LEHIGH VALLEY, Pennsylvania – Air Products (NYSE:APD), a $63 billion global industrial gases company, today reaffirmed its commitment to a deliberate CEO succession process and the superiority of its board candidates despite criticism from activist investors Mantle Ridge and DE Shaw. According to InvestingPro data, the company maintains a “GOOD” overall financial health score, suggesting strong operating fundamentals. The company’s board has announced that a structured CEO succession plan is in place, with the intention of appointing a new chairman and providing a timeline for the CEO transition by March 31, 2025.
The board expressed confidence in his approach, contrasting it with Mantle Ridge’s recent actions, which Air Products characterized as an attempt to undermine the reputation of the current CEO, Seifi Ghasemi, through disinformation. Mantle Ridge’s advocacy of CEO succession and board changes has been described as motivated by relationships and a short-term agenda rather than merit. The company raised concerns about one of Mantle Ridge’s candidates, Dennis Reilley, citing reports of his alleged mishandling of confidential information on other public company boards.
Air Products has also defended its financial reporting practices against what it calls Mantle Ridge’s manipulative claims, arguing that the company’s profitability metrics are in line with industry standards and facilitate comparisons with historical results. The company pointed to its industry-leading margins, $44 billion in shareholder value creation and an adjusted annual growth rate (CAGR) of 11% since 2014 as evidence of its strong financial performance. InvestingPro analysis reveals the stock trades at a P/E ratio of 16.4x and has maintained dividend payments for 55 consecutive years, demonstrating long-term financial stability. Get access to more detailed financial insights and exclusive ProTips with a subscription to InvestingPro.
In an appeal to its shareholders, the Air Products Board recommended voting for its own nominees at the 2025 Annual Meeting of Shareholders and disregarding Mantle Ridge’s proxy materials.
The company, which has been in business for over 80 years, specializes in the supply of industrial gases and equipment to various sectors, including the energy and environmental markets. With fiscal 2024 sales of $12.1 billion and operations in approximately 50 countries, Air Products has a market capitalization of more than $65 billion and employs approximately 23,000 people worldwide. InvestingPro data shows that the stock offers a 2.5% dividend yield and generally trades with low price volatility, making it potentially attractive to income-focused investors. Discover comprehensive analysis and more professional advice by accessing the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
This article is based on a press release from Air Products. The Company’s financial measures, such as Adjusted EPS and Adjusted EBITDA margin, are non-GAAP metrics, and reconciliations to the GAAP measures are available on their Investor Relations website.
In other recent news, Air Products and Chemicals (NYSE:), Inc. he was at the center of significant corporate development. The company reported a 13% year-over-year rise in adjusted earnings per share for the fourth quarter of 2024, meeting their guidance. For fiscal 2025, Air Products projects EPS growth of 6% to 9%, despite the sale of its LNG business to Honeywell (NASDAQ: ).
Investment firms DE Shaw and Mantle Ridge LP expressed displeasure with the company’s management, particularly criticizing its management of executive succession planning. Both companies proposed changes to the composition of the board at the upcoming annual meeting in 2025.
Analysts in Mizuho (NYSE: ) and BMO Capital maintained their outperform ratings on Air Products, adjusting their price targets to $385 and $350, respectively, following strong fourth-quarter results and fiscal year guidance.
In addition, Air Products continues to focus on the emerging clean hydrogen market, with multiple projects underway, including a 15-year contract to supply TotalEnergies (EPA: ) with green hydrogen beginning in 2030. The company’s construction pipeline currently stands at $11 billion, signaling a significant increase in ongoing projects. These are recent events in the company’s operations.
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