Air Products

Pricing power is good but not absolute. On-site contracts typically include price escalators and energy or natural gas pass-throughs that protect margins, while merchant pricing has been increased to offset energy volatility. Recent results cite higher pricing aiding EPS even as volumes softened in some regions.

The ability to reprice helium and merchant gases varies with cycle conditions, and regulatory or indexed pass-throughs cap upside in some contracts. Overall margins are healthy for an industrial business, but not in a monopolistic range. Sources: Q3 FY2025 press release and 10-Q; Reuters Aug 1, 2024 article noting higher pricing.