Air Products and Chemicals, Inc. (APD) Surpasses Earnings Estimates and Focuses on Expansion and Sustainability

• Earnings Per Share (EPS) for Q4 fiscal 2024 stood at $3.56, surpassing the Zacks Consensus Estimate and showing significant year-over-year growth.
• The company reported a GAAP EPS of $17.24 for fiscal year 2024, indicating a 67% increase from the previous year, with a net income margin improvement to 31.9%.
• Air Products announced major investments in sustainability and expansion, including a 15-year agreement to supply green hydrogen to TotalEnergies and plans for new air separation units in the US.

Air Products and Chemicals, Inc. (NYSE:APD) is a leading industrial gas company that provides essential gases and chemicals to various industries worldwide. The company focuses on producing atmospheric gases, process and specialty gases, and performance materials. Air Products competes with other major players in the industrial gas sector, such as Linde and Air Liquide.

On November 7, 2024, Air Products reported earnings per share (EPS) of $3.56, exceeding the Zacks Consensus Estimate of $3.44. This marks a significant improvement from the $3.15 EPS reported in the same quarter last year, showcasing a positive year-over-year growth. Despite this earnings beat, the company generated revenue of $3.19 billion, slightly below the estimated $3.21 billion.

For the fiscal year 2024, Air Products achieved a GAAP EPS of $17.24, a 67% increase from the previous year. The company's GAAP net income reached $3.9 billion, up 65%, with a net income margin improvement of 1,330 basis points to 31.9%. The adjusted EPS rose by 8% to $12.43, while the adjusted EBITDA increased by 7% to $5 billion, with a margin of 41.7%.

In the fourth quarter of fiscal 2024, Air Products reported a GAAP EPS of $8.81, a remarkable 186% increase, and a GAAP net income of $2 billion, up 181%. The adjusted EPS for the quarter was $3.56, up 13%, and the adjusted EBITDA was $1.4 billion, up 12%, with a margin of 44.1%. The company also increased its dividend to $1.77 per share, resulting in approximately $1.6 billion in dividend payments to shareholders in 2024.

Air Products has been actively expanding its operations and focusing on sustainability. The company completed the divestiture of its non-core liquefied natural gas process technology and equipment business to Honeywell for $1.81 billion. It announced plans to construct new air separation units in Georgia and North Carolina and invest $70 million in expanding its Missouri manufacturing center. Additionally, Air Products signed a 15-year agreement to supply green hydrogen to TotalEnergies and plans to build hydrogen refueling stations in California, Canada, and Europe.