Air Products sees 5% profit rise in Q1 despite revenue dip

Air Products reported steady profit growth, with GAAP net income rising 5% year-over-year in its Q1 2025 financial results, despite a 2% revenue decline primarily due to the sale of its LNG business.

The industrial gas giant published its financials just days after naming former Linde executive Eduardo Menezes as its new CEO, effective today (7^th February).

Menezes takes over from Seifi Ghasemi, who has led Air Products since 2014 and shaped its two-pillar strategy on hydrogen and industrial gases.

Read more: Ghasemi steps down as Air Products CEO; Eduardo Menezes named as successor

Air Products reported GAAP EPS of $2.77 for the quarter, up 1%, and adjusted EBITDA of $1.2B, up 1%, as higher pricing helped offset inflationary pressures and increased costs from shareholder activism.

Despite revenue declines, Air Products raised its quarterly dividend to $1.79 per share, marking 43 consecutive years of increases. It expects to return $1.6bn to shareholders in 2025.

Results by region

Revenue in both the Americas and Asia was up 3% from the prior year but slipped 5% in Europe and 9% in the Middle East and India. Air Products said the declines were due to lower on-site and merchant volumes in Europe and business slipping in Saudi Arabia.

Americas sales totalled $1.3bn. Operating income of $388m increased 10% and adjusted EBITDA of $597m increased 6%, in each case primarily due to the higher volumes and pricing, net of power and fuel costs, partially offset by higher costs.

Operating margin of 30.1% increased 180 basis points, and adjusted EBITDA margin of 46.3% increased 150 basis points.

Asia sales totalled $817m. Operating income of $216m increased 2%, and adjusted EBITDA of $350m increased 7%, in each case primarily due to favourable costs and volumes. Adjusted EBITDA also benefited from higher equity affiliates’ income. Operating margin of 26.5% decreased 10 basis points while adjusted EBITDA margin of 42.8% increased 160 basis points.

Europe sales totalled $697m. Operating income of $187m decreased 6%, and adjusted EBITDA of $259m decreased 3%, in each case primarily due to the lower volumes, partially offset by the higher pricing, net of power and fuel costs. Adjusted EBITDA also benefited from favourable costs. Operating margin of 26.7% decreased 30 basis points while adjusted EBITDA margin of 37.2% increased 80 basis points.

Middle East and India equity affiliates’ income of $85m decreased 9% from the prior year driven by an affiliate in Saudi Arabia.

It’s been a dramatic week for the industrial gases major, with Eduardo Menezes succeeding Seifi Ghasemi as CEO. To recap on gasworld’s extensive range of print and audio insights and coverage, click on the below links.