Air Products and Chemicals (NYSE:APD) Posts Quarterly Earnings Results, Meets Expectations

Key Points

• Air Products reported quarterly adjusted EPS of $3.61, matching expectations, while revenue rose 12.3% year over year to $3.56 billion, above analyst forecasts.
• Full-year fiscal 2026 adjusted EPS increased 12% to $13.45. For fiscal 2027, management forecasts adjusted EPS of $14.15–$14.50, or 5%–8% growth.
• Despite stronger adjusted results, full-year GAAP EPS was just $2.39, weighed down by charges, mainly related to exiting two China projects. Shares fell 1.6% in Friday trading.

Air Products and Chemicals (NYSE:APD - Get Free Report) issued its earnings results on Thursday. The basic materials company reported $3.61 earnings per share (EPS) for the quarter, meeting the consensus estimate of $3.61, FiscalAI reports. Air Products and Chemicals had a negative net margin of 0.38% and a positive return on equity of 16.87%. The business had revenue of $3.56 billion during the quarter, compared to analysts' expectations of $3.33 billion. During the same quarter in the prior year, the business posted $3.39 EPS. The company's revenue for the quarter was up 12.3% on a year-over-year basis.

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

• Air Products reported FY2026 adjusted EPS of $13.45, up 12%, on 8% sales growth and 11% operating income growth. Operating margin expanded 70 basis points to 24.4%, and return on capital rose 100 basis points to 11.9%.
• For FY2027, the company forecasts adjusted EPS of $14.15–$14.50, up 5%–8%, citing new-asset ramp-ups, volume growth, pricing and productivity. Management expects about 2% base volume growth plus contributions from new assets, while higher interest expense and taxes are expected to be a roughly 2% EPS headwind.
• Traditional industrial gas backlog reached $3.3 billion, with more than $2 billion in project wins over the past year, largely tied to electronics. FY2027 capital spending is forecast at $3.0–$3.5 billion, including more than $1 billion for traditional industrial gas growth projects.
• More than $2 billion of spending remains to complete the company’s energy-transition projects, with most expected in FY2027 and the remainder in FY2028. Management said these projects are not expected to contribute materially to future operating income; NEOM is expected to have no material FY2027 financial impact.
• Management expects FY2027 to generate positive net cash flow as stronger operating cash flow and anticipated asset-sale proceeds offset capital spending and dividends. The company also cited $95 million in FY2026 cost savings and said it had completed about 93% of its previously announced workforce reduction.

Air Products and Chemicals Trading Down 1.6%

Shares of APD traded down $4.88 during mid-day trading on Friday, reaching $304.61. The company had a trading volume of 1,075,823 shares, compared to its average volume of 965,353. Air Products and Chemicals has a fifty-two week low of $229.11 and a fifty-two week high of $324.00. The stock has a market cap of $67.83 billion, a price-to-earnings ratio of 23.91, a price-to-earnings-growth ratio of 2.98 and a beta of 0.67. The company has a current ratio of 1.08, a quick ratio of 0.92 and a debt-to-equity ratio of 1.01. The firm has a fifty day simple moving average of $294.94 and a 200-day simple moving average of $290.92.

Air Products and Chemicals Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, February 8th. Shareholders of record on Monday, January 4th will be issued a $1.81 dividend. This represents a $7.24 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Monday, January 4th. Air Products and Chemicals's dividend payout ratio (DPR) is -3,290.91%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on APD shares. Sanford C. Bernstein reissued an "outperform" rating and issued a $373.00 target price on shares of Air Products and Chemicals in a report on Friday, July 31st. Mizuho upped their price objective on Air Products and Chemicals from $345.00 to $355.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $320.00 price objective on shares of Air Products and Chemicals in a research report on Monday, August 3rd. Royal Bank Of Canada upped their price objective on shares of Air Products and Chemicals from $346.00 to $359.00 and gave the stock an "outperform" rating in a research report on Friday. Finally, KeyCorp initiated coverage on shares of Air Products and Chemicals in a report on Thursday, September 10th. They issued a "sector weight" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, Air Products and Chemicals presently has a consensus rating of "Moderate Buy" and an average price target of $334.24.

More Air Products and Chemicals News

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

• Positive Sentiment: Fiscal Q4 adjusted EPS of $3.61 met consensus, while revenue rose 12.3% year over year to $3.56 billion, above estimates. The company also reported 12% growth in full-year adjusted EPS, reduced capital spending, and more than $2 billion in new electronics wins. Air Products fiscal 2026 results and guidance
• Positive Sentiment: Air Products forecast fiscal 2027 adjusted EPS of $14.15–$14.50, above its fiscal 2026 result of $13.45, indicating continued expected earnings growth.
• Positive Sentiment: RBC raised its price target to $359 and maintained an Outperform rating; Mizuho also raised its target, to $360, and kept an Outperform rating. RBC raises price target
• Neutral Sentiment: Barclays lowered its target to $346 from $353 but retained an Overweight rating, leaving its view positive while signaling a slightly reduced valuation outlook. Barclays recommendations
• Negative Sentiment: Reported GAAP results were weighed down by significant charges tied mainly to exiting two China coal-gasification projects. Full-year GAAP EPS was $2.39, far below adjusted EPS of $13.45, highlighting execution and project-related risks despite stronger core performance.

About Air Products and Chemicals

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.