Air Products faces risks from economic downturns, impacting product demand and pricing. International operations expose the company to currency fluctuations, political instability, and regulatory changes. Project delays, scope changes, and cost overruns are potential issues for large-scale clean hydrogen projects. Legal and regulatory risks, including environmental regulations and litigation, could lead to significant costs. Competition from global and regional competitors is a constant threat. Attracting and retaining skilled employees is a challenge. Activist shareholders may create disruptive and costly proxy contests. Catastrophic events and supply chain disruptions are also potential risks.
Financial Upside
The company anticipates pricing improvements in the merchant industrial gases business and positive volume contributions from new on-site plants. Cost discipline and productivity actions aim to mitigate inflationary pressures. The sale of the LNG business generated a significant gain. Issuance of green senior notes provides funding for environmentally beneficial projects. The company expects to continue increasing dividends. Clean hydrogen projects, like the NEOM Green Hydrogen Project, offer significant long-term growth potential.
