In defense of its strategy and leadership, Air Products pointed to its impressive dividend history, which InvestingPro confirms includes 54 consecutive years of dividend maintenance and 41 years of increases, currently offering a 2.28% yield. The company distributed around $1.6 billion in dividend payments in fiscal 2024 alone. The company maintains a cautious approach to new investments, not proceeding with new low-carbon projects until existing ones are sufficiently contracted.
The board emphasized Air Products' robust industrial gas business, which boasts an industry-leading adjusted EBITDA margin exceeding 40%. The company has invested heavily in its core business, with more than half of its capital in the last four years dedicated to this area, a trend set to continue in 2025. With current annual revenue of $12.1 billion and a healthy P/E ratio of 18.06, InvestingPro analysis reveals 8 additional key insights about the company's financial health and growth prospects. Air Products also underscored its leading position in the hydrogen market, projecting significant growth with the clean hydrogen market expected to surpass $600 billion by 2030.
In defense of its strategy and leadership, Air Products pointed to its impressive dividend history, which InvestingPro confirms includes 54 consecutive years of dividend maintenance and 41 years of increases, currently offering a 2.28% yield. The company distributed around $1.6 billion in dividend payments in fiscal 2024 alone. The company maintains a cautious approach to new investments, not proceeding with new low-carbon projects until existing ones are sufficiently contracted.
The letter to shareholders also critiqued Mantle Ridge's history of value destruction and inconsistent actions, arguing that its nominees, if elected, could disrupt the company's progress and long-term strategy. Air Products' board unanimously recommended that shareholders vote for its slate of director nominees, which includes a mix of new and existing members, on the WHITE proxy card. The board's recommendation is based on the belief that Mantle Ridge's nominees would not add any new skills and could potentially impede the company's growth and succession planning.
This news comes as Air Products continues to focus on serving energy, environmental, and emerging markets, with sales of $12.1 billion in fiscal 2024 from operations in around 50 countries. The information is based on a press release statement from the company.
In other recent news, Air Products and Chemicals Inc (NYSE:APD). has been the subject of significant corporate developments. The company reported a 13% year-over-year increase in adjusted earnings per share for Q4 2024, in line with their guidance. For fiscal year 2025, Air Products expects an EPS growth of 6% to 9%, despite selling its LNG business to Honeywell (NASDAQ:HON).
Mizuho (NYSE:MFG) and BMO Capital have maintained their Outperform ratings on Air Products, adjusting their price targets to $385 and $350 respectively, following the strong Q4 results and aligned fiscal year guidance.
In governance news, Mantle Ridge LP, an activist hedge fund, has proposed a restructuring of Air Products' board. The fund has reduced the number of its nominees from five to four for election at the company's 2025 Annual Meeting.
Air Products continues to focus on the burgeoning clean hydrogen market, with multiple projects in progress, including a 15-year contract to provide TotalEnergies (EPA:TTEF) with green hydrogen starting in 2030. The company's substantial growth in construction-in-progress, currently at $11 billion, signals a significant increase in ongoing projects.
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