Air Products Reports Fiscal 2026 Full-Year and Fourth Quarter Results; Provides
Air Products Reports Fiscal 2026 Full-Year and Fourth Quarter Results; Provides Fiscal 2027 Guidance Delivered double-digit adjusted EPS growth in fiscal 2026 | Improved core business performance Reduced capital spend relative to prior year | Expanded backlog, including over $2.0 billion of new electronics wins
• 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
• 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
• 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
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. -more-
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."
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 perc ent 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 28.7 percent decreased 170 basis points, primarily due to higher costs.
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 27.5 percent improved 150 basis points, pr imarily due to lower depreciation due to certain gasification assets held for sale and higher volumes.
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 28.2 percent decreased 190 basis points, which included an approximate 200-basis- point headwind from energy cost pass-through.
equity affiliates' income of $97 million increased six percent from the prior year, primarily from an affiliate in Saudi Arabia.
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.
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.
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. -more-
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.
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. # # #
30 September 30 September (Millions of U.S. 2026 2025 Dollars) Assets Current Assets Cash and cash items $1,331.7 $1,856.0 Trade receivables, net 1,840.2 1,901.2 Inventories 741.2 776.5 Prepaid expenses 165.5 174.9 Assets held for sale 272.8 427.7 Other receivables and 665.0 689.5 current assets Total Current Assets $5,016.4 $5,825.8 Investment in net assets of and advances 5,714.0 5,366.1 to equity affiliates Plant and equipment, 43,595.0 42,754.8 at cost Less: accumulated 18,286.6 17,417.0 depreciation Plant and equipment, $25,308.4 $25,337.8 net Goodwill, net 948.6 963.9 Intangible assets, net 262.7 293.5 Operating lease right-of-use assets, 739.6 944.0 net Noncurrent lease 270.8 307.1 receivables Financing receivables 1,152.7 1,000.0 Other noncurrent 1,796.6 1,021.3 assets Total Noncurrent $36,193.4 $35,233.7 Assets Total Assets $41,209.8 $41,059.5 Liabilities and Equity Current Liabilities Payables and accrued $3,570.9 $3,237.7 liabilities Accrued income taxes 114.1 179.4 Short-term borrowings 77.0 34.7 Current portion of 921.7 716.3 long-term debt Liabilities held for 25.2 50.5 sale Total Current $4,708.9 $4,218.6 Liabilities Long-term debt 16,607.7 16,769.9 Long-term debt – 172.4 177.5 related party Noncurrent operating 451.3 616.0 lease liabilities Other noncurrent 1,445.1 1,348.1 liabilities Deferred income taxes 673.6 579.6 Total Noncurrent $19,350.1 $19,491.1 Liabilities Total Liabilities $24,059.0 $23,709.7 Air Products 14,280.8 15,024.9 Shareholders’ Equity Noncontrolling 2,870.0 2,324.9 Interests Total Equity $17,150.8 $17,349.8 Total Liabilities and $41,209.8 $41,059.5 Equity
Twelve Months Ended 30 September (Millions of U.S. 2026 2025 Dollars) Operating Activities Net income (loss) $550.4 -$354.4 Less: Net income attributable to noncontrolling 18.3 40.1 interests of continuing operations Net income (loss) attributable to Air $532.1 -$394.5 Products Net loss from — 8.0 discontinued operations Net income (loss) from continuing 532.1 -386.5 operations attributable to Air Products Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and $1,521.9 $1,564.2 amortization Deferred income taxes -456.1 -554.8 Tax reform adjustment related to deemed 14.2 -34.9 foreign dividends Gain on sale of — -67.3 business Business and asset 3,151.9 3,747.0 actions Undistributed earnings of equity method -197.1 -269.8 investments Gain on sale of assets -19.7 -66.4 and investments Share-based 50.4 76.4 compensation Noncurrent lease 49.0 52.5 receivables Other adjustments 136.8 48.0 Working capital changes that provided (used) cash, excluding effects of acquisitions:
Trade receivables 59.5 -36.3 Inventories 37.9 -35.8 Other receivables -50.9 7.1 Payables and accrued -236.7 -224.0 liabilities Other working capital 87.5 -562.6 Cash Provided by $4,680.7 $3,256.8 Operating Activities Investing Activities Additions to plant and equipment, -$4,203.9 -$7,022.6 including long-term deposits Acquisitions, less cash — -59.9 acquired Investments in and advances to -126.8 -390.4 unconsolidated affiliates Investments in — -61.9 financing receivables Proceeds from sale of assets and 153.2 245.8 investments Purchases of short-term — -117.6 investments Proceeds from — 122.5 short-term investments Proceeds from other 31.5 115.4 investing activities Cash Used for Investing -$4,146.0 -$7,168.7 Activities Financing Activities Long-term debt proceeds $827.3 $4,386.7 Payments on long-term -686.6 -429.9 debt Net increase (decrease) in commercial 84.0 -74.7 paper and short-term borrowings Dividends paid to -1,603.1 -1,584.1 shareholders Investments by noncontrolling 353.7 594.6 interests Distributions to noncontrolling -4.0 -7.2 interests Other financing -37.5 -90.2 activities Cash (Used for) Provided by Financing -$1,066.2 $2,795.2 Activities Effect of Exchange Rate 7.2 -7.0 Changes on Cash Decrease in cash and -$524.3 -$1,123.7 cash items Cash and cash items – 1,856.0 2,979.7 Beginning of Year Cash and Cash Items – $1,331.7 $1,856.0 End of Period Supplemental Cash Flow Information Cash paid for taxes, $489.4 $940.7 net of refunds
(A) Operating income (loss) for our reportable segments does not include gains or losses that management does not consider to be indicative of underlying business performance, such as charges related to business and asset actions. Refer below for a reconciliation of total segment operating income to consolidated results.
