Revenue growth is stalled at -0.5% TTM, while gross margin holds near 32%, but operating income swung from -$2.3B in 2025Q2 to $752.7M in 2026Q2, reflecting impairment-driven volatility.
Air Products and Chemicals, Inc. (APD) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 12.6B | 12.04B | 12.1B | 12.6B | 12.7B | 10.32B | 8.86B | 8.92B | 8.93B | 8.19B | 7.5B | 7.82B | 10.44B | 10.18B | 9.61B | 10.08B | 9.03B | 8.26B | 10.41B | 9.15B | 8.85B | 8.14B | 7.41B | 6.3B | 5.4B | 5.72B | 5.47B | 5.02B | 4.92B | 4.64B | 4.01B |
| Revenue Growth % | 4.51% | -0.52% | -3.96% | -0.78% | 23.01% | 16.56% | -0.7% | -0.13% | 9.07% | 9.11% | -4.1% | -25.05% | 2.54% | 5.92% | -4.66% | 11.7% | 9.32% | -20.72% | 13.84% | 3.36% | 8.68% | 9.88% | 17.69% | 16.59% | -5.53% | 4.57% | 8.9% | 2.06% | 6.06% | 15.71% | 3.7% |
| Cost of Goods Sold | 8.56B | 8.26B | 8.17B | 8.83B | 9.34B | 7.19B | 5.86B | 5.98B | 6.19B | 5.75B | 5.18B | 5.6B | 7.63B | 7.47B | 7.05B | 7.32B | 6.5B | 6.04B | 7.69B | 6.7B | 6.56B | 6.01B | 5.46B | 4.61B | 3.83B | 4.1B | 3.83B | 3.5B | 2.83B | 2.74B | 2.41B |
| COGS % of Revenue | - | 68.59% | 67.51% | 70.1% | 73.54% | 69.61% | 66.15% | 67% | 69.31% | 70.27% | 69% | 71.55% | 73.09% | 73.4% | 73.37% | 72.56% | 72.05% | 73.18% | 73.87% | 73.23% | 74.1% | 73.82% | 73.72% | 73.26% | 70.87% | 71.76% | 69.97% | 69.75% | 57.48% | 59% | 60.08% |
| Gross Profit | 4.04B | 3.78B | 3.93B | 3.77B | 3.36B | 3.14B | 3B | 2.94B | 2.74B | 2.43B | 2.33B | 2.23B | 2.81B | 2.71B | 2.56B | 2.77B | 2.52B | 2.21B | 2.72B | 2.45B | 2.29B | 2.13B | 1.95B | 1.68B | 1.57B | 1.61B | 1.64B | 1.52B | 2.09B | 1.9B | 1.6B |
| Gross Margin % | 32.06% | 31.41% | 32.49% | 29.9% | 26.46% | 30.39% | 33.85% | 33% | 30.69% | 29.73% | 31% | 28.45% | 26.91% | 26.6% | 26.63% | 27.44% | 27.95% | 26.82% | 26.13% | 26.77% | 25.9% | 26.18% | 26.28% | 26.74% | 29.13% | 28.24% | 30.03% | 30.25% | 42.52% | 41% | 39.92% |
| Gross Profit Growth % | - | -3.83% | 4.38% | 12.11% | 7.12% | 4.63% | 1.86% | 7.4% | 12.59% | 4.63% | 4.51% | -20.75% | 3.72% | 5.8% | -7.48% | 9.66% | 13.95% | -18.64% | 11.11% | 6.86% | 7.5% | 9.47% | 15.65% | 7.04% | -2.54% | -1.64% | 8.09% | -27.38% | 9.98% | 18.85% | 3.36% |
| Operating Expenses | 4.63B | 4.66B | -534.2M | 1.27B | 1.02B | 869.1M | 760.6M | 799M | 775.1M | 996.1M | 791.3M | 992.9M | 1.47B | 1.38B | 1.28B | 1.14B | 1.06B | 1.37B | 1.23B | 1.07B | 1.23B | 1.13B | 1.05B | 1.09B | 798.6M | 869.1M | 810.7M | 794M | 1.26B | 1.2B | 1.01B |
