Company overview

Refineries, chemical plants, metal producers and electronics manufacturers buy oxygen, nitrogen, hydrogen and other gases from Air Products & Chemicals for their operations. Industrial gas sales provide the vast majority of its revenue; equipment sales are a smaller business, including Rotoflow rotating equipment and Gardner Cryogenics helium and hydrogen transport and storage containers.

For customers needing steady, large volumes, the company builds or acquires gas plants at or near their facilities, or supplies them through pipelines. This is its largest revenue source. Long-term contracts commonly require fixed monthly payments or minimum purchases. Other customers receive gases by tanker, trailer or cylinder and pay for deliveries according to their needs, without minimum purchase requirements.

The business depends on industrial customers’ demand and continued operation of its plants and delivery systems. Electricity is the biggest cost in producing gases from air, while natural gas is a key input for producing hydrogen and related gases. Contract pricing often passes energy-cost changes to customers, though recovery can lag or be incomplete. Customers are concentrated in refining, chemicals and electronics, but no single customer dominates sales. Export controls and sanctions can restrict shipments and dealings with certain countries or customers.

Air Products is also developing lower-carbon hydrogen projects, including the NEOM Green Hydrogen Project in Saudi Arabia. These projects are distinct from its established gas supply business: substantial planned production still lacks finalized customer purchase agreements, and their economics depend partly on regulatory support and incentives.