Air Products Revenue Tops Estimates at $3.56 Billion; Adjusted EPS In Line at $3.61

Air Products & Chemicals (NYSE: APD) reported fourth-quarter fiscal 2026 sales of $3.56 billion, above the $3.34 billion analysts expected, and adjusted earnings per share of $3.61, in line with the average analyst estimate, in an 8-K filed Thursday, Nov. 5, 2026.

Quarterly sales rose 12 percent from a year earlier on nine percent higher volumes. Adjusted operating income of $856 million rose 5 percent, while adjusted operating margin of 24.1 percent fell 150 basis points, primarily due to higher costs. Adjusted EPS increased 6 percent.

GAAP results were far stronger than a year earlier, though both periods carried large charges. Fourth-quarter GAAP operating income was $633 million and GAAP EPS was $2.62, compared with operating income of $17 million and EPS of $0.02 a year earlier. The current-year charges primarily reflected updated estimates tied to the sale of two China coal gasification plants, one of which was sold in October 2026.

Full-year results

For fiscal 2026, sales were $13.0 billion, up 8 percent. Adjusted EPS of $13.45 rose 12 percent and matched the average analyst estimate, which was $13.45. Adjusted operating income of $3.2 billion increased 11 percent. GAAP EPS was $2.39, compared with a loss of $1.74 a year earlier. Cash used for investing activities was $4.1 billion, down $3.0 billion, and capital expenditures were $3.3 billion, down $1.8 billion.

Segment performance

Americas sales rose 27 percent to $1.6 billion, with operating income up 20 percent to $469 million, driven by higher on-site volumes including a significant asset sale tied to an early contract termination. Asia sales rose 4 percent to $909 million, and operating income increased 10 percent to $250 million. Europe sales rose 8 percent to $856 million, and operating income increased 2 percent to $241 million.

Fiscal 2027 outlook

The company expects full-year fiscal 2027 adjusted EPS of $14.15 to $14.50, against the $14.44 average analyst estimate, and first-quarter adjusted EPS of $3.35 to $3.45, against the $3.48 average analyst estimate for the December quarter. It expects capital expenditures of $3.0 billion to $3.5 billion. Chief Executive Eduardo Menezes said the company will keep a disciplined approach to capital allocation while focusing on expanding its industrial gas project backlog.