Can Air Products (APD) Overcome One-Time Charges With Its Hydrogen Project Momentum?

• Air Products and Chemicals, Inc. announced fourth-quarter 2025 results, reporting sales of US$3.17 billion and net income of US$4.9 million, affected by substantial one-time pretax charges.
• The company's adjusted earnings per share exceeded expectations, underpinned by progress on major hydrogen projects and a focus on cost-saving initiatives, despite lower reported income.
• We'll examine how Air Products’ stronger-than-expected adjusted earnings and project updates influence its long-term investment outlook.

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Air Products and Chemicals Investment Narrative Recap

To own Air Products and Chemicals as a shareholder, you need to believe its heavy investments in hydrogen and energy transition will ultimately boost earnings, margins, and returns. The latest earnings report, marked by significant one-time pretax charges, does not materially impact the primary catalyst, which continues to be the on-schedule completion of large hydrogen and ammonia projects; however, persistent cost overruns or schedule slippage on these projects remain the biggest risk to near-term performance and margin recovery.

Among the recent announcements, the company’s guidance for fiscal 2026 adjusted EPS of US$12.85–US$13.15 stands out. This is important as it reaffirms management’s confidence in achieving higher profitability through new assets coming online, ongoing productivity improvements, and cost-saving measures, factors crucial to the near-term catalyst of turning capital-in-process into earnings.

But with cost overruns and project delays still weighing on execution, investors should be aware that...

Read the full narrative on Air Products and Chemicals (it's free!)

Air Products and Chemicals is projected to reach $14.9 billion in revenue and $3.8 billion in earnings by 2028. This outlook implies a 7.4% annual revenue growth rate and a $2.2 billion increase in earnings from the current level of $1.6 billion.

Uncover how Air Products and Chemicals' forecasts yield a $315.00 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community fair value estimates for Air Products and Chemicals range from US$295.98 to US$315 per share. While community perspectives are mixed, the critical issue of project schedules and capital discipline shapes current expectations for future profitability.

Explore 4 other fair value estimates on Air Products and Chemicals - why the stock might be worth as much as 21% more than the current price!

Build Your Own Air Products and Chemicals Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Air Products and Chemicals research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Air Products and Chemicals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Air Products and Chemicals' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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