| OpEx % of Revenue | - | 38.7% | -4.41% | 10.1% | 8.04% | 8.42% | 8.59% | 8.96% | 8.68% | 12.17% | 10.55% | 12.69% | 14.08% | 13.59% | 13.29% | 11.35% | 11.74% | 16.57% | 11.77% | 11.74% | 13.91% | 13.87% | 14.18% | 17.3% | 14.79% | 15.2% | 14.83% | 15.82% | 25.64% | 25.88% | 25.17% |
| Selling, General & Admin | 894.1M | 906.1M | 942.4M | 957M | 900.6M | 828.4M | 742.1M | 750M | 760.8M | 713.5M | 683.8M | 792.3M | 1.05B | 1.09B | 946.8M | 1.01B | 962M | 1.27B | 1.12B | 999.8M | 1.07B | 1.01B | 956.2M | 832.6M | 715.1M | 752.1M | 714.7M | 690.6M | 659.8M | 627.6M | 920M |
| SG&A % of Revenue | - | 7.53% | 7.79% | 7.6% | 7.09% | 8.02% | 8.38% | 8.41% | 8.52% | 8.71% | 9.11% | 10.13% | 10.1% | 10.7% | 9.85% | 10.06% | 10.66% | 15.44% | 10.76% | 10.93% | 12.15% | 12.45% | 12.9% | 13.22% | 13.24% | 13.15% | 13.07% | 13.76% | 13.41% | 13.53% | 22.95% |
| Research & Development | 90.8M | 96.3M | 100.2M | 105.6M | 102.9M | 93.5M | 83.9M | 72.9M | 64.5M | 57.8M | 71.6M | 76.4M | 141.4M | 133.7M | 126.4M | 118.8M | 114.7M | 116.3M | 130.7M | 129M | 151.4M | 132.7M | 126.7M | 121.1M | 120.6M | 122.5M | 124.4M | 123.1M | 112M | 113.7M | 114M |
| R&D % of Revenue | - | 0.8% | 0.83% | 0.84% | 0.81% | 0.91% | 0.95% | 0.82% | 0.72% | 0.71% | 0.95% | 0.98% | 1.35% | 1.31% | 1.32% | 1.18% | 1.27% | 1.41% | 1.26% | 1.41% | 1.71% | 1.63% | 1.71% | 1.92% | 2.23% | 2.14% | 2.28% | 2.45% | 2.28% | 2.45% | 2.84% |
| Other Operating Expenses | 2M | 3.66B | -1.58B | 209.8M | 17.8M | -52.8M | -65.4M | -23.9M | -50.2M | 224.8M | 35.9M | 124.2M | 273.9M | 161.4M | 204.2M | 11.3M | -12.1M | -23M | -25.8M | -55.1M | 4.8M | -16.6M | -32.1M | 136M | -37.1M | -5.5M | -28.4M | -19.7M | 489.4M | 459.1M | -25M |
| Operating Income | -593.1M | -877M | 4.47B | 2.49B | 2.34B | 2.28B | 2.24B | 2.14B | 1.97B | 1.44B | 1.54B | 1.23B | 1.34B | 1.32B | 1.28B | 1.62B | 1.39B | 846.3M | 1.5B | 1.38B | 1.06B | 995.5M | 879.6M | 594.5M | 761.1M | 745.4M | 830.8M | 705M | 830.2M | 701.2M | 591M |
| Operating Margin % | -4.71% | -7.29% | 36.91% | 19.8% | 18.42% | 22.1% | 25.27% | 24.04% | 22.01% | 17.59% | 20.46% | 15.76% | 12.83% | 13.01% | 13.34% | 16.09% | 15.39% | 10.25% | 14.36% | 15.04% | 11.93% | 12.22% | 11.87% | 9.44% | 14.09% | 13.04% | 15.2% | 14.04% | 16.88% | 15.12% | 14.75% |