(B) Segment equity affiliates’ income excludes impairment charges of $2.0 million recorded during the fourth quarter of fiscal year 2026 and $6.8 million recorded during the second quarter of fiscal year 2025, both of which were recognized as part of our business and asset actions. As a result, total segment equity affiliates’ income does not reconcile to equity affiliates’ income for the total company as reported on the consolidated income statements for the fiscal years ended 30 September 2026 and 2025.
The table below reconciles total segment operating income to income (loss) from continuing operations before taxes as reflected on our consolidated income statements:
(A) Reflected on the consolidated income statements within "Other income (expense), net". -more-
We present certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") because they exclude items that management does not consider to be representative of our underlying business operations. We provide these adjusted non-GAAP financial measures to allow investors, potential investors, securities analysts, and others to evaluate our business in the same manner as management. When viewed together with our GAAP results, we believe these non-GAAP financial measures offer a more complete understanding of the factors and trends affecting our financial performance and support analysis of our results on a more consistent basis.
Readers are cautioned that non‑GAAP financial measures have inherent limitations and should not be considered in isolation or as a substitute for the corresponding GAAP measures. Our definitions and calculations of non‑GAAP financial measures may differ from those used by other companies, which may limit comparability.
Management uses non-GAAP performance measures, including adjusted operating income, adjusted operating margin, and adjusted earnings per share ("EPS"), to assess our performance because these measures exclude items that management does not consider to be representative of our underlying business operations. In addition, adjusted operating income and adjusted EPS are important components of our incentive compensation plans. We also use adjusted operating margin to assess operational efficiency, cost discipline, and overall profitability.
Our non‑GAAP performance measures are adjusted to exclude gains or losses that management believes are not associated with the ongoing operations of our business. These adjustments, which are described below for the periods presented, are not reflected in the results of our reportable segments. Although these items are often difficult to predict, readers should be aware that similar gains or losses may occur in future periods. The related tax effects reflect the expected current and deferred income tax impacts of our non-GAAP adjustments, which are primarily driven by the statutory tax rates of the applicable jurisdictions and the taxability of the underlying adjustments in those jurisdictions.
We reconcile each non‑GAAP performance measure to its most directly comparable GAAP measure in the table below, followed by descriptions of each non-GAAP adjustment. Amounts presented in the reconciliation are in millions of U.S. Dollars, except for per share data. Margins are calculated by dividing the applicable line item by consolidated sales for the relevant period.
In addition to our non-GAAP performance measures, we also present components used in calculating adjusted EPS to illustrate the per share effect of our non‑GAAP adjustments. All per share amounts are calculated on a diluted basis from continuing operations attributable to Air Products. Because margins and per share amounts are calculated independently, the individual components may not sum to the related totals due to rounding.
(A) Charge attributable to noncontrolling interests was $39.7 million and $7.2 million for the three months ended 30 September 2026 and 2025, respectively. -more-
(A) Charge attributable to noncontrolling interests was $40.3 million and $10.7 million for fiscal years 2026 and 2025, respectively.
(B) Reflected on the fiscal year 2025 consolidated income statement in "Other income (expense), net."
(C) Gain attributable to noncontrolling interests was $17.6 million in fiscal year 2025.
During fiscal year 2026, we recorded pre-tax charges of approximately $3.2 billion ($2.4 billion attributable to Air Products after tax, or $10.95 per share). These charges primarily related to project exit actions announced on 30 June 2026, including the exit of a clean energy complex under construction in Louisiana, a green hydrogen production facility under construction in Casa Grande, Arizona, and certain other clean energy projects. Full-year charges attributable to noncontrolling interests were $40.3 million.
Included in the fiscal year 2026 charges were $224.5 million pre-tax ($203.0 million after tax, or $0.91 per share) recorded during the fourth quarter, primarily to update the carrying value of two coal gasification plants in China that were previously impaired and classified as held for sale. The charges reflected updated estimates of fair value less costs to sell based on information obtained through the marketing process. We fully impaired the remaining assets of one plant due to limited buyer interest, while the carrying value of the other plant was updated to reflect the terms of a sales agreement. The plant subject to the sales agreement was subsequently sold in October 2026. Fourth quarter charges attributable to noncontrolling interests were $39.7 million.
During fiscal year 2025, we recorded pre-tax charges of approximately $3.7 billion ($3.0 billion attributable to Air Products after tax, or $13.68 per share), including $795.0 million ($741.9 million attributable to Air Products after tax, or $3.33 per share) recorded during the fourth quarter. These charges reflected costs associated with project exits, including certain clean-energy generation and distribution projects and the initial impairment of the two China coal gasification plants, as well as separation costs in connection with our global cost reduction plan. Charges attributable to noncontrolling interests were $10.7 million for fiscal year 2025, including $7.2 million recorded during the fourth quarter. -more-
Non-service related pension items resulted in net non-operating costs of $4.5 million pre-tax ($3.3 million after tax, or $0.01 per share) in the fourth quarter of fiscal year 2026 compared to $12.9 million pre-tax ($9.7 million after tax, or $0.04 per share) in the fourth quarter of fiscal year 2025. For the full-year, these items resulted in net non-operating costs of $15.7 million pre-tax ($11.7 million after tax, or $0.05 per share) in fiscal year 2026 compared to $45.0 million pre-tax ($33.7 million after tax, or $0.15 per share) in fiscal year 2025. Non-service related components are recurring, non-operating items that include interest cost, expected return on plan assets, prior service cost amortization, actuarial loss amortization, as well as special termination benefits, curtailments, and settlements. The net impact of non-service related components is reflected within “Other non-operating income (expense), net” on our consolidated income statements. Adjusting for the impact of non-service pension components provides management and users of our financial statements with a more accurate representation of our underlying business performance because these components are driven by factors that are unrelated to our operations, such as volatility in equity and debt markets. Further, non-service related components are not indicative of our defined benefit plans’ future contribution needs due to the funded status of the plans.
