LEHIGH VALLEY, Pa. - Industrial gas giant Air Products (NYSE:APD), with a market capitalization of $73.5 billion, has filed its definitive proxy statement with the SEC, the company disclosed today. The filing is in preparation for its 2025 Annual Meeting of Shareholders scheduled for January 23, 2025. Shareholders on record as of November 27, 2024, are eligible to vote and can find additional information on the dedicated website voteairproducts.com.
The Board of Directors of Air Products has urged shareholders to vote in favor of the company's nominees using the WHITE proxy card. This move comes as a rebuttal to Mantle Ridge's efforts to gain control of the company's board. Air Products has emphasized its financial success, with current EBITDA of $4.3 billion and a solid P/E ratio of 19.2. According to InvestingPro analysis, the company maintains strong financial health with consistently profitable operations and a 41-year track record of dividend increases, attributing these achievements to its investment in core industrial gas operations and its early entry into the clean hydrogen market.
The company has also highlighted a significant potential market for clean hydrogen, citing studies estimating the market's value at over $600 billion by 2030. Air Products recently secured a 15-year contract to provide TotalEnergies (EPA:TTEF) with green hydrogen, starting in 2030, which is seen as a testament to its strategy in the emerging clean energy sector. With a current dividend yield of 2.14% and trading near its 52-week high, InvestingPro subscribers can access detailed analysis of Air Products' growth potential through comprehensive Pro Research Reports, available for over 1,400 US stocks.
In the realm of governance, Air Products announced its search for a CEO successor, with a decision expected by March 31, 2025. The company's board, which will have six of nine directors appointed within the last five years by the time of the Annual Meeting, has been described as refreshed and independent. The company's strong governance practices contribute to its overall positive financial health score, as indicated by InvestingPro data.
Mantle Ridge's attempt to dictate the board's composition and senior management has been labeled by Air Products as potentially destabilizing and value destructive. Air Products has positioned itself against Mantle Ridge's actions, which it claims are for short-term gain and disproportionate to its ownership stake.
This news is based on a press release statement and does not reflect any opinion or analysis. The financial figures mentioned are sourced from the company's filings and statements. Air Products' stock performance, market capitalization, and shareholder returns are publicly available information and can be verified through market records and company disclosures.
In other recent news, Air Products & Chemicals reported a robust 13% year-over-year increase in adjusted earnings per share for the fourth quarter of 2024, meeting their guidance. The company anticipates EPS growth of 6% to 9% for the fiscal year 2025, despite the sale of its LNG business to Honeywell (NASDAQ:HON). Notably, Mizuho (NYSE:MFG) maintained its Outperform rating on Air Products & Chemicals and raised the price target to $385 from $360 following a review of the firm's 10-K filing.
Additionally, BMO Capital also maintained its Outperform rating and increased the price target to $350 from $323. These adjustments were made following the company's strong fourth-quarter results and aligned fiscal year guidance.
In other corporate developments, Air Products & Chemicals received a board nomination from Mantle Ridge for election at the company's 2025 Annual Meeting, which is currently under review by the existing board. The company's commitment to returning value to shareholders is evident, with plans to return approximately $1.6 billion in dividends.
These recent developments indicate a steady course ahead for Air Products & Chemicals, with a strategic focus on the growing clean hydrogen market and several projects underway. The company's significant growth in construction-in-progress, now at $11 billion, signals a substantial increase in ongoing projects.
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