The Investor
05 Nov 2026, 14:56
Air Products Falls 2% as Margin Pressure and Fiscal 2027 Outlook Temper Strong FY26 Growth
Air Products (NYSE: APD) shares fell about 2% after the company reported solid fiscal 2026 growth but weaker fourth-quarter margins and a fiscal 2027 outlook that appears to have tempered investor enthusiasm.
Fiscal 2026 adjusted EPS rose 12% to $13.45, while adjusted operating income increased 11% to $3.2 billion. Sales grew 8% to $13.0 billion, supported by higher volumes, pricing and favorable currency.
Fourth-quarter sales rose 12% to $3.6 billion, while adjusted EPS increased 6% to $3.61. However, adjusted operating margin declined 150 basis points to 24.1% as higher costs offset volume and pricing gains.
Air Products also reduced capital spending, with fiscal 2026 capital expenditures falling by $1.8 billion to $3.3 billion. The company said its backlog expanded, including more than $2.0 billion of new electronics project wins.
For fiscal 2027, Air Products expects adjusted EPS of $14.15-$14.50 and first-quarter adjusted EPS of $3.35-$3.45. Capital expenditures are expected at $3.0 billion-$3.5 billion.
The 2% decline appears to reflect concern over near-term margin pressure and the pace of earnings growth implied by the 2027 outlook, despite improved core performance and more disciplined capital spending.
Air Products (NYSE: APD) shares fell about 2% after the company reported solid fiscal 2026 growth but weaker fourth-quarter margins and a fiscal 2027 outlook that appears to have tempered investor enthusiasm.
Fiscal 2026 adjusted EPS rose 12% to $13.45, while adjusted operating income increased 11% to $3.2 billion. Sales grew 8% to $13.0 billion, supported by higher volumes, pricing and favorable currency.
Fourth-quarter sales rose 12% to $3.6 billion, while adjusted EPS increased 6% to $3.61. However, adjusted operating margin declined 150 basis points to 24.1% as higher costs offset volume and pricing gains.
Air Products also reduced capital spending, with fiscal 2026 capital expenditures falling by $1.8 billion to $3.3 billion. The company said its backlog expanded, including more than $2.0 billion of new electronics project wins.
For fiscal 2027, Air Products expects adjusted EPS of $14.15-$14.50 and first-quarter adjusted EPS of $3.35-$3.45. Capital expenditures are expected at $3.0 billion-$3.5 billion.
The 2% decline appears to reflect concern over near-term margin pressure and the pace of earnings growth implied by the 2027 outlook, despite improved core performance and more disciplined capital spending.
