Air Products today reported third quarter fiscal 2024 results, including GAAP EPS from continuing operations of US$ 3.13, up 17 percent from the prior year. GAAP net income of US$ 709 million was up 16 per cent over the prior year primarily due to a prior year charge for business and asset actions, favorable pricing, and favorable business mix.

Higher costs driven by planned maintenance and inflation were partially offset by improved productivity. GAAP net income margin of 23.7 percent increased 360 basis points over the prior year primarily due to the lower business and asset actions and favorable pricing.

Adjusted EBITDA of US$ 1.3 billion was up five per cent over the prior year due to positive pricing, favorable business mix, and improved productivity, which were partially offset by higher planned maintenance and inflation. Adjusted EBITDA margin of 42.4 per cent increased 260 basis points over the prior year.

Third quarter sales of US$ 3.0 billion decreased two per cent from the prior year due to two percent unfavourable currency and one percent lower energy cost pass-through, partially offset by one percent higher pricing.

Commenting on the results, Air Products' Chairman, President and Chief Executive Officer Seifi Ghasemi said, "Our third quarter adjusted EPS of $3.20 exceeded our previous guidance and increased seven percent over the prior year, driven by Americas and Europe operating performance as well as pricing and productivity actions. The results demonstrate our focus on running our core industrial gas business, and our adjusted EBITDA margin is the best in the industry. We announced significant milestones during the quarter, including the long-term renewable hydrogen supply agreement with TotalEnergies, which validates our strategy and the expected growth in the clean hydrogen market. As always, our results reflect the hard work of our dedicated and talented employees, and I want to thank them for their contributions."

Outlook

Air Products confirms its previous fiscal 2024 full-year adjusted EPS guidance of $12.20 to $12.50, up six to nine percent over prior year adjusted EPS. For the fourth quarter of fiscal 2024, Air Products' adjusted EPS guidance is $3.33 to $3.63. Air Products continues to expect capital expenditures in the range of US$ 5.0 billion to US$ 5.5 billion for full-year fiscal 2024.

Recent Highlights

Clean hydrogen / energy transition

• Signed a 15-year agreement to supply 70,000 tons of green hydrogen annually starting in 2030, helping to decarbonize TotalEnergies' Northern European refineries and avoid approximately 700,000 tons of CO₂ each year

• Announced agreement to divest Air Products’ liquefied natural gas (LNG) process technology and equipment business to Honeywell for $1.81 billion in an all-cash transaction; closing is expected before the end of the calendar year, subject to customary closing conditions, including receipt of certain regulatory approvals

• Announced plans to build networks of permanent, commercial-scale, multi-modal hydrogen refuelling stations from Northern California to Southern California, and along major transportation corridors near the

Trans-European Transport Network

• Announced trial of a Daimler Mercedes-Benz GenH2 truck, aligned with Air Products' goal to convert its distribution fleet to hydrogen powered vehicles Core industrial gas business

• Announced plans to construct two new air separation units at the Company's existing Conyers, Georgia, and Reidsville, North Carolina, locations to replace older units and serve further merchant market growth

• Announced $70 million investment to expand gas separation and purification membranes at Company's Missouri manufacturing and logistics center, driven by growing product demand in biogas and hydrogen recovery applications, as well as customer needs for the use of nitrogen for the aerospace industry and cleaner fuels for the marine industry

Sustainability

• Awarded ‘A’ rating on MSCI’s environmental, social and governance ratings