Air Products tops Q4 sales estimates, sets fiscal 2027 profit forecast

Air Products (APD) posted fourth-quarter adjusted earnings of $3.61 per share, below the $3.65 consensus, and sales of $3.56 billion, above the $3.37 billion consensus.

Shares fell 1.7% at 10:03 a.m. ET, from a $318.87 close.

Adjusted earnings beat the midpoint of the $3.55 to $3.65 range forecast July 30. Full-year adjusted earnings of $13.45 per share beat the midpoint of the $13.39 to $13.49 range given the same day.

Full-year sales rose 8% to $12.99 billion from $12.04 billion.

Here's how the company did:

• Adjusted EPS: $3.61 vs. $3.65 expected, from $3.39 a year earlier
• Revenue: $3.56 billion vs. $3.37 billion expected, from $3.17 billion a year earlier
• GAAP EPS: $2.62 vs. $0.02 a year earlier

Fourth-quarter sales rose 12% on 9% higher volumes.

Adjusted operating income rose 5% to $856 million. The adjusted operating margin of 24.1% fell 150 basis points, primarily on higher costs.

Net income swung from a $710.4 million profit in the second quarter of fiscal 2026 to a $1.44 billion loss in the third.

2026 guidance

Fiscal 2027 adjusted EPS is expected at $14.15 to $14.50, up 5% to 8% from $13.45 in fiscal 2026.

First-quarter adjusted EPS is forecast at $3.35 to $3.45, up 6% to 9% from $3.16 a year earlier.

Capital expenditures are expected to be $3.0 billion to $3.5 billion in fiscal 2027, after $3.3 billion in fiscal 2026, down $1.8 billion.

Chief Executive Officer Eduardo Menezes said: "We will maintain a disciplined approach to capital allocation while focusing on expanding our industrial gas project backlog and delivering continued operating income growth."

Segment results

Americas sales of $1.6 billion rose 27%, and operating income of $469 million rose 20%.

Asia sales of $909 million rose 4%, and operating income of $250 million rose 10%.

Europe sales of $856 million rose 8%, while operating income of $241 million rose 2%.

Equity affiliates' income in the Middle East and India of $97 million rose 6%, mainly from an affiliate in Saudi Arabia.

Costs and charges

Full-year GAAP EPS was $2.39, against a loss of $1.74 a year earlier. Business and asset actions cost $3.2 billion pre-tax over the year.

Charges primarily tied to project exits announced June 30, 2026, including a clean energy complex under construction in Louisiana and a green hydrogen production facility under construction in Casa Grande, Arizona.

Fourth-quarter charges of $224.5 million pre-tax updated the carrying value of two coal gasification plants in China. One was sold in October 2026.