Air Products reported higher adjusted earnings for fiscal 2026, supported by improved performance in its core business, while large charges tied mainly to project exits kept its reported GAAP profit close to break-even. The industrial-gas company also cited a larger backlog, including more than $2 billion in new electronics business, and gave its earnings and capital-spending outlook for fiscal 2027.
- Adjusted full-year earnings rose 12%: Fiscal 2026 adjusted earnings per share were $13.45, above the midpoint of the company’s guidance. Adjusted operating income increased 11% to $3.2 billion.
- Reported results were heavily affected by project-exit charges: GAAP earnings per share were $2.39, with operating income of $23 million. A year earlier, Air Products reported a loss per share of $1.74 and an operating loss of $877 million. The company said both years included significant charges related to business and asset actions, primarily project exits.
- Sales increased: Full-year sales were $13.0 billion, up 8%, or $954 million, from the prior year. Volumes were 4% higher.
- Fourth-quarter results included exit-related impacts: GAAP earnings per share were $2.62 and operating income was $633 million. The company said project exits affected the quarter, primarily involving two coal-gasification plants in China. Adjusted earnings per share were $3.61, above the guidance midpoint; adjusted operating income was $856 million.
- Investment spending fell in fiscal 2026: Cash used for investing activities was $4.1 billion, down $3.0 billion from the prior year. Capital expenditures were $3.3 billion, down $1.8 billion.
- Backlog expanded: Air Products highlighted more than $2.0 billion of new wins in electronics, alongside improved performance in its core business.
- Fiscal 2027 outlook: The company expects adjusted earnings per share of $14.15 to $14.50 for the year, including $3.35 to $3.45 in the first quarter. It expects capital expenditures of $3.0 billion to $3.5 billion.
The gap between GAAP and adjusted earnings is central to interpreting the year: the reported figures include significant project-exit charges, while the adjusted figures exclude those charges and other items. Air Products also expects fiscal 2027 capital expenditures to remain within a range close to its fiscal 2026 spending level.