<div id="readability-page-1">Money Markets What's Next With APD Stock After A 25% Drop?  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Dec 12, 2025, 07:30am EST  CHONGQING, CHINA - APRIL 26: In this photo illustration, the logo of Air Products and Chemicals, Inc. is displayed on a smartphone screen, with the company's latest stock market performance and candlestick chart visible in the background, on April 26, 2025, in Chongqing, China. Air Products is an American international corporation whose principal business is selling gases and chemicals for industrial uses, including hydrogen, nitrogen, oxygen, and helium, with key applications in energy, electronics, chemicals, and manufacturing. (Photo illustration by Cheng Xin/Getty Images) Getty Images It's rare for a company recognized for its stability, consistent dividends, and understated operations to experience a nearly 25% decline within a single year, but that is precisely what occurred to Air Products &amp; Chemicals (NYSE: APD). For a stock that seldom undergoes significant fluctuations, the drop from approximately $315–$330 a year ago to around $236 in late 2025 has taken many long-term investors by surprise. The decrease is even more astonishing given APD's standing as one of the safest industrial-gas investments worldwide.  If you are looking for upside with reduced volatility compared to holding a single stock, consider the High Quality Portfolio . It has reliably outperformed its benchmark—a composite of the S&amp;P 500, Russell 2000, and S&amp;P MidCap indexes—and has produced returns exceeding 105% since its inception. Additionally, see – What’s Behind Dollar Tree Stock’s 70% Surge?  A Harsh Strategic Reset Triggered the Downturn The primary reason for APD’s decline was the company’s comprehensive strategic realignment in 2025. For numerous years, management invested heavily in large-scale clean energy, hydrogen, and LNG initiatives, intending to establish APD as a frontrunner in the energy transition. However, those aspirations fell apart when the firm declared its exit from several of these capital-intensive undertakings. That choice compelled APD to incur a staggering $2.3 billion after-tax charge, leading to a reported GAAP net loss of approximately $1.7 billion for the fiscal second quarter of 2025.  Even after adjustments, earnings indicated weaknesses: APD recorded $2.69 in EPS for the same quarter, a decline of about 6% from the previous year. Such figures sharply altered investors' outlook. What was initially presented as a growth narrative appeared suddenly to be a company retracting and recognizing misallocated funds.  Underlying Weakness Added Pressure The strategic miscalculations were just part of the overall picture. APD’s core operations encountered their own hurdles during the fiscal year. Revenues remained around $12 billion for fiscal 2025—unchanged compared to previous years—reflecting weak volume trends, softness in significant segments such as helium, and macroeconomic pressures in Europe and Asia. The company also completed the sale of its LNG technology division, which further diminished the scale of its operations.  MORE FOR YOU While APD was able to implement some price hikes, these were insufficient to counteract the declining customer demand and sluggish industrial activities. The blend of tepid revenue growth, falling volumes, and strategic ambiguity fostered a narrative of stagnation rather than expansion.  Leadership Changes Created More Uncertainty Compounding investor apprehension was a phase of leadership changes. A new CEO, Eduardo F. Menezes, took charge following a notable proxy battle involving activist fund Mantle Ridge. Although leadership transitions are not uncommon, the timing—especially as APD was unwinding significant projects—sparked genuine concerns about the company's long-term trajectory.  Investors pondered whether APD would persist in pursuing energy-transition megaprojects or revert to its conventional industrial-gas foundations. The write-downs clarified that the firm was opting to redirect its focus, but this shift also implied that the ambitious growth narrative of the past several years was no longer intact.  Macro Headwinds Weighed on Results Demand for industrial gas is closely linked to global manufacturing and energy activities, both of which were underperforming in 2025. Various regions, including parts of Asia and Europe, reported reduced output, while helium markets particularly experienced weakened demand. APD, with its worldwide presence, was susceptible to these influences. Uncertainties across the energy and chemicals sector dampened sentiment further, leaving APD without the defensive premium it usually enjoys.  Is the Worst Over — Or Is More Volatility Ahead? Despite the challenging year, APD continues to possess attributes that attract long-term investors. The firm is still generating substantial cash flows from its fundamental industrial-gas operations, and its dividend yield—ranging from 2.7% to 2.9%—provides stability in an otherwise unstable year.  However, the way forward will largely hinge on APD’s capability to restore margin growth, regain investor trust, and prove it can expand profitably without incurring excessive risk. The company’s cautious approach toward large energy-transition initiatives indicates management is valuing stability over daring ventures, yet this shift could restrict long-term growth prospects unless global industrial-gas demand improves.  For the moment, APD’s 25% drop serves as a reminder that even the most reliable industrial entities can falter when strategy, demand, and macroeconomic conditions all change simultaneously. Recovery remains possible—but it will necessitate patience, execution, and a clearer vision than what the company has provided over the last year.  Now, we implement a risk assessment framework while constructing the Trefis High Quality (HQ) Portfolio , which, encompassing a collection of 30 stocks, has a history of consistently outperforming the S&amp;P 500 during the past 4 years — and has achieved returns exceeding 105% since its inception. Why is that? As a collective, HQ Portfolio stocks yielded better returns with diminished risk compared to the benchmark index; avoiding the roller-coaster dynamics evident in HQ Portfolio performance metrics .  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

<p>Air Products & Chemicals (APD) stock dropped nearly 25% from $315–$330 to $236 due to strategic realignment, incurring a $2.3 billion charge and a $1.7 billion net loss. Leadership changes and macroeconomic pressures further impacted the stock. Despite challenges, APD maintains strong cash flows and a stable dividend yield, attracting long-term investors.</p>