Air Products' Earnings and Revenues Lag Estimates in Q4, Down Y/Y

Air Products and Chemicals, Inc. APD logged fourth-quarter fiscal 2025 (ended Sept. 30, 2025) earnings from continuing operations of 2 cents per share, down from $8.81 recorded in the year-ago quarter.

Barring one-time items, earnings per share were $3.39, down from $3.56 a year ago. It missed the Zacks Consensus Estimate of $3.41.

The industrial gases giant generated revenues of $3,166.9 million, down around 1% year over year. The figure lagged the Zacks Consensus Estimate of $3,217.7 million. The downside was due to lower volumes, partly masked by higher energy cost pass-through and favorable currency. Pricing remained flat in the quarter.

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

Air Products’ Segment Highlights

Revenues in the Americas segment were down 1% year over year to $1,290.1 million. The figure missed the Zacks Consensus Estimate of $1,357 million. The downside is attributed to lower volumes, partly offset by higher energy cost-pass through and higher pricing.

Revenues in the Europe segment increased 1% year over year to $789.4 million. Sales increased due to higher energy cost pass-through and favorable currency, which more than offset lower volumes and reduced pricing. It beat the Zacks Consensus Estimate of $784 million. 

Revenues in the Asia segment rose 8% year over year to $869.8 million. The growth was driven by higher volumes, favorable currency exchange impacts and increased pricing. The figure missed the Zacks Consensus Estimate of $876 million.

APD’s Financials

Air Products ended the fiscal fourth quarter with cash and cash equivalents of around $1,856 million, down around 38% year over year. Long-term debt was $16,769.9 million, up roughly 25% year over year.

APD’s Outlook

The company expects adjusted earnings per share for fiscal 2026 in a range of $12.85 to $13.15. For the first quarter of fiscal 2026, adjusted earnings are projected to be between $2.95 and $3.10. Additionally, capital expenditures for the full fiscal year are expected to be around $4 billion.

APD’s Price Performance

The company’s shares have lost 24.1% in the past year compared with the Zacks Chemicals Diversified industry’s 40.3% decline.

APD’s Zacks Rank & Key Picks

APD currently carries a Zacks Rank #3 (Hold).
 
Some better-ranked stocks worth a look in the basic materials space are AngloGold Ashanti plc AU, Integra Resources Corp. ITRG and U.S. Gold Corp. USAU.

AngloGold is scheduled to report third-quarter results on Nov. 11. AU carries a Zacks Rank #1 (Strong Buy) at present. The Zacks Consensus Estimate for AU’s third-quarter earnings is pegged at $1.34, suggesting 139.3% year-over-year growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

Integra Resources is scheduled to report third-quarter results on Nov. 12. ITRG carries a Zacks Rank #2 (Buy) at present. The consensus estimate for ITRG’s third-quarter earnings is pegged at 13 cents, indicating 262.5% year-over-year growth.

U.S. Gold is expected to report fiscal second-quarter results on Dec. 15. USAU carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for USAU’s second-quarter earnings is pegged at a loss of 13 cents, indicating 35% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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