Air Products and Chemicals, Inc.
- Open
- 311.10
- Day high
- 311.72
- Day low
- 304.91
- Prev close
- 309.45
- Volume
- 25K
- Mkt cap
- $68.0B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 4.9
- P/S
- 5.4
- Yield
- 2.36%
- Per share
- $7.20
Air Products and Chemicals, Inc. (APD) is a Basic Materials company listed on NYSE. The stock is up 7% over the past year. Drillr has 1 published research article covering APD.
Air Products and Chemicals, Inc. (APD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
APD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $3.34 | $3.47 | +4.0% | $3.2B | -1.2% |
| Apr 30, 2026 | $3.05 | $3.20 | +4.8% | $3.2B | +3.5% |
| Jan 30, 2026 | $3.04 | $3.16 | +3.9% | $3.1B | +1.7% |
| Nov 6, 2025 | $3.38 | $3.39 | +0.3% | $3.2B | -0.3% |
| Jul 31, 2025 | $2.99 | $3.09 | +3.3% | $3.0B | +1.1% |
| May 1, 2025 | $2.83 | $2.69 | -4.9% | $2.9B | -0.1% |
| Feb 6, 2025 | $3.13 | $2.86 | -8.6% | $2.9B | -0.7% |
| Nov 7, 2024 | $3.48 | $3.56 | +2.3% | $3.2B | -0.8% |
| Aug 1, 2024 | $3.03 | $3.20 | +5.6% | $3.0B | -1.6% |
| Apr 30, 2024 | $2.69 | $2.85 | +5.9% | $2.9B | -3.8% |
| Aug 3, 2023 | $2.91 | $2.98 | +2.4% | $3.0B | -7.9% |
| Feb 2, 2023 | $2.70 | $2.64 | -2.2% | $3.2B | -3.1% |
APD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Stern Alfreddirector | Grant | 101 | — |
| Jul 2, 2026 | Evans Andrew Wdirector | Grant | 8 | — |
| Jul 2, 2026 | CALAWAY TONIT Mdirector | Grant | 21 | — |
| Jul 2, 2026 | Smith Wayne Thomasdirector | Grant | 35 | — |
| Jul 2, 2026 | REILLEY DENNIS Hdirector | Grant | 18 | — |
| Jul 2, 2026 | Graziano Jessicadirector | Grant | 174 | — |
| Jul 2, 2026 | Patel Bhavesh V.director | Grant | 141 | — |
| Jul 2, 2026 | Ungerleider Howard Idirector | Grant | 6 | — |
| May 4, 2026 | Schaeffer Melissa N.officer: Exec Vice President and CFO | Sell | 2,714 | $303.76 |
| Feb 13, 2026 | Mantle Ridge LPdirector, other: Director by deputization | Sell | 70,175 | $284.21 |
| Jan 29, 2026 | Stern Alfreddirector | Grant | 733 | — |
| Jan 29, 2026 | REILLEY DENNIS Hdirector | Grant | 1,505 | — |
| Jan 29, 2026 | Smith Wayne Thomasdirector | Grant | 1,698 | — |
| Jan 29, 2026 | Patel Bhavesh V.director | Grant | 733 | — |
| Jan 29, 2026 | Evans Andrew Wdirector | Grant | 733 | — |
Source: APD SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full APD insider & 13F page →Air Products and Chemicals, Inc. company profile
Overview
Air Products and Chemicals, Inc. (NYSE:APD) is a multinational industrial gases company founded in 1940 and headquartered in Allentown, Pennsylvania. The company has evolved from a small startup focused on oxygen production to become one of the world's largest suppliers of atmospheric and process gases. Air Products went public in 1980 and has established itself as a leader in the industrial gases sector, serving customers across diverse industries including steel, chemicals, refining, electronics, and healthcare. The company is currently undergoing a strategic transformation, pivoting from an aggressive expansion phase back to its core industrial gases business while selectively pursuing clean hydrogen opportunities.
Business
Air Products operates in the industrial gases industry, which involves the production, processing, and distribution of gases that are essential for manufacturing and industrial processes. The company's business is built around two main pillars: traditional industrial gases and emerging clean hydrogen technologies. The core industrial gases business produces atmospheric gases including oxygen, nitrogen, and argon, which are extracted from air through a process called air separation. Oxygen is crucial for steel production and medical applications, nitrogen is used for food preservation and electronics manufacturing, and argon is essential for welding and metal processing. The company also produces process gases such as hydrogen (used in oil refining), helium (critical for electronics and medical imaging), carbon dioxide, carbon monoxide, and syngas (synthetic gas used in chemical production). Beyond gas production, Air Products manufactures sophisticated equipment including air separation units, which are large industrial plants that separate air into its component gases, and specialized storage and transport systems for liquefied gases. The company also provides comprehensive services including equipment maintenance, technical support, and supply chain management. The emerging clean hydrogen business represents Air Products' strategic bet on the energy transition. This includes green hydrogen (produced using renewable electricity to split water) and blue hydrogen (produced from natural gas with carbon capture technology). These clean hydrogen variants are positioned to serve decarbonization efforts in steel production, shipping fuel, and industrial processes. Revenue is distributed across geographic segments: Americas (approximately 35-40%), Asia (25-30%), Europe (20-25%), and Middle East/India (10-15%), with the core industrial gases business representing roughly 85-90% of total revenues and the emerging hydrogen projects expected to contribute meaningfully starting in 2026-2028.
