Group 1: Company Overview - Air Products and Chemicals, Inc. (APD) is the world's largest supplier of hydrogen and aims to assist the power industry in achieving decarbonization goals through its industrial gases [1] - The company is showcasing its hydrogen solutions at POWERGEN International, a key event for power generation professionals [1][3] Group 2: Technological Advancements - Air Products is enhancing hydrogen-fired boilers by integrating its burner technology, achieving stable 100% hydrogen combustion in early tests [2] - The company’s hydrogen can also be combined with natural gas to lower emissions, providing a reliable backup fuel as renewable energy usage increases [2] Group 3: Financial Performance - Air Products' shares have increased by 39.6% over the past year, contrasting with a 3.3% decline in the industry [4] - The company maintains its fiscal 2025 adjusted earnings per share (EPS) guidance at $12.70 to $13.00, with expectations of $2.75 to $2.85 for the second quarter [5] - Anticipated capital expenditures for the fiscal year are projected to be between $4.5 billion and $5 billion [5]

Core Insights - Air Products will showcase its industrial gases, particularly hydrogen, at POWERGEN International, emphasizing their role in aiding the power industry to achieve decarbonization goals [1][2] - The company is the world's largest supplier of hydrogen and has over 80 years of experience in the industrial gas sector, positioning itself as a key partner for the power generation industry transitioning to sustainable energy [2][6] Company Overview - Air Products operates in approximately 50 countries, generating fiscal 2024 sales of $12.1 billion and holding a market capitalization exceeding $65 billion [8] - The company employs around 23,000 individuals dedicated to creating innovative solutions that enhance sustainability and address environmental challenges [8] Industry Engagement - At POWERGEN International, Air Products will engage with attendees to discuss how power generators can utilize low-carbon hydrogen to reduce emissions and meet sustainability targets [3][4] - The event serves as a networking hub for power generation professionals, facilitating discussions on innovative solutions for cleaner energy sources [4] Hydrogen Technology Trials - Preliminary results from hydrogen burner and boiler trials indicate successful stable combustion of 100% hydrogen and the potential for blending hydrogen with natural gas to lower emissions [7] - Air Products will present insights on hydrogen's role in enhancing microgrid resilience, focusing on its applications as a load-balancer and backup fuel [7]

Core Insights - Air Products and Chemicals (APD) shares declined over 5% to $310.13 after the company's earnings outlook for the current quarter missed expectations [5] - The company reported adjusted earnings of $636.9 million, or $2.86 per share, on revenue of $2.93 billion for the fiscal first quarter, which was roughly in line with analysts' estimates [1][5] - The adjusted earnings outlook for the second quarter is projected to be between $2.75 and $2.85 per share, significantly below analyst consensus [2] Leadership Changes - The earnings report was released shortly after the appointment of a new CEO, Eduardo Menezes, a former executive at Linde, who replaced Seifi Ghasemi [3] - This leadership change followed a proxy battle with activist investment firm Mantle Ridge, which criticized the previous leadership for underperformance compared to industry rivals and the broader market [4] - Mantle Ridge successfully got three of its four nominees elected to Air Products' board last month [4]

