In Q2 2025, Air Products and Chemicals Inc (0HBH.L) delivered disappointing financial results, recording a net loss of $1.73 billion. This was primarily driven by escalating costs of revenue, which outpaced revenue generation, leading to a significant deterioration in profitability. Revenue stood at $2.916 billion, reflecting a year-over-year decrease of 0.48% and a quarter-over-quarter decline of 0.52%. The difficult market conditions, characterized by rising operational expenses, further highlighted the company’s ongoing struggles in maintaining its profitability amidst increased competitive pressures in the industrial materials sector.
The company’s emphasis on strategic investments appears to weigh heavily on cash flow, with capital expenditures reaching $1.891 billion, resulting in a free cash flow of -$1.564 billion. Management remains focused on long-term growth with critical projects ongoing; however, the current results raise concerns regarding short-term financial stability. Investors should continue to monitor Air Products’ cost control measures and their effectiveness against rising operational challenges.