Air Products Reports $1.7 Billion GAAP Loss Because of Write-Offs; Adjusted Earnings Per Share Miss Estimates, Shares Fall

May 1, 2025

— Jeff Ward, Lehigh Valley News Briefs

Air Products’ new management’s first earnings report fell short of analysts’ estimates.

The Upper Macungie Township-based maker of industrial gases reported second-quarter adjusted earnings per share of $2.69, short of the Wall Street consensus of $2.84 compiled by Zacks Investment Research.

Under GAAP (Generally Accepted Accounting Principles), the loss was $1.7 billion, or $7.77 per share. GAAP does not allow for adjustments for one-time items.

Revenue in the second quarter was $2.92 billion, short of the $2.95 billion estimate.

Air Products said in its statement that an after-tax charge of $2.3 billion for canceling projects and other costs pushed it to a GAAP loss for the quarter. The adjustments, related to project cancellations announced earlier, amounted to a charge of $10.28 per share.

This has been a big year for Air Products. Activist investors led by Mantle Ridge pushed out Chief Executive Seifi Ghasemi, then 80, and changed the board, then ended some projects started by the previous regime.

The new CEO is Eduardo Menezes, who held executive roles at Praxair and later Linde Plc.

During the shareholder battle leading to Ghasemi’s ouster, activists said the shares could be worth as much as $425. The closing price Wednesday was $271.09, and at 9:30 a.m. today, shares were down to $256.00.

That leaves them $169 short of $425.

The company also cut its forecast for full-year 2025 adjusted EPS to $11.85 to $12.15.

That’s down from a previous range of $12.70 to $13.00. The company now forecasts fiscal 2025 third quarter adjusted EPS of $2.90 to $3.00.

Air Products estimates 2025 capital expenditures at about $5 billion.

The battle for control focused on whether Air Products should pursue clean-energy initiatives, such as “green hydrogen,” over its traditional industrial-gas strategy. Air Products make hydrogen, helium, nitrogen and other gases.

Ghasemi contended that “green hydrogen,” generated using renewable energy (solar, wind) would be the fuel of the future.

Shares of Air Products have been a laggard. In the last year, they have traded as high as $341.14 and as low as $235.14. The company pays a $1.79 dividend per quarter, for a 2.6% yield.

— Disclosure: I own shares in Air Products.