Financial Performance - Sales for the three months ended December 31, 2024, were $2,931.5 million, a decrease of 2.2% compared to $2,997.4 million in the same period of 2023[17] - Net income attributable to Air Products for the same period was $617.4 million, reflecting an increase of 1.3% from $609.3 million in 2023[17] - Basic earnings per share attributable to Air Products were $2.77, up from $2.74 in the prior year, indicating a 1.1% increase[17] - Operating income for the three months ended December 31, 2024, was $673.5 million, slightly higher than $666.9 million in the prior year[123] - Net income for the quarter was $649.8 million, reflecting a 5% increase compared to the previous year, with a net income margin of 22.2%[175] - Adjusted EPS for Q1 2025 was $2.86, an increase of 1% from $2.82 in Q1 2024[172] Cash Flow and Investments - Cash provided by operating activities for the three months ended December 31, 2024, was $811.7 million, compared to $626.6 million in 2023, representing a 29.5% increase[24] - Cash used for investing activities rose to $2,182.1 million, primarily due to additions to plant and equipment of $2,117.6 million[186] - Cash contributions to funded pension plans for the three months ended December 31, 2024, were $8.2 million, compared to $12.0 million in 2023[205] - Cash provided by financing activities for the first three months of fiscal year 2025 was $274.2 million, significantly lower than $1,362.8 million in the same period of fiscal year 2024[192][193] Assets and Liabilities - Total assets as of December 31, 2024, were $40,017.2 million, an increase from $39,574.6 million as of September 30, 2024[22] - Total liabilities increased to $21,278.5 million as of December 31, 2024, compared to $20,900.9 million at the end of September 2024[22] - The company’s total equity as of December 31, 2024, was $18,738.7 million, slightly up from $18,673.7 million at the end of September 2024[22] - Long-term debt as of December 31, 2024, was $3,499.4 million, up from $3,053.3 million as of September 30, 2024, indicating an increase of 14.6%[46] Shareholder Returns - Dividends on common stock for the quarter were $393.8 million, representing a per share dividend of $1.77, compared to $389.0 million or $1.75 per share in the same quarter last year[27] - The company expects to return approximately $1.6 billion to shareholders in 2025 through dividends[200] - A quarterly dividend of $1.77 per share was declared, payable on 10 February 2025, with a subsequent increase to $1.79 per share approved for payment on 12 May 2025[201] Comprehensive Income - The company experienced a comprehensive income of $194.4 million for the three months ended December 31, 2024, a significant decrease from $812.6 million in the same period of 2023[19] - Other comprehensive loss for the quarter was $(558.5) million, compared to a gain of $329.1 million in the prior year, indicating a significant shift in comprehensive income[27] - The company recorded a net current period other comprehensive loss of $455.4 million for the three months ended December 31, 2024[106] Segment Performance - Americas segment sales increased by 3% to $1,287.6 million, with operating income rising 10% to $388.2 million and an operating margin of 30.1%, up 180 basis points from the prior year[176] - Asia segment sales increased by 3% to $817.1 million, driven by a 2% increase in volume and a 2% energy cost pass-through to customers, partially offset by a 1% unfavorable currency impact[157] - Europe segment sales decreased by 5% to $697.2 million, primarily due to a 5% decline in volume and a 1% decrease in energy cost pass-through[161] - Middle East and India segment sales declined by 7% to $32.8 million, primarily due to lower demand for merchant products, resulting in an operating loss of $0.6 million[163] - Corporate and other segment sales plummeted by 48% to $96.8 million, primarily due to the divestiture of the LNG business[165] Joint Ventures and Projects - The NEOM Green Hydrogen Company joint venture is a multi-billion dollar project, with project financing of approximately $6.1 billion secured, expected to fund about 73% of the project[41] - Total current liabilities associated with the NEOM project were $419.5 million as of December 31, 2024, compared to $362.0 million as of September 30, 2024[46] - JIGPC joint venture with Saudi Aramco, ACWA Power, and Air Products has a total investment carrying value of $2,909.0 million as of December 31, 2024[48] Derivatives and Hedging - The company recorded a total amount recognized in other comprehensive income (OCI) of $194.7 million for net investment hedging relationships for the three months ended December 31, 2024, compared to a loss of $123.6 million in the same period of 2023[74] - The fair value of derivatives designated as hedging instruments increased to $311.5 million as of December 31, 2024, from $119.6 million as of September 30, 2024[73] - The company has entered into floating-to-fixed interest rate swaps to hedge long-term variable rate debt facilities for the NEOM Green Hydrogen Project[72] Research and Development - Research and development expense of $22.0 million decreased 14%, or $3.7 million, as a percentage of sales decreased to 0.8% from 0.9% in the prior year[138]

Core Insights - Air Products and Chemicals, Inc. (APD) reported first-quarter fiscal 2025 earnings of $2.77 per share, an increase from $2.73 in the same quarter last year, driven by higher pricing and productivity improvements [1] - Adjusted earnings per share (EPS) were $2.86, matching the Zacks Consensus Estimate [1] - Revenues totaled $2,931.5 million, down approximately 2.2% year over year, missing the Zacks Consensus Estimate of $3,005.9 million due to lower volumes and adverse currency effects [2] Segment Performance - The Americas segment saw revenues increase by 2.8% year over year to $1,287.6 million, although it fell short of the consensus estimate of $1,296.8 million, with higher volumes from a significant helium sale and pricing offsetting reduced energy costs and adverse currency [3] - Revenues in the Europe segment decreased by 4.6% year over year to $697.2 million, missing the consensus estimate of $729.6 million, primarily due to reduced on-site services and helium sales, despite some offset from higher pricing [4] - The Asia segment experienced a revenue increase of 2.9% year over year to $817.1 million, surpassing the consensus estimate of $800.9 million, driven by higher volumes from new assets and energy cost pass-through, despite lower currency impacts [5] Financial Overview - Cash and cash equivalents at the end of the quarter were $1,845.5 million, down about 38% sequentially, while long-term debt decreased by 2% to $13,170.5 million [6] - The company maintains its full-year fiscal 2025 adjusted EPS guidance of $12.70 to $13.00 and expects adjusted EPS for the second quarter to be between $2.75 and $2.85 [7] Stock Performance - APD's shares have increased by 52.7% over the past year, compared to a 2.2% rise in the industry [8]

