APD Specialty Chemicals
Air Products and Chemicals, Inc.
Air Products is an industrial gases company. It sells oxygen, nitrogen, argon, hydrogen, helium, and other gases to refining, chemicals, electronics, metals, and other industries. About half of sales come from on-site plants under 15- to 20-year contracts. FY2025 sales were $12.0 billion. The company reported a net loss after $3.6 billion of charges to exit several clean-energy projects, mainly in the U.S. In June 2026 it also dropped its Louisiana Clean Energy Complex and other projects, with pre-tax charges of up to $2.9 billion. It continues building the NEOM green hydrogen project in Saudi Arabia, expected to deliver green ammonia in 2027.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 12:29 (SEC EDGAR) · Source 10-K filed: November 20, 2025
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- Air Products & Chemicals, Inc.
- Headquarters
- ALLENTOWN, PA
- Incorporated in
- Delaware
- Fiscal year end
- 09/30
- Exchange & ticker
- NYSE: APD
- Industry
- Specialty Chemicals
- CIK
- 2969
Workforce (as of FY2025 year-end)
Employees
21,300
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: September 2026. In past years, Q4 results were released 37–38 days after quarter end (Nov 6, 2025; Nov 7, 2024; Nov 7, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around September 30.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 14–38 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Jun 30, 2026 | Jul 30, 2026 (+30 days) | Jul 30, 2026 10-Q (+30 days) |
| Q2 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | Apr 30, 2026 10-Q (+30 days) |
| Q1 FY2026 | Dec 31, 2025 | Jan 30, 2026 (+30 days) | Jan 30, 2026 10-Q (+30 days) |
| Q4 FY2025 | Sep 30, 2025 | Nov 6, 2025 (+37 days) | Nov 20, 2025 10-K (+51 days) |
| Q3 FY2025 | Jun 30, 2025 | Jul 31, 2025 (+31 days) | Jul 31, 2025 10-Q (+31 days) |
| Q2 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q1 FY2025 | Dec 31, 2024 | Jan 14, 2025 (+14 days) | Feb 6, 2025 10-Q (+37 days) |
| Q4 FY2024 | Sep 30, 2024 | Nov 7, 2024 (+38 days) | Nov 21, 2024 10-K (+52 days) |
| Q3 FY2024 | Jun 30, 2024 | Aug 1, 2024 (+32 days) | Aug 1, 2024 10-Q (+32 days) |
| Q2 FY2024 | Mar 31, 2024 | Apr 30, 2024 (+30 days) | Apr 30, 2024 10-Q (+30 days) |
| Q1 FY2024 | Dec 31, 2023 | Feb 5, 2024 (+36 days) | Feb 5, 2024 10-Q (+36 days) |
| Q4 FY2023 | Sep 30, 2023 | Nov 7, 2023 (+38 days) | Nov 16, 2023 10-K (+47 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Industrial gases
Atmospheric gases
Examples: Oxygen, nitrogen, argon
About half of regional industrial gases sales.
Industrial gases
Process gases
Examples: Hydrogen, helium, CO2, carbon monoxide, syngas
Mostly gray hydrogen today; helium stored in Texas underground facilities.
Industrial gases
Clean hydrogen projects
Examples: NEOM Green Hydrogen Project (Saudi Arabia)
Expected to come onstream and deliver green ammonia in 2027.
Corporate and other
Equipment
Examples: Air separation units, Rotoflow turboexpanders, Gardner Cryogenics containers
From the FY2025 Form 10-K, Item 1.
04
Recent strategic focus
FY2025 from the 10-K, and FY2026 events from 8-Ks.
FY2025 project exits
About $3.6B of charges: $2.4B for three U.S. projects in the Americas, $755M for smaller energy transition projects, and $425M to write down two coal gasification plants in China held for sale.
