Air Products and Chemicals, Inc.

APD · NYSE · USD

Analysis

Last 4 earnings calls · through Q3 FY2026

Air Products quit the giant clean-energy bets and started fixing the core. Louisiana and Casa Grande were written off, guidance was raised twice, and the money now goes to chip plants. How much cash do the cancelled clean energy projects free up?

  • The company stopped paying for projects that would not earn their keep.

    In Q3 FY2026 it exited Louisiana and Casa Grande, taking a $2.9 billion charge. Management called not going forward its base case while negotiating with Yara, so the project that was once the centerpiece is now a choice, not a commitment. How much of the Louisiana equipment can be resold?

  • Profit guidance was raised twice in a year when volume barely moved.

    Fiscal 2026 guidance now sits near 12% growth, with earnings beating estimates every quarter since. The lift comes from 3,600 fewer roles, higher non-helium prices and new plants starting up, while the volume of gas sold barely moved.

  • The growth that is left is mostly electronics, and it takes years to pay off.

    It booked over $1.5 billion of chip-plant wins in six months, including a Samsung fab in Korea, and most of what it chases now is chips. Those plants take years to build, so the win protects sales years from now, not this year. Which peers are winning the biggest chip plant orders?

Bullish
  • Helium pricing stops falling by the end of fiscal 2026. Helium falls every year and drags profit; stopping that fall would let the rest of the business show up as growth.
  • The new plants in Asia and the Americas keep starting up on schedule. Those plants are already built and paid for, so every new sale they make adds profit without new spending.
  • Chip makers keep ordering and the electronics backlog keeps filling. Chips are the main source of new work, so steady orders are what stops the backlog shrinking as older projects finish.
Bearish
  • Helium keeps falling and the Texas cavern gets drawn down. That stored gas is why customers stayed supplied while Qatar was down, and it cannot last forever.
  • Customer plants in Europe and Asia keep running below full capacity. Less gas sold from customer plants that cost the same to run means thinner profit on the same equipment.
  • Chip plants and the remaining big projects take years to finish. The spending lands now and the sales arrive later, so quarters in between look weaker than the order book suggests.
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Purchase≥$15KAug 26Oct 8
Donald Trump
Republican · Executive
Purchase≥$1KMay 15Jul 1
Donald Trump
Republican · Executive
Purchase≥$1KMar 17May 13
Donald Trump
Republican · Executive
Purchase≥$15KMar 17May 13
Richard McCormick
Republican · House · GA-7
Sale≥$1KJul 30Aug 14

Congressional trading data provided by QuiverQuant

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Product segmentsGeography
FY2025 · USD

How Air Products and Chemicals turned $12.0B of revenue into $3.8B of gross profit.

Revenue
On-site$6.2B▲ 4.88% YoY
Merchant$5.3B▲ 0.14% YoY
Sale of Equipment$520.0M▼ 40.80% YoY
Total revenue$12.0B
Gross profit$3.8B31.4%
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