Core Viewpoint - Air Products and Chemicals, Inc. (NYSE:APD) is recognized as one of the top commodity stocks to consider for investment, despite a recent price target reduction by Evercore ISI from $375 to $325 while maintaining an "Outperform" rating [1][2]. Financial Performance - For Q4 FY25, Air Products reported an EPS of $3.39, slightly above the forecast of $3.38, with a full-year EPS of $12.03, reflecting a 3% year-over-year decline [3]. - The company implemented a cost-reset strategy, resulting in a 16% reduction in workforce and maintaining stable operating margins at 23.7% [3]. - Air Products returned $1.6 billion to shareholders, demonstrating a commitment to capital efficiency [3]. Future Outlook - Management indicated that the NEOM green hydrogen project is nearly 90% complete, with plans to achieve ammonia output by 2027 [4]. - For FY26, the company anticipates a 9% growth in EPS, modestly positive cash flow, and approximately $4 billion in capital spending [4]. Business Operations - Air Products operates a global network across North America, Europe, Asia, and the Middle East, focusing on industrial gases, hydrogen, and large-scale energy transition projects [5].

Market Overview - The current market environment is characterized by changing global supply, demand, and investor sentiment, with precious metals leading gains alongside industrial metals, as indicated by a 10% increase in the Bloomberg Commodity Index (BCOM) as of November 19, 2025 [2] - Four out of six BCOM sectors reported gains in Q3, while petroleum rose by 4%, with grains and energy sectors being exceptions [2] - China's major commodity imports eased in October, with iron ore showing resilience despite declines in crude oil, natural gas, and coal [3] - The World Bank's Commodity Markets Outlook predicts a 7% decline in global commodity prices in 2026 due to subdued economic activity, trade tensions, and excess oil supplies, while precious metals are expected to grow by 5% [4] LNG Supply Growth - Global LNG supply is projected to grow by 10.2% in 2026, driven by U.S. expansions, with capacity expected to rise to 130 million tons in 2026 from 90 million tons in 2024 [5] Investment Strategy - The list of the 12 best commodity stocks is curated based on hedge fund interest, utilizing data from Insider Monkey's hedge fund database, which tracks 983 stocks as of Q2 2025 [8] - Research indicates that imitating top stock picks of leading hedge funds can lead to market outperformance [9] Company Highlights Air Products and Chemicals, Inc. (NYSE:APD) - Air Products and Chemicals, Inc. is among the top commodity stocks, with 53 hedge fund holders [11] - The company reported Q4 FY25 EPS of $3.39, slightly above the forecast of $3.38, with a full-year EPS of $12.03, down 3% year-over-year [13] - Management highlighted a focus on cost-reset strategies, including a 16% workforce reduction, and stable operating margins at 23.7% [13] - The NEOM green hydrogen project is nearly 90% complete, with expectations for ammonia output in 2027 [14] EOG Resources, Inc. (NYSE:EOG) - EOG Resources, Inc. also has 53 hedge fund holders and maintained a price target of $145 with a "Buy" rating [16] - The company reported Q3 net income of $1.5 billion and free cash flow of $1.4 billion, with adjusted EPS of $2.71 [17] - EOG returned $1 billion to shareholders through dividends and repurchases, with regular dividend payments increasing by 8% year-over-year [18] - The company raised its free cash flow guidance to $4.5 billion, ending the quarter with $3.5 billion in cash [19] The Mosaic Company (NYSE:MOS) - The Mosaic Company has 54 hedge fund holders and received a "Buy" rating from Goldman Sachs, with a lowered price target from $37 to $33 [21][22] - The company reported Q3 net income of $411 million, up from $122 million year-over-year, and adjusted EBITDA of $806 million [23] - Mosaic aims to achieve $250 million in cost savings by 2026, having already recorded $150 million in reductions [25]

