AP
APD
Latest · Mar 31, 2026
Quarter ended Mar 31, 2026 · FY2026 Q2

Air Products and Chemicals, Inc. stock research

Air Products and Chemicals (APD) Free Cash Flow — Quarter Ended Mar 31, 2026

Revenue and operating cash flow improved compared to both the prior quarter and the same quarter last year. Free cash flow remained negative but narrowed significantly from the year-ago level.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue and operating cash flow improved compared to both the prior quarter and the same quarter last year. Free cash flow remained negative but narrowed significantly from the year-ago level.

  • Operating cash flow as a proportion of revenue was higher than the prior quarter and much higher than the same quarter last year. Capital expenditure decreased from both comparison periods, contributing to a less negative free cash flow margin.
  • Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved, while capital expenditure was lower, resulting in a less negative free cash flow. Versus the same quarter one year earlier, revenue and operating cash flow were substantially higher, capital expenditure was lower, and free cash flow was significantly less negative.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

-$2.6B

Trailing twelve-month free cash flow.

Quarter free cash flow

-$3.9M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$1.1B

Cash generated by operations before capital spending.

CapEx

$1.1B

Capital spending and related asset purchases.

FCF margin

-0.1%

The share of revenue converted into free cash flow.

TTM FCF yield

-3.8%

TTM FCF divided by market capitalization.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-03-31$2.9B$328.1M$1.9B-$1.6B-53.6%
2025-06-30$3.0B$855.8M$1.5B-$640.0M-21.2%
2025-12-31$3.1B$900.7M$1.3B-$350.5M-11.3%
2026-03-31$3.2B$1.1B$1.1B-$3.9M-0.1%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income-0.5%Shows whether accounting earnings convert into cash.
CapEx / revenue34.9%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Operating Cash Flow Improvement

Operating cash flow increased from both the prior quarter and the year-ago quarter, while capital expenditure declined, leading to a materially less negative free cash flow.

The combination of higher operating cash flow and lower capital expenditure drove the strongest observable improvement in free cash flow.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow as a proportion of revenue was higher than the prior quarter and much higher than the same quarter last year. Capital expenditure decreased from both comparison periods, contributing to a less negative free cash flow margin.

Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved, while capital expenditure was lower, resulting in a less negative free cash flow. Versus the same quarter one year earlier, revenue and operating cash flow were substantially higher, capital expenditure was lower, and free cash flow was significantly less negative.

Monitor whether operating cash flow can sustain its improvement relative to revenue in future quarters.

Valuation context

A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.

Market capitalization$66.7BUsed as the denominator for FCF yield.
TTM FCF yield-3.8%TTM free cash flow divided by market capitalization.
EV / TTM FCFn/aA quick valuation bridge, not a full DCF.

Peer context

Free cash flow quality is easier to read against related public companies.

AP
APD

Air Products and Chemicals, Inc.

FCF margin

-0.1%

FCF yield

-3.8%

APD Free Cash Flow — Quarter Ended Mar 31, 2026