# Air Products and Chemicals Inc. (APD) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/APD/thesis · /stocks/APD/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/APD/fundamental

## Navigation

- Overview: /stocks/APD
- Financials (this page): /stocks/APD/financials
- Thesis: /stocks/APD/thesis
- Investment Memo: /stocks/APD/memo
- Coverage universe: /stocks