Air Products And Chemicals: De-Risking Moves Support A Re-Rating
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Mare Evidence Lab5.9K FollowersFollow5ShareSavePlay(8min)CommentsSummaryDespite a flat EPS, underlying performance held up, and guidance for 2026 exceeded expectations, helped by cost discipline and a healthier earnings trajectory. Progress with Yara on both Louisiana and NEOM provides clearer offtake visibility, strengthens project economics, and helps address commercial risks that previously weighed on sentiment. With EPS growth poised to accelerate (+7–9% in FY26) and CAPEX trending lower, we remain buyers. Bjoern Wylezich/iStock Editorial via Getty Images We are revisiting Air Products and Chemicals (NYSE:APD) following the release of its Q3 results (the company’s fiscal fourth quarter 2025) and the announcement of advanced negotiations on potential partnerships forThis article was written byMare Evidence Lab5.9K FollowersFollowBuy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.Analyst’s Disclosure:I/we have a beneficial long position in the shares of APD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow do APD’s Louisiana and NEOM projects impact forward earnings and risk?The Louisiana project, with Yara as a partner, de-risks offtake and enhances returns, while NEOM’s lack of fixed-price agreement exposes APD to ammonia price volatility but reduces commercialization risk.What drives the revised 2026 EPS growth outlook for APD?APD targets 7–9% EPS growth, supported by pricing, productivity, new assets, $200 million in cost savings, and FX/Asian asset optimization, offsetting helium headwinds.Recommended For You