Air Products' Q1 2025: Unpacking Contradictions in Uzbekistan Plant Progress and Helium Market Dynamics

These are the key contradictions discussed in Air Products and Chemicals, Inc.'s latest 2025Q1 earnings call, specifically including: Uzbekistan Plant Upgrade and Maintenance, and Helium Market Conditions:



Strong Financial Performance:
- Air Products reported adjusted earnings per share of $2.86, exceeding the upper-end of their guidance range and up 1% over the previous year.
- The earnings improvement was driven by results in the Americas, despite the divestment of the LNG process technology and equipment business, which contributed roughly $0.08 to the previous year's earnings.

Regional Performance and Volume Decline:
- Overall volume was down by 2%, primarily due to the LNG business divestment, with volume improvements in the Americas partially offset by weakness in Europe, notably a 5% decline in merchant demand.
- The decline in Europe was primarily due to reduced on-site demand and a slower recovery in the helium market.

Pricing and Profitability Improvement:
- The company's total company price was up by 1%, with a 2% improvement in the merchant business, driven by continued pricing strength in the Americas and Europe.
- Adjusted EBITDA increased by 1%, with an improvement in the Americas segment by 6% due to higher pricing and a significant non-recurring helium sale to an existing customer.

Capital Expenditure and Project Status:
- Air Products maintained its fiscal 2025 capital expenditure guidance of $4.5 billion to $5 billion, with the majority allocated for large projects, ongoing maintenance, and industrial gas business investments.
- The Alberta project remains on hold pending permitting, while the Uzbekistan project is undergoing planned maintenance expected to return to normal operation in Q3 2025.