Air Products' Earnings and Revenues Surpass Estimates in Q3

Air Products and Chemicals, Inc. APD logged third-quarter fiscal 2025 (ended June 30, 2025) earnings from continuing operations of $3.24 per share, up from $3.13 recorded in the year-ago quarter.

Barring one-time items, earnings per share were $3.09, down from $3.20 a year ago. It beat the Zacks Consensus Estimate of $2.98.

The industrial gases giant generated revenues of $3,022.7 million, up around 1.2% year over year. The figure beat the Zacks Consensus Estimate of $3,017.2 million. The upside was due to higher energy cost pass-through, higher pricing and favorable currency, which were partially offset by lower volumes.

APD’s Segment Highlights

Revenues in the Americas segment were up 2.1% year over year to $1,261 million. The figure missed the Zacks Consensus Estimate of $1,329.6 million. The upside is attributed to higher energy cost-pass through and higher pricing, partly offset by lower volumes.

Revenues in the Europe segment increased 11.1% year over year to $770.5 million. Sales increased due to favorable currency, higher volumes, higher pricing and higher energy cost pass-through. It beat the Zacks Consensus Estimate of $747.6 million. 

Revenues in the Asia segment rose 2.6% year over year to $810 million. The increase is driven by higher volumes, greater energy cost pass-through and favorable currency exchange impacts. However, it was partly offset by lower pricing after accounting for power and fuel expenses. The figure topped the Zacks Consensus Estimate of $801.3 million.

APD’s Financials

Air Products ended the fiscal third quarter with cash and cash equivalents of around $2,324.3 million. Long-term debt was $16,411.7 million.

APD’s Outlook

The company has updated its full-year adjusted earnings per share guidance for fiscal 2025 to a range of $11.90 to $12.10. For the fourth quarter of fiscal 2025, adjusted EPS is projected to be between $3.27 and $3.47. Additionally, capital expenditures for the full fiscal year are expected to be around $5 billion.

APD’s Price Performance

The company’s shares have gained 9.9% in the past year compared with an 25% decline of the industry.

APD’s Zacks Rank & Key Picks

APD currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. RGLD, Avino Silver & Gold Mines Ltd. ASM and Barrick Mining Corporation B.

Royal Gold is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for earnings is pegged at $1.70. RGLD beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 9%. RGLD carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Avino Silver is scheduled to report second-quarter results on Aug 13. The Zacks Consensus Estimate for ASM’s second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.

Barrick Mining is slated to report second-quarter results on Aug 11. The consensus estimate for Barrick’s earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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