Views: 0 Author: Site Editor Publish Time: 2026-02-03 Origin: Site
Air Products’ commitment to price and productivity led to a 12% increase in operating income in its first quarter [October to December 2025] to $757m, according to CEO Eduardo Menezes.
The Americas was the stand out region with operating income up 4% to $404m, although Europe recorded the fastest growth at 20% to $224m, and Asia totalled $232m, up 7%. Overall sales rose 6% to $3.1bn.
Speaking on an hour-long analysts call, following generally positive sentiment as the company exceeded expectations for revenue and earnings per share, Menezes said, “When you operate in 40 countries and you have over 20,000 employees that’s what you do [focus on price and productivity].”
Focusing on the two areas “more than offset inflation” in a weak economic climate, and were coupled with ongoing staff cuts as the industrial gases major continues to ‘right size’ the organisation. It expects to reduce capital expenditure by $1bn in 2026.
The resilience of its core industrial gas business also offset lower helium prices and volumes, as it reported overall strong on-site volume and stable merchant business.
This year the company will be focused on three key priorities: unlocking earnings growth, maintaining capital discipline and optimising large projects.
On the last one, much of the call focused on the Louisiana Clean Energy Complex, where Air Products is in “advanced negotiations” with Yara, repeating the message it gave in December. The company is confident that the deal will close by the middle of the year, but there are a number of issues to finalise.
Under the proposed agreement, Yara would acquire the ammonia production and distribution assets and Air Products provide hydrogen and nitrogen under a 25-year supply deal. Air Products needs to nail down a partner for the carbon capture and sequestration scope, prior to taking final investment decision. Eduardo said 99% of the decision relates to construction costs.
“We have set a high bar in moving forward with the Louisiana project – we must have a highly reliable capital cost estimate,” said Menezes.
“We expect to have full clarity on the project costs in the next few months. We only have two possibilities – we’re not going to go forward, or we’re going to go forward with a good project.”