During the second quarter of fiscal year 2025, we recorded a net income tax benefit of $34.9 million ($0.16 per share) related to our intent to file a refund claim for the 2018 tax year. Our intent to pursue the refund claim was based on a review of several U.S. Tax Court cases regarding the U.S. taxation of deemed foreign dividends in the transition year of the U.S. Tax Cuts and Jobs Act. The benefit was net of a $67.8 million liability for an uncertain tax position.
In September 2026, a subsequent U.S. Tax Court decision provided additional guidance regarding the calculation of the refund amount. As a result, we recorded income tax expense of $14.2 million ($0.06 per share) during the fourth quarter of fiscal year 2026 to increase the related liability for an uncertain tax position.
We incurred shareholder activism-related costs in fiscal year 2025 associated with a proxy contest that concluded in January 2025 following the certification of director election results at the 2025 Annual Meeting of Shareholders. Total pre-tax costs of $86.3 million ($71.7 million after tax, or $0.32 per share) were recognized during the first three quarters of fiscal year 2025. No shareholder activism-related costs were incurred in the fourth quarter.
In April 2025, we completed the sale of our 100% ownership interest in a consolidated subsidiary in Singapore for cash proceeds of $104.3 million. We recognized a gain of $67.3 million pre-tax ($51.9 million after-tax, or $0.23 per share) as a result of the transaction during the third quarter of fiscal year 2025.
In June 2025, we sold a regional office in Hersham, England, for cash proceeds of $37.7 million. We recognized a gain on sale of $31.3 million pre-tax ($23.8 million after-tax, or $0.11 per share) during the third quarter of fiscal year 2025 that is presented within “Other income (expense), net” on our consolidated income statements.
In fiscal year 2024, we discontinued cash flow hedge accounting for certain interest rate swaps due to changes in the anticipated drawdown timeline for hedged borrowings related to the NEOM Green Hydrogen Project. These swaps are held by NEOM Green Hydrogen Company, a consolidated joint venture accounted for under the variable interest model, in which Air Products holds a one-third ownership interest. As a result of the de-designation, unrealized gains and losses related to the affected swaps were recorded in "Other non-operating income (expense), net" on our consolidated income statements. During fiscal year 2025, we recorded a net unrealized gain of $27.0 million pre-tax ($7.2 million attributable to Air Products after tax, or $0.03 per share), with $17.6 million attributable to our noncontrolling partners.
We re-designated the affected swaps as cash flow hedges when the outstanding borrowings under the available project financing became commensurate with the swaps’ notional values. As of 1 January 2026, all swaps were re-designated as cash flow hedges. The unrealized gain on swaps that remained de-designated during the first quarter of fiscal year 2026 was not material.
During the second quarter of fiscal year 2025, we recorded an income tax expense of $31.4 million ($0.14 per share) related to estimated withholding taxes on foreign earnings that we no longer intended to indefinitely reinvest.
Our non-GAAP financial measures are presented on a continuing operations basis, which excludes a pre-tax loss from discontinued operations of $10.6 million ($8.0 million after tax, or $0.04 per share) recorded during the third quarter of fiscal year 2025 primarily to increase retained environmental remediation obligations associated with businesses sold in 2008. -more-
Capital expenditures is a non-GAAP financial measure that management uses to evaluate our deployment of capital and assess alignment with our strategic priorities. Our calculation of this measure begins as the sum of cash paid for additions to plant and equipment, including long-term deposits, acquisitions (less cash acquired), investment in and advances to unconsolidated affiliates, and investment in financing receivables, each of which are reported on our consolidated statements of cash flows.
We then adjust this amount to exclude spending for additions to plant and equipment by our consolidated joint venture, NEOM Green Hydrogen Company (“NGHC”), to the extent such spending is funded by sources other than Air Products’ cash. These other funding sources include NGHC’s project financing, which is non‑recourse to Air Products, as well as equity contributions from the other joint venture partners. Management believes this adjustment provides a more useful view of the capital we deploy to support the ongoing growth of our business.
The most directly comparable GAAP measure to our non‑GAAP capital expenditures is “Cash used for investing activities,” as reported on our consolidated statements of cash flows. The reconciliation of cash used for investing activities to our reported capital expenditures is provided below:
Twelve Months Ended 30 September (Millions of U.S. 2026 2025 Dollars) Cash used for investing $4,146.0 $7,168.7 activities Proceeds from sale of assets and 153.2 245.8 investments Purchases of short-term — -117.6 investments Proceeds from short-term — 122.5 investments Proceeds from other 31.5 115.4 investing activities NGHC expenditures not funded by Air -1,024.9 -2,470.7 Products' equity(A) Capital expenditures $3,305.8 $5,064.1
(A) Reflects the portion of "Additions to plant and equipment, including long- term deposits" that is associated with NGHC, less our approximate cash investment in the joint venture. Substantially all the funding we provide to NGHC is limited for use by the joint venture for its capital expenditures.
The table below outlines the cash flow components included in our definition of capital expenditures:
Twelve Months Ended 30 September (Millions of U.S. 2026 2025 Dollars) Additions to plant and equipment, $4,203.9 $7,022.6 including long-term deposits Acquisitions, less — 59.9 cash acquired Investments in and advances to 126.8 390.4 unconsolidated affiliates Investments in financing — 61.9 receivables NGHC expenditures not funded by Air -1,024.9 -2,470.7 Products' equity(A) Capital $3,305.8 $5,064.1 expenditures
(A) Reflects the portion of "Additions to plant and equipment, including long- term deposits" that is associated with NGHC, less our approximate cash investment in the joint venture. Substantially all the funding we provide to NGHC is limited for use by the joint venture for its capital expenditures.
