Air Products stock sets higher fiscal 2027 earnings outlook

Air Products & Chemicals reported its fiscal 2026 fourth-quarter and full-year results on Thursday, November 5, and set a higher adjusted earnings outlook for fiscal 2027. The company said its core industrial gas business improved, while project exits continued to affect GAAP results.

Air Products' news release said adjusted fourth-quarter earnings per share increased 6 percent from the prior year to 3.61 US dollars. Adjusted operating income rose 5 percent to 856 million US dollars, supported by higher volumes and pricing actions, although higher costs reduced the adjusted operating margin to 24.1 percent.

Industrial gas volumes support results

Fourth-quarter sales increased 12 percent to 3.6 billion US dollars as volumes advanced 9 percent. The company attributed the volume improvement primarily to on-site supply, including a significant asset sale linked to an early contract termination in the Americas, as well as contributions from new assets.

The Americas produced sales of 1.6 billion US dollars, up 27 percent, while operating income increased 20 percent to 469 million US dollars. Asia sales rose 4 percent to 909 million US dollars and operating income advanced 10 percent to 250 million US dollars. Europe sales increased 8 percent to 856 million US dollars, with operating income up 2 percent to 241 million US dollars.

GAAP figures were also shaped by business and asset action charges associated mainly with two China coal gasification plants. Fourth-quarter GAAP earnings per share were 2.62 US dollars, compared with 0.02 US dollars in the prior-year period, while operating income reached 633 million US dollars versus 17 million US dollars. The adjusted figures are intended to exclude these charges and other specified items, so investors should not treat the two measures as interchangeable.

Guidance points to measured growth

Air Products expects fiscal 2027 adjusted earnings per share of 14.15 to 14.50 US dollars. First-quarter adjusted earnings guidance is 3.35 to 3.45 US dollars. The full-year range implies further growth from the fiscal 2026 adjusted result, but at a slower pace than the 12 percent increase delivered in fiscal 2026.

Planned fiscal 2027 capital expenditures range from 3.0 billion to 3.5 billion US dollars. Fiscal 2026 capital spending was 3.3 billion US dollars, down 1.8 billion US dollars from the prior year. Chief Executive Officer Eduardo Menezes said management would maintain disciplined capital allocation while expanding the industrial gas project backlog and pursuing continued operating income growth. The company said its backlog included more than 2.0 billion US dollars of new electronics business wins.

Air Products stock traded at 280.25 euros on Lang & Schwarz at 13:30 CET on Wednesday, November 11.

Air Products & Chemicals at a glance

• Company: Air Products & Chemicals, Inc.
• ISIN: US0091581068
• Ticker: APD
• Home exchange: New York Stock Exchange
• Lang & Schwarz price: 280.25 euros on November 11, 2026, at 13:30 CET

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For investors, the key issue is whether new on-site assets, pricing and productivity can offset cost pressure while the company keeps project spending within its new range. More news and analyses on Air Products stock.