Air Products and Chemicals (NYSE:APD) Issues Quarterly Earnings Results

Key Points

• Adjusted EPS was $3.47, beating the $3.34 consensus and rising from $3.09 a year earlier, while revenue increased 4.6% to $3.16 billion but fell short of the $3.20 billion estimate.
• Air Products raised fiscal 2026 adjusted EPS guidance to $13.39–$13.49 and fourth-quarter guidance to $3.55–$3.65, supported by industrial-gas backlog and electronics-sector project growth.
• Despite stronger adjusted results, the company reported a $2.9 billion pre-tax charge tied to exiting several clean-energy projects, resulting in a $6.47 GAAP loss per share and highlighting ongoing execution risks.

Air Products and Chemicals (NYSE:APD - Get Free Report) released its quarterly earnings results on Thursday. The basic materials company reported $3.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.13, FiscalAI reports. The firm had revenue of $3.16 billion during the quarter, compared to the consensus estimate of $3.20 billion. Air Products and Chemicals had a net margin of 16.91% and a return on equity of 16.11%. The company's revenue for the quarter was up 4.6% on a year-over-year basis. During the same quarter last year, the firm earned $3.09 earnings per share. Air Products and Chemicals updated its FY 2026 guidance to 13.390-13.490 EPS and its Q4 2026 guidance to 3.550-3.650 EPS.

Here are the key takeaways from Air Products and Chemicals' conference call:

• Raised fiscal 2026 EPS guidance to $13.39–$13.49, implying 11%–12% year-over-year growth, after third-quarter EPS rose 12% to $3.47 and exceeded expectations.
• The traditional industrial gas backlog is approximately $3 billion, with more than $1.5 billion of electronics-related project wins in the past six months; management expects to invest about $1.5 billion annually in these projects.
• Third-quarter operating income increased 9% and margin expanded to 25.6%, supported by onsite volume, new assets, pricing, productivity, and stronger equity-affiliate contributions.
• Air Products recorded a $2.9 billion pre-tax charge after exiting the Louisiana, Casa Grande, and other clean-energy projects, while management is still working to monetize or redeploy related equipment and assets.
• Helium remains an earnings headwind due primarily to lower pricing, and the company continues to face macroeconomic weakness in Europe and parts of Asia; the NEOM project has no expected fiscal 2027 earnings impact but retains longer-term price exposure and commissioning uncertainty.

Air Products and Chemicals Stock Up 1.9%

Shares of Air Products and Chemicals stock traded up $5.48 during trading on Thursday, reaching $299.75. 1,599,154 shares of the company traded hands, compared to its average volume of 1,360,709. The firm has a market capitalization of $66.75 billion, a PE ratio of 31.72, a P/E/G ratio of 2.66 and a beta of 0.73. Air Products and Chemicals has a 1-year low of $229.11 and a 1-year high of $314.87. The company has a 50 day moving average price of $289.40 and a 200-day moving average price of $286.38. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.43 and a quick ratio of 1.21.

Air Products and Chemicals Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 9th. Stockholders of record on Thursday, October 1st will be given a dividend of $1.81 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $7.24 annualized dividend and a dividend yield of 2.4%. Air Products and Chemicals's dividend payout ratio (DPR) is 76.61%.

Analyst Ratings Changes

Several brokerages have commented on APD. UBS Group lifted their target price on Air Products and Chemicals from $307.00 to $316.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Berenberg Bank set a $350.00 target price on Air Products and Chemicals and gave the company a "buy" rating in a report on Monday, April 20th. Citigroup increased their target price on shares of Air Products and Chemicals from $285.00 to $315.00 and gave the company a "neutral" rating in a research report on Monday, April 13th. Mizuho set a $345.00 price target on shares of Air Products and Chemicals in a research report on Friday, May 1st. Finally, Evercore reaffirmed an "outperform" rating and issued a $342.00 price objective on shares of Air Products and Chemicals in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $326.88.

More Air Products and Chemicals News

Here are the key news stories impacting Air Products and Chemicals this week:

• Positive Sentiment: Adjusted EPS was $3.47, above the $3.34–$3.36 analyst consensus and up from $3.09 a year earlier. Higher on-site volumes, pricing and favorable currency contributed to the outperformance. APD Q3 Earnings Beat on Volume Growth, Sales Miss Estimates
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $13.39–$13.49, above the $13.22 consensus, and provided fourth-quarter guidance of $3.55–$3.65, also exceeding estimates. Air Products Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Adjusted operating income reached $810 million, while the company highlighted electronics-sector growth through a long-term Taiwan agreement covering air separation units, bulk gas systems and pipelines. Air Products Stock Surges After Strong Profit Growth, Raised Guidance
• Neutral Sentiment: Revenue increased 4.6% year over year to $3.16 billion, but missed the $3.20 billion estimate. The company also expects fiscal 2026 capital expenditures of approximately $3.5 billion. Air Products Earnings Report
• Negative Sentiment: GAAP results showed a $6.47 loss per share and a $2.1 billion operating loss, largely due to charges from business and asset actions. Air Products also abandoned the Louisiana Clean Energy Complex, an Arizona zero-carbon liquid hydrogen facility and other smaller clean-energy projects, which may raise concerns about execution and growth prospects. Air Products Reports Fiscal 2026 Third Quarter Results

Insider Buying and Selling

In other Air Products and Chemicals news, CFO Melissa N. Schaeffer sold 2,714 shares of Air Products and Chemicals stock in a transaction on Friday, May 1st. The shares were sold at an average price of $303.76, for a total value of $824,404.64. Following the completion of the sale, the chief financial officer directly owned 14,212 shares of the company's stock, valued at approximately $4,317,037.12. The trade was a 16.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.88% of the company's stock.

Institutional Trading of Air Products and Chemicals

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mcguire Capital Advisors Inc. bought a new stake in Air Products and Chemicals during the 4th quarter valued at $25,000. Compound Planning Inc. increased its position in shares of Air Products and Chemicals by 111.1% during the fourth quarter. Compound Planning Inc. now owns 5,571 shares of the basic materials company's stock worth $1,376,000 after acquiring an additional 2,932 shares in the last quarter. Axxcess Wealth Management LLC raised its holdings in shares of Air Products and Chemicals by 101.4% in the 4th quarter. Axxcess Wealth Management LLC now owns 2,533 shares of the basic materials company's stock worth $626,000 after acquiring an additional 1,275 shares during the last quarter. Widmann Financial Services Inc. lifted its position in Air Products and Chemicals by 2.6% in the 4th quarter. Widmann Financial Services Inc. now owns 3,115 shares of the basic materials company's stock valued at $769,000 after acquiring an additional 80 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its stake in Air Products and Chemicals by 38.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 43,185 shares of the basic materials company's stock valued at $10,668,000 after purchasing an additional 12,080 shares during the last quarter. 81.66% of the stock is owned by institutional investors.

About Air Products and Chemicals

Air Products and Chemicals, Inc is a global supplier of industrial gases and related equipment and services, headquartered in Allentown, Pennsylvania. The company produces and delivers atmospheric gases such as oxygen, nitrogen and argon, as well as specialty and process gases used across a wide range of industrial applications. Air Products designs, builds and operates gas production facilities, merchant distribution networks and on-site gas systems for customers that require reliable, high-purity gases and integrated supply solutions.

The company's product and service portfolio includes packaged and bulk gas supply, pipeline distribution, on-site generation, gas handling and storage equipment, and engineered systems for gas liquefaction and purification.

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