It is not possible, without unreasonable efforts, to reconcile our forecasted capital expenditures to future cash used for investing activities because management is unable to identify the timing or occurrence of our future investment activity, which is driven by our assessment of competing opportunities at the time we enter into transactions. These decisions, either individually or in the aggregate, could have a significant effect on our cash used for investing activities. Accordingly, management is unable to fully reconcile, without unreasonable efforts, our forecasted capital expenditures to future cash used for investing activities.
We expect capital expenditures in the range of $3.0 billion to $3.5 billion for fiscal year 2027. -more-
The adjusted EPS guidance below is provided on a diluted basis from continuing operations attributable to Air Products and is compared to historical adjusted EPS. These adjusted measures exclude the impact of certain items that we believe are not representative of our underlying business performance, such as the non- service components of net periodic benefit/cost for our defined benefit pension plans, the incurrence of costs for business, asset, and cost reduction actions and impairment charges, or the recognition of gains or losses on certain disclosed items. The per share impact for each non-GAAP adjustment is calculated independently and may not sum to total adjusted EPS due to rounding.
It is not possible, without unreasonable efforts, to predict the timing or occurrence of these or similar future events or the potential for other events or transactions that may impact future GAAP EPS. Furthermore, it is not possible to identify the potential significance of these events in advance; however, any of these events, if they were to occur, could have a significant effect on our future GAAP EPS. Accordingly, management is unable to fully reconcile, without unreasonable efforts, our forecasted range of adjusted EPS to a comparable GAAP range.
Full text with the tables
Exhibit 99.1
News Release
Air Products Reports Fiscal 2026 Full-Year and Fourth Quarter Results; Provides
Fiscal 2027 Guidance Delivered double-digit adjusted EPS growth in fiscal 2026 |
Improved core business performance
Reduced capital spend relative to prior year | Expanded backlog, including over
$2.0 billion of new electronics wins
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.
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Page 2 of 12
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 perc ent 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 28.7 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 27.5 percent improved 150 basis
points, pr imarily 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 28.2
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.
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Page 3 of 12
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.
# # #
Media Inquiries
:
Katie McDonald, tel: (610) 481-3673; email: mcdonace@airproducts.com
Investor Inquiries
:
Megan Britt, tel: (610) 481-0590; email: brittm@airproducts.com
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Page 4 of 12
Air Products and Chemicals, Inc. and Subsidiaries
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Three Twelve
Months Months
Ended Ended
30 30
Septe… Septem…
(Mil…
of
U.S.
Doll…
exce…
for 2026 2025 2026 2025
share
and
per
share
data)
Sales $3,555… $3,16… $12,9… $12,03…
Cost
of 2,470.9 2,145… 8,887… 8,256.0
sales
Sell…
and 228.2 219.1 903.2 906.1
admi…
expe…
Rese…
and 25.4 27.3 88.9 96.3
deve…
expe…
Busi…
and 222.5 795.0 3,151… 3,747.0
asset
acti…
Shar…
acti… — — — 86.3
costs
Gain
on
sale — — — 67.3
of
busi…
Other
inco… 24.6 36.8 64.2 110.1
(exp…
net
Oper…
Inco… 633.2 16.8 23.3 -877.0
(Los…
Equi…
affi… 189.1 184.0 745.9 647.7
inco…
Inte… 67.0 67.8 220.4 214.0
expe…
Other
non-…
inco… 0.1 -11.7 3.2 2.6
(exp…
net
Inco…
(Los…
From
Cont… 755.4 121.3 552.0 -440.7
Oper…
Befo…
Taxes
Inco…
tax 198.9 111.2 1.6 -94.3
expe…
(ben…
Inco…
(Los…
From 556.5 10.1 550.4 -346.4
Cont…
Oper…
Loss
from
disc…
oper… — — — -8.0
net
of
tax
Net
Inco… 556.5 10.1 550.4 -354.4
(Los…
Net
inco…
(los…
attr… -27.8 5.2 18.3 40.1
to
nonc…
inte…
Net
Inco…
(Los…
Attr… $584.3 $4.9 $532.1 -$394.5
to
Air
Prod…
Net
Inco…
(Los…
Attr…
to
Air
Prod…
Net
inco…
(los… $584.3 $4.9 $532.1 -$386.5
from
cont…
oper…
Net
loss
from — — — -8.0
disc…
oper…
Net
Inco…
(Los…
Attr… $584.3 $4.9 $532.1 -$394.5
to
Air
Prod…
Per
Share
Data…
Doll…
per
shar…
Basic
earn…
(los…
per $2.62 $0.02 $2.39 -$1.74
share
from
cont…
oper…
Basic
loss
per
share — — — -0.04
from
disc…
oper…
Basic
Earn…
(Los…
Per
Share $2.62 $0.02 $2.39 -$1.77
Attr…
to
Air
Prod…
Dilu…
earn…
(los…
per $2.62 $0.02 $2.39 -$1.74
share
from
cont…
oper…
Dilu…
loss
per
share — — — -0.04
from
disc…
oper…
Dilu…
Earn…
(Los…
Per
Share $2.62 $0.02 $2.39 -$1.77
Attr…
to
Air
Prod…
Weig…
Aver…
Comm…
Shar…
mill…
Basic 222.8 222.8 222.8 222.7
Dilu… 223.0 222.9 222.9 222.7
(A)E…
(los…
per
share
is
calc…
inde…
for
each
comp…
and
may
not
sum
to
total
earn…
(los…
per
share
due
to
roun…
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Page 5 of 12
Air Products and Chemicals, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
30 September 30 September
(Millions of U.S. 2026 2025