Source: Form 10-K (FY2025), Note 5
Louisiana Clean Energy Complex dropped
In June 2026 Air Products decided not to proceed, along with the Casa Grande liquid hydrogen project in Arizona, because expected returns didn't meet its criteria; pre-tax charges up to $2.9B ($2.2B after tax).
Source: 8-K filed 2026-06-30
Q3 FY2026 results
GAAP operating loss of $2.1B from the charges; adjusted EPS rose 12% to $3.47 and sales rose 5% to $3.2B.
Source: Q3 FY2026 earnings release
Electronics win
A long-term agreement for Air Products San Fu to build four air separation units and pipelines for a semiconductor manufacturer's expansion in Taiwan.
Source: Q3 FY2026 earnings release
Capex ÷ D&A (FY2025)
4.49x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$7,023M ÷ $1,564M = 4.49x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
0.8%
formularesearch & development expense ÷ revenue × 100
e.g.$96M ÷ $12,037M × 100 = 0.8%
M&A spend (5-year total)
$136M
Latest year: $60M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $2.46B in FY2021 to $7.02B in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-20
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$12.04B
As reported in the 10-K
Revenue CAGR (4 years)
+3.9%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($12,037M ÷ $10,323M) ^ (1÷4) − 1 = 3.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
-7.3%▼caution
-29.4pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$-877M ÷ $12,037M × 100 = -7.3%
ROE (FY2025)
-2.5%▼caution
5-year average: 14.2%
As reported in the 10-K
P/B (FY2025 end)
—
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
—
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +3.9% a year over 4 years (modest growth)
From $10.32B in FY2021 to $12.04B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 22.1% → -7.3%
How much operating profit is left per $100 of revenue. It moved -29.4 points over 4 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 36.6% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▼
Free cash flow was positive in 2 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 14.2% over 5 years (latest: -2.5%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Regional industrial gases (Americas, Asia, Europe, Middle East and India)
Produces atmospheric gases (oxygen, nitrogen, argon) and process gases (hydrogen, helium, CO2, carbon monoxide, syngas) at or near customer sites, and supplies smaller users with liquid bulk and packaged gases.
01 what it draws on
Inputs & resources
- Electricity (the largest cost for atmospheric gases)
- Natural gas and hydrocarbons for hydrogen and syngas
- Pipeline networks, including the world's largest hydrogen pipeline network on the U.S. Gulf Coast
02 what it does
Activities
- Building, owning, and operating gas plants
- Delivering liquid and packaged gases
03 who it serves
Customers
- Refining, chemicals, electronics, metals, manufacturing, medical, and food
04 how money comes in
How it earns
- On-site contracts with fixed monthly charges or minimum purchases
- Merchant contracts and purchase orders
Regional industrial gases (Americas, Asia, Europe, Middle East and India): how it makes money
- Over 90% of sales; about half from atmospheric gases.
- Energy costs are largely passed through to customers by contract.
Corporate and other (equipment)
Sells cryogenic and gas processing equipment, Rotoflow turboexpanders, and Gardner Cryogenics helium and hydrogen containers. The LNG equipment business was sold to Honeywell in September 2024.
01 what it draws on
Inputs & resources
- Steel, aluminum, compressors
02 what it does
Activities
- Designing and manufacturing equipment
03 who it serves
Customers
- Chemical, oil and gas, and metals companies
04 how money comes in
How it earns
- Equipment sales
Corporate and other (equipment): how it makes money
- Sales of $520M in FY2025, down from $878M after the LNG sale.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Americas
5,126 (43%)profit 1,520 · margin 29.7%
Asia
3,271 (27%)profit 851 · margin 26.0%
Europe
2,985 (25%)profit 845 · margin 28.3%
Middle East and India
136 (1%)profit 10 · margin 7.4%
Corporate and other
520 (4%)profit —
Source: Form 10-K (FY2025, ended Sep 30, 2025) — MD&A, results by business segment; Note 7 Profit is segment operating income, which excludes $3.75B of business and asset action charges. Middle East and India also earned $341M of equity affiliates' income.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
Other foreign operations — 45% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
4,693 (39%)China
1,934 (16%)Other foreign operations
5,411 (45%)
Source: Form 10-K (FY2025, ended Sep 30, 2025) — Note 26, geographic information Based on country of origin.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
On-site supply uses long-term contracts, commonly with fixed monthly charges or minimum purchases and price escalation tied to external indices; merchant supply has no minimum purchase requirements. Remaining performance obligations were about $26 billion at September 30, 2025, about half to be recognized within five years.