| Operating Income Growth % | - | -119.64% | 79.03% | 6.66% | 2.52% | 1.96% | 4.35% | 9.1% | 36.5% | -6.19% | 24.48% | -7.91% | 1.11% | 3.28% | -20.95% | 16.79% | 64.13% | -43.42% | 8.74% | 30.31% | 6.04% | 13.18% | 47.96% | -21.89% | 2.11% | -10.28% | 17.84% | -15.08% | 18.4% | 18.65% | 2.53% |
| EBITDA | 774.2M | 687.2M | 5.92B | 3.85B | 3.68B | 3.6B | 3.42B | 3.23B | 2.94B | 2.31B | 2.39B | 2.09B | 2.3B | 2.23B | 2.12B | 2.5B | 2.25B | 1.69B | 2.36B | 2.22B | 1.82B | 1.7B | 1.59B | 1.25B | 1.35B | 1.32B | 1.41B | 1.23B | 1.32B | 1.16B | 1B |
| EBITDA Margin % | 6.14% | 5.71% | 48.9% | 30.58% | 28.96% | 34.9% | 38.65% | 36.18% | 32.88% | 28.16% | 31.85% | 26.73% | 21.99% | 21.92% | 22.09% | 24.76% | 24.95% | 20.43% | 22.71% | 24.22% | 20.55% | 20.9% | 21.51% | 19.84% | 25.04% | 23.06% | 25.73% | 24.55% | 26.83% | 25.02% | 25.02% |
| EBITDA Growth % | -74.72% | -88.39% | 53.58% | 4.78% | 2.06% | 5.26% | 6.05% | 9.91% | 27.34% | -3.51% | 14.25% | -8.9% | 2.9% | 5.1% | -14.94% | 10.82% | 33.55% | -28.68% | 6.73% | 21.83% | 6.86% | 6.73% | 27.63% | -7.61% | 2.56% | -6.26% | 14.15% | -6.62% | 13.73% | 15.68% | 4.65% |
| D&A (Non-Cash Add-back) | 1.16B | 1.56B | 1.45B | 1.36B | 1.34B | 1.32B | 1.19B | 1.08B | 970.7M | 865.8M | 854.6M | 858.5M | 956.9M | 907M | 840.8M | 873.9M | 863.4M | 840.3M | 869M | 840M | 763M | 706.3M | 714.9M | 654.8M | 591.1M | 573M | 575.7M | 527.2M | 489.4M | 459.1M | 412M |
| EBIT | 139.1M | -226.7M | 5.04B | 3.06B | 2.88B | 2.65B | 2.53B | 2.43B | 2.15B | 1.54B | 1.67B | 1.37B | 1.49B | 1.49B | 1.44B | 1.78B | 1.52B | 958.5M | 1.64B | 1.38B | 1.06B | 995.5M | 972.4M | 594.5M | 761.1M | 745.4M | 830.8M | 705M | 830.2M | 701.2M | 565.6M |
| Net Interest Income | -221.2M | -214M | -218.8M | -177.5M | -128M | -141.8M | -109.3M | -137M | -130.5M | -120.6M | -109.1M | -98.6M | -115.7M | -135.4M | -118.3M | -109.8M | -118.5M | -121.9M | -162M | -154.4M | -110.3M | -94.6M | -117.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.1M | 4.2M | 9.4M | 6.4M | 5.4M | 5.7M | 3.4M | 0 | 0 | 8.8M | 9M | 15.4M | 3.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 221.2M | 214M | 218.8M | 177.5M | 128M | 141.8M | 109.3M | 137M | 130.5M | 120.6M | 115.2M | 102.8M | 125.1M | 141.8M | 123.7M | 115.5M | 121.9M | 121.9M | 162M | 163.2M | 119.3M | 110M | 121M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 511M | 436.3M | 355.1M | 387.8M | 415.9M | 226M | 186.2M | 145.1M | 49.4M | -23.9M | 19.5M | 32.9M | 26.3M | 26M | 30.1M | 33M | 5M | -9.7M | -17M | -48M | -11.6M | -4.6M | -28.2M | -29.1M | 23.4M | -84.2M | -712.7M | -51.1M | -6.5M | -70.8M | 18.6M |
