Air Products Beats Earnings Expectations Amid Boardroom Challenges
Key Ideas
  • Air Products exceeded Q1 earning forecasts despite a $29.9 million charge from boardroom issues.
  • Revenue growth attributed to strong sales in Asia and the Americas, fueled by increased U.S. manufacturing activities.
  • The U.S. hydrogen market is expanding, with both exports and imports on the rise in 2024.
  • Air Products remains resilient with a new CEO and plans to return $1.6 billion to shareholders by 2025.
Air Products has outperformed Wall Street's predictions for its first-quarter earnings, achieving a 1.3% growth in net income to $617.4 million. Despite facing boardroom challenges that incurred a $29.9 million charge, the company credited its success to robust sales in Asia and the Americas, driven by a surge in U.S. manufacturing activities. The U.S. hydrogen market is witnessing growth, with exports reaching $19.1 million in 2024, particularly to Canada and Mexico. However, the U.S. also imported $64.9 million worth of hydrogen, largely from Canada. Although Air Products anticipates a slight dip in second-quarter profits, the industrial gas giant maintains confidence in its future prospects under new leadership with Eduardo Menezes as the new CEO. Moreover, the company plans to return approximately $1.6 billion to shareholders by 2025, showcasing resilience and adaptability in a competitive market landscape.
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