Air Products and Chemicals (APD) delivered a fiscal Q3 beat and raised guidance, supported by a strong backlog, improving volume growth, and strength in electronics and semiconductor markets, RBC Capital Markets said in a note emailed Thursday.

The company continues to have a strong growth pipeline despite canceling the Darrow project, with more than $3 billion in backlog, including $2.4 billion tied to electronics, the firm noted. Key projects include new air separation units in Taiwan and Florida, as well as supplying major semiconductor and aerospace customers, the analysts said.

The analysts raised their earnings before interest, taxes, depreciation, and amortization estimates to $1.458 billion for fiscal Q4, $5.465 billion for fiscal 2026, and $5.84 billion for fiscal 2027, up from $1.444 billion, $5.43 billion, and $5.8 billion, respectively.

They also increased EPS estimates to $3.62 for fiscal Q4, $13.45 for fiscal 2026, and $14.40 for fiscal 2027, up from $3.55, $13.15, and $14.30, respectively.

"We think [fiscal Q4] vol growth from new assets/Electronics and pricing actions could help APD reach the midpoint of its raised guide," the analysts added.

RBC raised its price target on Air Products and Chemicals to $360 from $358 while keeping its outperform rating.

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