Air Products stock enters fiscal 2027 with higher EPS outlook

Air Products & Chemicals set a higher earnings target for fiscal 2027 after reporting stronger adjusted results for the final quarter of fiscal 2026. In its November 5 earnings release, the company said adjusted earnings per share rose 6 percent in the quarter to 3.61 US dollars.

Air Products stock traded at 277.30 euros on Lang & Schwarz at 12:46 CET on Tuesday, November 10, 2026.

Adjusted earnings outpace project charges

Fourth-quarter sales increased 12 percent to 3.6 billion US dollars, helped by 9 percent higher volumes and contributions from pricing, energy cost pass-through and favorable currency. Adjusted operating income rose 5 percent to 856 million US dollars, while the adjusted operating margin fell 150 basis points to 24.1 percent as higher costs offset part of the volume benefit.

The company said new assets and higher on-site volumes supported the quarter. In the Americas, sales increased 27 percent to 1.6 billion US dollars and operating income rose 20 percent to 469 million US dollars. Asia sales climbed 4 percent to 909 million US dollars, while Europe sales increased 8 percent to 856 million US dollars, with energy cost pass-through making a significant contribution in the region.

GAAP figures were also affected by business and asset actions. Fourth-quarter operating income was 633 million US dollars and diluted earnings per share were 2.62 US dollars, compared with 17 million US dollars and 0.02 US dollars in the prior-year quarter. Air Products said current-year charges primarily reflected updated estimates connected with the sale process for two China coal gasification plants, including one plant sold in October 2026.

Full-year results support new guidance

For fiscal 2026, sales increased 8 percent to 13.0 billion US dollars. Adjusted operating income reached 3.2 billion US dollars, up 11 percent, and adjusted earnings per share rose 12 percent to 13.45 US dollars. The adjusted operating margin improved 70 basis points to 24.4 percent, supported by higher on-site volumes, pricing and favorable currency, although fixed-cost inflation and incentive compensation weighed on performance.

GAAP fiscal-year results remained distorted by project exits. Operating income was 23 million US dollars and diluted earnings per share were 2.39 US dollars, compared with an operating loss of 877 million US dollars and a loss per share of 1.74 US dollars in fiscal 2025. Air Products identifies the adjusted figures as non-GAAP measures that exclude project-exit charges and other items.

Capital expenditures fell by 1.8 billion US dollars to 3.3 billion US dollars in fiscal 2026. Chief Executive Officer Eduardo Menezes said the company intends to maintain disciplined capital allocation while expanding its industrial gas project backlog and delivering further operating income growth.

Capital allocation remains central

For fiscal 2027, management projects adjusted earnings per share of 14.15 to 14.50 US dollars. The midpoint represents growth from the fiscal 2026 adjusted result, although the expected rate is below the prior year's 12 percent increase. First-quarter adjusted earnings per share are expected at 3.35 to 3.45 US dollars.

Planned fiscal 2027 capital expenditures range from 3.0 billion to 3.5 billion US dollars. The guidance keeps investment substantial while signaling tighter control after the reduction in fiscal 2026 spending. For investors, execution in the core industrial gas business, the ramp-up of new assets and the handling of legacy energy-transition projects remain key factors for the outlook.

Air Products & Chemicals at a glance

• Company: Air Products & Chemicals, Inc.
• ISIN: US0091581068
• Ticker: APD
• Home exchange: New York Stock Exchange
• Lang & Schwarz quote: 277.30 euros at 12:46 CET on November 10, 2026
• Fiscal 2027 adjusted EPS guidance: 14.15 to 14.50 US dollars
• Fiscal 2027 capital expenditure guidance: 3.0 billion to 3.5 billion US dollars

Investors can place the company outlook in the wider US equity market through the S&P 500 market environment.

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