The Bull Case for Air Products (APD) Could Change Following Mixed Q3 Earnings and Nine-Month Net Loss

Simply Wall St
  • Air Products and Chemicals, Inc. recently announced its third quarter and nine-month results for the period ended June 30, 2025, with third quarter sales rising to US$3.02 billion and net income reaching US$713.8 million, while reporting a net loss of US$399.4 million for the nine-month period.
  • This mix of stronger quarterly performance alongside a rare year-to-date net loss highlights shifting momentum in the company’s financial picture for 2025.
  • We’ll explore how the company’s robust third quarter earnings, despite weakness over nine months, may alter its longer-term investment narrative.

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Air Products and Chemicals Investment Narrative Recap

To be a shareholder in Air Products and Chemicals, you need to believe that its substantial investments in clean hydrogen, ammonia, and energy solutions will deliver long-term returns, even when near-term financials turn volatile. The latest third quarter profit, despite a nine-month net loss, doesn’t materially change the near-term focus: getting large-scale energy transition projects online efficiently remains the most important catalyst, while delays and overruns from these capital-intensive developments continue as the central risk.

Among recent announcements, the July quarterly dividend declaration stands out most in this context. Despite a challenging year-to-date loss, the company maintained its commitment to returning cash to shareholders, underscoring management’s confidence in future cash flows, but also highlighting the pressure to balance payouts against ongoing, high project expenditures.

Yet, as dividend payouts persist, investors should be mindful that growing capital demands could leave less room for...

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

Air Products and Chemicals' outlook anticipates $15.4 billion in revenue and $3.8 billion in earnings by 2028. This reflects an 8.4% annual revenue growth rate and a $2.2 billion increase in earnings from the current $1.6 billion.

Uncover how Air Products and Chemicals' forecasts yield a $321.92 fair value, a 11% upside to its current price.

Exploring Other Perspectives

APD Community Fair Values as at Aug 2025

Four Simply Wall St Community member fair values for Air Products and Chemicals range widely from US$249.83 to US$321.92. Heavy capital requirements for new projects remain a top concern shaping these contrasting outlooks, so review more perspectives to make an informed judgment.

Explore 4 other fair value estimates on Air Products and Chemicals - why the stock might be worth as much as 11% more than the current price!

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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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