Financial Data and Key Metrics Changes - The first-quarter adjusted earnings per share (EPS) was $2.86, exceeding the upper end of the guidance range of $2.75 to $2.85, representing a 1% increase over the previous year [19][20] - Adjusted EBITDA margin increased by 140 basis points, and adjusted operating margin rose by 80 basis points compared to the prior year [20] - Overall volume decreased by 2%, primarily due to the divestment of the LNG business, which contributed approximately $0.08 to EPS in the prior year [20][24] Business Line Data and Key Metrics Changes - In the Americas, overall pricing increased by 2%, with a 4% gain in merchant pricing, and a 3% volume improvement driven by a significant non-recurring helium sale [27] - The Asia segment saw a 2% volume improvement due to contributions from new assets, with adjusted EBITDA increasing by 7% [29] - In Europe, broad-based pricing improved by 1%, but volume decreased by 5% due to lower onsite demand and continued weakness in merchant demand, particularly for helium [29] Market Data and Key Metrics Changes - The company is monitoring the strengthening U.S. dollar, tariffs, and the global helium market for potential impacts for the remainder of the year [21] - The helium market is currently long, with helium coming from Russian assets into Asia, affecting pricing dynamics [70] Company Strategy and Development Direction - The company is focused on driving productivity and evaluating actions to reduce costs and improve services to customers [22] - The Uzbekistan project is undergoing planned facility upgrades, expected to return to normal operation by the start of the third quarter [30][110] Management's Comments on Operating Environment and Future Outlook - Management indicated that the market in China remains challenging, with no material improvement expected in the near term [34] - The company does not anticipate significant improvement in global industrial production, projecting only about a 2% increase [115] Other Important Information - The company is maintaining its fiscal 2025 full-year guidance and expects second-quarter adjusted EPS to be in the range of $2.75 to $2.85 [21][22] - The company is still projecting to be net cash-flow positive by fiscal 2027 [125] Q&A Session Summary Question: How should the Street be thinking about the outlook in Asia? - Management noted that while there was support from new assets, the market remains challenging with no material improvement expected [34] Question: Can you provide a breakdown on the CapEx outlook for the fiscal year? - The majority of the $4.5 billion to $5 billion CapEx will be deployed to large projects, with about $750 million for ongoing maintenance [50] Question: What was the helium EBITDA contribution in the Americas in the quarter? - The one-time helium sale contributed approximately $0.10 to EPS for the quarter [63] Question: Can you talk about the equity affiliate income decline in the Middle East and India? - The decline was primarily due to fluctuations in the Jazan joint venture, but contributions are expected to be on par with 2024 [77] Question: What is the expected contribution from the Uzbekistan project in 2025? - The project is expected to fully ramp up in Q3, contributing approximately $0.35 to $0.36 to EPS on an annualized basis [145]

Creating Shareholder Value Eduardo F. Menezes CEO of Air Products • Three-and-a-half decades of leadership experience in industrial gases • Joining the Air Products Board First Quarter 2025 Earnings Results Teleconference February 6, 2025 Air Products Leadership • 35 years senior management experience in chemicals industries, including extensive industrial gases leadership and operational experience Wayne T. Smith Chairman of the Board • CEO effective February 7, 2025 • Air Products Director since 2021 Forw ...

Air Products and Chemicals (APD) came out with quarterly earnings of $2.86 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $2.82 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this seller of gases for industrial, medical and other uses would post earnings of $3.44 per share when it actually produced earnings of $3.56, delivering a surprise of 3.49%.Over the last four quarters, the company has surpassed consensus ...

News Release Exhibit 99.1 Air Products and Chemicals, Inc. 1940 Air Products Boulevard, Allentown, PA 18106-5500 www.airproducts.com Air Products Announces Preliminary Q1FY25 GAAP EPS of $2.77 and Adjusted EPS of $2.86, Exceeding Company's Previous Adjusted EPS Guidance for the Quarter Live teleconference: 773-305-6853 Passcode: 3870353 Internet broadcast/slides: Available on the Event Details page on Air Products' Investor Relations website. Internet replay: Available on the Event Details page on Air Produ ...

Q1 FY25 (comparisons versus prior year): GAAP EPS# of $2.77, up one percent; GAAP net income of $650 million, up five percent; and GAAP net income margin of 22.2 percent, up 150 basis points Adjusted EPS* of $2.86, up one percent; adjusted EBITDA* of $1.2 billion, up one percent; and adjusted EBITDA margin* of 40.6 percent, up 140 basis points Fiscal 2025 and Recent Highlights Increased quarterly dividend on the Company's common stock to $1.79 per share, marking the 43rd consecutive year of dividend incr ...