Air Products Reports Fiscal 2026 Full-Year and Fourth Quarter Results; Provides Fiscal 2027 Guidance

Fiscal 2026 Full-Year Summary of Results (comparison versus prior year) GAAP earnings per share ("EPS") # of $2.39 and operating income of $23 million (compared to loss per share of $1.74 and operating loss of $877 million in the prior year); both periods reflect significant charges related to project exits Adjusted earnings per share * of $13.45 increased 12 percent and exceeded guidance midpoint; adjusted operating income * of $3.2 billion increased 11 percent Cash used for investing activities of $4.1 billion, down $3.0 billion; capital expenditures * of $3.3 billion, down $1.8 billion Q4 FY26 Summary of Results (comparison versus prior year) GAAP EPS # of $2.62 and operating income of $633 million reflect the impact of project exits, primarily related to two China coal gasification plants Adjusted EPS * of $3.61 exceeded guidance midpoint; adjusted operating income * of $856 million Guidance Fiscal 2027 full-year adjusted EPS guidance * of $14.15 to $14.50; fiscal 2027 first quarter adjusted EPS guidance * of $3.35 to $3.45 Expect fiscal year 2027 capital expenditures * in the range of $3.0 billion to $3.5 billion Fiscal 2026 Full-Year Consolidated Results (comparison versus prior year) LEHIGH VALLEY, Pa. (November 5, 2026) - Air Products (NYSE:APD) today reported full-year fiscal 2026 GAAP results, including operating income of $23 million, operating margin of 0.2 percent, and EPS # of $2.39. This compares with an operating loss of $877 million, operating margin of negative 7.3 percent, and loss per share # of $1.74 in the prior year. Both periods reflect significant charges related to business and asset actions, primarily associated with previously announced project exit decisions. The non-GAAP financial measures discussed below exclude these charges, as well as other items, as described in the "Reconciliations of Non-GAAP Financial Measures" section of this release. Fiscal 2026 full-year sales of $13.0 billion increased eight percent, or $954 million, on four percent higher volumes, two percent higher energy cost pass-through, and two percent favorable currency. On a non-GAAP basis, fiscal 2026 full-year adjusted operating income* of $3.2 billion increased 11 percent over the prior year, primarily due to higher on-site volumes, favorable currency, and higher pricing. These benefits were partially offset by higher costs, driven by fixed-cost inflation and higher incentive compensation, partially offset by productivity improvements and lower depreciation. Adjusted operating margin * of 24.4 percent improved 70 basis points. Adjusted EPS * of $13.45 increased 12 percent over the prior year and also benefited from higher equity affiliates' income. # Per share amounts are calculated and presented on a diluted basis from continuing operations attributable to Air Products. * Certain results in this release include references to non-GAAP financial measures on a consolidated, continuing operations basis. Additional information regarding these measures and reconciliations of GAAP to non-GAAP historical results can be found below. Management is unable to reconcile, without unreasonable efforts, the Company’s forecasted range of adjusted EPS or capital expenditures to a comparable GAAP range or amount because management is not able to predict the timing or occurrence of events or transactions that management believes are not representative of the Company’s underlying business performance or the timing or occurrence of future investment activity, which are necessary to calculate forward-looking adjusted EPS from continuing operations and capital expenditures, respectively. Refer to the “Capital Expenditures” and “Adjusted EPS Outlook” sections below for additional information. Fiscal 2026 Fourth Quarter Consolidated Results (comparison versus prior year) Air Products also reported fiscal 2026 fourth quarter GAAP results, including operating income of $633 million, operating margin of 17.8 percent, and EPS # of $2.62. This compares with operating income of $17 million, operating margin of 0.5 percent, and EPS # of $0.02 in the fourth quarter of fiscal 2025. Both periods reflect significant business and asset action charges. Prior-year charges included project exit decisions and the initial impairment of two China coal gasification plants. Current-year charges primarily reflect updated estimates associated with the sale process for these plants, including one sold in October 2026. The non-GAAP financial measures discussed below exclude these charges, as well as other items, as described in the "Reconciliations of Non-GAAP Financial Measures" section of this release. On a non-GAAP basis, fourth quarter adjusted operating income * of $856 million increased five percent on higher volumes and pricing actions, partially offset by higher costs. The higher volumes were primarily driven by on-sites, including a significant asset sale associated with an early contract termination in the Americas, and contributions from new assets. Adjusted operating margin * of 24.1 percent decreased 150 basis points, primarily due to higher costs. Adjusted EPS * of $3.61 increased six percent. Fourth quarter sales of $3.6 billion increased 12 percent on nine percent higher volumes and one percent each from higher pricing, higher energy cost pass-through, and favorable currency. Chief Executive Officer Eduardo Menezes said, "Our fiscal 2026 results demonstrate the progress we are making to improve our core industrial gas business, strengthen execution, and allocate capital with discipline. We delivered 12 percent adjusted EPS growth, reduced capital expenditures by $1.8 billion, and expanded our industrial gas project backlog through new business wins. These results reflect the dedication of our employees, whose commitment to safety and focus on serving our customers with excellence continue to drive our performance. As we move through fiscal 2027, we will maintain a disciplined approach to capital allocation while focusing on expanding our industrial gas project backlog and delivering continued operating income growth." Fiscal 2026 Fourth Quarter Results by Business Segment Americas sales of $1.6 billion increased 27 percent from the prior year on 26 percent higher volumes and one percent higher pricing. Operating income of $469 million increased 20 percent primarily due to higher on-site volumes, including a significant asset sale associated with an early contract termination and a new asset contribution. The benefit from volume growth and lower depreciation expense were partially offset by higher incentive compensation, product distribution and dislocation costs, and fixed-cost inflation. Operating margin of 7 percent decreased 170 basis points, primarily due to higher costs. Asia sales of $909 million increased four percent from the prior year on three percent higher volumes and two percent favorable currency, partially offset by one percent lower energy cost pass-through. Volume growth was driven by on-sites, including new assets, and helium. Operating