Air Products Reports Q4 and FY26 Results, Issues FY27 Guidance

Executive Overview

On November 5, 2026, Air Products and Chemicals, Inc. (NYSE: APD) filed a Current Report on Form 8-K under Item 2.02, furnishing its financial results for the fourth quarter and full fiscal year ended September 30, 2026, along with financial guidance for fiscal 2027.

Key Financial Highlights

Fiscal 2026 Full-Year Performance

• Revenues: $12.99 billion, up 8% ($954 million) compared to $12.04 billion in FY2025, driven by 4% higher volume, 2% higher energy cost pass-through, and 2% favorable currency effects.
• GAAP Operating Income & EPS: Operating income of $23.3 million and diluted EPS of $2.39, recovering from an operating loss of $877.0 million and diluted loss per share of $1.74 in FY2025. Both years were significantly impacted by project exit charges ($3.15 billion in FY26 vs. $3.75 billion in FY25).
• Adjusted Operating Income: $3.2 billion, up 11% year-over-year; adjusted operating margin reached 24.4% (+70 bps YoY).
• Adjusted EPS: $13.45, up 12% year-over-year, beating the midpoint of company guidance.
• Cash Flow & Capital Expenditures: Cash used in investing activities was $4.1 billion (down $3.0 billion YoY); capital expenditures totaled $3.3 billion, down $1.8 billion relative to the prior year.

Fiscal 2026 Fourth Quarter Performance

• Revenues: $3.56 billion, up 12% YoY compared to $3.17 billion in Q4 FY25, supported by 9% higher volumes and 1% each from pricing, energy cost pass-through, and currency.
• GAAP Operating Income & EPS: Operating income of $633.2 million and EPS of $2.62, up from $16.8 million and $0.02 in Q4 FY25.
• Adjusted Operating Income & EPS: Adjusted operating income was $856 million (+5% YoY), and adjusted EPS was $3.61 (+6% YoY).

Segment Breakdown (Q4 FY26)

• Americas: Sales of $1.6 billion (+27% YoY); operating income of $469 million (+20% YoY), driven by higher on-site volumes and contract termination asset sales, partially offset by distribution/inflation costs.
• Asia: Sales of $909 million (+4% YoY); operating income of $250 million (+10% YoY), aided by on-site volumes and lower depreciation from assets held for sale.
• Europe: Sales of $856 million (+8% YoY); operating income of $241 million (+2% YoY), offset by elevated power and fixed costs.
• Middle East & India: Equity affiliates' income increased 6% to $97 million, primarily from operations in Saudi Arabia.

Fiscal 2027 Outlook

• Full-Year Adjusted EPS: $14.15 to $14.50.
• Q1 Adjusted EPS: $3.35 to $3.45.
• Full-Year Capital Expenditures: Projected in the range of $3.0 billion to $3.5 billion, reflecting continued discipline in capital allocation.