| Pretax Income | -82.1M | -440.7M | 4.82B | 2.88B | 2.75B | 2.51B | 2.42B | 2.29B | 2.02B | 1.42B | 1.55B | 1.27B | 1.37B | 1.35B | 1.31B | 1.66B | 1.39B | 836.6M | 1.48B | 1.38B | 1.04B | 990.9M | 851.4M | 565.4M | 784.5M | 661.2M | 118.1M | 653.9M | 823.7M | 630.4M | 609M |
| Pretax Margin % | -0.65% | -3.66% | 39.84% | 22.88% | 21.69% | 24.29% | 27.37% | 25.67% | 22.56% | 17.3% | 20.72% | 16.18% | 13.08% | 13.26% | 13.66% | 16.47% | 15.44% | 10.13% | 14.2% | 15.04% | 11.8% | 12.17% | 11.49% | 8.98% | 14.52% | 11.57% | 2.16% | 13.03% | 16.75% | 13.59% | 15.19% |
| Income Tax | -86.1M | -94.3M | 944.9M | 551.2M | 500.8M | 462.8M | 478.4M | 480.1M | 524.3M | 260.9M | 432.6M | 300.2M | 369.4M | 307.9M | 287.3M | 408.4M | 339.5M | 185.3M | 365.3M | 301.2M | 269.1M | 260.7M | 226.6M | 147.2M | 240.8M | 190.5M | -13.7M | 203.4M | 276.9M | 201.1M | 193M |
| Effective Tax Rate % | 104.87% | 21.4% | 19.6% | 19.12% | 18.18% | 18.46% | 19.74% | 20.97% | 26.02% | 18.42% | 27.83% | 23.71% | 27.05% | 22.8% | 21.89% | 24.59% | 24.35% | 22.15% | 24.7% | 21.88% | 25.78% | 26.31% | 26.61% | 26.03% | 30.69% | 28.81% | -11.6% | 31.11% | 33.62% | 31.9% | 31.69% |
| Net Income | -47.3M | -394.5M | 3.83B | 2.3B | 2.26B | 2.1B | 1.89B | 1.76B | 1.5B | 3B | 631.1M | 1.28B | 991.7M | 994.2M | 1.17B | 1.22B | 1.03B | 631.3M | 909.7M | 1.04B | 723.4M | 711.7M | 604.1M | 397.3M | 525.4M | 465.6M | 124.2M | 450.5M | 546.8M | 429.3M | 416M |
| Net Margin % | -0.38% | -3.28% | 31.64% | 18.26% | 17.77% | 20.33% | 21.3% | 19.73% | 16.77% | 36.65% | 8.41% | 16.33% | 9.5% | 9.77% | 12.14% | 12.14% | 11.4% | 7.65% | 8.73% | 11.32% | 8.17% | 8.74% | 8.15% | 6.31% | 9.73% | 8.14% | 2.27% | 8.97% | 11.12% | 9.26% | 10.38% |
| Net Income Growth % | -103.05% | -110.31% | 66.43% | 1.95% | 7.48% | 11.26% | 7.2% | 17.51% | -50.08% | 375.42% | -50.61% | 28.86% | -0.25% | -14.83% | -4.65% | 18.96% | 63.01% | -30.6% | -12.16% | 43.16% | 1.64% | 17.81% | 52.05% | -24.38% | 12.84% | 274.88% | -72.43% | -17.61% | 27.37% | 3.2% | 13.04% |
| Net Income (Continuing) | 4M | -346.4M | 3.88B | 2.33B | 2.25B | 2.04B | 1.95B | 1.81B | 1.49B | 1.16B | 1.12B | 965.9M | 996M | 1.04B | 1.03B | 1.25B | 1.05B | 651.3M | 1.09B | 1.08B | 774.9M | 730.2M | 624.8M | 400.2M | 525.4M | 465.6M | 124.2M | 450.5M | 546.8M | 429.3M | 416.4M |
