Air Products and Chemicals (NYSE:APD) Posts Quarterly Earnings Results, Hits Estimates

Air Products and Chemicals (NYSE:APD) 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. The business had revenue of $3.56 billion during the quarter, compared to analysts’ expectations of $3.33 billion. Air Products and Chemicals had a negative net margin of 0.38% and a positive return on equity of 16.87%. The company’s revenue for the quarter was up 12.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.39 EPS.

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 Stock Performance

Air Products and Chemicals stock traded down $4.88 during mid-day trading on Friday, reaching $304.61. The company’s stock had a trading volume of 1,075,823 shares, compared to its average volume of 965,353. The firm has a market cap of $67.83 billion, a price-to-earnings ratio of 127.99, a PEG ratio of 2.98 and a beta of 0.67. The business has a 50 day moving average price of $294.94 and a 200-day moving average price of $290.92. Air Products and Chemicals has a twelve month low of $229.11 and a twelve month high of $324.00. The company has a current ratio of 1.08, a quick ratio of 0.92 and a debt-to-equity ratio of 1.01.

Air Products and Chemicals Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, February 8th. Investors of record on Monday, January 4th will be given a dividend of $1.81 per share. This represents a $7.24 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Monday, January 4th. Air Products and Chemicals’s dividend payout ratio is currently -3,290.91%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Evercore reiterated an “outperform” rating and set a $342.00 price target on shares of Air Products and Chemicals in a research note on Friday, July 10th. Morgan Stanley set a $320.00 target price on Air Products and Chemicals in a research note on Monday, August 3rd. Argus boosted their price target on Air Products and Chemicals from $316.00 to $329.00 and gave the company a “buy” rating in a report on Wednesday, September 9th. Citigroup cut their price target on shares of Air Products and Chemicals from $330.00 to $312.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $320.00 price objective on shares of Air Products and Chemicals in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $334.24.

Air Products and Chemicals News Summary

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.

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