Podcast | Financial pulse check: how the gases industry is going ‘back to basics’

In this episode of The 1895 Podcast, Rob and Tom break down the latest earnings from across the industrial gas sector.

We start with Air Products and their $1.7 billion loss through the previous quarter and $2.3 billion in cancelled projects. We unpacks what this means for hydrogen and energy transition investment going forward.

We also discuss the steadier performances from Air Liquide, Linde, and Messer, where disciplined growth and a return to core industrial gas markets appear to be the ongoing theme.

From project write-downs and shifting hydrogen strategies to modest gains in healthcare and electronics, this episode offers a snapshot into the industry’s health – and who’s best positioned for what comes next.

We also take a look at the latest financial results from the oil majors (Shell, BP & TotalEnergies), and what we can gauge from those.

Industrial Gas Giants Navigate Turbulence: Air Products Stumbles as Sector Returns to "Back to Basics"

London, June 11, 2025 – The latest episode of The 1895 Podcast, "Financial pulse check: how the gases industry is going ‘back to basics’," provides a revealing snapshot of an industrial gas sector grappling with significant write-downs, shifting hydrogen strategies, and a renewed focus on core markets, contrasting sharply with steadier performances from key players.

The most striking development centers on Air Products and Chemicals, Inc. (APD). Hosts Rob and Tom dissect the company's challenging previous quarter, revealing a substantial $1.7 billion loss coupled with the cancellation of projects valued at $2.3 billion. This significant financial hit is analyzed not just for its immediate impact on Air Products, but for its broader implications. The podcast unpacks what these setbacks signal for the future pace and nature of investment in hydrogen and the wider energy transition landscape, suggesting potential near-term headwinds or strategic reassessments within the sector.

In stark contrast, the analysis highlights more resilient performances from European and global leaders Air Liquide, Linde, and Messer. The hosts identify a clear, unifying theme among these steadier players: disciplined growth and a strategic "return to basics." This translates to a heightened focus on their core industrial gas markets – supplying essential gases like oxygen, nitrogen, and argon to established manufacturing, healthcare, and technology sectors – potentially de-prioritizing some riskier, large-scale ventures in favour of reliable cash flows.

The episode offers a comprehensive "pulse check" on the industry's overall health. Beyond the major losses at Air Products and the core-market focus of others, Rob and Tom explore the ripple effects of project write-downs, evolving hydrogen strategies across the board, and areas of modest gains, particularly within the healthcare and electronics segments. This multifaceted view helps identify which companies appear best positioned to navigate the current environment and capitalize on future opportunities.

Adding further context, the podcast also delves into the latest financial results from oil majors Shell, BP, and TotalEnergies. The hosts discuss what these energy giants' performance and strategic announcements might indicate about broader economic conditions, energy demand, and potential synergies or competitive pressures relevant to the industrial gas sector, particularly concerning clean energy investments.

Key Takeaways from the Podcast Analysis:

1.Air Products Faces Significant Headwinds: A $1.7B quarterly loss and $2.3B in cancelled projects mark a major setback, raising questions about its hydrogen and energy transition project pipeline.

2.Stability Through Core Focus: Air Liquide, Linde, and Messer demonstrate resilience by prioritizing disciplined growth and their traditional industrial gas businesses ("back to basics").

3.Industry in Flux: Project cancellations, strategic shifts in hydrogen, and selective growth areas (healthcare, electronics) paint a picture of an industry actively readjusting.

4.Oil Majors Provide Context: The financial health and strategies of Shell, BP, and TotalEnergies offer valuable indicators for the broader energy and industrial landscape impacting gas players.

The "back to basics" theme underscores a period of strategic consolidation and risk management within the industrial gas sector. While Air Products contends with major project setbacks, others are leveraging their strong positions in core markets to weather uncertainty, setting the stage for a potentially bifurcated industry trajectory in the coming quarters.