| Discontinued Operations | 0 | -8M | -13.9M | 7.4M | 12.6M | 70.3M | 0 | 0 | 42.2M | 1.87B | 0 | 344.6M | 0 | 0 | 0 | 8.9M | 0 | 0 | 0 | -55.5M | -29.8M | 4.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 2.71B | 2.32B | 1.64B | 1.35B | 558.4M | 548.3M | 363.3M | 334.7M | 318.8M | 99.3M | 133.8M | 132.1M | 155.6M | 156.8M | 146.1M | 142.9M | 150.7M | 138.1M | 136.2M | 177.3M | 178M | 181.1M | 168.9M | 188.1M | 184.4M | 118M | 115.5M | 127.3M | 8.5M | 0 | 0 |
| EPS (Diluted) | -0.21 | -1.77 | 17.18 | 10.30 | 10.08 | 9.12 | 8.55 | 7.94 | 6.78 | 13.65 | 2.89 | 5.88 | 4.61 | 4.68 | 5.44 | 5.63 | 4.74 | 2.96 | 4.15 | 4.64 | 3.18 | 3.08 | 2.64 | 1.78 | 2.36 | 2.12 | 0.57 | 2.09 | 2.48 | 1.91 | 1.83 |
| EPS Growth % | -102.99% | -110.3% | 66.8% | 2.18% | 10.53% | 6.67% | 7.68% | 17.11% | -50.33% | 372.32% | -50.85% | 27.55% | -1.5% | -13.97% | -3.37% | 18.78% | 60.14% | -28.67% | -10.56% | 45.91% | 3.25% | 16.67% | 48.31% | -24.58% | 11.32% | 271.93% | -72.73% | -15.73% | 29.84% | 4.37% | 10.91% |
| EPS (Basic) | - | -1.77 | 17.21 | 10.31 | 10.11 | 9.16 | 8.59 | 7.99 | 6.83 | 13.76 | 2.92 | 5.95 | 4.66 | 4.74 | 5.53 | 5.75 | 4.85 | 3.01 | 4.29 | 4.79 | 3.26 | 3.15 | 2.70 | 1.81 | 2.42 | 2.17 | 0.58 | 2.12 | 2.54 | 1.95 | 1.86 |
| Diluted Shares Outstanding | 222.8M | 222.9M | 222.8M | 222.7M | 222.5M | 222.5M | 222.3M | 221.6M | 220.8M | 219.8M | 218.3M | 217.3M | 215.2M | 212.3M | 214.7M | 217.6M | 217.1M | 213.5M | 219.2M | 223.2M | 227.5M | 231.4M | 228.9M | 224M | 223M | 219.3M | 216M | 216M | 220.1M | 224.76M | 227.54M |
| Basic Shares Outstanding | 222.8M | 222.8M | 222.5M | 222.3M | 222M | 221.6M | 221.2M | 220.3M | 219.3M | 218M | 216.4M | 214.9M | 212.7M | 209.7M | 211.2M | 213M | 212.2M | 209.9M | 212.2M | 216.2M | 221.7M | 225.7M | 223.8M | 220M | 217M | 214.8M | 213M | 212.2M | 215.5M | 220.15M | 223.87M |
| Dividend Payout Ratio | - | - | 40.88% | 65.06% | 61.31% | 59.87% | 58.49% | 56.48% | 59.94% | 26.26% | 114.28% | 53.02% | 63.3% | 56.89% | 44.11% | 37.31% | 38.74% | 59.13% | 38.4% | 30.13% | 40.59% | 38.81% | 36.24% | 47.47% | 33.42% | 35.48% | 125.36% | 32.45% | 24.51% | 28.84% | 28.05% |
Quick answers to the most common questions about buying APD stock.
For fiscal year 2025, Air Products and Chemicals, Inc. (APD) reported total revenue of $12.04B. This represents a 200.3% increase compared to $4.01B in 1996.
Air Products and Chemicals, Inc. (APD) reported a net loss of $394.5M for the fiscal year ending 2025.
