Air Products and Chemicals (NYSE:APD) Issues Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Air Products and Chemicals (NYSE:APD) issued 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 positive return on equity of 15.18% and a negative net margin of 3.28%.The business had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.05 billion. During the same period last year, the business posted $2.86 EPS. The company’s 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 Stock Up 6.5%

Shares of APD stock opened at $272.56 on Friday. The company has a current ratio of 1.38, a quick ratio of 1.20 and a debt-to-equity ratio of 0.98. Air Products and Chemicals has a 12 month low of $229.11 and a 12 month high of $341.14. The stock has a market cap of $60.67 billion, a P/E ratio of -153.12, a P/E/G ratio of 2.52 and a beta of 0.87. The company has a 50 day simple moving average of $254.42 and a two-hundred day simple moving average of $268.44.

Air Products and Chemicals Increases Dividend

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

Hedge Funds Weigh In On Air Products and Chemicals

Institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC lifted its position in shares of Air Products and Chemicals by 14.5% during the 4th quarter. Brighton Jones LLC now owns 3,260 shares of the basic materials company’s stock valued at $945,000 after buying an additional 412 shares in the last quarter. Bison Wealth LLC bought a new stake in Air Products and Chemicals during the 4th quarter worth approximately $245,000. Sei Investments Co. lifted its holdings in Air Products and Chemicals by 197.6% during the second quarter. Sei Investments Co. now owns 281,861 shares of the basic materials company’s stock valued at $79,498,000 after purchasing an additional 187,142 shares in the last quarter. Treasurer of the State of North Carolina boosted its position in shares of Air Products and Chemicals by 2.1% in the second quarter. Treasurer of the State of North Carolina now owns 103,777 shares of the basic materials company’s stock worth $29,271,000 after purchasing an additional 2,171 shares during the period. Finally, Diversify Advisory Services LLC increased its stake in shares of Air Products and Chemicals by 52.5% in the second quarter. Diversify Advisory Services LLC now owns 6,474 shares of the basic materials company’s stock worth $1,873,000 after purchasing an additional 2,229 shares in the last quarter. 81.66% of the stock is owned by institutional investors.

Key Air Products and Chemicals News

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

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Evercore ISI reduced their price objective on Air Products and Chemicals from $375.00 to $325.00 and set an “outperform” rating for the company in a report on Tuesday, November 11th. Royal Bank Of Canada dropped their price target on shares of Air Products and Chemicals from $350.00 to $325.00 and set an “outperform” rating on the stock in a report on Friday, November 7th. JPMorgan Chase & Co. reduced their price target on shares of Air Products and Chemicals from $275.00 to $260.00 and set a “neutral” rating for the company in a research note on Friday, November 7th. Wolfe Research restated an “outperform” rating and set a $315.00 price objective on shares of Air Products and Chemicals in a research report on Monday, December 8th. Finally, Argus dropped their target price on shares of Air Products and Chemicals from $317.00 to $265.00 and set a “buy” rating on the stock in a report on Thursday, December 11th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $288.00.

Air Products and Chemicals Company Profile

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.