Dollars)
Assets
Current Assets
Cash and cash items $1,331.7 $1,856.0
Trade receivables, net 1,840.2 1,901.2
Inventories 741.2 776.5
Prepaid expenses 165.5 174.9
Assets held for sale 272.8 427.7
Other receivables and 665.0 689.5
current assets
Total Current Assets $5,016.4 $5,825.8
Investment in net
assets of and advances 5,714.0 5,366.1
to equity affiliates
Plant and equipment, 43,595.0 42,754.8
at cost
Less: accumulated 18,286.6 17,417.0
depreciation
Plant and equipment, $25,308.4 $25,337.8
net
Goodwill, net 948.6 963.9
Intangible assets, net 262.7 293.5
Operating lease
right-of-use assets, 739.6 944.0
net
Noncurrent lease 270.8 307.1
receivables
Financing receivables 1,152.7 1,000.0
Other noncurrent 1,796.6 1,021.3
assets
Total Noncurrent $36,193.4 $35,233.7
Assets
Total Assets $41,209.8 $41,059.5
Liabilities and Equity
Current Liabilities
Payables and accrued $3,570.9 $3,237.7
liabilities
Accrued income taxes 114.1 179.4
Short-term borrowings 77.0 34.7
Current portion of 921.7 716.3
long-term debt
Liabilities held for 25.2 50.5
sale
Total Current $4,708.9 $4,218.6
Liabilities
Long-term debt 16,607.7 16,769.9
Long-term debt – 172.4 177.5
related party
Noncurrent operating 451.3 616.0
lease liabilities
Other noncurrent 1,445.1 1,348.1
liabilities
Deferred income taxes 673.6 579.6
Total Noncurrent $19,350.1 $19,491.1
Liabilities
Total Liabilities $24,059.0 $23,709.7
Air Products 14,280.8 15,024.9
Shareholders’ Equity
Noncontrolling 2,870.0 2,324.9
Interests
Total Equity $17,150.8 $17,349.8
Total Liabilities and $41,209.8 $41,059.5
Equity
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Page 6 of 12
Air Products and Chemicals, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twelve Months Ended
30 September
(Millions of U.S. 2026 2025
Dollars)
Operating Activities
Net income (loss) $550.4 -$354.4
Less: Net income
attributable to
noncontrolling 18.3 40.1
interests of continuing
operations
Net income (loss)
attributable to Air $532.1 -$394.5
Products
Net loss from — 8.0
discontinued operations
Net income (loss) from
continuing 532.1 -386.5
operations attributable
to Air Products
Adjustments to
reconcile net income
(loss) to cash provided
by operating
activities:
Depreciation and $1,521.9 $1,564.2
amortization
Deferred income taxes -456.1 -554.8
Tax reform adjustment
related to deemed 14.2 -34.9
foreign dividends
Gain on sale of — -67.3
business
Business and asset 3,151.9 3,747.0
actions
Undistributed earnings
of equity method -197.1 -269.8
investments
Gain on sale of assets -19.7 -66.4
and investments
Share-based 50.4 76.4
compensation
Noncurrent lease 49.0 52.5
receivables
Other adjustments 136.8 48.0
Working capital changes
that provided
(used) cash, excluding
effects of
acquisitions:
Trade receivables 59.5 -36.3
Inventories 37.9 -35.8
Other receivables -50.9 7.1
Payables and accrued -236.7 -224.0
liabilities
Other working capital 87.5 -562.6
Cash Provided by $4,680.7 $3,256.8
Operating Activities
Investing Activities
Additions to plant and
equipment, -$4,203.9 -$7,022.6
including long-term
deposits
Acquisitions, less cash — -59.9
acquired
Investments in and
advances to -126.8 -390.4
unconsolidated
affiliates
Investments in — -61.9
financing receivables
Proceeds from sale of
assets and 153.2 245.8
investments
Purchases of short-term — -117.6
investments
Proceeds from — 122.5
short-term investments
Proceeds from other 31.5 115.4
investing activities
Cash Used for Investing -$4,146.0 -$7,168.7
Activities
Financing Activities
Long-term debt proceeds $827.3 $4,386.7
Payments on long-term -686.6 -429.9
debt
Net increase (decrease)
in commercial 84.0 -74.7
paper and short-term
borrowings
Dividends paid to -1,603.1 -1,584.1
shareholders
Investments by
noncontrolling 353.7 594.6
interests
Distributions to
noncontrolling -4.0 -7.2
interests
Other financing -37.5 -90.2
activities
Cash (Used for)
Provided by Financing -$1,066.2 $2,795.2
Activities
Effect of Exchange Rate 7.2 -7.0
Changes on Cash
Decrease in cash and -$524.3 -$1,123.7
cash items
Cash and cash items – 1,856.0 2,979.7
Beginning of Year
Cash and Cash Items – $1,331.7 $1,856.0
End of Period
Supplemental Cash Flow
Information
Cash paid for taxes, $489.4 $940.7
net of refunds
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Page 7 of 12
Air Products and Chemicals, Inc. and Subsidiaries
BUSINESS SEGMENT INFORMATION
(Unaudited)
(… Mi… Cor…
of Am… As… Eu… Ea… and Tot…
U… and oth…
D… In…
T…
M…
E…
30
S…
2…
S… $1… $9… $8… $3… $1… $3…
O…
i… 46… 25… 24… 3.7 -1… 85…
(…
D…
a… 18… 12… 69… 5.9 9.9 39…
a…
E…
a… 54… 7.1 32… 97… — 19…
i…
T…
M…
E…
30
S…
2…
S… $1… $8… $7… $3… $1… $3…
O…
i… 39… 22… 23… 5.0 -4… 81…
(…
D…
a… 18… 13… 71… 6.2 10… 41…
a…
E…
a… 52… 12… 26… 91… 1.1 18…
i…
T…
M…
E…
30
S…
2…
S… $5… $3… $3… $1… $4… $1…
O…
i… 1,… 97… 90… 22… -3… 3,…
(…
D…
a… 70… 46… 28… 23… 36… 1,…
a…
E…
a… 21… 45… 12… 36… 2.0 74…
i…
T…
M…
E…
30
S…
2…
S… $5… $3… $2… $1… $5… $1…
O…
i… 1,… 85… 84… 9.6 -3… 2,…
(…
D…
a… 73… 51… 24… 25… 39… 1,…
a…
E…
a… 15… 42… 10… 34… 12… 65…
i…
T…
A…
30
S… $1… $6… $7… $1… $4… $4…
2…
30
S… 12… 6,… 6,… 10… 4,… 41…
2…
(A) Operating income (loss) for our reportable segments does not include gains
or losses that management does not consider to be indicative of underlying
business performance, such as charges related to business and asset actions.
