10-KPeriod: FY2025

Air Products & Chemicals, Inc. Annual Report, Year Ended Sep 30, 2025

Filed November 20, 2025For Securities:APD

Summary

Air Products & Chemicals, Inc. (APD) reported a fiscal year 2025 marked by significant portfolio adjustments and a strategic reorientation under new leadership. The company experienced a 1% decrease in sales to $12.0 billion, attributed to lower volumes impacted by the sale of its LNG business, reduced global helium demand, and project exits, partially offset by higher energy cost pass-through and favorable non-helium pricing. A substantial operating loss of $877.0 million was reported, largely due to approximately $3.7 billion in pre-tax charges for business and asset actions, including project exits and severance costs. Despite these headwinds, adjusted EBITDA saw a slight increase of 1% to $5.1 billion. Management has emphasized a renewed focus on core industrial gas operations, disciplined capital deployment with strict return thresholds, and productivity initiatives. The company continues to return value to shareholders, marking its 43rd consecutive year of dividend increases, with approximately $1.6 billion returned in fiscal year 2025. Looking ahead to fiscal year 2026, APD anticipates earnings growth driven by new plant on-streams, pricing discipline, and productivity improvements, while aiming for cost control and reduced capital expenditures.

Financial Highlights

56 data points
Beta

Revenue

$12.04B

31.4% Gross Margin

Net Income

-$394.50M

-3.3% Net Margin

EPS (Diluted)

$-1.77

Total Assets

$41.06B

Cash & Equivalents

$1.86B

Free Cash Flow

-$3.77B

Financial Statements
Beta
Revenue$12.04B
Cost of Revenue$8.26B
Gross Profit$3.78B
R&D Expenses$96.30M
SG&A Expenses$906.10M
Operating Income-$877.00M
Net Income-$394.50M
EPS (Basic)$-1.77
EPS (Diluted)$-1.77
Shares Outstanding (Basic)222.70M
Shares Outstanding (Diluted)222.70M

Key Highlights

  • 1Sales declined 1% to $12.0 billion in FY2025, primarily due to the LNG business sale and project exits.
  • 2Reported an operating loss of $877.0 million, significantly impacted by $3.7 billion in business and asset action charges.
  • 3Adjusted EBITDA increased by 1% to $5.1 billion, indicating resilience in underlying operations.
  • 4The company executed a strategic review, leading to the exit of several energy transition projects, signaling a shift towards core business focus.
  • 5APD demonstrated continued commitment to shareholder returns, marking its 43rd consecutive year of dividend increases.
  • 6Capital expenditures for FY2026 are projected to be around $4 billion, reflecting continued investment in energy transition and core industrial gas projects.
  • 7The company maintained effective internal controls over financial reporting as of September 30, 2025.

Frequently Asked Questions

Sales decreased by 1% to $12.0 billion, primarily driven by lower volumes. This was mainly due to the sale of the LNG business in September 2024, reduced global helium demand, and previously announced exits from certain energy transition projects. These decreases were partially offset by higher energy cost pass-through to customers and favorable pricing on non-helium products.

The company reported an operating loss of $877.0 million, which included approximately $3.7 billion in pre-tax charges related to business and asset actions. These charges were primarily associated with project exit costs, including non-cash asset write-downs and contractual termination costs, stemming from a strategic review of projects focused on clean energy generation and distribution.

Management has refocused on core industrial gas business and emphasized disciplined capital deployment with strict return thresholds, appropriate risk-sharing, and alignment with long-term customer relationships. Capital expenditures for fiscal year 2026 are expected to be around $4 billion, balancing continued investment in energy transition projects, traditional industrial gas projects, and maintenance within the core business.

For fiscal year 2026, Air Products expects earnings growth driven by new plant on-streams, continued pricing discipline, and productivity improvements. The company remains committed to cost control and reducing capital expenditures while continuing to reward shareholders through dividend increases.