Air Products and Chemicals, Inc. Q4 2026 Earnings Recap

Air Products shares fell 2.9% after earnings, a roughly flat reaction. The transcript reports higher full-year earnings and margins, but also sets 2027 capital spending at $3 billion–$3.5 billion while acknowledging underperforming projects that are not expected to contribute materially to future operating income.

Key Takeaways

• Fiscal 2026 sales grew 8%, adjusted EPS rose 12% to $13.45, and operating income increased 11% year over year.
• Operating margin expanded 70 basis points to 24.4%; return on capital improved 100 basis points to 11.9%.
• Fiscal 2027 capital expenditure is targeted at $3 billion–$3.5 billion, with more than $1 billion forecast for traditional industrial gas growth projects.
• The industrial gas backlog reached $3.3 billion, including more than $2 billion in project wins for Air Products over the past 12 months.
• Management expects positive net cash flow in fiscal 2027, but says several underperforming projects will not contribute materially to future operating income.