Q4 2024 Air Products and Chemicals Inc Earnings Call Transcript
Key Points
- Air Products & Chemicals Inc (APD) reported a 13% increase in adjusted earnings per share for the fourth quarter, reaching $3.56, which was at the upper end of their guidance range.
- The company successfully completed the $1.8 billion sale of its LNG process, technology, and equipment business, which contributed positively to the fiscal year 2024 results.
- Adjusted EBITDA margin improved by 460 basis points, and adjusted operating margin increased by 350 basis points compared to the previous year.
- Air Products & Chemicals Inc (APD) has achieved a 10% annual growth rate in adjusted earnings per share since 2014, demonstrating consistent performance despite economic fluctuations.
- The company plans to return approximately $1.6 billion to shareholders in dividend payments this year, continuing a 42-year streak of increasing quarterly dividends.
- The sale of the LNG business will no longer contribute to earnings going forward, posing a potential headwind for future financial performance.
- Economic activity in China remains uncertain, and the company has taken a conservative approach in its fiscal year 2025 guidance due to potential weakness in this market.
- The World Energy Project in California is on hold due to permitting challenges, which could delay potential revenue streams.
- The company faces challenges in the Middle East and India segment, with lower merchant volume impacting sales and adjusted EBITDA.
- There is a significant headwind of approximately 4% or 49 cents per share for fiscal year 2025 due to the absence of the LNG business.
Good morning, and welcome to Air Products' fourth-quarter earnings release conference call. Today's call is being recorded at the request of Air Products. Please note that this presentation and the comments made on behalf of Air Products are subject to copyright by Air Products and all rights are reserved. Beginning today's call is Mr. Eric Guter. Please go ahead, sir.
Thank you, Jessica. Good morning, everyone. Welcome to Air Products' fourth-quarter 2024 earnings results teleconference. This is Eric Guter, Vice President of Investor Relations. I'm pleased today to be joined by Seifi Ghasemi, our Chairman, President and CEO; Melissa Schaeffer, our Chief Financial Officer; and Sean Major, our Executive Vice President, General Counsel, and Secretary. After our comments, we will be pleased to take your questions.
Our earnings release and the slides for this call are available on our website at www.airproducts.com. Today's
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