Air Products and Chemicals, Inc. (APD) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

EBITDA, the effective tax rate, and ROCE, either on a total company or segment basis. Unless we specifically state otherwise, statements regarding these measures refer to our adjusted non-GAAP financial measures. Reconciliations of these measures to our most directly comparable GAAP financial measures can be found on our investor website in the relevant earnings release section. Now, I'll turn the call over to Eduardo. Thank you, Eric. Good morning. This is Eduardo Menezes. Thank you for joining us today. Please turn to slide three. Let me begin by sharing a few thoughts from my first three months as a product CEO. I talked with our employees, visited several sites, and met with many of our largest customers and partners. I can say our product is a solid for industrial gas business with significant upside if we stay within our traditional business model. Decades ago, Air Products pioneered their on-site business model. Today, approximately 50% of the company's sales are on-site with long-term take-or-pay conflicts, the highest percentage in the industry. Air Products has also built density in its merchant business, helping customers be more efficient and sustainable. We became the leading supplier of hydrogen, operating hydrogen pipeline networks around the world, including the world's largest at the U.S. Gulf Coast. who have also became a leading supplier of high-period gases for the electronics industry. These are clearly strengths to build upon. However, over the past few years, Air Products moved away from its core business in search of growth. The company pivoted to investments in coal gasification and then in clean energy. It deployed capital to complex, higher-risk projects with first-of-a-kind technologies and more importantly, without committed off-take agre...