- long
On-site gases
$6,180M (52% of FY2025 sales)
Typical term: 15–20-year contracts for large plants; 10–15 years for small on-site plants
Energy, chemicals, metals, and electronics customers.
Merchant gases (liquid bulk and packaged)
$5,337M (44%)
Typical term: Contracts generally five years or less, or purchase orders
Sale of equipment
$520M (4%)
Typical term: Project-based
Source: Form 10-K (FY2025, ended Sep 30, 2025) — Item 1; Note 7, revenue recognition
09
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Business partnership
Yara International
Marketing and distribution agreement, finalized in 2026, for renewable ammonia from the NEOM Green Hydrogen Project, sold through Yara's global supply chain.
Capital tie / equity stake
Equity affiliates
Joint ventures in foreign industrial gas producers, the largest in Algeria, China, India, Italy, Mexico, and Saudi Arabia.
Source: Form 10-K (FY2025, ended Sep 30, 2025) — Item 1, Equity Affiliates
10
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Refining, chemicals, electronics, metals, manufacturing, medical, and food companies.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- No single customer accounts for more than 10% of consolidated sales. (Form 10-K (FY2025), Item 1)
- Concentrations of large-volume, long-term-contract customers in refining, chemicals, and electronics. (Form 10-K (FY2025), Item 1)
Suppliers
Power and natural gas suppliers; helium sourced globally from natural gas and CO2 producers.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- No significant difficulties in obtaining adequate power and natural gas in FY2025. (Form 10-K (FY2025), Item 1)
11
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Air Products' 10-K says each regional industrial gases segment competes with three global industrial gas companies and regional competitors, on price, supply reliability, and applications development. Pipeline networks give it an advantage with large customers.
Competitors named in the 10-K
Peer group the company chose
Fiscal 2025 Peer Reference Group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Chemical, industrial, and construction, engineering, and energy technology services companies with similar capital structure, asset intensity, and profitability, used to benchmark CEO and CFO pay.
- Baker Hughessite ↗
- Celanesesite ↗
- Doversite ↗
- DuPontsite ↗
- Eastman Chemicalsite ↗
- Eatonsite ↗
- Ecolabsite ↗
- Emersonsite ↗
- Fluorsite ↗
- Fortivesite ↗
- Illinois Tool Workssite ↗
- Ingersoll Randsite ↗
- Johnson Controlssite ↗
- Lindesite ↗
- NextEra Energysite ↗
- Occidental Petroleumsite ↗
- Parker-Hannifinsite ↗
- PPGsite ↗
- Quanta Servicessite ↗
- SLB (Schlumberger)site ↗
- TechnipFMCsite ↗
Also named as a competitor in the 10-K
Source: Proxy statement (DEF 14A, filed 2025-12-11) — Peer GroupsCompany names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
12
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Recent portfolio moves are mainly divestitures and project exits.
Cash spent on acquisitions, FY2021–FY2025: $136M
Sep 2024
LNG process technology and equipment business (sold to Honeywell)
Pre-tax gain of about $1.6B
LNG process technology and equipment, with operating income of about $135M in FY2024.
- Stated purpose (company)
- Not stated.
Source: Form 10-K (FY2025, ended Sep 30, 2025) — Item 1; Note 4
Two coal gasification plants in China are held for sale, with sales expected in FY2026.