Refer below for a reconciliation of total segment operating income to
consolidated results.
(B) Segment equity affiliates’ income excludes impairment charges of $2.0
million recorded during the fourth quarter of fiscal year 2026 and $6.8 million
recorded during the second quarter of fiscal year 2025, both of which were
recognized as part of our business and asset actions. As a result, total segment
equity affiliates’ income does not reconcile to equity affiliates’ income for
the total company as reported on the consolidated income statements for the
fiscal years ended 30 September 2026 and 2025.
Reconciliation of Total Segment Operating Income to Consolidated Results
The table below reconciles total segment operating income to income (loss) from
continuing operations before taxes as reflected on our consolidated income
statements:
Three Twelve
Months Months
Ended Ended
30 30
Septe… Septem…
(Mill…
of 2026 2025 2026 2025
U.S.
Dolla…
Total
Segme… $855.7 $811.8 $3,17… $2,857…
Opera…
Income
Busin…
and -222.5 -795.0 -3,15… -3,747…
asset
actio…
Share…
activ… — — — -86.3
costs
Gain
on
sale — — — 67.3
of
busin…
Gain
on
sale — — — 31.3
of
other
asset…
Conso…
Opera… $633.2 $16.8 $23.3 -$877.0
Income
(Loss)
Equity
affil… 189.1 184.0 745.9 647.7
income
Inter… 67.0 67.8 220.4 214.0
expen…
Other
non-o…
income 0.1 -11.7 3.2 2.6
(expe…
net
Income
(Loss)
From
Conti… $755.4 $121.3 $552.0 -$440.7
Opera…
Before
Taxes
(A) Reflected on the consolidated income statements within "Other income
(expense), net".
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Page 8 of 12
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
We present certain financial measures that are not calculated in accordance with
U.S. generally accepted accounting principles ("GAAP") because they exclude
items that management does not consider to be representative of our underlying
business operations. We provide these adjusted non-GAAP financial measures to
allow investors, potential investors, securities analysts, and others to
evaluate our business in the same manner as management. When viewed together
with our GAAP results, we believe these non-GAAP financial measures offer a more
complete understanding of the factors and trends affecting our financial
performance and support analysis of our results on a more consistent basis.
Readers are cautioned that non‑GAAP financial measures have inherent limitations
and should not be considered in isolation or as a substitute for the
corresponding GAAP measures. Our definitions and calculations of non‑GAAP
financial measures may differ from those used by other companies, which may
limit comparability.
Non-GAAP Performance Measures
Management uses non-GAAP performance measures, including adjusted operating
income, adjusted operating margin, and adjusted earnings per share ("EPS"), to
assess our performance because these measures exclude items that management does
not consider to be representative of our underlying business operations. In
addition, adjusted operating income and adjusted EPS are important components of
our incentive compensation plans. We also use adjusted operating margin to
assess operational efficiency, cost discipline, and overall profitability.
Our non‑GAAP performance measures are adjusted to exclude gains or losses that
management believes are not associated with the ongoing operations of our
business. These adjustments, which are described below for the periods
presented, are not reflected in the results of our reportable segments. Although
these items are often difficult to predict, readers should be aware that similar
gains or losses may occur in future periods. The related tax effects reflect the
expected current and deferred income tax impacts of our non-GAAP adjustments,
which are primarily driven by the statutory tax rates of the applicable
jurisdictions and the taxability of the underlying adjustments in those
jurisdictions.
We reconcile each non‑GAAP performance measure to its most directly comparable
GAAP measure in the table below, followed by descriptions of each non-GAAP
adjustment. Amounts presented in the reconciliation are in millions of U.S.
Dollars, except for per share data. Margins are calculated by dividing the
applicable line item by consolidated sales for the relevant period.
In addition to our non-GAAP performance measures, we also present components
used in calculating adjusted EPS to illustrate the per share effect of our
non‑GAAP adjustments. All per share amounts are calculated on a diluted basis
from continuing operations attributable to Air Products. Because margins and per
share amounts are calculated independently, the individual components may not
sum to the related totals due to rounding.
… O… Net
… E… N… In… In…
… O… O… A… O… Tax At… EPS
… I… M… I… I… Ex… to
… N… Be… Air
Pr…
…
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(A) Charge attributable to noncontrolling interests was $39.7 million and $7.2
million for the three months ended 30 September 2026 and 2025, respectively.
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Page 9 of 12
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(A) Charge attributable to noncontrolling interests was $40.3 million and $10.7
million for fiscal years 2026 and 2025, respectively.
(B) Reflected on the fiscal year 2025 consolidated income statement in "Other
income (expense), net."
(C) Gain attributable to noncontrolling interests was $17.6 million in fiscal
year 2025.
