) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash items | $2,324.3 | $2,979.7 | | Total Assets | $41,659.1 | $39,574.6 | | Total Liabilities | $23,891.1 | $20,900.9 | | Total Equity | $17,768.0 | $18,673.7 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, operating cash flow was **$2.0 billion**, investing activities used **$5.7 billion**, and financing activities provided **$3.0 billion** Consolidated Cash Flow Highlights | (In Millions USD) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 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 | ($655.4) | $758.7 | Non-GAAP Financial Measures and Reconciliations [Overview of Non-GAAP Measures](index=9&type=section&id=Overview%20of%20Non-GAAP%20Measures) Non-GAAP measures like adjusted operating income and EPS are used to provide insights into underlying business performance by excluding non-recurring items - Management provides non-GAAP financial measures to allow for a more complete understanding of factors and trends affecting historical and future performance, consistent with their own evaluation methods[28](index=28&type=chunk) - Non-GAAP measures are typically determined by adjusting the comparable GAAP measure to exclude gains or losses not believed to be representative of underlying business performance, such as non-service pension costs[29](index=29&type=chunk) [Detailed Non-GAAP Adjustments](index=9&type=section&id=Detailed%20Non-GAAP%20Adjustments) Q3 FY25 non-GAAP adjustments included charges for project exits and shareholder activism, offset by gains from asset and business sales [Business and Asset Actions](index=9&type=section&id=Business%20and%20Asset%20Actions) An additional **$24.1 million** pre-tax charge (**$0.07 per share**) was recorded in Q3 for updated project exit cost estimates - An additional charge of **$24.1 million** (**$0.07 per share**) was recorded in Q3 based on updated cost estimates for previously announced project exits[32](index=32&type=chunk) [Shareholder Activism-Related Costs](index=9&type=section&id=Shareholder%20Activisim-Related%20Costs) **$25.0 million** (**$0.08 per share**) in costs were incurred in Q3 due to a proxy contest, primarily reimbursing Mantle Ridge LP - Recorded **$25.0 million** (**$0.08 per share**) in Q3 for costs connected to a proxy contest, mainly for reimbursing Mantle Ridge LP[34](index=34&type=chunk) [Gain on Sale of Business and Other Assets](index=10&type=section&id=Gain%20on%20Sale%20of%20Business%20and%20Other%20Assets) Pre-tax gains of **$67.3 million** (**$0.23 per share**) from a Singapore subsidiary sale and **$31.3 million** (**$0.11 per share**) from an England office sale were recognized - Completed the sale of a subsidiary in Singapore, recognizing a gain of **$67.3 million** (**$0.23 per share**)[35](index=35&type=chunk) - Sold a regional office in England, resulting in a gain of **$31.3 million** (**$0.11 per share**)[36](index=36&type=chunk) [Other Adjustments (Hedges, Pension, Discontinued Ops)](index=10&type=section&id=Other%20Adjustments%20(Hedges,%20Pension,%20Discontinued%20Ops)) Other adjustments included **$10.9 million** (**$0.04 per share**) in non-service pension costs and a **$10.6 million** (**$0.04 per share**) loss from discontinued operations - Non-service related pension items resulted in a net cost of **$10.9 million** (**$0.04 per share**) for the quarter[38](index=38&type=chunk) - A loss from discontinued operations of **$10.6 million** (**$0.04 per share**) was recorded, primarily for environmental liabilities from a business sold in 2008[39](index=39&type=chunk) [Reconciliation of Adjusted Operating Income and Adjusted EPS](index=11&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Income%20and%20Adjusted%20EPS) Q3 FY25 GAAP EPS of **$3.24** was reconciled to an Adjusted EPS of **$3.09**, representing a **3% decrease** from the prior year Adjusted EPS Reconciliation | Reconciliation Item (per share) | Q3 FY25 Impact | | :--- | :--- | | **GAAP EPS** | **$3.24** | | Business and asset actions | +$0.07 | | Shareholder activism-related costs | +$0.08 | | Gain on sale of business | -$0.23 | | Gain on sale of other assets | -$0.11 | | Non-service pension cost, net | +$0.04 | | **Adjusted EPS** | **$3.09** | | **Q3 FY24 Adjusted EPS** | **$3.20** | | **% Adjusted Change** | **(3%)** | [Reconciliation of Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Consolidated Adjusted EBITDA increased **3%** to **$1,309.7 million** in Q3 FY25, with Asia and Europe segments showing significant growth Adjusted EBITDA by Segment | (In Millions USD) | Q3 FY25 | Q3 FY24 | % Change | | :--- | :--- | :--- | :--- | | **Consolidated Adjusted EBITDA** | **$1,309.7** | **$1,266.8** | **+3%** | | Americas Adjusted EBITDA | $604.3 | $604.2 | —% | | Asia Adjusted EBITDA | $353.0 | $324.3 | +9% | | Europe Adjusted EBITDA | $319.8 | $283.2 | +13% | [Reconciliation of Capital Expenditures](index=14&type=section&id=Reconciliation%20of%20Capital%20Expenditures) Capital expenditures for the nine months ended June 30, 2025, totaled **$4.0 billion**, with a full-year FY25 forecast of approximately **$5 billion** Capital Expenditures Reconciliation | (In Millions USD) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash used for investing activities | $5,681.0 | $4,773.8 | | Adjustments | ($1,678.2) | ($898.1) | | **Capital expenditures (Non-GAAP)** | **$4,002.8** | **$3,875.7** | - The company expects capital expenditures of approximately **$5 billion** for fiscal year 2025[49](index=49&type=chunk)

