NYSE$APD

Air Products & Chemicals Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Air Products reported mixed results with increased GAAP EPS but a slight decrease in sales, driven by pricing strategies and cost management amidst challenging economic conditions.

Air Products reported a GAAP EPS of $2.57, a 30% increase year-over-year, and adjusted EPS of $2.85, a 4% increase. Net income rose by 29% to $581 million. Sales decreased by 8% to $2.9 billion due to lower energy cost pass-through and volumes, despite higher pricing. The company maintains its full-year adjusted EPS guidance of $12.20 to $12.50.

  • GAAP EPS increased by 30% to $2.57, and GAAP net income rose by 29% to $581 million.
  • Adjusted EPS increased by 4% to $2.85, exceeding the high end of guidance.
  • Adjusted EBITDA margin increased by 490 basis points to 40.9%.
  • Full-year adjusted EPS guidance maintained at $12.20 to $12.50, reflecting a 6% to 9% increase over the prior year.

Headline financials

Total Revenue

$2.93B

Previous: $3.2B-8.4%
EPS

$2.57

Previous: $2.74-6.2%
Capital expenditures

$2.67B

No prior period
Free Cash Flow

-$2.54B

Previous: -$1.4B-81.4%
Net Income

$572M

Previous: $440M+30.2%
Operating Income

$637M

Previous: $460M+38.6%
Gross Profit

$939M

Previous: $917M+2.3%
Cash & Equivalents

$2.54B

Previous: $2.24B+13.0%
Total Assets

$35.9B

Previous: $29.4B+22.0%
R&D Expense

$25.4M

No prior period
Stock-Based Comp

$14.7M

Previous: $15.1M-2.6%

Revenue & EPS history

Air Products · Revenue · Quarterly

$2.93B

Q2 2024-8.4%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Air Products · $2.08B total across 2 segments · Q3 2023

  • Americas
    $1.26B
  • Asia
    $823M

Forward guidance

Air Products anticipates an adjusted EPS between $3.00 and $3.05 for the third quarter of fiscal year 2024 and maintains full-year adjusted EPS guidance between $12.20 and $12.50. Capital expenditures are expected to be between $5.0 billion and $5.5 billion for the full fiscal year.

Tailwinds

  • Maintaining fiscal 2024 full-year adjusted EPS guidance of $12.20 to $12.50, up six to nine percent over prior year adjusted EPS.
  • Fiscal 2024 third quarter adjusted EPS guidance of $3.00 to $3.05.
  • Continue to expect fiscal year 2024 capital expenditures of $5.0 billion to $5.5 billion.
  • Focused on pricing and reducing our costs.
  • Solidifying our energy transition leadership as we continue to execute our strategic portfolio of low- and zero-carbon hydrogen projects around the world

Headwinds

  • Management is unable to reconcile, without unreasonable effort, the Company’s forecasted range of adjusted EPS or capital expenditures to a comparable GAAP range.
  • It is not possible, without unreasonable efforts, to predict the timing or occurrence of these events or the potential for other transactions that may impact future GAAP EPS.
  • Similarly, it is not possible, without unreasonable efforts, to reconcile forecasted capital expenditures to future cash used for investing activities.
  • The guidance provided is on an adjusted continuing operations basis and is compared to adjusted historical diluted EPS attributable to Air Products.
  • It is not possible to identify the timing or occurrence of similar future events or the potential for other transactions that may impact future GAAP EPS.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.9%

Avg return

30 days after

45%

33 / 73 earnings

Positive

+12.6%

Q4 2022

Best reaction

-15.5%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.1%+0.5%-8.0%
Q1 2026+6.6%+11.9%+7.7%
Q4 2025+8.9%+10.4%+9.7%
Q3 2025-0.8%+0.8%+1.4%
Q2 2025+0.4%-1.3%+2.9%
Q1 2025-1.5%-7.1%-5.0%
Q4 2024+2.0%+1.4%+4.4%
Q3 2024+6.8%+5.6%+5.7%
Q2 2024-0.3%+3.3%+9.4%
Q1 2024-15.5%-14.8%-5.8%
Q4 2023-10.8%-8.9%-10.1%
Q3 2023-5.0%-5.3%-0.4%
Q2 2023-4.9%-5.9%-4.1%
Q1 2023-10.4%-10.4%-7.3%
Q4 2022+12.6%+15.4%+29.9%
Q3 2022+6.9%+5.3%+0.3%
Q2 2022-4.7%-6.8%+1.9%
Q1 2022-9.4%-7.7%-18.7%
Q4 2021+2.4%+3.9%-4.5%
Q3 2021-4.5%-3.8%-7.9%
Q2 2021+3.5%+3.6%+2.3%
Q1 2021-8.5%-8.0%-4.6%
Q4 2020-14.4%-14.0%-13.7%
Q3 2020-1.4%-2.1%-3.1%
Q2 2020+1.1%+4.3%+9.3%
Q1 2020-1.6%-0.0%+7.5%
Q4 2019+6.9%+8.3%+6.0%
Q3 2019+2.5%+3.1%-1.9%
Q2 2019+1.5%+3.5%+4.0%
Q1 2019+2.2%+4.8%+15.1%
Q4 2018+2.3%+1.6%+2.5%
Q3 2018+2.5%+4.4%+5.5%
Q2 2018-0.3%-1.9%-0.3%
Q1 2018-4.2%-3.2%-5.6%
Q4 2017+4.1%+3.1%+4.5%
Q3 2017+4.2%+3.6%+2.3%
Q2 2017-0.8%+1.4%+1.6%
Q1 2017-5.3%-6.8%-5.3%
Q4 2016+0.6%-0.5%+6.4%
Q3 2016+0.3%-0.5%+3.5%
Q2 2016-1.6%
Q1 2016+10.3%
Q4 2015-2.2%
Q3 2015+6.2%
Q2 2015-3.5%
Q1 2015+4.9%
Q4 2014+4.5%
Q3 2014+3.7%
Q2 2014-0.6%
Q1 2014-0.2%
Q4 2013-2.1%
Q3 2013+2.7%
Q2 2013-0.6%
Q1 2013-1.3%
Q4 2012-7.5%
Q3 2012-0.8%
Q2 2012-3.7%
Q1 2012-2.4%
Q4 2011-3.0%
Q3 2011-2.1%
Q2 2011+0.8%
Q1 2011-0.5%
Q4 2010+1.2%
Q3 2010+0.4%
Q2 2010-2.3%
Q1 2009-1.7%
Q1 2010+1.1%
Q2 2009-0.6%
Q4 2007-0.6%
Q4 2009-0.6%
Q3 2008+2.3%
Q4 2008+2.3%
Q3 2009+2.3%

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