LEHIGH VALLEY – November 05, 2026 -- Air Products (NYSE: APD) raised fiscal 2026 adjusted earnings per share 12 percent to $13.45, beating its guidance midpoint, while cutting capital expenditures by $1.8 billion to $3.3 billion.
Adjusted operating income rose 11 percent to $3.2 billion, and adjusted operating margin improved 70 basis points to 24.4 percent. Sales climbed eight percent, or $954 million, to $13.0 billion on four percent higher volumes, two percent higher energy cost pass-through and two percent favorable currency.
Project exit charges swing GAAP results back to a $23 million operating profit
On a GAAP basis, the company posted operating income of $23 million and EPS of $2.39. A year earlier it recorded an operating loss of $877 million and a loss of $1.74 per share. Both periods carry significant charges tied mainly to previously announced project exits.
Cash used for investing activities fell $3.0 billion to $4.1 billion. The company said its backlog expanded, including more than $2.0 billion of new electronics wins.
Fourth-quarter adjusted EPS reaches $3.61 despite a 150-basis-point margin decline
Fourth-quarter adjusted EPS rose six percent to $3.61, and adjusted operating income gained five percent to $856 million. Sales increased 12 percent to $3.6 billion on nine percent higher volumes. Adjusted operating margin fell 150 basis points to 24.1 percent on higher costs.
GAAP operating income was $633 million and EPS $2.62, against $17 million and $0.02 a year earlier. Current-year charges mainly reflect updated estimates from the sale process for two China coal gasification plants, one of which was sold in October 2026.
Americas sales jump 27 percent on a contract-termination asset sale
Americas sales rose 27 percent to $1.6 billion on 26 percent higher volumes. Operating income gained 20 percent to $469 million, helped by a significant asset sale tied to an early contract termination and a new asset contribution. Operating margin slipped 170 basis points to 28.7 percent.
Asia sales grew four percent to $909 million, and operating income rose 10 percent to $250 million. Margin improved 150 basis points to 27.5 percent, aided by lower depreciation on gasification assets held for sale.
Europe sales increased eight percent to $856 million, while operating income rose two percent to $241 million. Margin fell 190 basis points to 28.2 percent, including an approximate 200-basis-point headwind from energy cost pass-through.
Middle East and India equity affiliates' income rose six percent to $97 million, mainly from a Saudi Arabia affiliate. Corporate and other posted an operating loss of $108 million, up from $49 million, as equipment sales fell and costs rose.
Fiscal 2027 adjusted EPS guidance set at $14.15 to $14.50
Air Products guides first-quarter fiscal 2027 adjusted EPS to $3.35 to $3.45. It expects fiscal 2027 capital expenditures of $3.0 billion to $3.5 billion.
CEO Eduardo Menezes said the company will keep "a disciplined approach to capital allocation" while expanding its industrial gas project backlog.