Air Products (APD) reported fiscal 2026 adjusted earnings of $13.45 a share, 12 percent higher than the year earlier, exceeding the midpoint of its prior full-year range, and said it expects fiscal 2027 adjusted EPS of $14.15 to $14.50.

GAAP results still carried the year’s project-exit charges. The company posted operating income of $23 million and diluted EPS of $2.39 for the twelve months ended September 30, 2026, versus an operating loss of $877 million and a loss of $1.74 a share a year earlier. Both periods included significant charges related to business and asset actions, primarily previously announced project exits.

Sales for the full year were $13.0 billion, up eight percent, or $954 million, on four percent higher volumes, two percent higher energy cost pass-through, and two percent favorable currency. Adjusted operating income was $3.2 billion, up 11 percent, which the company attributed primarily to higher on-site volumes, favorable currency, and higher pricing, partially offset by higher costs from fixed-cost inflation and higher incentive compensation, net of productivity improvements and lower depreciation. Adjusted operating margin was 24.4 percent, up 70 basis points.

Capital spending receded. Cash used for investing activities was $4.1 billion, down $3.0 billion from the prior year, and capital expenditures were $3.3 billion, down $1.8 billion. The company said it expanded its industrial gas project backlog, including more than $2.0 billion of new electronics wins.

In the fourth quarter, sales were $3.6 billion, up 12 percent on nine percent higher volumes and one percent each from higher pricing, higher energy cost pass-through, and favorable currency. Adjusted operating income was $856 million, up five percent on higher volumes and pricing actions, partially offset by higher costs. Adjusted operating margin was 24.1 percent, down 150 basis points, primarily due to higher costs. Adjusted EPS was $3.61, up six percent. GAAP operating income was $633 million and GAAP EPS was $2.62, versus $17 million and $0.02 a share a year earlier; both periods reflected business and asset action charges. Current-year charges primarily reflected updated estimates associated with the sale process for two China coal gasification plants, including one sold in October 2026.

Americas sales were $1.6 billion, up 27 percent on 26 percent higher volumes and one percent higher pricing. Operating income was $469 million, up 20 percent, primarily due to higher on-site volumes, including a significant asset sale associated with an early contract termination and a new asset contribution. Operating margin was 28.7 percent, down 170 basis points, primarily due to higher costs.

Asia sales were $909 million, up four percent on three percent higher volumes and two percent favorable currency, partially offset by one percent lower energy cost pass-through. Operating income was $250 million, up 10 percent, and operating margin was 27.5 percent, up 150 basis points, primarily due to lower depreciation on certain gasification assets held for sale and higher volumes.

Europe sales were $856 million, up eight percent 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 was $241 million, up two percent. Operating margin was 28.2 percent, down 190 basis points, which included an approximate 200-basis-point headwind from energy cost pass-through. Middle East and India equity affiliates’ income was $97 million, up six percent, primarily from an affiliate in Saudi Arabia. Corporate and other sales were $122 million, down 34 percent, and the operating loss was $108 million, compared with $49 million a year earlier, driven by lower sale of equipment activity and higher costs.

Chief Executive Officer Eduardo Menezes said the company delivered 12 percent adjusted EPS growth, reduced capital expenditures by $1.8 billion, and expanded its industrial gas project backlog through new business wins. He said that as the company moves through fiscal 2027 it will maintain a disciplined approach to capital allocation while focusing on expanding the backlog and delivering continued operating income growth.

Air Products expects capital expenditures in the range of $3.0 billion to $3.5 billion for full-year fiscal 2027. First-quarter fiscal 2027 adjusted EPS guidance is $3.35 to $3.45.