13
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-20
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-20
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-20
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-20
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 10,323 | 12,699 | 12,600 | 12,101 | 12,037 |
| Operating income | 2,281 | 2,339 | 2,495 | 4,466 | -877 |
| Pretax income | 2,507 | 2,755 | 2,882 | 4,821 | -441 |
| Net income (attributable) | 2,099 | 2,256 | 2,300 | 3,828 | -394 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 23.0% | -0.8% | -4.0% | -0.5% |
| Operating margincalcoperating income ÷ revenue × 100 | 22.1% | 18.4% | 19.8% | 36.9% | -7.3% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 20.3% | 17.8% | 18.3% | 31.6% | -3.3% |
| Balance sheet ($M) | |||||
| Total assets | 26,859 | 27,193 | 32,003 | 39,575 | 41,060 |
| Total equity | 14,088 | 13,702 | 15,660 | 18,674 | 17,350 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 7,637 | 7,645 | 10,306 | 14,228 | 17,698 |
| Equity ratio | 50.4% | 48.3% | 44.7% | 43.0% | 36.6% |
| ROE | 15.5% | 16.9% | 16.8% | 24.4% | -2.5% |
| Cash flow ($M) | |||||
| Operating CF | 3,335 | 3,171 | 3,206 | 3,647 | 3,257 |
| Investing CF | -2,733 | -3,857 | -5,916 | -4,919 | -7,169 |
| Financing CF | -1,421 | -1,001 | 1,610 | 2,615 | 2,795 |
| Free cash flowcalccash flow from operations − capital expenditures | 871 | 244 | -1,421 | -3,150 | -3,766 |
| Cash and equivalents | 4,469 | 2,711 | 1,617 | 2,980 | 1,856 |
| Per share & other | |||||
| EPS ($) | 9.43 | 10.14 | 10.33 | 17.18 | -1.77 |
| BVPS ($) | 61.16 | 59.25 | 64.41 | 76.61 | 67.50 |
| Dividend per share ($) | 5.84 | 6.36 | 6.87 | 7.06 | 7.14 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 61.9% | 62.7% | 66.5% | 41.1% | — |
| P/E (x) | 27.2 | 23.0 | 27.4 | 17.3 | — |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 16.7 | 15.4 | 18.6 | 13.1 | — |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 4.19 | 3.93 | 4.40 | 3.89 | — |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
14
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
-2.0%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$-877M × (1 − 21%) ÷ $33,975M × 100 = -2.0%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
4.61%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $17.35B ÷ ($17.35B + $17.7B) = 49.5%
e.g.Debt weight: $17.7B ÷ ($17.35B + $17.7B) = 50.5%
e.g.WACC: 8.3% × 49.5% + 1.2% × (1 − 21%) × 50.5% = 4.61%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 4.61% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.79 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.35%
- Cost of debt
- 1.21%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 50% : 50%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 4.61%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.79 (price-derived adjusted beta. Raw β 0.69, R² 0.15, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.686 + 0.33 = 0.790
termsβ (beta)
Period 2024-04-12–2026-10-06, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.79 × 5.5% = 8.3%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Not enough data for this calculation (FY2025): it needs positive free cash flow, a fiscal year-end P/E, and a positive enterprise value.
16
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.34x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -9.1%
A small share of profit rests on accounting estimates.
- ✓
Days sales outstanding: 51 → 58 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-20
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-20
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$1,901M ÷ $12,037M × 365 = 58 days
17
Strengths & weaknesses
Strengths
1. Long-term on-site contracts
Half of sales come from 15- to 20-year on-site contracts with fixed charges or minimum purchases; remaining performance obligations total about $26B.
Evidence: Form 10-K (FY2025)
2. Energy cost pass-through
Electricity and natural gas cost swings are mitigated contractually through pricing formulas, surcharges, and pass-through provisions.
Evidence: Form 10-K (FY2025), Item 1
3. Dividend record
FY2025 marked the 43rd consecutive year of dividend increases; about $1.6B was paid.
Evidence: Form 10-K (FY2025), MD&A
4. Diversified customers
No customer accounts for more than 10% of sales.
