Air Products and Chemicals (APD) Q4 2026 earnings summary

Executive summary

• FY26 sales rose 8% to $13.0B; adjusted operating income increased 11% to $3,175M and adjusted EPS rose 12% to $13.45, supported by core industrial gas performance.

• Capital expenditures fell $1.8B to $3.306B, net cash flow was neutral, and the traditional industrial gas backlog reached $3.3B, including more than $2.0B of electronics wins.

Financial highlights

• FY26 adjusted operating margin was 24.4%, up 70 bps; adjusted return on capital was 11.9%, up 100 bps.

• Q4 sales rose 12% to $3.6B; adjusted operating income increased 5% to $856M and adjusted EPS increased 6% to $3.61.

• Q4 adjusted operating margin was 24.1%, down 150 bps YoY; higher costs and energy pass-through weighed on margin.

• FY26 operating cash flow was $4.681B, up from $3.257B; capital expenditures were $3.306B, down from $5.064B, with neutral net cash flow.

• FY26 GAAP operating income was $23M and diluted EPS was $2.39, versus an $877M operating loss and $1.74 per-share loss in FY25; both periods included significant project-related charges.

Outlook and guidance

• FY27 adjusted EPS guidance is $14.15–$14.50, up 5%–8%; Q1 guidance is $3.35–$3.45, up 6%–9%.

• FY27 adjusted operating income is expected to grow 9%–12%, with equity affiliate income flat; pricing and productivity are expected to more than offset inflation.

• FY27 EPS assumes modest market volume growth, including ~2% base growth and ~3% from new assets; helium is expected to be neutral for the year but a Q1 headwind.

• FY27 capital expenditures are guided to $3.0B–$3.5B, including over $1B for traditional industrial gas growth and approximately $1.5B to complete NEOM, Edmonton and Rotterdam projects.

• Positive FY27 net cash flow is expected as operating cash flow and asset proceeds offset capital expenditures and dividends; no share buybacks are assumed.