APDNEUTRAL

APD Gross Margin Analysis

31.1%

Higher than 20% of Basic Materials sector peers

Updated 2985h ago·SEC filings & market data

Key Takeaway

Air Products and Chemicals’ gross margin of 31.1% means that for every dollar of revenue, the company keeps about 31 cents after covering the direct costs of producing its industrial gases and chemicals.

Sector Performance

20th percentile

APD

31.1%

Sector Median

42.8%

Sector Avg

-54506.6%

Prior Period

32.1%(Apr 2026)

↓ Declining

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Deep Analysis

This figure sits well below the Basic Materials sector median of 45.1%, placing APD in the 13th percentile among its peers — meaning 87% of comparable companies have a higher gross margin. Because year-over-year and quarter-over-quarter changes are not available, there is no trend data to assess whether the margin is improving or deteriorating. The combination of a low gross margin and an absence of trend makes it difficult to judge momentum, but the current level alone signals weaker pricing power or higher input costs relative to competitors. This metric directly supports the overall CAUTIOUS verdict, as an already narrow gross margin leaves little room for cost increases or pricing pressure without squeezing profitability further.

Frequently Asked Questions

What does the Gross Margin tell investors about APD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does APD's Gross Margin compare to its sector?

APD's Gross Margin of 31.1% compares to a Basic Materials sector median of 42.8%, placing it in the 20th percentile.

Who are APD's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: BHP (42.8%), PPG (40.2%), ALB (35.1%), PAAS (52.7%), AG (55.3%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.