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Air Products and Chemicals, Inc.
NYSE: APD Materials Chemicals 🔎 Screen
S&P 500
🏹 Trader: 🎯 Near 52W High View all →
$65.0B
Market Cap
17.3
P/E
2.96
PEG
-2.1%
ROCE
-1.9%
ROE
1.01
D/E
-7.3%
OPM
-7.5%
% from 52W High
58
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for APD including FX impact
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📈 Price History
Ratio Health
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About

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, metals, manufacturing, electronics, energy production, medical, food, chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. was founded in 1940 and is headquartered in Allentown, Pennsylvania.

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📈 Growth Pattern
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⭐ Superinvestors Holding APD
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 4.10M $1.2B 3.33% Mar 2026
Steve Cohen Point72 Asset Management 580.6K $168.6M 0.22% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Mixed ↓ Deteriorating 5 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$3.2B
+5% YoY
Operating Income
$810M
+9% YoY
Operating Margin
25.6%
+1.1pp YoY
Adjusted EPS
$3.47
+12% YoY
What Went Right
  • Adjusted EPS of $3.47 came in above guidance, up 12% YoY on strong on-site volumes, new assets and helium.
  • Operating income rose 9% to $810M and operating margin expanded 110bps to 25.6%.
  • FY26 adjusted EPS guidance raised to $13.39-$13.49, implying 11%-12% full-year growth.
What to Watch
  • Recorded a $2.9B pre-tax charge from exiting the Louisiana project, Casa Grande and other clean energy distribution projects; GAAP diluted loss per share was $6.47.
  • Helium remained a 2% EPS headwind in the quarter, with lower pricing offsetting better Asia volume and mix.
  • NEOM green ammonia carries price risk and a long commissioning process; management confirmed no material financial impact in FY27 but sees price risk retained.
Management Guidance
  • Q4 FY26 adjusted EPS guidance: $3.55-$3.65, up 5%-8% YoY.
  • FY26 adjusted EPS guidance raised to $13.39-$13.49, up 11%-12% YoY.
  • FY26 capital expenditures now expected to be approximately $3.5B, reduced on timing and project cancellations.
  • Targeting ~$1.5B per year in traditional industrial gas capital expenditures going forward.
Investor Lens
The thesis is stronger after this call. Air Products delivered a Q3 beat, raised full-year EPS guidance and is refocusing capital on a $3B traditional industrial gas backlog, with over $1.5B of electronics wins in six months. The exit of large clean energy projects removes a major cash drag and supports a path to buybacks by late 2027/early 2028. Offsetting that, helium pricing remains a headwind and NEOM's financial profile is still heavily dependent on green ammonia market development and commissioning timing.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong beat: adjusted EPS $3.47, up 12% YoY, guidance raised
Revenue
Sales increased 5% to $3.2B, with volume up 3%, price up 1% and currency favorable 1%. Americas revenue rose 5% to $1.3B, Asia rose 9% to $886M and Europe rose 6% to $816M.
Profitability
Adjusted operating income increased 9% to $810M, while adjusted EPS increased 12% to $3.47. GAAP results included a $2.1B operating loss and a diluted loss per share of $6.47, driven by the $2.9B pre-tax project exit charges.
Margins
Adjusted operating margin expanded 110 basis points to 25.6%, supported by volume, price and productivity, partially offset by fixed-cost inflation. Americas segment margin was up 20bps to 29.9%, while Asia margin improved 210bps to 28.9%.
Balance Sheet
Net debt-to-EBITDA was 2.1x, including the proportionate share of NGHC construction debt. Air Products was free cash flow positive year-to-date and returned $1.2B to shareholders in dividends.
Key Risks
Helium remains a pricing headwind despite better Asia volume. Management flagged macroeconomic uncertainty in Europe and Asia and does not assume significant market growth. NEOM commissioning and green ammonia commercialization carry execution and price risk, though FY27 P&L impact is expected to be zero.
Outlook
Q4 FY26 adjusted EPS is guided to $3.55-$3.65, up 5%-8% YoY. Full-year adjusted EPS guidance was raised to $13.39-$13.49, with CapEx now expected at approximately $3.5B.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-07-30
Operating income and EPS grew strongly year-over-year, driven by volume and price gains, especially in electronics and Asia. The company exited major projects, recorded a $2.9B charge, and signed a key green ammonia agreement with Yara, while raising full-year EPS guidance to 11%-12% growth.
Q2 2026 Q2 2026 2026-04-30
Second quarter fiscal 2026 saw 19% EPS growth and margin expansion, driven by strong onsite volumes, productivity, and favorable currency. Full-year EPS guidance was raised to 8–10% growth, with robust performance in electronics and aerospace, and ongoing helium supply challenges managed through contingency plans.
Q1 2026 Q1 2026 2026-01-30
Adjusted EPS grew 10% to $3.16 and operating income rose 12% year-over-year, driven by pricing and productivity gains despite helium headwinds. Full-year EPS guidance is maintained, with strong cash flow, disciplined CapEx, and continued dividend growth.
Q4 2025 Q4 2025 2025-11-06
FY2025 EPS reached $12.03, above guidance, with strong cash returns and ongoing cost savings. FY2026 EPS is guided up 7–9% despite helium headwinds, supported by new assets, pricing, and productivity. NEOM and Louisiana projects remain key focus areas.
Q3 2025 Q3 2025 2025-07-31
Adjusted EPS of $3.09 exceeded guidance despite lower sales volume from LNG business sale and helium demand. Cost-saving initiatives and digital investments are driving margin improvements, with a cautious outlook and $11.90–$12.10 EPS guidance for FY2025.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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