Revenue model
Air Products generates revenue through multiple business models centered on industrial gas supply and equipment sales. The primary revenue stream comes from long-term supply contracts where the company builds on-site gas production facilities at customer locations and supplies gases under 15-20 year agreements. These contracts typically include take-or-pay provisions and pricing escalations tied to inflation, providing stable, recurring cash flows. The company also operates through merchant sales, where gases are produced at Air Products facilities and delivered to customers via truck or pipeline. This model allows for more flexible pricing but is subject to volume fluctuations based on industrial activity. Additionally, Air Products sells and leases gas production equipment and provides related services, generating both upfront equipment revenue and ongoing service fees. Customers span diverse industrial sectors including steel manufacturers (who use oxygen for blast furnaces), oil refiners (who require hydrogen for fuel processing), electronics companies (who need ultra-pure gases for semiconductor fabrication), food and beverage processors (who use nitrogen for preservation), and healthcare providers (who require medical oxygen and helium for MRI machines). Several factors influence Air Products' margins and profitability. Energy costs represent a significant input, as gas production requires substantial electricity, making the company sensitive to power price fluctuations. Industrial production levels directly impact demand, with economic downturns reducing customer gas consumption. Pricing power varies by region and contract type, with long-term contracts providing stability but limiting ability to quickly adjust to cost changes. The company benefits from operational leverage, where incremental volume increases flow largely to the bottom line due to high fixed costs in gas production facilities. Currency fluctuations affect international operations, while helium market volatility creates earnings variability due to supply-demand imbalances in this specialty market.
Competitive moat
Air Products possesses a moderately strong economic moat built primarily on high switching costs and capital intensity barriers. The company's core competitive advantage lies in its integrated supply model, where it builds dedicated on-site gas production facilities at customer locations under long-term contracts. These arrangements create substantial switching costs for customers, as replacing Air Products would require significant capital investment and operational disruption. The industrial gases business benefits from high barriers to entry due to the capital-intensive nature of air separation units and gas production facilities, which can cost hundreds of millions of dollars. The technical expertise required to design, build, and operate these complex systems creates additional barriers for potential competitors. Air Products' global scale provides advantages in equipment procurement, technology development, and serving multinational customers across multiple locations. However, the moat faces several challenges. The industrial gases market is mature with established competitors including Linde, Air Liquide, and regional players who possess similar capabilities and customer relationships. Commodity-like pricing in merchant markets limits differentiation opportunities, while customers' ability to backward integrate (building their own gas production facilities) provides an alternative to outsourcing. The company's expansion into clean hydrogen represents both an opportunity and a risk to its moat. While Air Products aims to establish first-mover advantages in this emerging market, the clean hydrogen space is attracting significant competition from traditional energy companies, utilities, and new entrants. The success of this strategy depends heavily on government policy support, customer adoption rates, and the company's ability to secure long-term offtake agreements. The high capital requirements and technological complexity of large-scale hydrogen projects could strengthen barriers to entry, but the market remains unproven and policy-dependent.
Risks & safety
Air Products presents a mixed margin of safety profile, with solid operational cash generation offset by elevated capital spending and strategic execution risks. • **Liquidity and Solvency**: Current ratio of 1.0 indicates tight short-term liquidity, though $1.5 billion in cash provides adequate buffer. Debt-to-equity ratio of 1.12 shows elevated leverage but remains manageable for an industrial company. • **Cash Flow Dynamics**: Operating cash flow of $328 million in Q2 2025 demonstrates continued cash generation despite strategic challenges. However, negative free cash flow of -$1.56 billion reflects heavy capital investment phase. Management targets cash flow neutrality by 2026-2028. • **Valuation Metrics**: Trading at negative P/E due to recent impairments, but core business generates solid returns. EV/EBITDA of -11.1x distorted by one-time charges. Management guidance suggests normalized earnings power of $12 EPS from core business. • **Strategic Risks**: Company is unwinding aggressive expansion strategy, canceling $5 billion in underperforming projects. New leadership (CEO change in February 2025) brings execution uncertainty. Clean hydrogen projects face policy and market development risks. • **Balance Sheet Strength**: Total assets of $38.9 billion against $22.1 billion in liabilities provide reasonable cushion. However, significant capital commitments for remaining hydrogen projects create ongoing cash requirements.
Recent development
Air Products has undergone significant strategic evolution over the past few years, marked by an ambitious expansion into clean hydrogen followed by a recent strategic refocus back to its core industrial gases business. Under previous leadership, the company pursued an aggressive growth strategy centered on large-scale hydrogen projects, including the flagship NEOM green hydrogen project in Saudi Arabia and the Louisiana blue hydrogen project, while expanding capital expenditures to $4-5 billion annually. However, this expansion strategy encountered significant challenges, with cost overruns, delayed market development, and lack of committed offtake agreements plaguing several projects. The company recently announced the cancellation of underperforming projects representing $5 billion in total capital expenditure and initiated a strategic refocus under new CEO Eduardo Menezes, who took over in February 2025. The current strategic pivot involves returning to the core industrial gases business model while maintaining select hydrogen investments. Key elements include reducing annual capital expenditure from $4 billion to $1.5 billion, targeting headcount reduction from 23,000 to approximately 16,000 employees (2018 levels), and focusing on operational excellence to achieve a 30% adjusted operating margin by 2030. The company sold its LNG process technology business to Honeywell for $1.8 billion and divested other non-core assets. Despite the strategic pullback, Air Products is maintaining its commitment to the NEOM green hydrogen project, which is 60% complete and expected to begin operations in late 2026. The Louisiana blue hydrogen project remains under development with a targeted 2028 completion, though the company is exploring project financing and equity partnerships to reduce capital exposure. The company has also secured significant offtake agreements, including a long-term contract with TotalEnergies for 70,000 tons per year of green hydrogen starting in 2030.
APD company profile · for informational purposes only — not investment advice.
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