Air Products and Chemicals (APD) investor relations material

Executive summary

• Achieved 5% year-over-year sales growth in Q3 FY2026, with 3% volume, 1% price, and 1% currency impact; energy pass-through was flat.

• Adjusted operating income rose 9% year-over-year to $810M, with notable contributions from Asia and the Americas.

• Adjusted EPS increased 12% year-over-year to $3.47, exceeding guidance, driven by higher volumes and equity affiliate income.

• Announced exit from Louisiana and Casa Grande projects, recording a $2.9B pre-tax charge and optimizing the project portfolio.

• Finalized a marketing and distribution agreement with Yara for renewable ammonia from the NEOM Green Hydrogen project.

Financial highlights

• Q3 FY2026 sales reached $3.2B, up 5% year-over-year.

• Adjusted operating margin improved 110 basis points year-over-year to 25.6%.

• Adjusted EPS of $3.47 increased 12% year-over-year; adjusted operating income of $810M rose 9%.

• Return on capital improved to 11.7%, up 60 basis points year-over-year.

• Operating cash flow year-to-date totaled $3.3B.

Outlook and guidance

• Raised full-year adjusted EPS guidance to $13.39–$13.49, up 11–12% year-over-year.

• Q4 adjusted EPS expected at $3.55–$3.65, up 5–8% year-over-year.

• Fiscal 2026 capital expenditures forecast reduced to ~$3.5B due to payment timing, lower maintenance, and canceled projects.

• Focus remains on price, productivity, and new asset contributions, with minimal market growth assumed.

• No material financial impact expected from NEOM/Yara agreement in fiscal 2027.