Air Products reported fiscal 2026 results showing stronger adjusted earnings and lower capital spending, while project-exit charges weighed heavily on its GAAP figures. The industrial-gas company also outlined fiscal 2027 earnings and investment targets and said its backlog grew, including more than $2 billion in new electronics business.
Fiscal 2026 results
– Sales rose 8% to $13.0 billion, an increase of $954 million, with volumes up 4%. The release also cited higher energy-cost pass-throughs, though the supplied details do not give the full breakdown of sales growth.
– Adjusted earnings per share increased 12% to $13.45, above the midpoint of the company’s guidance. Adjusted operating income rose 11% to $3.2 billion.
– On a GAAP basis, operating income was $23 million and earnings per share were $2.39, compared with an operating loss of $877 million and a loss per share of $1.74 the previous year. Both years included significant charges tied mainly to project-exit decisions, making the reported GAAP results difficult to compare with underlying adjusted performance.
– Cash used for investing activities fell by $3.0 billion to $4.1 billion. Capital expenditures declined by $1.8 billion to $3.3 billion.
Fourth quarter
– GAAP earnings per share were $2.62, with operating income of $633 million. Those results included project-exit effects, primarily related to two coal-gasification plants in China.
– Adjusted earnings per share were $3.61, above the guidance midpoint, and adjusted operating income was $856 million.
Fiscal 2027 outlook and business updates
– Air Products expects adjusted earnings per share of $14.15 to $14.50 for fiscal 2027. Its first-quarter adjusted EPS guidance is $3.35 to $3.45.
– The company forecasts fiscal 2027 capital expenditures of $3.0 billion to $3.5 billion.
– It said its backlog expanded, including more than $2.0 billion of new wins in electronics.
The adjusted figures present a stronger picture of operating performance than the GAAP totals, which were materially affected by project exits. Capital spending was substantially lower in fiscal 2026, and the company’s fiscal 2027 range indicates planned investment of $3.0 billion to $3.5 billion.