We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
APD Q3 Earnings Beat on Volume Growth, Sales Miss Estimates
Read MoreHide Full Article
Key Takeaways
APD's adjusted earnings rose 12.3% to $3.47 per share, beating estimates by 3.3%.
Higher on-site volumes, pricing and currency helped expand adjusted operating margin to 25.6%.
APD raised fiscal 2026 EPS guidance and cut its capital spending forecast to about $3.5 billion.
Air Products and Chemicals, Inc. (APD - Free Report) reported third-quarter fiscal 2026 (ended June 30, 2026) adjusted earnings of $3.47 per share, up 12.3% from $3.09 a year ago. The figure beat the Zacks Consensus Estimate of $3.36 by 3.3%.
Sales rose 4.6% year over year to $3.16 billion but missed the consensus mark of $3.18 billion by 0.5%. Higher on-site volumes, favorable currency and pricing supported results. Adjusted operating margin expanded 110 basis points to 25.6%.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Americas sales increased 5% year over year to $1.32 billion. The gain reflected 7% higher volumes, driven by HyCO facilities and a new on-site asset, partially offset by a 2% decline in energy cost pass-through. Favorable pricing also supported the region.
Asia sales rose 9% to $886 million on 6% higher volumes, 2% favorable currency and 1% higher energy cost pass-through. Growth came from stronger on-site volumes, new assets and improved helium volumes. The region's operating income climbed 18%, while operating margin expanded 210 basis points to 28.9%.
Europe sales advanced 6% to $815.7 million as a 3% higher energy cost pass-through, 3% favorable currency and 2% higher pricing outweighed a 2% volume decline. Higher pricing, favorable currency and a richer on-site business mix supported earnings, but fixed-cost inflation contributed to a 90-basis-point margin contraction.
Air Products Financials
Air Products ended the quarter with cash and cash equivalents of $980.5 million. Long-term debt was $16.59 billion as of June 30, 2026. Capital expenditures totaled $2.65 billion for the first nine months of fiscal 2026, down from $4 billion in the year-ago period.
APD Guidance
APD raised its fiscal 2026 adjusted earnings guidance to $13.39-$13.49 per share from the prior range of $13.00-$13.25. For the fourth quarter of fiscal 2026, Air Products expects adjusted earnings of $3.55-$3.65 per share
The company now anticipates fiscal 2026 capital expenditures of approximately $3.5 billion, below its earlier projection of about $4 billion. Management expects new asset contributions, pricing actions and productivity initiatives to support performance, while remaining cautious because of macroeconomic uncertainty.
APD’s Price Performance
Shares of APD have gained 2.3% in the past year compared with the industry’s 1.7% rise.
Image Source: Zacks Investment Research
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Chemours Company (CC - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Chemours is slated to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share. CC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO also flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
Image: Bigstock
APD Q3 Earnings Beat on Volume Growth, Sales Miss Estimates
Key Takeaways
Air Products and Chemicals, Inc. (APD - Free Report) reported third-quarter fiscal 2026 (ended June 30, 2026) adjusted earnings of $3.47 per share, up 12.3% from $3.09 a year ago. The figure beat the Zacks Consensus Estimate of $3.36 by 3.3%.
Sales rose 4.6% year over year to $3.16 billion but missed the consensus mark of $3.18 billion by 0.5%. Higher on-site volumes, favorable currency and pricing supported results. Adjusted operating margin expanded 110 basis points to 25.6%.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. price-consensus-eps-surprise-chart | Air Products and Chemicals, Inc. Quote
APD Segment Highlights
Americas sales increased 5% year over year to $1.32 billion. The gain reflected 7% higher volumes, driven by HyCO facilities and a new on-site asset, partially offset by a 2% decline in energy cost pass-through. Favorable pricing also supported the region.
Asia sales rose 9% to $886 million on 6% higher volumes, 2% favorable currency and 1% higher energy cost pass-through. Growth came from stronger on-site volumes, new assets and improved helium volumes. The region's operating income climbed 18%, while operating margin expanded 210 basis points to 28.9%.
Europe sales advanced 6% to $815.7 million as a 3% higher energy cost pass-through, 3% favorable currency and 2% higher pricing outweighed a 2% volume decline. Higher pricing, favorable currency and a richer on-site business mix supported earnings, but fixed-cost inflation contributed to a 90-basis-point margin contraction.
Air Products Financials
Air Products ended the quarter with cash and cash equivalents of $980.5 million. Long-term debt was $16.59 billion as of June 30, 2026. Capital expenditures totaled $2.65 billion for the first nine months of fiscal 2026, down from $4 billion in the year-ago period.
APD Guidance
APD raised its fiscal 2026 adjusted earnings guidance to $13.39-$13.49 per share from the prior range of $13.00-$13.25. For the fourth quarter of fiscal 2026, Air Products expects adjusted earnings of $3.55-$3.65 per share
The company now anticipates fiscal 2026 capital expenditures of approximately $3.5 billion, below its earlier projection of about $4 billion. Management expects new asset contributions, pricing actions and productivity initiatives to support performance, while remaining cautious because of macroeconomic uncertainty.
APD’s Price Performance
Shares of APD have gained 2.3% in the past year compared with the industry’s 1.7% rise.
Image Source: Zacks Investment Research
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Chemours Company (CC - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Chemours is slated to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share. CC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO also flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).