Air Products reported its fiscal 2025 first-quarter results on February 6, 2025. The company posted GAAP earnings per share (EPS) of $2.77, a one percent increase from the prior year. GAAP net income reached $650 million, up five percent, and GAAP net income margin improved by 150 basis points to 22.2%. This performance was driven by higher pricing, partially offset by increased costs linked to shareholder activism, incentive compensation, and inflation, which were mitigated by productivity improvements. Additionally, Air Products recognized lower non-service pension costs and a gain from de-designated cash flow hedges.

On a non-GAAP basis, adjusted EPS for the quarter was $2.86, also up one percent year-over-year. Adjusted EBITDA stood at $1.2 billion, reflecting a one percent increase, while the adjusted EBITDA margin rose by 140 basis points to 40.6%, thanks to favorable business mix and higher pricing.

Sales for the quarter totaled $2.9 billion, down two percent due to a two percent decline in volumes and a one percent negative currency impact, partly offset by a one percent increase in pricing. The decrease in volume was mainly due to the divestiture of the LNG business in September 2024 and lower contributions from on-sites and merchant businesses in Europe. However, this was partially offset by a significant helium sale in the Americas.

Looking ahead, Air Products expects its fiscal 2025 full-year adjusted EPS to be between $12.70 and $13.00, with second-quarter adjusted EPS guidance of $2.75 to $2.85. The company also forecasts capital expenditures for the year to be between $4.5 billion and $5.0 billion. Air Products raised its quarterly dividend to $1.79 per share, marking its 43rd consecutive year of dividend increases, and expects to return approximately $1.6 billion to shareholders in 2025.