Air Products Announces Fiscal 2024 Fourth Quarter and FullYear Financial Results
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Air Products Announces Fiscal 2024 Fourth Quarter and Full-Year Financial Results
Air Products (NYSE: APD) has released its fiscal year 2024 fourth quarter and full-year financial results, demonstrating substantial growth and performance improvements across various metrics.
Key Financial Metrics
| Metric | Q4 FY24 | YoY Change | Consensus Estimates | FY 2024 | YoY Change |
|---|---|---|---|---|---|
| GAAP EPS | $8.81 | +186% | - | $17.24 | +67% |
| Adjusted EPS | $3.56 | +13% | $3.48 | $12.43 | +8% |
| GAAP Net Income | $2.0B | +181% | - | $3.9B | +65% |
| Total Revenue | $3.2B | Flat | $3.21B | $12.1B | -4% |
Interpretation: Air Products reported significant growth in both GAAP EPS and adjusted EPS for the fourth quarter and fiscal year, surpassing consensus estimates. The revenue remained stable, reflecting an impressive capacity to maintain strong performance despite economic challenges.
Segment Revenue Performance
| Segment | Revenue | YoY Change | Operating Income Change | Adjusted EBITDA Change |
|---|---|---|---|---|
| Americas | $1.3B | -3% | +13% | +11% |
| Asia | $861M | +7% | +24% | +21% |
| Europe | $731M | +3% | +23% | +17% |
| Middle East | $92M | Flat | - | - |
| Corporate | $257M | -11% | - | - |
Interpretation: The Americas segment saw a decline in revenue due to reduced energy cost pass-through and unfavorable currency impact, while Asia and Europe demonstrated strong operating income growth driven by higher volumes and favorable pricing.
Operational Highlights
- Delivered a record fiscal fourth quarter adjusted EBITDA margin of 44.1% and a full-year margin of 41.7%.
- Increased dividend to $1.77 per share, with $1.6 billion in dividends paid in 2024.
- Completed the sale of the LNG business to Honeywell for $1.81 billion.
- Announced plans for new air separation units in Georgia and North Carolina.
- Invested $70 million into gas separation and purification in Missouri.
Executive Commentary
Seifi Ghasemi, Chairman, President, and CEO, emphasized the advantage of recent strategic decisions, stating, 'We delivered industry-leading adjusted EBITDA margin over the last quarter. The divestiture of the LNG business aligns with our core focus on industrial gases and clean hydrogen solutions, enhancing our capacity to serve increasing demands in the heavy transportation and industrial sectors.'
Dividend and Share Repurchase Program
- Air Products paid approximately $1.6 billion in dividends to shareholders in 2024.
- The company reiterated its commitment to a disciplined return of cash to shareholders, primarily through dividends.
Forward Guidance
- Expectation for fiscal 2025 adjusted EPS between $12.70 and $13.00.
- First-quarter fiscal 2025 adjusted EPS projected to be between $2.75 and $2.85.
- Capital expenditures for fiscal 2025 are anticipated to range between $4.5 billion and $5.0 billion.
Stock Price Movement
- Following the earnings release, Air Products' stock price showed a modest increase of 0.12%.
Air Products continues to demonstrate robust financial performance, reflecting the effectiveness of its strategic management and strong market position in the industrial gases sector.
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