NON-GAAP ADJUSTMENTS
Business and Asset Actions
During fiscal year 2026, we recorded pre-tax charges of approximately $3.2
billion ($2.4 billion attributable to Air Products after tax, or $10.95 per
share). These charges primarily related to project exit actions announced on 30
June 2026, including the exit of a clean energy complex under construction in
Louisiana, a green hydrogen production facility under construction in Casa
Grande, Arizona, and certain other clean energy projects. Full-year charges
attributable to noncontrolling interests were $40.3 million.
Included in the fiscal year 2026 charges were $224.5 million pre-tax ($203.0
million after tax, or $0.91 per share) recorded during the fourth quarter,
primarily to update the carrying value of two coal gasification plants in China
that were previously impaired and classified as held for sale. The charges
reflected updated estimates of fair value less costs to sell based on
information obtained through the marketing process. We fully impaired the
remaining assets of one plant due to limited buyer interest, while the carrying
value of the other plant was updated to reflect the terms of a sales agreement.
The plant subject to the sales agreement was subsequently sold in October 2026.
Fourth quarter charges attributable to noncontrolling interests were $39.7
million.
During fiscal year 2025, we recorded pre-tax charges of approximately $3.7
billion ($3.0 billion attributable to Air Products after tax, or $13.68 per
share), including $795.0 million ($741.9 million attributable to Air Products
after tax, or $3.33 per share) recorded during the fourth quarter. These charges
reflected costs associated with project exits, including certain clean-energy
generation and distribution projects and the initial impairment of the two China
coal gasification plants, as well as separation costs in connection with our
global cost reduction plan. Charges attributable to noncontrolling interests
were $10.7 million for fiscal year 2025, including $7.2 million recorded during
the fourth quarter.
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Page 10 of 12
Non-Service Related Pension Items
Non-service related pension items resulted in net non-operating costs of $4.5
million pre-tax ($3.3 million after tax, or $0.01 per share) in the fourth
quarter of fiscal year 2026 compared to $12.9 million pre-tax ($9.7 million
after tax, or $0.04 per share) in the fourth quarter of fiscal year 2025. For
the full-year, these items resulted in net non-operating costs of $15.7 million
pre-tax ($11.7 million after tax, or $0.05 per share) in fiscal year 2026
compared to $45.0 million pre-tax ($33.7 million after tax, or $0.15 per share)
in fiscal year 2025. Non-service related components are recurring, non-operating
items that include interest cost, expected return on plan assets, prior service
cost amortization, actuarial loss amortization, as well as special termination
benefits, curtailments, and settlements. The net impact of non-service related
components is reflected within “Other non-operating income (expense), net” on
our consolidated income statements. Adjusting for the impact of non-service
pension components provides management and users of our financial statements
with a more accurate representation of our underlying business performance
because these components are driven by factors that are unrelated to our
operations, such as volatility in equity and debt markets. Further, non-service
related components are not indicative of our defined benefit plans’ future
contribution needs due to the funded status of the plans.
Tax Reform Adjustment Related to Deemed Foreign Dividends
During the second quarter of fiscal year 2025, we recorded a net income tax
benefit of $34.9 million ($0.16 per share) related to our intent to file a
refund claim for the 2018 tax year. Our intent to pursue the refund claim was
based on a review of several U.S. Tax Court cases regarding the U.S. taxation of
deemed foreign dividends in the transition year of the U.S. Tax Cuts and Jobs
Act. The benefit was net of a $67.8 million liability for an uncertain tax
position.
In September 2026, a subsequent U.S. Tax Court decision provided additional
guidance regarding the calculation of the refund amount. As a result, we
recorded income tax expense of $14.2 million ($0.06 per share) during the fourth
quarter of fiscal year 2026 to increase the related liability for an uncertain
tax position.
Other Fiscal Year 2025 Adjustments
The following adjustments impacted fiscal year 2025 results only:
Shareholder Activism-Related Costs
We incurred shareholder activism-related costs in fiscal year 2025 associated
with a proxy contest that concluded in January 2025 following the certification
of director election results at the 2025 Annual Meeting of Shareholders. Total
pre-tax costs of $86.3 million ($71.7 million after tax, or $0.32 per share)
were recognized during the first three quarters of fiscal year 2025. No
shareholder activism-related costs were incurred in the fourth quarter.
Gain on Sale of Business
In April 2025, we completed the sale of our 100% ownership interest in a
consolidated subsidiary in Singapore for cash proceeds of $104.3 million. We
recognized a gain of $67.3 million pre-tax ($51.9 million after-tax, or $0.23
per share) as a result of the transaction during the third quarter of fiscal
year 2025.
Gain on Sale of Other Assets
In June 2025, we sold a regional office in Hersham, England, for cash proceeds
of $37.7 million. We recognized a gain on sale of $31.3 million pre-tax ($23.8
million after-tax, or $0.11 per share) during the third quarter of fiscal year
2025 that is presented within “Other income (expense), net” on our consolidated
income statements.
Gain on De-designation of Cash Flow Hedges
In fiscal year 2024, we discontinued cash flow hedge accounting for certain
interest rate swaps due to changes in the anticipated drawdown timeline for
hedged borrowings related to the NEOM Green Hydrogen Project. These swaps are
held by NEOM Green Hydrogen Company, a consolidated joint venture accounted for
under the variable interest model, in which Air Products holds a one-third
ownership interest. As a result of the de-designation, unrealized gains and
losses related to the affected swaps were recorded in "Other non-operating
income (expense), net" on our consolidated income statements. During fiscal year
2025, we recorded a net unrealized gain of $27.0 million pre-tax ($7.2 million
attributable to Air Products after tax, or $0.03 per share), with $17.6 million
attributable to our noncontrolling partners.
