Will APD’s Hydrogen Investments Shift Its Income Appeal After New Guidance Announcement?

• Earlier this month, Air Products and Chemicals announced an upcoming Q4 2025 earnings report scheduled for November 6, alongside an updated full-year EPS guidance and highlighted its ongoing investments in hydrogen and related clean energy projects.
• An interesting aspect is Air Products and Chemicals' 43-year track record of consecutive dividend increases, underscoring its longstanding appeal for income-focused investors amid evolving energy markets.
• We’ll explore how anticipation of Air Products' revised earnings guidance and continued hydrogen investment could influence its 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 in the company’s ability to convert heavy hydrogen and clean energy investments into stable, long-term cash flow despite recent margin pressure and high capital needs. The recent announcement of Q4 2025 earnings guidance and focus on hydrogen investments reaffirm the central long-term growth story, but do not materially change the biggest near-term risk: delays or overruns in major projects that could limit earnings and dividend growth.

Of all recent announcements, the updated full-year 2025 EPS guidance and Q4 outlook stand out. Air Products is guiding for full-year adjusted EPS of US$11.90 to US$12.10, with Q4 expectations of US$3.27 to US$3.47. This directly ties to the main catalyst for the stock: execution on major projects and capital allocation discipline, which will determine whether expected earnings growth can offset margin headwinds and lift sentiment.

But on the other hand, investors should pay close attention to the risk of project delays or cost overruns given the scale of ongoing hydrogen investments...

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

Air Products and Chemicals' outlook points to $14.9 billion in revenue and $3.8 billion in earnings by 2028. This scenario assumes a 7.4% 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 $324.14 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community have published fair value estimates for Air Products ranging from US$288.67 to US$324.14 per share. Despite broad agreement among analysts about long-term earnings potential, opinions differ on the company’s ability to overcome project execution risks and achieve consistent, sustainable margins, inviting you to explore these diverse viewpoints further.

Explore 4 other fair value estimates on Air Products and Chemicals - why the stock might be worth just $288.67!

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 4 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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