On November 7, 2023, Air Products & Chemicals Inc (APD, Financial) released its earnings report for the fiscal year 2023 and the fourth quarter of the same year. The company reported a GAAP EPS of $10.30 for the fiscal year, marking a 2% increase from the previous year. The GAAP net income was $2.3 billion, up 3%, with a GAAP net income margin of 18.6%, up 80 basis points. The adjusted EPS was $11.51, up 12%, and the adjusted EBITDA was $4.7 billion, up 11%. The adjusted EBITDA margin was 37.3%, up 390 basis points.
Performance Highlights
Air Products & Chemicals Inc (APD, Financial) reported a GAAP EPS of $3.08 for Q4 FY23, marking a 20% increase from the previous year. The GAAP net income was $694 million, up 17%, and the GAAP net income margin was 21.8%, up 520 basis points. The adjusted EPS was $3.15, up 11%, and the adjusted EBITDA was $1.3 billion, up 10%. The adjusted EBITDA margin was 39.5%, up 740 basis points.
Key Financials
The company reported full-year sales of $12.6 billion, a decrease of 1% from the previous year. This was due to a 6% reduction in energy cost pass-through and a 3% reduction due to unfavorable currency, which more than offset the 5% increase in pricing and 3% increase in volumes. The volume growth was primarily driven by the on-site business.
For the fourth quarter, the company reported sales of $3.2 billion, a decrease of 11% from the previous year. This was due to a 14% decrease in energy cost pass-through, which more than offset the 2% increase in pricing and 1% favorable currency.
CEO's Commentary
Our growth strategy is evident in the results that our hard working and committed team again delivered. Our people around the world provided excellent service to our core industrial gas customers across dozens of industries while continuing to execute our first-mover clean hydrogen megaprojects to decarbonize the heavy-duty transportation and industrial sectors of our global economy. Working together, we continue to demonstrate the stability and resilience of our business despite challenging economic conditions. As we invest strategically for growth, we have also continued to increase the dividend, paying out approximately $1.5 billion to our shareholders during the year." - Seifi Ghasemi, Chairman, President and CEO of Air Products
Outlook
For the fiscal year 2024, Air Products expects an adjusted EPS of $12.80 to $13.10, up 13% at the midpoint over the prior year adjusted EPS. For the fiscal 2024 first quarter, the company's adjusted EPS guidance is $2.90 to $3.05, up 13% at the midpoint over the fiscal 2023 first quarter adjusted EPS. The company expects capital expenditures of $5.0 billion to $5.5 billion for the full-year fiscal 2024.
Explore the complete 8-K earnings release (here) from Air Products & Chemicals Inc for further details.
