Air Products: A Leader in Industrial Gases with Strong Performance

Air Products and Chemicals, Inc. (APD), based in Allentown, Pennsylvania, specializes in atmospheric, process, and specialty gases, as well as related equipment and services. With a market capitalization of $70.3 billion, APD is recognized for developing and operating significant industrial gas projects that produce power, fuels, and chemicals through gasification.

Significant Gains Outpace the Market

Over the past year, shares of APD have notably surpassed the broader market’s performance. APD’s stock has climbed 45.7%, whereas the S&P 500 Index ($SPX) has increased by about 22.3%. In 2025, APD shares have risen 9%, outpacing SPX’s 4% growth year-to-date.

Comparison with Basic Materials Sector

Further analysis shows APD’s impressive performance against the iShares U.S. Basic Materials ETF (IYM), which rose approximately 6.1% in the past year. This trend continues in 2025, where APD’s gains of 9% lead the ETF’s 7.8% increase year-to-date.

Factors Driving Growth

APD’s outperformance is largely due to strategic investments in high-return projects, new business partnerships, and successful growth initiatives. Favorable pricing and robust merchant demand have further driven volume growth, alongside ongoing productivity and cost management efforts that support margin improvement.

Q1 Results Show Mixed Performance

On February 6, APD reported its Q1 earnings, resulting in a share price decline of over 1%. The company’s adjusted earnings per share (EPS) were $2.86, marking a 1.4% increase compared to the same quarter last year. Total revenue for this period was $2.9 billion, down 2.2% year-over-year.

Analysts Anticipate Growth in EPS

For the current fiscal year ending in September, analysts project APD’s EPS will increase by 2.1% to $12.69 on a diluted basis. Impressively, APD has consistently matched or exceeded earnings estimates in the last four quarters.

Analyst Ratings Reflect Positive Outlook

Among the 22 analysts following APD, the consensus rating is a “Moderate Buy,” based on 13 “Strong Buy” ratings and nine “Holds.” This outlook appears more favorable than two months ago when only 12 analysts suggested a “Strong Buy.”

Target Prices Indicate Potential Upside

On February 7, Evercore ISI analyst Eric Boyes maintained a “Buy” rating on APD, setting a price target of $375, which suggests an 18.6% upside from current levels. The average price target stands at $352, indicating an 11.4% premium to APD’s current price. Meanwhile, the highest target of $390 hints at a potential upside of 23.4%.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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