income of $250 million increased 10 percent and operating margin of 5 percent improved 150 basis points, primarily due to lower depreciation due to certain gasification assets held for sale and higher volumes. Europe sales of $856 million increased eight percent from the prior year on six percent higher energy cost pass-through, two percent higher pricing, and one percent higher volumes, partially offset by one percent unfavorable currency. Operating income of $241 million increased two percent, driven by higher on-site volumes and higher pricing, net of higher power costs. These benefits were partially offset by higher costs, including fixed-cost inflation. Operating margin of 2 percent decreased 190 basis points, which included an approximate 200-basis-point headwind from energy cost pass-through. Middle East and India equity affiliates' income of $97 million increased six percent from the prior year, primarily from an affiliate in Saudi Arabia. Corporate and other sales of $122 million decreased 34 percent from the prior year. Operating loss was $108 million compared to $49 million in the prior year, driven by lower sale of equipment activity and higher costs. Outlook Air Products expects full-year fiscal 2027 adjusted EPS guidance * in the range of $14.15 to $14.50. For the fiscal 2027 first quarter, Air Products' adjusted EPS guidance * is $3.35 to $3.45. Air Products expects capital expenditures * to be in the range of $3.0 billion to $3.5 billion for full-year fiscal 2027. Earnings Teleconference Access the fiscal 2026 fourth quarter earnings teleconference scheduled for 8:00 a.m. Eastern Time on November 5, 2026 by calling 646-769-9200 and entering passcode 7931867 or by accessing the Event Details page on Air Products’ Investor Relations website. About Air Products Air Products (NYSE: APD) is a world-leading industrial gases company in operation for more than 85 years. Serving energy, environmental, and emerging markets, the Company is generating a cleaner future by providing essential industrial gases, related equipment, and applications expertise that help customers improve productivity, efficiency, and sustainability across a wide range of industries, including energy, chemicals, electronics, metals, manufacturing, food, medical, and space. Air Products is focused on profitably growing its core industrial gases business, accelerating growth in areas of competitive strength, and extending its reach through disciplined opportunities that create long-term value. As the leading global supplier of hydrogen, Air Products develops, engineers, builds, owns and operates some of the world's largest hydrogen projects and has extensive capabilities in air separation technology, engineering, and plant operations. Through its sale of equipment businesses, the Company also provides specialized products such as turbomachinery, membrane systems, and cryogenic containers globally. Air Products had fiscal 2026 sales of $13.0 billion from operations in approximately 50 countries. For more information, visit www.airproducts.com or follow us on LinkedIn, X, Facebook, or Instagram. Cautionary Note Regarding Forward-Looking Statements This release contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings and capital expenditure guidance, business outlook, investment opportunities and potential transactions that are subject to ongoing negotiations and their expected impact and timing. Forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including, without limitation: changes in global or regional economic conditions, inflation, and supply and demand dynamics in the market segments we serve, including demand for technologies and projects to limit the impact of global climate change; changes in the financial markets may affect the availability and terms on which we may obtain financing; the ability to execute agreements with customers and implement price increases to offset cost increases; disruptions to our supply chain and related distribution delays and cost increases; risks associated with having extensive international operations, including political risks, risks associated with unanticipated government actions and risks of investing in developing markets; project delays, scope changes, cost escalations, contract terminations, customer cancellations, or postponement of projects and sales; our ability to safely develop, operate, and manage costs of large-scale and technically complex projects; the future financial and operating performance of major customers, joint ventures, and equity affiliates; our ability to safely and effectively develop, implement, and operate new technologies and to market products produced utilizing new technologies; our ability to execute the projects in our backlog and refresh our pipeline of new projects; tariffs, economic sanctions and regulatory activities in jurisdictions in which we, our affiliates and joint ventures, and our customers and other counterparties operate; the impact of environmental, tax, safety, or other legislation, as well as regulations and other public policy initiatives affecting our business and the business of our affiliates and related compliance requirements, including legislation, regulations, or policies intended to address global climate change; changes in tax rates and other changes in tax law; safety incidents relating to our operations; the timing, impact, and other uncertainties relating to acquisitions, divestitures, joint venture activities, and other commercial transactions, as well as our ability to integrate acquisitions and separate divested businesses, respectively; risks relating to cybersecurity incidents, including risks from the interruption, failure or compromise of our information systems or those of our business partners or service providers; catastrophic events, such as natural disasters and extreme weather events, pandemics and other public health crises, acts of war, including Russia’s invasion of Ukraine, the conflict with Iran and other new and ongoing conflicts in the Middle East, or terrorism; the impact on our business and customers of price fluctuations in oil and natural gas and disruptions in markets and the economy due to oil and natural gas price volatility; costs and outcomes of legal or regulatory proceedings and investigations; asset impairments due to economic conditions or specific events; significant fluctuations in inflation, interest rates, and foreign currency exchange rates from those currently anticipated; damage to facilities, pipelines or delivery systems, including those we are constructing or that we own or operate for third parties; availability and cost of electric power, natural gas, and other raw materials; the commencement and success of any productivity and operational improvement programs; and other risks described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and subsequent filings we have made with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on our forward-looking statements. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in assumptions, beliefs, or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.