By Dean Seal

Air Products and Chemicals cut its earnings outlook for the year as lower volumes and higher costs pressured results in its fiscal second quarter.

The provider of essential industrial gasses and chemicals said it now expects adjusted earnings of $11.85 to $12.15 a share for the year, instead of $12.70 to $13 a share as previously projected. It expects $2.90 to $3 a share for the current fiscal third quarter, below analyst estimates for $3.27 a share.

The stock fell 4.1% to $259.95 in premarket trading.

For the first three months of 2025, the company posted a loss of $1.73 billion, or $7.77 a share, compared with a profit of $572.4 million, or $2.57 a share, in the same quarter a year earlier.

The shortfall was driven by a $2.3 billion after-tax charge related to project cancellations, cost-reduction measures and other strategic moves during the quarter.

Stripping out one-time items, adjusted earnings were $2.69 a share. Analysts surveyed by FactSet had been expecting $2.83 a share.

Revenue came in flat year-over-year at $2.9 billion, under analyst estimates for $2.92 billion, according to FactSet. Gains from energy cost pass-through and higher pricing were offset by foreign currency effects and lower volumes, largely from the divestiture of its liquefied natural gas business to Honeywell.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 01, 2025 06:25 ET (10:25 GMT)

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