Air Products' Earnings and Revenues Lag Estimates in Q4, Down Y/Y

Core Insights - Air Products and Chemicals, Inc. (APD) reported fourth-quarter fiscal 2025 earnings from continuing operations of 2 cents per share, a significant decline from $8.81 in the same quarter last year. Adjusted earnings per share were $3.39, down from $3.56, missing the Zacks Consensus Estimate of $3.41 [1][8] Revenue Performance - The company generated revenues of $3,166.9 million, a decrease of approximately 1% year over year, falling short of the Zacks Consensus Estimate of $3,217.7 million. The decline was attributed to lower volumes, although it was somewhat offset by higher energy cost pass-through and favorable currency effects [2][8] - In the Americas segment, revenues decreased by 1% year over year to $1,290.1 million, missing the Zacks Consensus Estimate of $1,357 million. This decline was primarily due to lower volumes, partially mitigated by higher energy cost pass-through and increased pricing [3] - The Europe segment saw a 1% increase in revenues year over year to $789.4 million, surpassing the Zacks Consensus Estimate of $784 million. This growth was driven by higher energy cost pass-through and favorable currency, which offset lower volumes and reduced pricing [4] - Revenues in the Asia segment rose by 8% year over year to $869.8 million, driven by higher volumes, favorable currency exchange impacts, and increased pricing, although it missed the Zacks Consensus Estimate of $876 million [4] Financial Position - At the end of the fiscal fourth quarter, the company had cash and cash equivalents of approximately $1,856 million, a decrease of around 38% year over year. Long-term debt increased to $16,769.9 million, up roughly 25% year over year [5] Future Outlook - The company anticipates adjusted earnings per share for fiscal 2026 to be in the range of $12.85 to $13.15. For the first quarter of fiscal 2026, adjusted earnings are projected to be between $2.95 and $3.10. Additionally, capital expenditures for the full fiscal year are expected to be around $4 billion [6][8] Stock Performance - Over the past year, the company's shares have declined by 24.1%, compared to a 40.3% decline in the Zacks Chemicals Diversified industry [7]