Air Products Slashes 2025 EPS Outlook, Incurs Big Exit Charges

Air Products & Chemicals Inc. APD shares slipped in early Thursday trading after the company reported weaker-than-expected second-quarter 2025 results.

The company reported sales of $2.916 billion, a slight decline of 0.5% year over year. It missed the consensus of $2.93 billion.

Quarterly sales were flat, as gains from energy costs and pricing were offset by lower volumes and currency impacts.

Adjusted EPS fell 6% year-over-year to $2.69, missing the $2.83 consensus, as lower volumes and higher costs were partly offset by strong pricing.

Sales by segments: Americas $1.287 billion (+3% YoY), Europe $727.4 million (+9% YoY), and Asia $ 774.1 million (-1% YoY).

Operating income for the quarter slid to $631.3 million from $694.2 million a year ago, and the margin contracted to 21.6%, down from 23.7% a year ago.

Adjusted EBITDA reached $1.67 billion, down 2.6% YoY. The adjusted EBITDA margin fell to 40% from 40.9% a year ago.

Air Products exited three major U.S. projects, incurring $2.9 billion in charges, including $2.3 billion after tax, or $10.28 per share, tied to cost-cutting and strategic shifts.

Third-quarter Guidance: Air Products expects Adjusted EPS of $2.90 to $3.00 versus the consensus of $3.28.

2025 Guidance lowered: Air Products now expects Adjusted EPS of $11.85-$12.15 (prior $12.70-$13.00) versus a consensus of $12.55 and a capital expenditures outlook of ~$5 billion.

Price Action: Air Products & Chemicals shares are trading lower by 2.00% at $265.67 premarket at the last check Thursday.

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