Guidance Q3 FY25 Summary of Results (comparisons versus prior year): #Per share amounts are calculated and presented on a diluted basis from continuing operations attributable to Air Products. *Certain results in this release, including in the highlights above, include references to non-GAAP financial measures on a consolidated, continuing operations basis and a segment basis. Additional information regarding these measures and reconciliations of GAAP to non-GAAP historical results can be found below. In ad ...

Group 1 - The leader of The Dividend Dog Catcher investing group shares at least one new dividend stock idea weekly, focusing on yield or extraordinary financial circumstances [1] - All investment ideas are archived and accessible after the weekly announcement [1] Group 2 - The article does not provide specific investment recommendations or advice regarding suitability for particular investors [2] - It emphasizes that past performance does not guarantee future results [2]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Air Products and Chemicals despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $2.98 per share, reflecting a -6.9% year-over-year change, while revenues are projected at $3.02 billion, up 1.1% from the previous year [3]. - The consensus EPS estimate has been revised 0.03% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +0.16% for Air Products and Chemicals, suggesting analysts have recently become more optimistic about the company's earnings prospects [12]. - However, the stock holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Air Products and Chemicals had an expected EPS of $2.84 but delivered only $2.69, resulting in a surprise of -5.28% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Industry Context - Another player in the chemical industry, Albemarle, is expected to report a loss of $0.83 per share, with revenues projected at $1.24 billion, down 13.1% year-over-year [18][19]. - Albemarle's consensus EPS estimate has been revised 36% lower recently, but it has a positive Earnings ESP of +21.13%, although it also carries a Zacks Rank of 4 [19][20].

Company Overview - Air Products (NYSE: APD) is a leading industrial gases company with over 80 years of operation, focusing on energy, environmental, and emerging markets to generate a cleaner future [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, engineering, building, owning, and operating some of the world's largest clean hydrogen projects [3] Financial Performance - For fiscal 2024, Air Products reported sales of $12.1 billion from operations in approximately 50 countries [4] - The current market capitalization of Air Products is about $60 billion [4] Upcoming Events - Air Products will hold a conference call to discuss its fiscal 2025 third quarter financial results on July 31, 2025, at 8:00 a.m. ET, which will be open to the public and media in listen-only mode [1] - The teleconference can be accessed via telephone and Internet broadcast, with details available on the company's Investor Relations website [1][2]

Investors in Air Products and Chemicals, Inc. (APD) need to pay close attention to the stock based on moves in the options market lately. That is because the July 18, 2025 $165.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the othe ...