Air Products and Chemicals, Inc. Q4 FY2025 earnings call

• Productivity improvement: Since 2022, 3,600 headcount reductions (16% of peak workforce) expected to contribute ~$250M annual cost savings. - 2026 priorities: Expect high single-digit annual EPS growth, optimize large projects portfolio (finalizing NEOM, improving underperforming projects), and balance capital allocation/improve balance sheet (CapEx ~$2.5B/year post large projects, ~$4B in 2026). - NEOM project: ~90% complete, solar/wind to be completed early 2026, ammonia production expected in 2027, solution competitive with no public subsidies. - Louisiana project: Evaluating divestiture of carbon sequestration, ammonia production assets; only proceed with firm offtake agreements.

Americas: Down 3% due to project exits, helium, and higher maintenance-related costs, partially offset by strong non-helium pricing actions, productivity improvement, and favorable on-site contributions from HyCO. Asia: Relatively flat, with lower helium offset by favorable on-site, non-helium price, and productivity. Europe: Improved 4% as non-helium merchant pricing, productivity, and favorable on-site contribution was partially offset by lower helium and higher costs. Middle East and India equity affiliates income: Decreased 2% from prior year primarily due to lower contributions from Jazan joint venture. Corporate and Other: Primarily impacted by the headwind from the prior year sale of LNG, partially offset by lower changes to the sale of equipment project estimates and lower costs.

• Fiscal 2026 EPS range: $12.85-$13.15 (7-9% improvement from prior year). - Q1 2026 EPS range: $2.95-$3.10 (3-8% improvement from prior year). - 2026 CapEx: ~$4B, with ~$1B on traditional industrial gas projects. - Expect growth from new assets, pricing actions, and productivity, but cautious on macroeconomic headwinds.

• Helium market uncertainties: Structural changes and cyclicality impacting volume and pricing. - Project execution risks: Construction market impact on Louisiana project costs and timelines. - Regulatory uncertainties: Impact on NEOM project commercialization and market development for green ammonia.

Q: Arun Viswanathan asked about helium headwind clarification and CapEx flex.

A: Melissa Schaeffer said helium headwind was better than forecast, FY '26 headwind ~4%, CapEx ~$3.5B-$4B based on project execution.

Q: Kevin McCarthy asked about selling coal gasification projects in Asia and rare gases market.

A: Eduardo Menezes discussed selling coal gasification projects, rare gases market competitive but not a major impact.

Q: Michael Sison asked about Louisiana project return with partners.

A: Eduardo Menezes stated project needs to meet return criteria for both Air Products and partners.