We re-designated the affected swaps as cash flow hedges when the outstanding
borrowings under the available project financing became commensurate with the
swaps’ notional values. As of 1 January 2026, all swaps were re-designated as
cash flow hedges. The unrealized gain on swaps that remained de-designated
during the first quarter of fiscal year 2026 was not material.
Tax on Repatriation of Foreign Earnings
During the second quarter of fiscal year 2025, we recorded an income tax expense
of $31.4 million ($0.14 per share) related to estimated withholding taxes on
foreign earnings that we no longer intended to indefinitely reinvest.
Loss From Discontinued Operations
Our non-GAAP financial measures are presented on a continuing operations basis,
which excludes a pre-tax loss from discontinued operations of $10.6 million
($8.0 million after tax, or $0.04 per share) recorded during the third quarter
of fiscal year 2025 primarily to increase retained environmental remediation
obligations associated with businesses sold in 2008.
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Page 11 of 12
Capital Expenditures (Non-GAAP)
Capital expenditures is a non-GAAP financial measure that management uses to
evaluate our deployment of capital and assess alignment with our strategic
priorities. Our calculation of this measure begins as the sum of cash paid for
additions to plant and equipment, including long-term deposits, acquisitions
(less cash acquired), investment in and advances to unconsolidated affiliates,
and investment in financing receivables, each of which are reported on our
consolidated statements of cash flows.
We then adjust this amount to exclude spending for additions to plant and
equipment by our consolidated joint venture, NEOM Green Hydrogen Company
(“NGHC”), to the extent such spending is funded by sources other than Air
Products’ cash. These other funding sources include NGHC’s project financing,
which is non‑recourse to Air Products, as well as equity contributions from the
other joint venture partners. Management believes this adjustment provides a
more useful view of the capital we deploy to support the ongoing growth of our
business.
The most directly comparable GAAP measure to our non‑GAAP capital expenditures
is “Cash used for investing activities,” as reported on our consolidated
statements of cash flows. The reconciliation of cash used for investing
activities to our reported capital expenditures is provided below:
Twelve Months Ended
30 September
(Millions of U.S. 2026 2025
Dollars)
Cash used for investing $4,146.0 $7,168.7
activities
Proceeds from sale of
assets and 153.2 245.8
investments
Purchases of short-term — -117.6
investments
Proceeds from short-term — 122.5
investments
Proceeds from other 31.5 115.4
investing activities
NGHC expenditures not
funded by Air -1,024.9 -2,470.7
Products' equity(A)
Capital expenditures $3,305.8 $5,064.1
(A) Reflects the portion of "Additions to plant and equipment, including long-
term deposits" that is associated with NGHC, less our approximate cash
investment in the joint venture. Substantially all the funding we provide to
NGHC is limited for use by the joint venture for its capital expenditures.
The table below outlines the cash flow components included in our definition of
capital expenditures:
Twelve Months
Ended
30 September
(Millions of U.S. 2026 2025
Dollars)
Additions to plant
and equipment, $4,203.9 $7,022.6
including
long-term deposits
Acquisitions, less — 59.9
cash acquired
Investments in and
advances to 126.8 390.4
unconsolidated
affiliates
Investments in
financing — 61.9
receivables
NGHC expenditures
not funded by Air -1,024.9 -2,470.7
Products'
equity(A)
Capital $3,305.8 $5,064.1
expenditures
(A) Reflects the portion of "Additions to plant and equipment, including long-
term deposits" that is associated with NGHC, less our approximate cash
investment in the joint venture. Substantially all the funding we provide to
NGHC is limited for use by the joint venture for its capital expenditures.
Outlook for Investing Activities
It is not possible, without unreasonable efforts, to reconcile our forecasted
capital expenditures to future cash used for investing activities because
management is unable to identify the timing or occurrence of our future
investment activity, which is driven by our assessment of competing
opportunities at the time we enter into transactions. These decisions, either
individually or in the aggregate, could have a significant effect on our cash
used for investing activities. Accordingly, management is unable to fully
reconcile, without unreasonable efforts, our forecasted capital expenditures to
future cash used for investing activities.
We expect capital expenditures in the range of $3.0 billion to $3.5 billion for
fiscal year 2027.
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Page 12 of 12
Adjusted EPS Outlook (Non-GAAP)
The adjusted EPS guidance below is provided on a diluted basis from continuing
operations attributable to Air Products and is compared to historical adjusted
EPS. These adjusted measures exclude the impact of certain items that we believe
are not representative of our underlying business performance, such as the non-
service components of net periodic benefit/cost for our defined benefit pension
plans, the incurrence of costs for business, asset, and cost reduction actions
and impairment charges, or the recognition of gains or losses on certain
disclosed items. The per share impact for each non-GAAP adjustment is calculated
independently and may not sum to total adjusted EPS due to rounding.
It is not possible, without unreasonable efforts, to predict the timing or
occurrence of these or similar future events or the potential for other events
or transactions that may impact future GAAP EPS. Furthermore, it is not possible
to identify the potential significance of these events in advance; however, any
of these events, if they were to occur, could have a significant effect on our
future GAAP EPS. Accordingly, management is unable to fully reconcile, without
unreasonable efforts, our forecasted range of adjusted EPS to a comparable GAAP
range.
Diluted EPS
(U.S. Dollars per share) Q1 Full Year
2026 EPS $3.04 $2.39
Business and asset 0.11 10.95
actions
Non-service pension cost, 0.01 0.05
net
Tax reform adjustment
related to deemed — 0.06
foreign dividends
2026 Adjusted EPS $3.16 $13.45
2027 Adjusted EPS Outlook $3.35 – $3.45 $14.15 – $14.50
$ Change 0.19 – 0.29 0.70 – 1.05
% Change 6% – 9% 5% – 8%