Air Products and Chemicals (NYSE:APD) Announces Earnings Results

Air Products and Chemicals (NYSE:APD) released its earnings results on Friday. The basic materials company reported $3.16 EPS for the quarter, beating the consensus estimate of $3.04 by $0.12, FiscalAI reports. Air Products and Chemicals had a negative net margin of 3.28% and a positive return on equity of 15.18%. The firm had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.05 billion. During the same period last year, the firm earned $2.86 EPS. The business’s quarterly revenue was up 5.8% compared to the same quarter last year. Air Products and Chemicals updated its Q2 2026 guidance to 2.950-3.100 EPS and its FY 2026 guidance to 12.850-13.150 EPS.

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

• Air Products reported first‑quarter adjusted EPS of $3.16 (up 10%) and a 12% increase in adjusted operating income, and management reaffirmed full‑year EPS guidance that implies roughly 7%–9% improvement at the midpoint.
• Management emphasized three 2026 priorities — unlock earnings growth, optimize large projects, and maintain capital discipline — including a planned reduction of approximately $1 billion in fiscal 2026 CapEx and a dividend increase (44th consecutive year).
• Air Products is in advanced negotiations with Yara to restructure the Darrow (Louisiana) ammonia project—Yara would take ammonia assets and sign a 25‑year H2/N2 offtake—yet Air Products insists on a CCS partner, reliable EPC cost agreements, and an elevated go‑forward return before a final investment decision; EU CBAM rule uncertainty could affect timing/terms.
• The NEOM green hydrogen JV is currently consolidated on Air Products’ balance sheet during construction (contributing to reported leverage of 2.2x net debt/EBITDA), but is expected to be deconsolidated when operational (mid‑2027), which should remove project debt from the company’s balance sheet and improve leverage.
• Helium remains a material headwind — management reiterated an approximate ~4% EPS drag for the year from helium weakness and noted tougher year‑over‑year comps due to a prior‑year non‑recurring helium sale.

Air Products and Chemicals Price Performance

Shares of NYSE:APD opened at $272.56 on Friday. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.20 and a current ratio of 1.38. Air Products and Chemicals has a 52 week low of $229.11 and a 52 week high of $341.14. The firm has a market cap of $60.67 billion, a PE ratio of -153.12, a price-to-earnings-growth ratio of 2.52 and a beta of 0.87. The firm’s fifty day moving average is $254.42 and its 200-day moving average is $268.56.

Air Products and Chemicals Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 11th. Stockholders of record on Wednesday, April 1st will be paid a dividend of $1.81 per share. The ex-dividend date of this dividend is Wednesday, April 1st. This is an increase from Air Products and Chemicals’s previous quarterly dividend of $1.79. This represents a $7.24 annualized dividend and a dividend yield of 2.7%. Air Products and Chemicals’s payout ratio is -402.25%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on APD shares. JPMorgan Chase & Co. dropped their price objective on Air Products and Chemicals from $275.00 to $260.00 and set a “neutral” rating for the company in a research report on Friday, November 7th. Weiss Ratings reissued a “sell (d+)” rating on shares of Air Products and Chemicals in a report on Monday, December 29th. Mizuho decreased their price target on shares of Air Products and Chemicals from $300.00 to $290.00 and set an “outperform” rating on the stock in a report on Thursday, December 18th. Bank of America raised shares of Air Products and Chemicals from an “underperform” rating to a “neutral” rating and set a $275.00 price objective for the company in a research note on Thursday, January 8th. Finally, Royal Bank Of Canada decreased their target price on shares of Air Products and Chemicals from $350.00 to $325.00 and set an “outperform” rating on the stock in a research note on Friday, November 7th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Air Products and Chemicals has an average rating of “Moderate Buy” and a consensus target price of $288.00.

Key Stories Impacting Air Products and Chemicals

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

• Positive Sentiment: Q1 results beat expectations — adjusted EPS $3.16 vs. $3.04 expected and revenue $3.10B vs. $3.05B, with margins benefiting from lower costs and pricing. This beat is the primary driver of the rally. APD Q1 Earnings Beat on Lower Costs
• Positive Sentiment: Management maintained FY‑2026 guidance (EPS 12.85–13.15) and set Q2 guidance (2.95–3.10), signaling confidence in the business and limiting downside from the quarter. Air Products Reports Fiscal 2026 First Quarter Results
• Positive Sentiment: Corporate wins and shareholder actions: increased quarterly dividend to $1.81 (44th consecutive annual raise) and new/ongoing contracts including >$140M in NASA liquid‑hydrogen awards and progress on low‑emission ammonia deals — supportive for long‑term revenue visibility. Air Products Reports Fiscal 2026 First Quarter Results
• Neutral Sentiment: Guidance relative to consensus is mixed — the company’s FY and Q2 ranges are essentially maintained but sit near or slightly below some street estimates (e.g., consensus Q2 ~3.03; FY consensus cited ~12.93), which could cap upside until guidance traction is confirmed.
• Neutral Sentiment: Planned capital expenditures remain high (~$4.0B for FY‑2026). That supports growth projects (H2, ammonia, hydrogen infrastructure) but may constrain free cash flow near term. Air Products Reports Fiscal 2026 First Quarter Results
• Negative Sentiment: Relative performance: some coverage noted APD underperformed peers recently, a reminder of potential short‑term volatility if sector momentum fades. Air Products Underperforms Peers

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of APD. Viking Global Investors LP acquired a new stake in shares of Air Products and Chemicals in the second quarter valued at about $607,601,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Air Products and Chemicals by 644.6% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,031,306 shares of the basic materials company’s stock valued at $281,258,000 after acquiring an additional 892,793 shares during the last quarter. Invesco Ltd. increased its position in Air Products and Chemicals by 31.2% during the 3rd quarter. Invesco Ltd. now owns 1,880,652 shares of the basic materials company’s stock valued at $512,891,000 after purchasing an additional 447,724 shares during the period. Sei Investments Co. raised its holdings in Air Products and Chemicals by 197.6% during the 2nd quarter. Sei Investments Co. now owns 281,861 shares of the basic materials company’s stock worth $79,498,000 after purchasing an additional 187,142 shares during the last quarter. Finally, State Street Corp lifted its position in shares of Air Products and Chemicals by 1.1% in the 3rd quarter. State Street Corp now owns 9,559,492 shares of the basic materials company’s stock worth $2,607,065,000 after purchasing an additional 106,578 shares during the period. 81.66% of the stock is owned by institutional investors and hedge funds.

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.