Sales and Revenue - Air Products generated over 90% of consolidated sales from its regional industrial gases business in fiscal years 2025, 2024, and 2023, with approximately half attributed to atmospheric gases[22]. - Approximately half of total revenue is generated through long-term on-site supply contracts, allowing for pass-through of energy cost changes[148]. - Sales for fiscal year 2025 were $12.0 billion, a decrease of 1% or $63.3 million, primarily due to a 4% decline in volumes, partially offset by a 2% increase in energy cost pass-through and a 1% increase in pricing[162]. - Sales in the Americas segment increased by 2% to $5.1 billion, driven by a 4% increase in energy cost pass-through to customers and a 2% increase in pricing, despite a 3% decline in volumes[203]. - Sales in the Asia segment increased by 1% to $3.3 billion, with equity affiliates' income rising by 29% to $42.3 million[206][208]. - Europe segment sales increased by 6% to $2,984.5 million, driven by higher pricing (2%), favorable currency impact (2%), and volume growth (1%)[209]. - Middle East and India segment sales grew by 1% to $135.9 million, mainly due to higher volumes[213]. - Corporate and other segment sales fell by 41% to $520.0 million, primarily due to the divestiture of the LNG business[215]. Financial Performance - Operating loss for fiscal year 2025 was $877.0 million, compared to an operating income of $4.5 billion in fiscal year 2024, reflecting approximately $3.7 billion in pre-tax charges related to business and asset actions[162]. - Adjusted operating income decreased by 3% to $2.9 billion, down $89.8 million, driven by lower volumes and higher costs, partially offset by increased non-helium pricing[162]. - Net loss for fiscal year 2025 was $354.4 million, a significant decrease from net income of $3.9 billion in fiscal year 2024, primarily due to higher charges for business and asset actions[162]. - Adjusted EBITDA for fiscal year 2025 increased by 1% to $5.1 billion, up $30.1 million[162]. - Loss per share for fiscal year 2025 was $1.74, influenced by an after-tax charge of $3.0 billion for business and asset actions, while adjusted EPS was $12.03, down 3% from $12.43 in the prior year[157]. - Total pre-tax charges related to business and asset actions in fiscal year 2025 were approximately $3.7 billion, significantly higher than $57.0 million in fiscal year 2024[168]. - The effective tax rate for fiscal year 2025 was 21.4%, compared to 19.6% in the prior year, influenced by charges for business and asset actions[191]. Innovation and Technology - The company produced approximately 560 U.S. patents and around 2,650 foreign patents during fiscal year 2025, indicating a strong focus on innovation and technology development[45]. - The company is continually developing new technologies, and failure to do so may harm its competitive position and financial results[88]. Market and Competition - The company faces strong competition from both large global and smaller regional competitors, which could impact pricing and demand for its products[104]. - Future demand for the company's products may be affected by economic conditions and the focus on reducing carbon emissions[63]. Environmental and Regulatory Compliance - Air Products is committed to environmental stewardship and compliance with various environmental regulations, which may result in higher capital expenditures[46]. - The company operates under various regulatory regimes for greenhouse gas emissions, including the European Union Emission Trading System and California's Cap-and-Trade Program, which may increase operational costs[47]. - The company is subject to extensive environmental regulations, which may require unforeseen expenditures and could adversely affect financial results[99]. - Changes in regulatory environments regarding greenhouse gas emissions could negatively impact the company's growth and operating costs[93]. Operational Risks - Delays in project approvals and execution can lead to increased costs and potential project cancellations, adversely affecting financial results[72]. - Operational risks, including pipeline leaks and cyber incidents, could negatively impact production and financial results[74]. - The security of information technology systems is critical, as breaches could lead to significant legal and financial liabilities[81]. Employee and Workforce Development - As of September 30, 2025, the company employed approximately 21,300 employees, with over 99% working full-time and about 75% based outside the United States[53]. - The company continues to invest in employee development and learning platforms to enhance workforce capabilities[54]. - The company is committed to ethical pay practices, ensuring equitable compensation for all employees regardless of personal characteristics[57]. Strategic Focus and Future Outlook - Fiscal year 2025 was a transitional year for Air Products, marked by a renewed focus on the core industrial gas business under new leadership[151]. - The company aims to improve execution and support reductions in capital expenditures and debt over time[151]. - The company expects earnings growth in fiscal year 2026 from new plant onstreams, continued pricing discipline, and productivity improvements, while maintaining cost control and reducing capital expenditures[161]. - The NEOM Green Hydrogen Project is expected to come online in 2027, contributing to the company's long-term growth strategy in clean energy solutions[160].

Core Insights - Saudi Arabia's Public Investment Fund (PIF) has liquidated nearly 12 stocks listed in the U.S. during Q3, including Pinterest and Linde, reducing its U.S. equity holdings to the lowest level in a year [1] - The fund's U.S. stock portfolio value has decreased to $19.4 billion, representing an approximate 18% quarter-over-quarter decline, marking the lowest level since 2025 [1][2] - PIF continues to hold shares in Uber and Electronic Arts but has slightly reduced its stake in Lucid Group [1][3] Exits and Position Changes - Significant exits include: - Cummins: -1,095,578 shares, value change of -$358.80 million, with a price change of +29% [2] - Linde: -436,350 shares, value change of -$204.73 million, with a price change of +1.2% [2] - Air Products: -268,165 shares, value change of -$75.64 million, with a price change of -3.3% [2] - Avery Dennison: -231,662 shares, value change of -$40.65 million, with a price change of -7.6% [2] Top Holdings - PIF's major holdings in the U.S. include: - Uber: 72,840,541 shares valued at $7.14 billion, accounting for 3.5% of the portfolio [3] - Electronic Arts: 24,807,932 shares valued at $5.00 billion, accounting for 9.9% of the portfolio [3] - Lucid Group: 177,088,867 shares valued at $4.21 billion, accounting for 22% of the portfolio [3] - Take-Two Interactive: 11,414,680 shares valued at $2.95 billion, accounting for 6.2% of the portfolio [3] Strategic Focus - The recent divestments align with PIF's strategy to focus on domestic investments to support Saudi Arabia's economic diversification plan [2][4] - PIF aims to invest $70 billion post-2025, primarily within Saudi Arabia, with $57 billion already allocated for 2024 [5] - Further details on PIF's investment strategy for 2026-2030 are expected to be released early next year [5]

