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APD Q4 Earnings Beat on Higher Volumes, Sales Top Estimates
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Key Takeaways
APD's Q4 adjusted EPS rose 6.5% to $3.61, while sales jumped 12.3% to $3.56 billion, topping estimates.
Air Products' sales growth was driven by 9% higher volumes, with Americas sales surging 27% on strong demand.
APD projects fiscal 2027 adjusted EPS of $14.15-$14.5 and capital expenditures of $3-$3.5 billion.
Air Products and Chemicals, Inc. (APD - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $3.61 per share, up 6.5% from $3.39 a year earlier. The figure topped the Zacks Consensus Estimate of $3.6 by 0.3%, supported by higher volumes and pricing actions.
Sales increased 12.3% year over year to $3.56 billion, beating the consensus mark of $3.32 billion by 7.2%. Volumes rose 9%, led by on-site operations and new assets, while pricing, energy cost pass-through and currency each contributed 1% to sales growth.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Americas sales jumped 27% year over year to $1.63 billion, reflecting a 26% increase in volumes and 1% higher pricing. On-site demand, a new asset contribution and a significant asset sale connected with an early contract termination drove the volume improvement.
Asia sales increased 4% to $908.6 million. Volumes improved 3%, supported by on-site operations, new assets and helium demand. Favorable currency added 2%, while lower energy cost pass-through reduced sales growth by 1%.
Europe sales climbed 8% to $855.5 million. Higher energy cost pass-through contributed 6%, pricing added 2%, and volumes rose 1%. Unfavorable currency reduced the growth rate by 1%.
APD's Financials
For fiscal 2026, cash provided by operating activities rose to $4.68 billion from $3.26 billion in fiscal 2025. Cash used for investing activities declined to $4.15 billion from $7.17 billion. The company's non-GAAP capital expenditures decreased to $3.31 billion from $5.06 billion.
Air Products ended fiscal 2026 with cash and cash equivalents of $1.33 billion, down from $1.86 billion a year earlier. Long-term debt totaled $16.61 billion compared with $16.77 billion at the end of fiscal 2025. Its industrial gas project backlog expanded during the year, including more than $2 billion in new electronics wins.
Air Products Sets Fiscal 2027 Earnings Outlook
Management projects adjusted earnings of $3.35-$3.45 per share for the first quarter of fiscal 2027 compared with $3.16 in the prior-year quarter. For the full fiscal year, the company expects adjusted earnings of $14.15-$14.5 per share, versus $13.45 in fiscal 2026.
Air Products anticipates fiscal 2027 capital expenditures of $3-$3.5 billion. The company emphasized disciplined capital allocation, expansion of the industrial gas project backlog and continued operating income growth as priorities. During fiscal 2026, the company also took project exit charges associated with clean energy investments, while fourth-quarter charges primarily reflected updated valuations of two coal gasification plants in China.
APD’s Price Performance
Shares of APD have gained 23.2% in the past year compared with the industry’s 25.4% growth.
Image Source: Zacks Investment Research
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RS shares have gained 60.9% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.
View the Zacks #1 Rank List
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APD Q4 Earnings Beat on Higher Volumes, Sales Top Estimates
Key Takeaways
Air Products and Chemicals, Inc. (APD - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $3.61 per share, up 6.5% from $3.39 a year earlier. The figure topped the Zacks Consensus Estimate of $3.6 by 0.3%, supported by higher volumes and pricing actions.
Sales increased 12.3% year over year to $3.56 billion, beating the consensus mark of $3.32 billion by 7.2%. Volumes rose 9%, led by on-site operations and new assets, while pricing, energy cost pass-through and currency each contributed 1% to sales growth.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. price-consensus-eps-surprise-chart | Air Products and Chemicals, Inc. Quote
Air Products' Segment Highlights
Americas sales jumped 27% year over year to $1.63 billion, reflecting a 26% increase in volumes and 1% higher pricing. On-site demand, a new asset contribution and a significant asset sale connected with an early contract termination drove the volume improvement.
Asia sales increased 4% to $908.6 million. Volumes improved 3%, supported by on-site operations, new assets and helium demand. Favorable currency added 2%, while lower energy cost pass-through reduced sales growth by 1%.
Europe sales climbed 8% to $855.5 million. Higher energy cost pass-through contributed 6%, pricing added 2%, and volumes rose 1%. Unfavorable currency reduced the growth rate by 1%.
APD's Financials
For fiscal 2026, cash provided by operating activities rose to $4.68 billion from $3.26 billion in fiscal 2025. Cash used for investing activities declined to $4.15 billion from $7.17 billion. The company's non-GAAP capital expenditures decreased to $3.31 billion from $5.06 billion.
Air Products ended fiscal 2026 with cash and cash equivalents of $1.33 billion, down from $1.86 billion a year earlier. Long-term debt totaled $16.61 billion compared with $16.77 billion at the end of fiscal 2025. Its industrial gas project backlog expanded during the year, including more than $2 billion in new electronics wins.
Air Products Sets Fiscal 2027 Earnings Outlook
Management projects adjusted earnings of $3.35-$3.45 per share for the first quarter of fiscal 2027 compared with $3.16 in the prior-year quarter. For the full fiscal year, the company expects adjusted earnings of $14.15-$14.5 per share, versus $13.45 in fiscal 2026.
Air Products anticipates fiscal 2027 capital expenditures of $3-$3.5 billion. The company emphasized disciplined capital allocation, expansion of the industrial gas project backlog and continued operating income growth as priorities. During fiscal 2026, the company also took project exit charges associated with clean energy investments, while fourth-quarter charges primarily reflected updated valuations of two coal gasification plants in China.
APD’s Price Performance
Shares of APD have gained 23.2% in the past year compared with the industry’s 25.4% growth.
Image Source: Zacks Investment Research
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
RS and ESI currently sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RS shares have gained 60.9% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.