Air Products and Chemicals Inc.
APDFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$3.2B
Q2 FY2026 · +9% YoY
TTM ROIC
9%
FY2025 · Adj Operating Income (NOPAT proxy) / Invested Capital (incl. in-process projects) · WACC ~8.25% · Moat spread +0.75pp
Financial Snapshot
ticker: APD step: 04 generated: 2026-05-12 source: quick-research
Air Products and Chemicals (APD) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | FY2026E |
|---|---|---|---|---|
| Revenue | $12.6B | $12.1B | $12.0B | $12.2-12.5B |
| Underlying Volume Growth | flat | -3% | -4% | +1-2% |
| Adj EBITDA | $4.7B | $5.0B | $4.85B | $5.15B+ |
| Adj EBITDA Margin | 37.0% | 41.4% | 40.4% | 42% |
| Adj Diluted EPS | $11.43 | $12.43 | $12.03 | $13.00-13.50 |
| GAAP Diluted EPS | $9.40 | $14.30 (gain on LNG) | $9.50 | – |
Fiscal year ends September. FY25 sales -1% YoY (volumes -4% offset by pricing + energy pass-through). Adj EBITDA margin 40.4% impacted by lower volumes; expanding back to 42%+ under Menezes.
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$3.5B |
| Capex | ~$5B (declining as megaprojects complete) |
| Free Cash Flow | ~-$1.5B (capex-heavy phase) |
| Cash & Equivalents | ~$3.0B (+ $1.81B LNG sale proceeds) |
| Total Debt | ~$18B |
| Net Debt/EBITDA | ~3.0x (elevated due to hydrogen capex) |
Key Ratios (approximate)
- P/E: ~22x | EV/EBITDA: ~16x | FCF Yield: negative (capex-heavy)
- Revenue Growth (TTM): -1% | Adj EBITDA Margin: 40.4%
- Dividend Yield: ~2.5% | 42-year dividend growth (Dividend Aristocrat)
- $1.81B LNG proceeds + future hydrogen monetization
Growth Profile
Menezes turnaround: pricing actions + productivity + capital discipline + new asset contributions. FY2026 guidance: 8-10% adj EPS growth at midpoint. NEOM green ammonia online end-2026. Yara talks on Louisiana ammonia + Saudi project ($8-9B Louisiana megaproject targeting 2030). Free cash flow recovers as capex normalizes.
Forward Estimates
- FY 2026 (ending Sep 2026): Revenue $12.2-12.5B; adj EPS $13.00-13.50; volume recovery
- FY 2027: Adj EPS $14-15 as NEOM ammonia production begins + Louisiana megaproject derisking
- 42-year dividend growth (Dividend Aristocrat) with $7.16 annual dividend
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $APD.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
GET /api/v1/research/APD/fundamental$1.00 · Bearer token required