US-based Air Products and Chemicals Inc. reported a net loss of $1.7bn for the second quarter of its 2025 fiscal year, compared to a profit of $581mn a year earlier. The result includes a post-tax charge of $2.3bn, or $10.28 per share, following the cancellation of three US projects and the implementation of a global cost-cutting plan.
Strategic project exits and financial impact
Air Products confirmed its withdrawal from three initiatives: the expansion of a sustainable aviation fuel project in California, a green liquid hydrogen project in New York, and a carbon monoxide facility in Texas. These cancellations, along with other restructuring measures, amounted to charges totalling $2.9bn, including $2.3bn attributable to Air Products after tax.
On an adjusted basis, earnings per share (EPS) were $2.69, down 6 % year-on-year. The decline was primarily driven by lower volumes and higher costs, partially offset by price improvements, particularly for non-helium merchant products. Adjusted EBITDA stood at $1.2bn, a decrease of 3 %.
Regional performance and margin pressure
Total sales amounted to $2.9bn, flat compared to the previous year. A 4 % increase in energy cost pass-through and a 1 % rise in pricing were offset by a 3 % drop in volumes, partly due to the divestiture of the LNG business, and a 2 % negative currency impact.
In the Americas, sales reached $1.3bn (+3 %), although operating income fell 2 %, impacted by scheduled maintenance costs. In Asia, sales declined 1 % to $774mn, mainly due to currency effects and lower helium prices. In Europe, sales rose 9 % to $727mn, although margins remained under pressure, notably due to higher energy costs.
Guidance maintained and leadership changes
Air Products reaffirmed its adjusted EPS forecast for fiscal 2025, ranging from $11.85 to $12.15. For the third quarter, the company expects adjusted EPS between $2.90 and $3.00. Annual capital expenditures are projected to be around $5bn.
Eduardo F. Menezes was appointed Chief Executive Officer and member of the Board of Directors. Wayne T. Smith was named Chairman and Dennis H. Reilley Vice Chairman. The company also approved an increase in its quarterly dividend to $1.79 per share, marking the 43rd consecutive year of dividend growth.
