Air Products stock enters fiscal 2027 with higher EPS outlook

Published on 11/09/2026 at 15:46 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Air Products stock enters fiscal 2027 with higher adjusted EPS guidance after a stronger fourth quarter. Capital spending is planned at USD 3.0 billion to USD 3.5 billion.

Fiscal Outlook Points To Growth

Adjusted fourth-quarter EPS increased 6 percent year over year, while higher costs reduced the adjusted operating margin.
Fiscal 2027 guidance implies further adjusted EPS growth and includes a first-quarter range of USD 3.35 to USD 3.45.
Management plans to direct capital toward industrial gas projects and expand the project backlog.

Air Products & Chemicals, US0091581068, Illustration mit AI erstellt.

Air Products & Chemicals reported its fiscal 2026 fourth-quarter and full-year results on Thursday, November 5, while setting out priorities for fiscal 2027. In its earnings release, the company set adjusted EPS guidance above the prior fiscal year's result.

Fourth-Quarter Earnings Improve

Adjusted fourth-quarter EPS rose 6 percent year over year to USD 3.61. Sales increased 12 percent to USD 3.6 billion, while adjusted operating income gained 5 percent to USD 856 million on higher volumes and pricing actions.

Higher costs, including fixed-cost inflation and incentive compensation, weighed on profitability. The adjusted operating margin fell 150 basis points to 24.1 percent. GAAP operating income was USD 633 million and GAAP EPS was USD 2.62, with the quarter affected by business and asset action charges tied mainly to two China coal gasification plants.

Fiscal 2027 Guidance Sets Next Test

Air Products expects fiscal 2027 adjusted EPS of USD 14.15 to USD 14.50, compared with USD 13.45 in fiscal 2026. First-quarter adjusted EPS is forecast at USD 3.35 to USD 3.45. The company also expects fiscal 2027 capital spending of USD 3.0 billion to USD 3.5 billion.

Fiscal 2026 adjusted EPS increased 12 percent, adjusted operating income rose 11 percent to USD 3.2 billion and sales reached USD 13.0 billion. Capital spending fell by USD 1.8 billion to USD 3.3 billion. Management said pricing actions, productivity gains and contributions from new assets are expected to support the new outlook, while project execution remains important for the earnings profile.