Core Insights - The article highlights the deep collaboration between global industrial capital and local high-quality development in Xi'an, particularly through the investment of Air Products, a leading industrial gas company, which has been actively involved in the city's industrial upgrade since 2012 [1][2]. Group 1: Company Investment and Development - Air Products has significantly increased its investment in Xi'an, aligning its growth trajectory with the city's industrial and urban development [1]. - The company established a gas plant in Xi'an's high-tech zone, covering an area of 55,000 square meters, equipped with two large air separation units and a hydrogen generation unit, supplying ultra-pure nitrogen and oxygen [2][3]. - Over the past decade, the plant has ensured the safe and efficient operation of customer production lines, supporting Xi'an's industrial foundation [3]. Group 2: Industry Integration and Innovation - Air Products is deeply embedded in high-end industrial chains such as semiconductor manufacturing, biomedicine, and renewable energy, providing essential gases that enhance product yield, quality, and environmental performance [2]. - The company is transitioning from serving traditional industries to providing specialized gas solutions for emerging sectors like new energy vehicles and photonics, integrating into Xi'an's modern industrial system [5][6]. Group 3: Government Support and Business Environment - The supportive business environment in Xi'an, characterized by efficient government coordination, has facilitated the company's operations, as noted by Air Products' China Vice President [8][9]. - Xi'an's government has implemented various measures to enhance the investment climate, including a comprehensive service plan for industrial projects that extends from pre-signing to post-production phases [10]. - Air Products actively participates in the Xi'an Foreign Investment Enterprises Association, fostering communication between businesses and the government to address common concerns and promote the city's investment advantages [12]. Group 4: Future Outlook - The company plans to continue focusing on Xi'an's strategic emerging industries by providing high-purity gases and advanced process solutions to support local high-tech manufacturing upgrades [6][7]. - The collaboration between Xi'an and multinational companies is expected to accelerate under the synergy of policies, industries, and capital [12].

Group 1 - Air Products and Chemicals Inc. (APD) is recognized as one of the 15 Best Dividend Growth Stocks to buy now [1] - RBC Capital has maintained an Outperform rating on APD while lowering its price target from $350 to $325, citing a rally in shares post-earnings and awaiting clarity on the LA Blue project [2] - The company is focused on addressing global energy and environmental challenges through advancements in gasification, carbon capture, and clean hydrogen [3] Group 2 - APD is advancing several major hydrogen projects, including the NEOM Green Hydrogen Project in Saudi Arabia, which is 80% complete and expected to begin production by 2027 [4] - Additional projects include an $8 billion blue hydrogen project in Louisiana, a $3.3 billion project in Canada, and a $360 million green hydrogen facility in Arizona, anticipated to start operations in 2026 [4] - The company continues to strengthen its position in the clean energy sector as a global leader in industrial gases and LNG processing technology [5]

Core Viewpoint - Air Products (NYSE: APD) is a leading industrial gas company with over 80 years of history, focusing on providing essential industrial gases and related technologies to various industries, contributing to a cleaner future [6]. Group 1: Company Overview - Air Products operates in 50 countries with projected sales of $12.1 billion for the fiscal year 2024 and a current market capitalization of approximately $60 billion [6]. - The company offers high-quality industrial gases, including oxygen, nitrogen, argon, hydrogen, carbon dioxide, acetylene, ethylene, methane, and carbon monoxide, to advanced materials manufacturers [6]. Group 2: Product and Service Offerings - Air Products provides comprehensive gas application solutions for anode materials and solid-state battery materials, aimed at improving product quality, reducing operational costs, and enhancing output [6]. - The company features an intelligent multi-atmosphere monitoring system that efficiently detects various gas compositions in different atmospheric scenarios, saving customers time and costs [9]. Group 3: Event and Sponsorship - The 2026 Silicon-based Anode and Solid-State Battery Summit is highlighted, with various companies sponsoring the event, including Weifang Fumei New Energy Co., Ltd. and others [15]. - The event schedule includes registration on November 12 and a full-day conference on November 13 [15].