Evidence: Form 10-K (FY2025), Item 1
Weaknesses
1. Large project write-offs
$3.6B of project exit costs in FY2025 and up to $2.9B more in Q3 FY2026, mostly for clean-energy projects that didn't meet return criteria.
Evidence: Form 10-K (FY2025), Note 5; 8-K filed 2026-06-30
2. Rising debt
Total debt grew from $7.6B (FY2021) to $17.7B (FY2025) to fund capital spending of $7.0B in FY2025.
Evidence: SEC EDGAR XBRL
3. Helium weakness
Lower global helium demand reduced FY2025 volumes.
Evidence: Form 10-K (FY2025), MD&A
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What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
—
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
—
(Operating CF − capex) ÷ market cap
1. Steady industrial gas core
Segment operating margins of 26–30% in the three main regions, with long-term contracts.
- What has to hold
- Industrial demand holds and contracts are renewed.
- The other side
- Project write-offs caused a GAAP net loss in FY2025 and a GAAP operating loss in Q3 FY2026.
Evidence: Form 10-K (FY2025)
2. Lower capital spending
After exiting several projects, Air Products expects FY2026 capital expenditures of about $3.5B; FY2025 additions to plant and equipment were $7.0B.
- What has to hold
- Capital is redirected to higher-return industrial gas projects.
- The other side
- NEOM still has to start up and sell its ammonia.
Evidence: Q3 FY2026 earnings release
Fiscal year ends September 30. FY2025 P/E isn't shown because of the net loss.
19
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
2.5x
$1.86B vs. $751M
Interest coverage (operating income ÷ interest expense)
-4.1x
−$877M vs. $214M
Free cash flow ÷ dividends paid
-2.4x
−$3.77B vs. $1.58B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -4.0% in FY2024 ($12.6B → $12.1B) | Not yet, as of FY2025 |
| Operating income | -119.6% in FY2025 ($4.47B → −$877M) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Contracted revenue
About $26B of remaining performance obligations.
Source: Form 10-K (FY2025), Note 7
Cash flow
Operating cash flow of $3.26B in FY2025, below capital spending of $7.0B.
Source: SEC EDGAR XBRL
Debt
About $17.7B of total debt at September 30, 2025.
Source: SEC EDGAR XBRL
20
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Demand & macro
Clean energy project returns
- Company disclosure (summarized from the 10-K)
- Exits were driven by challenging commercial conditions, unfavorable regulatory actions, project economics, and slower development, especially hydrogen for mobility; the review may lead to more costs.
- Company’s stated mitigation
- Refocusing capital on traditional industrial gas projects; FY2026 capital spending expected to fall to about $3.5B.
- This site’s assessment
- Impact High / Likelihood Med
- 2Geopolitics & supply chain
International operations
- Company disclosure (summarized from the 10-K)
- Business in about 50 countries exposes Air Products to currency, tariffs, sanctions, and local policy risks.
- Company’s stated mitigation
- Local production at or near customers.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Costs & inflation
Energy costs
- Company disclosure (summarized from the 10-K)
- Electricity and natural gas are the main production costs.
- Company’s stated mitigation
- Contractual pass-through and pricing formulas.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Customers & sales
Industry concentration
- Company disclosure (summarized from the 10-K)
- Concentrations in refining, chemicals, and electronics; a downturn or the loss of a large-volume customer could hurt results.
- Company’s stated mitigation
- Long-term contracts.
- This site’s assessment
- Impact Med / Likelihood Med
21
What to watch going forward
- NEOM start-up and green ammonia sales via Yara in 2027.
- Cash costs of the 2026 project exits (up to $925M).
- Capital spending cut to about $3.5B in FY2026.
- Sale of two coal gasification plants in China.
- Electronics projects such as the Taiwan semiconductor supply agreement.
22
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 12:29 (SEC EDGAR) · Source 10-K filed: November 20, 2025
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Air Products and Chemicals, Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.