Air Products and Chemicals, Inc. APD logged first-quarter fiscal 2025 (ended Dec. 31, 2024) earnings of $2.77 per share, up from $2.73 recorded in the year-ago quarter. The bottom line was driven by higher pricing and productivity improvements that more than offset higher costs.

Barring one-time items, adjusted earnings per share (EPS) were $2.86. It matched the Zacks Consensus Estimate.

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The industrial gases giant recorded revenues of $2,931.5 million, down around 2.2% year over year. The figure missed the Zacks Consensus Estimate of $3,005.9 million. The decline is attributable to lower volumes and adverse currency, which largely offset increased prices.

APD’s Segment Highlights

Revenues in the Americas segment were up 2.8% year over year to $1,287.6 million. The figure missed the consensus estimate of $1,296.8 million. Higher volumes driven by a significant non-recurring helium sale to an existing merchant customer and higher pricing offset reduced energy costs pass-through and adverse currency exchange rates.

Revenues in the Europe segment declined 4.6% year over year to $697.2 million. It missed the consensus estimate of $729.6 million. The fall can be attributed to reduced on-sites and helium in APD's merchant business and lower energy costs pass-through. However, higher pricing slightly offsets these factors. 

Revenues in the Asia segment rose 2.9% year over year to $817.1 million. It beat the consensus estimate of $800.9 million. Higher volumes from new assets and higher energy costs pass-through offset lower currency. 

APD’s Financials

Air Products ended the quarter with cash and cash items of $1,845.5 million, down about 38% sequentially. Long-term debt fell 2% sequentially to $13,170.5 million.

APD’s Outlook

Air Products maintains its full-year fiscal 2025 adjusted EPS guidance of $12.70 to $13.00. Air Products expects adjusted EPS to be between $2.75 and $2.85 for the second quarter of fiscal 2025. APD anticipates capital expenditures ranging from $4.5 billion to $5 billion for the fiscal year.

APD’s Stock Price Performance

The company’s shares have gained 52.7% in the past year compared with a 2.2% rise of the industry.

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APD’s Zacks Rank & Key Picks

Air Products currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd.  ICL, Hecla Mining Company HL and Ingevity Corporation NGVT.

ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hecla Mining is expected to report fourth-quarter results on Feb. 12. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.

Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%. 

 

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