Core Insights - Air Products and Chemicals, Inc. (APD) has experienced a significant decline in share value, losing over 20% in the past year [1] Company Performance - The year 2025 has been particularly disruptive for Air Products, impacting its overall performance negatively [1]

Core Insights - Air Products and Chemicals, Inc. (APD) reported fourth-quarter fiscal 2025 earnings from continuing operations of 2 cents per share, a significant decline from $8.81 in the same quarter last year. Adjusted earnings per share were $3.39, down from $3.56, missing the Zacks Consensus Estimate of $3.41 [1][8] Revenue Performance - The company generated revenues of $3,166.9 million, a decrease of approximately 1% year over year, falling short of the Zacks Consensus Estimate of $3,217.7 million. The decline was attributed to lower volumes, although it was somewhat offset by higher energy cost pass-through and favorable currency effects [2][8] - In the Americas segment, revenues decreased by 1% year over year to $1,290.1 million, missing the Zacks Consensus Estimate of $1,357 million. This decline was primarily due to lower volumes, partially mitigated by higher energy cost pass-through and increased pricing [3] - The Europe segment saw a 1% increase in revenues year over year to $789.4 million, surpassing the Zacks Consensus Estimate of $784 million. This growth was driven by higher energy cost pass-through and favorable currency, which offset lower volumes and reduced pricing [4] - Revenues in the Asia segment rose by 8% year over year to $869.8 million, driven by higher volumes, favorable currency exchange impacts, and increased pricing, although it missed the Zacks Consensus Estimate of $876 million [4] Financial Position - At the end of the fiscal fourth quarter, the company had cash and cash equivalents of approximately $1,856 million, a decrease of around 38% year over year. Long-term debt increased to $16,769.9 million, up roughly 25% year over year [5] Future Outlook - The company anticipates adjusted earnings per share for fiscal 2026 to be in the range of $12.85 to $13.15. For the first quarter of fiscal 2026, adjusted earnings are projected to be between $2.95 and $3.10. Additionally, capital expenditures for the full fiscal year are expected to be around $4 billion [6][8] Stock Performance - Over the past year, the company's shares have declined by 24.1%, compared to a 40.3% decline in the Zacks Chemicals Diversified industry [7]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $12.03, which is above the midpoint of the full-year fiscal guidance range [5] - Operating income margin was 23.7%, and return on capital (ROC) was 10.1%, both in line with commitments [5] - The EPS decreased by $0.40 or 3% from the prior year, primarily due to a 4% headwind from LNG divestiture and a 2% headwind from project exits [16][19] Business Line Data and Key Metrics Changes - The Americas segment saw a 3% decline, impacted by a one-time asset sale and project exits [17] - Asia's results were relatively flat, with lower helium offset by favorable on-site contributions [18] - Europe's fiscal year results improved by 4%, driven by non-helium merchant pricing and productivity [18] Market Data and Key Metrics Changes - The company faced headwinds from reduced global helium demand, which affected volume and pricing across regions [15][19] - The market for green ammonia is developing, with expectations for significant demand growth as regulations evolve [11][12] Company Strategy and Development Direction - The company aims for high single-digit annual EPS growth and plans to optimize its large projects portfolio [6] - Capital expenditures are expected to be reduced to approximately $2.5 billion per year after completing several large projects [7] - The focus remains on balancing capital allocation while improving the balance sheet and returning cash to shareholders [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from helium headwinds and a sluggish macroeconomic environment but remains optimistic about productivity and pricing actions [6][19] - The company expects to be modestly cash flow positive in fiscal year 2026 and aims to stay cash flow neutral through 2028 [21] Other Important Information - The company returned $1.6 billion to shareholders in fiscal 2025, marking the 43rd consecutive year of increasing dividends [5] - A total of 3,600 headcount reductions have been identified, expected to contribute approximately $250 million in annual cost savings [8] Q&A Session Summary Question: Evaluation of carbon capture piece of the Louisiana project - Management explained that they are evaluating proposals to divest the carbon capture piece while still considering the project's future [24][25] Question: Cost overruns on the Alberta project - Management confirmed a long-term commitment to supply hydrogen to a major customer, necessitating the project's completion despite cost overruns [26][27] Question: Headcount and cost savings - Management indicated that the targeted headcount of 20,000 is expected to be a new base, with ongoing efforts to optimize the workforce [31] Question: CapEx forecast changes - Management clarified that the CapEx forecast for fiscal 2026 has been adjusted to around $4 billion based on a bottom-up review of capital spending [59] Question: Helium headwind projections - Management confirmed a projected 4% headwind from helium for FY2026, with confidence in managing volume and pricing despite market challenges [93] Question: Decision on Louisiana project - Management indicated that a decision on the Louisiana project will be communicated by the end of the year, with ongoing negotiations progressing [50][54] Question: Growth in the electronics segment - Management highlighted that electronics represent about 17% of total sales and is a rapidly expanding market, with ongoing investments in new plants [66][68]