APD Q1 Earnings Beat Estimates on Lower Costs, Sales Up Y/Y

Air Products and Chemicals, Inc. APD logged first-quarter fiscal 2026 (ended Dec. 31, 2025) earnings of $3.04 per share, up from $2.77 recorded in the year-ago quarter. The growth was due to a favorable mix and lower costs related to productivity improvement and reduced maintenance.

Barring one-time items, earnings per share were $3.16, up from $2.86 a year ago. It beat the Zacks Consensus Estimate of $3.04.

The industrial gases giant generated revenues of $3,102.5 million, up around 5.8% year over year. The figure surpassed the Zacks Consensus Estimate of $3,044.8 million. Sales rose due to higher prices, favorable currency impacts and higher energy cost pass-through. Volumes were 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 up 4.2% year over year to $1,341.7 million. The figure beat the Zacks Consensus Estimate of $1,332 million. The upside is attributed to higher energy cost pass-through and favorable pricing, which was partially offset by lower volumes.

Revenues in the Europe segment increased 12.2% year over year to $782 million. Sales increased due to higher pricing, volumes and favorable currency, which more than offset lower energy cost pass-through. It also beat the Zacks Consensus Estimate of $746 million. 

Revenues in the Asia segment rose 1.8% year over year to $831.5 million. The growth was driven by higher energy cost pass-through and favorable currency exchange impacts, but offset by lower pricing. The figure outperformed the Zacks Consensus Estimate of $811 million.

APD’s Financials

Air Products ended the fiscal first quarter with cash and cash equivalents of around $1,026.4 million, down around 44% year over year. Long-term debt was $17,114.6 million, up roughly 30% 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 second 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 23.6% in the past year compared with the Zacks Chemicals Diversified industry’s 22.2% decline.

APD’s Zacks Rank & Key Picks

APD currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Albemarle Corporation ALB, Coeur Mining, Inc. CDE and Avino Silver & Gold Mines Ltd. ASM.

Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at a loss of 53 cents. ALB beat the Zacks Consensus Estimate in three of the last four quarters while missing it in one, with the average earnings surprise being 35.28%. ALB sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Coeur is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for CDE’s fourth-quarter earnings is pegged at 33 cents. CDE beat the Zacks Consensus Estimate in three of the last two quarters and missed once, with the average earnings surprise being 106.61%. CDE currently sports a Zacks Rank #1. 

Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 150%. 

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

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