Air Products and Chemicals, Inc. APD is benefiting from investments in high-return projects, new business deals, acquisitions and productivity initiatives.
We are positive about APD’s prospects and believe that the time is right for you to add the stock to the portfolio, as it looks promising and is poised to carry the momentum ahead.
Let's see what makes APD stock an attractive investment option at the moment.
Positive Analyst Sentiment for APD Stock
Earnings estimates for APD have been going up over the past 60 days. The Zacks Consensus Estimate for fiscal 2026 has increased by 1.5%. The consensus estimate for fiscal 2027 has also been revised 1.2% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
The Zacks Consensus Estimate for APD’s fiscal 2026 earnings is pegged at $13.2, suggesting a 9.7% increase from the previous year’s tally. Earnings are projected to increase by 7.3% in fiscal 2027.
APD’s Positive Earnings Surprise History
Air Products has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 3%, on average.
APD’s Superior Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholders’ funds. ROE for the trailing 12-months for Air Products is 16.1%, above the industry’s level of 2.9%.
Upbeat Outlook
Air Products raised its full-year fiscal 2026 adjusted earnings guidance to $13-$13.25 per share, supported by its strong first-half performance and expectations for continued execution on pricing and productivity. Management said new asset contributions are expected to build through the second half, adding to the underlying earnings profile.
For the third quarter of fiscal 2026, Air Products expects adjusted earnings of $3.25-$3.35 per share, implying 5-8% growth from the prior-year period. The company maintained its fiscal 2026 capital expenditures outlook of approximately $4 billion.
High-Return Projects & Productivity Actions Aid Air Products
Air Products is well-placed to gain from its investments in high-return industrial gas projects and productivity measures. It remains focused on its gasification strategy and is executing its key growth projects. These projects are expected to be accretive to earnings and cash flows.
Currently, APD is making progress with its two major projects — the NEOM green hydrogen project in Saudi Arabia and the Louisiana Clean Energy Complex. The Louisiana project is expected to produce more than 750 million standard cubic feet per day of blue hydrogen for local and global markets. The NEOM Green Hydrogen Project in Saudi Arabia is expected to supply up to 1.2 million tons per year of renewable ammonia. Air Products and Yara International are in advanced negotiations to partner on these large-scale, low-emission ammonia projects.
Air Products is also driving productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost improvement programs are likely to support its margins moving ahead. The company also remains focused on improving pricing amid an inflationary environment. Air Products is also taking action to right-size the organization through headcount reductions and expects these reductions to result in $250 million in annual cost savings once completed. It has already realized roughly $50 million in savings from headcount reduction, as divulged in its fiscal second quarter earnings call.
Air Products remains committed to maximizing returns to shareholders by leveraging its strong balance sheet and cash flows. Its board, in January 2026, increased its quarterly dividend to $1.81 per share. This marked the 44th straight year of dividend increase. The company returned roughly $1.6 billion to shareholders through dividends in 2025.
APD generated an operating cash flow of around $3.3 billion in fiscal 2025 and $2 billion in the first six months ended March 31, 2026. The company also returned $800 million to shareholders in the first half of fiscal 2026. Strong cash flow enables the company to boost shareholders’ value by increasing dividends and capital deployment.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are Nucor Corporation NUE, L.B. Foster Company FSTR and Albemarle Corporation ALB, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nucor’s current-year earnings stands at $14.84 per share, implying an 92.5% year-over-year increase. NUE’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 8.1%.
The consensus estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. The Zacks Consensus Estimate for FSTR’s current-year earnings has been revised 12.3% higher over the past 60 days.
The Zacks Consensus Estimate for Albemarle’s current-year earnings is pegged at $12.39 per share, indicating a 1,668.4% year-over-year increase. ALB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 54.1%.
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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).