Air Products and Chemicals, Inc. (APD) reported an operating income of $-877.0M, resulting in an operating profit margin of -7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Air Products and Chemicals, Inc. (APD) generated $3.78B in gross profit for the year, representing a gross profit margin of 31.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Hydrogen megaproject execution risk
Metrics are mathematically derived from official filings.
Stalled Top-Line Amidst Project Pipeline
Revenue growth has been erratic, with the latest quarter showing 4.6% YoY growth, but the trailing twelve months remain slightly negative at -0.5%, per reported financials.
The most recent quarter's 4.6% growth is a rebound from prior contractions, yet the overall trend is flat to slightly negative, suggesting that the core industrial gas business is not generating meaningful organic volume expansion. This stagnation likely reflects weak industrial production and merchant demand, while the company's future growth hinges on the execution of its hydrogen project backlog, which has yet to contribute significantly to revenue.
Gross Margin Resilience vs. Operating Volatility
Gross margin has held near 32% over the past year, but operating margin swung from -79.8% in 2025Q2 to 23.7% in 2026Q2, indicating significant non-recurring charges.
The stability of gross margin around 32% suggests that the company can pass through energy costs, but the extreme operating margin swings are driven by large impairments or restructuring charges, as seen in 2025Q2 and 2026Q3. These charges obscure the underlying profitability, which appears to be in the low-to-mid 20s on an adjusted basis, but the persistence of such charges warrants close monitoring.
Operating Leverage Masked by One-Time Items
In quarters without major charges, operating income scales with revenue, but the negative operating margins in 2025Q2 and 2026Q3 suggest that fixed costs are not being covered during impairment periods.
Excluding the outlier quarters, operating leverage is evident as SG&A remains relatively flat while revenue grows, leading to operating margin expansion. However, the massive negative operating income in certain quarters indicates that the high fixed-cost base amplifies the impact of non-cash write-downs, which may not reflect the cash-generating ability of the core business.
Adjusted vs. Reported Earnings Divergence
Reported EPS swung from -$7.77 in 2025Q2 to $3.19 in 2026Q2, while stock-based compensation remained modest, suggesting that non-operating items drive the volatility.
The wide swings in EPS are not attributable to SBC, which is consistently around $10-15 million per quarter, but rather to large non-recurring charges. Management's guidance for adjusted EPS growth of 12% indicates that the underlying business is profitable, but the magnitude and frequency of these charges raise questions about the quality of reported earnings and the potential for further write-downs.
Energy Costs and Impairments Distort Cost Structure
COGS as a percentage of revenue has remained stable, but operating expenses include sporadic large charges, as evidenced by the -$2.1B operating income in 2026Q3.
The primary cost driver is COGS, which tracks energy prices, but the operating expense line is subject to significant non-recurring items. The $2.1B operating loss in 2026Q3 is likely due to impairments or project-related write-offs, which are not part of the recurring cost structure. Investors should focus on the recurring cost base, which appears well-controlled, while monitoring for additional charges.
2025Q2: A Quarter of Massive Write-Downs
The second quarter of 2025 marked a clear inflection, with operating income plunging to -$2.3B and net income to -$1.7B, likely due to impairments or restructuring.
This quarter stands out as the most significant operational inflection in the provided data, as it reversed a trend of stable profitability and introduced a period of volatility. The charges may be related to the company's hydrogen projects or portfolio reviews, and their impact has persisted into 2026Q3, suggesting that the company is undergoing a strategic reassessment that could have lasting effects on reported profitability.
The Bear Case: Persistent Charges and Stagnant Growth
Despite management's adjusted EPS growth claims, reported net margin remains deeply negative at -3.3% TTM, and revenue growth is flat, suggesting the core business may be struggling.
Short-sellers would argue that the recurring impairments and write-downs indicate that the company's capital-intensive projects are not generating expected returns, and the lack of revenue growth suggests that the hydrogen bet is not yet paying off. The divergence between adjusted and reported figures could be masking a deteriorating underlying business, and the high fixed-cost base leaves little room for error if energy costs rise or demand weakens.