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Air Products Q4 earnings beat, revenue misses; stock dips on weak Q1 guidance

EditorSenad Karaahmetovic
Published 2024-11-07, 06:10 a/m
APD
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NEW YORK - Air Products (NYSE:APD) reported fourth-quarter earnings that surpassed analyst expectations, while revenue fell short. The industrial gases company's stock dipped 1.2% following the release, as weak guidance for the upcoming quarter overshadowed the earnings beat.

For the fourth quarter, Air Products posted adjusted earnings per share (EPS) of $3.56, exceeding the analyst estimate of $3.48. Revenue came in at $3.19 billion, slightly below the consensus forecast of $3.22 billion. Compared to the same quarter last year, revenue was up 3.4%.

The company's adjusted EBITDA for the quarter rose 12% YoY to $1.4 billion, with adjusted EBITDA margin expanding 460 basis points to 44.1%.

Looking ahead, Air Products provided first-quarter fiscal 2025 EPS guidance of $2.75 to $2.85, falling short of the $3.04 analyst consensus.

For the full fiscal year 2025, the company expects EPS in the range of $12.70 to $13.00, which is above the current analyst estimate of $9.95.

"Our fiscal 2024 results demonstrate the strength of our business model and our ability to perform in challenging economic conditions," said Seifi Ghasemi, Air Products' Chairman, President and CEO.

Air Products also announced plans to invest in new air separation units in Georgia and North Carolina to serve local merchant markets. Additionally, the company completed the divestiture of its non-core LNG process technology and equipment business to Honeywell (NASDAQ:HON) for $1.81 billion in cash.

The industrial gas provider expects capital expenditures for fiscal year 2025 to be between $4.5 billion and $5.0 billion, as it continues to invest in growth opportunities and sustainability initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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