On this page of StockholderLetter.com we present the latest annual shareholder letter from Air Products & Chemicals, Inc. — ticker symbol APD. Reading current and past APD letters to shareholders can bring important insights into the investment thesis.

 •  12/11/2025 Letter Continued (Full PDF)
 •  12/8/2023 APD Stockholder Letter
 •  12/3/2024 APD Stockholder Letter
 •  More "Specialty Chemicals" Category Stockholder Letters
 •  APD Benford's Law Stock Score = 98

APD Shareholder/Stockholder Letter Transcript:

Proudly serving customers for

Our Businesses
Air Products (NYSE:APD) is a world-leading
industrial gases company in operation for
over 85 years focused on serving energy,
environmental, and emerging markets and
generating a cleaner future.
The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens
of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading
global supplier of hydrogen, Air Products also develops, engineers, builds, owns and operates some of the world's largest
clean hydrogen projects, supporting the transition to low- and zero-carbon energy in the industrial and heavy-duty
transportation sectors. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane
systems and cryogenic containers globally.
Air Products reported fiscal year 2025 results under five segments:



Americas;
Asia;
Europe;
Middle East and India; and
Corporate and other.
The regional industrial gases segments produce and sell atmospheric gases such as oxygen, nitrogen, and argon; process
gases such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas (a mixture of hydrogen and carbon
monoxide); and specialty gases. The on-site business serves large-volume customers with relatively consistent demand
by constructing or acquiring a plant on or near the customer   s facility or delivering product from one of its pipelines. The
merchant business delivers liquid or gaseous bulk supply either by tanker or tube trailer and, for smaller customers, delivers
packaged gases in either cylinders or dewars.
The Corporate and other segment includes sales of cryogenic and gas processing equipment for air separation sold
worldwide to customers in a variety of industries, including chemical and petrochemical manufacturing, oil and gas
recovery and processing, and steel and primary metals processing. The Corporate and other segment also includes the
results of the turbomachinery and distribution sale of equipment businesses. Additionally, Corporate and other reflects
costs for corporate support functions and global management activities that benefit all segments, as well as other income and
expenses not directly associated with the regional segments, such as foreign exchange gains and losses. In fiscal year 2024,
this segment also included the liquefied natural gas (   LNG   ) process technology and equipment business, which was sold to
Honeywell International Inc. on 30 September 2024.
I

Financial Highlights
APD Global Presence
FY25 Sales = $12.0 billion
Europe/
Middle East/
India/Africa
42%
28%
16%
China
11%
U.S./Canada
3%
Asia
(excluding
China)
Latin
America
Millions of U.S. Dollars, except for per share data
2025
2024
Change
FOR THE FISCAL YEAR ENDED 30 SEPTEMBER (from continuing operations, unless otherwise indicated)
GAAP
Sales
$12,037
$12,101
(1%)
($877)
$4,466

Operating margin
(7.3%)
36.9%

Return on capital(A)
(0.9%)
10.8%

Adjusted operating income(B)
$2,858
$2,948
(3%)
Adjusted operating margin
23.7%
24.4%
(70) bp
Adjusted return on capital(B)
10.1%
11.3%
(120) bp
GAAP earnings (loss) per share
($1.74)
$17.24

Adjusted earnings per share
$12.03
$12.43
(3%)
$7.14
$7.06
1%
Operating income (loss)
NON-GAAP
(B)
PER SHARE
(B)
Dividends declared per common share
Includes impacts from discontinued operations.
(B)
Non-GAAP financial measure. See pages III-VI for reconciliation to the comparable GAAP measure.
** Change versus prior period is not meaningful due to charges for business and asset actions recorded in fiscal year 2025.
(A)
Air Products | 2025 ANNUAL REPORT
II

Reconciliations of Non-GAAP Financial Measures
(Millions of U.S. Dollars unless otherwise indicated, except for per share data)
Adjusted Operating Income and Adjusted Operating Margin
Adjusted operating income is an important measure to evaluate our business performance following the appointment of our new Chief
Executive Officer in February 2025. The table below provides a reconciliation of GAAP operating income (loss) to adjusted operating
income, as well as GAAP operating margin to adjusted operating margin, to illustrate the impact of non-GAAP adjustments on reported
margins. Margins are calculated independently for each period by dividing each line item by consolidated sales for the respective period.
As a result, individual components may not sum to totals due to rounding.
Fiscal Year Ended 30 September
2025 GAAP
2024 GAAP
$ GAAP Change
Operating
Operating
Income/Loss
Margin
($877.0)
(7.3%)
4,466.1
36.9%
($5,343.1)


2025 GAAP Measures
%/bp GAAP Change
($877.0)
(7.3%)
Business and asset actions
3,747.0
31.1%
Shareholder activism-related costs
86.3
0.7%
Gain on sale of business
(67.3)
(0.6%)
Gain on sale of other assets
(31.3)
(0.3%)
2025 Adjusted Measures
$2,857.7
23.7%
2024 GAAP Measures
$4,466.1
36.9%
Gain on sale of business
Business and asset actions
2024 Adjusted Measures
$ Adjusted Change
%/bp Adjusted Change
(1,575.6)
(13.0%)
57.0
0.5%
$2,947.5
24.4%
($89.8)
(3%)
(70) bp
** Change versus prior period is not meaningful due to charges for business and asset actions recorded in fiscal year 2025.
III



 12/11/2025 Letter Continued (Full PDF)