Air Products & Chemicals Inc (NYSE:APD) reported a Q2 2023 adjusted EPS increase of 17% Y/Y to $2.74 beating the consensus of $2.64.
- Sales rose 9% Y/Y to $3.20 billion, surpassing the consensus of $3.06 billion, led by higher pricing (+8% Y/Y) and volumes (+6% Y/Y).
- By segments, sales grew in the Americas by 16% Y/Y to $1.37 billion, Asia by 8% Y/Y to $814 million, and Europe by 2% Y/Y to $753 million in the quarter.
- Adjusted EBITDA rose 13% Y/Y to $1.15 billion, with margins expanding 140 basis points to 36.0%.
- APD inked four LNG process technology and equipment deals in Q1 2023, which includes an agreement with Technip Energies NV (NYSE:THNPY) for the Xi’An LNG Emergency Reserve & Peak Regulation Project.
- Also, the company won secured, long-term off-take contracts from Eastman Chemical Co (NYSE:EMN) and LyondellBasell Industries NV (NYSE:LYB) for two new carbon monoxide projects in Texas.
- 2023 Outlook: APD raised the lower end of the adjusted EPS guidance to $11.30 to $11.50 (up 10%-12% Y/Y) vs $11.20 to $11.50 earlier and consensus of $11.38.
- The company reiterated its 2023 capital expenditures outlook of $5.0 billion-$5.5 billion.
- Q3 2023 Outlook: For Q3 2023, the Allentown, Pennsylvania-based company projects adjusted EPS guidance of $2.85 to $2.95 (+10% to 14% Y/Y).
Price Action: APD shares closed lower by 0.38% at $295.58 on Monday.
