Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — Q2 2025 Earnings Presentation
19 slides from Air Products And Chemicals's earnings presentation, May 1, 2025
Slide 1: Fiscal Second Quarter 2025 Earnings Results Teleconference
Fiscal Second Quarter 2025 Earnings Results Teleconference May 1, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings guidance, business outlook and investment opportunities. These forward-looking statements
Slide 3: Reflections on Air Products' past strategy
Reflections on Air Products’ past strategy Solid core industrial gas business with upside Past strategic direction • Highest share of on-site supply mode in the industry (~50%) • Pivoted to investment in gasification, clean energy • Made outsized investments in higher-risk, first-of-a- • Strong merc
Slide 4: Current state of affairs
Current state of affairs Core business NEOM, KSA and Darrow, LA Underperforming projects (~$35B Capital*) (~$9B CapEx) (~$5B CapEx) • High-return, low-risk on-site • Lowest cost producer positions at • First-of-a-kind energy transition business with take-or-pay contracts scale projects at this scale
Slide 5: Path forward – back to the basics
Path forward – back to the basics Core business NEOM, KSA and Darrow, LA Underperforming projects (~$35B Capital*) (~$9B CapEx) (~$5B CapEx) • Continue to invest ~$1.5B per year • Saudi Green: • Optimize execution and provide in lower-risk projects with offtake transparency to shareholders – Focus o
Slide 6: Project update
Project update • SAF/H2 project World Energy, Paramount, CA Cancelled Projects Pre-tax charge • Green H2 project Massena, NY ≤$3.1B# • Carbon Monoxide project Texas City, TX • Blue H2 project, Edmonton, Canada Underperforming CapEx: $3.3B, onstream late 2027 / early 2028 Projects* • Blue H2 projects
Slide 7: Estimated capital spending outlook
Estimated capital spending outlook Core business ~$5.0B* • Continue to invest ~ $1.5B per year in lower-risk Cancelled Projects Reduced Capital Spend projects with offtake and high-quality customers Underperforming • Stable Maintenance CapEx Projects Net cash neutral NEOM, KSA and Darrow, LA NEOM, K
Slide 8: Return to excellence in execution with a right-sized organization
Return to excellence in execution with a right-sized organization Air Products Employees Projects and other ~23,000 support employees ~21,200 new assets employees ~18,500 ~16,300 employees employees + new assets 2018 2024 2025/2026 2027/2028 6,700 (1,800) (2,500) to (3,000) 41% increase vs 2018 8% d
Slide 9: Unlocking earnings potential
Unlocking earnings potential As of today Improve core / Re-focus CapEx Achieve potential (2026-2029) (approx. 2030+) – High quality base obscured by – Unlock base earnings through – Strong base growth underperforming projects significant margin improvement – NEOM / Darrow more than offset – Committe
Slide 10: Earnings Guidance & Results
Earnings Guidance & Results 10
Slide 11: Q2 Results Summary
Q2 Results Summary Adjusted EPS* Adjusted ROCE*# Adjusted Op Inc* Adjusted Op Inc Margin* Q2FY25 $2.69 Q2FY25 10.5% Q2FY25 $631 Q2FY25 21.6% (6)% (90)bp (9)% (210)bp Q2FY24 $2.85 Q2FY24 11.4% Q2FY24 $694 Q2FY24 23.7% vs PY vs PY vs PY vs PY (6)% (40)bp (6)% (140)bp Q1FY25 $2.86 Q1FY25 10.9% Q1FY25 $
Slide 12: Q2 Adjusted EPS $2.69, $(0.16), (6)% vs PY
Q2 Adjusted EPS* $2.69, $(0.16), (6)% vs PY Base $(0.07) Volume ex LNG flat: • Weaker merchant, primarily helium, largely Adjusted EPS* offset by favorable onsite Price +$0.04: • Strong merchant price in Americas and Europe 2.85 0.07 2.69 Costs $(0.11): (0.12) (0.04) • Primarily due to inflation and
Slide 13: Fiscal year 2025 outlook
Fiscal year 2025 outlook* FY2025 Full-Year 2025 Adjusted EPS* vs Prior Year $11.85 to 12.15 Adjusted EPS* (5)% to (2)% vs FY24 12.43 Q3 FY2025 FY24 Adj. 11.85 $2.90 to 3.00 - Adjusted EPS* EPS* 12.15 (9)% to (6)% vs Q3 FY24 FY25 (4)% 0% (3)% 2 - 5% Adj. FY2025 LNG(A) Currency Cancelled Growth EPS* P
Slide 14: Appendix Slides
Appendix Sides 14
Slide 15: Americas: Results Summary
Americas: Results Summary Sales Operating Income Operating Income Margin Adjusted EBITDA* Q2FY25 $1,287 Q2FY25 $366 Q2FY25 28.4% Q2FY25 $575 Q2FY24 $1,246 +3% Q2FY24 (2)% Q2FY24 (150)bp Q2FY24 $590 (3)% $372 29.9% vs PY vs PY vs PY vs PY Q1FY25 $1,288 flat (6)% (170)bp Q1FY25 (4)% Q1FY25 $388 Q1FY25
Slide 16: Asia: Results Summary
Asia: Results Summary Sales Operating Income Operating Income Margin Adjusted EBITDA* Q2FY25 $774 Q2FY25 $191 Q2FY25 24.7% Q2FY25 $334 (1)% (6)% (140)bp Q2FY24 +2% Q2FY24 $780 Q2FY24 $204 Q2FY24 26.1% $328 vs PY vs PY vs PY vs PY (5)% (12)% (180)bp (5)% Q1FY25 $817 vs PQ Q1FY25 $216 Q1FY25 26.5% Q1F
Slide 17: Europe: Results Summary
Europe: Results Summary Sales Operating Income Operating Income Margin Adjusted EBITDA* Q2FY25 $727 Q2FY25 $196 Q2FY25 26.9% Q2FY25 $280 Q2FY24 +9% (3)% (320)bp +6% $668 Q2FY24 $201 Q2FY24 30.1% Q2FY24 $264 vs PY vs PY vs PY vs PY +4% +5% +20bp +8% Q1FY25 $697 Q1FY25 $187 vs PQ Q1FY25 26.7% Q1FY25 $
Slide 18: Middle East and India: Results Summary
Middle East and India: Results Summary Sales Operating Income Adjusted EBITDA* Q2FY25 $33 Q2FY25 $(3) Q2FY25 $82 $(3) $(9) $(5) Q2FY24 $36 Q2FY24 $6 Q2FY24 $86 vs PY vs PY vs PY Q1FY25 $33 flat Q1FY25 $(1) $(2) Q1FY25 $(9) $91 vs PQ vs PQ vs PQ • Operating income decreased due to higher costs and lo
Slide 19: Corporate and Other: Results Summary
Corporate and Other: Results Summary Sales Operating Income Adjusted EBITDA* Q2FY25 $95 Q2FY25 $(118) Q2FY25 $(104) $(106) $(31) $(34) Q2FY24 $201 Q2FY24 $(88) Q2FY24 $(70) vs PY vs PY vs PY $(2) $(1) Q1FY25 $(106) +$2 Q1FY25 $97 Q1FY25 $(117) vs PQ vs PQ vs PQ • Sales and profits decreased vs. prio
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