Air Products and Chemicals, Inc. reported a decrease in sales for the first quarter of fiscal year 2025, with revenues totaling $2.93 billion, down 2% from $2.99 billion in the same period last year. The decline was attributed to a 2% drop in sales volumes, primarily due to the divestiture of the LNG business in September 2024, which negatively impacted results by approximately 2%. However, the company experienced a slight offset from favorable pricing, which increased by 1%. Operating income also fell by 3% to $643.6 million, while net income rose by 5% to $649.8 million, reflecting improved pricing and lower non-service pension costs.
In terms of operational metrics, the company’s equity affiliates' income decreased by 5% to $150.6 million, driven by lower contributions from the Jazan Integrated Gasification and Power Company (JIGPC) in the Middle East and India segment. The company’s effective tax rate for the quarter was 17.8%, slightly lower than the previous year’s rate of 17.9%. Earnings per share (EPS) increased by 1% to $2.77, with adjusted EPS also rising to $2.86.
Strategically, Air Products has been active in expanding its portfolio, including the acquisition of a natural gas-to-syngas processing facility in Uzbekistan for $1 billion, which is expected to enhance its operational capabilities in the region. The company also reported significant capital expenditures of $1.21 billion during the quarter, primarily directed towards clean energy projects, including the NEOM Green Hydrogen Project in Saudi Arabia. This project is expected to be funded largely through project financing, which is non-recourse to Air Products.
The company’s total assets increased to $40.02 billion as of December 31, 2024, compared to $39.57 billion at the end of the previous fiscal year. Total debt rose to $14.5 billion, reflecting additional borrowings related to the NEOM project. Air Products continues to maintain a strong liquidity position, with cash and cash equivalents totaling $1.85 billion. Looking ahead, the company anticipates capital expenditures for fiscal year 2025 to be in the range of $4.5 billion to $5.0 billion, supported by cash generated from operations and financing activities.
About Air Products & Chemicals, Inc.
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