Air Products stock sets fiscal 2027 outlook after Q4 gains

Air Products reported fiscal 2026 fourth-quarter and full-year results on Thursday, November 5, while setting out its fiscal 2027 priorities. The company said adjusted fourth-quarter earnings per share rose 6 percent year over year to $3.61, while sales increased 12 percent to $3.6 billion. The figures were reported in the company's earnings release.

Results improve as costs remain elevated

Adjusted operating income reached $856 million, up 5 percent from the prior-year quarter, supported by higher volumes and pricing actions. Higher costs, including fixed-cost inflation and incentive compensation, held adjusted operating margin at 24.1 percent, down 150 basis points.

GAAP operating income was $633 million and GAAP earnings per share were $2.62, compared with $17 million and $0.02 a year earlier. Air Products said both periods included significant business and asset action charges, with the latest quarter primarily reflecting updated estimates tied to two China coal gasification plants, including one sold in October.

For the full fiscal year, adjusted earnings per share rose 12 percent to $13.45, while adjusted operating income increased 11 percent to $3.2 billion. Sales reached $13.0 billion, up 8 percent. Capital expenditures fell by $1.8 billion to $3.3 billion, supporting management's stated focus on tighter capital allocation and the core industrial gases business.

Guidance points to another earnings increase

Air Products expects fiscal 2027 adjusted earnings per share of $14.15 to $14.50. First-quarter adjusted earnings are forecast at $3.35 to $3.45. Management also expects fiscal 2027 capital expenditures of $3.0 billion to $3.5 billion, with more than $2.0 billion of new electronics wins helping expand the project backlog.

Chief Executive Officer Eduardo Menezes said the company would continue expanding its industrial gas backlog and pursuing operating income growth. The outlook relies on pricing actions, productivity gains and contributions from new assets, while project exits and execution remain important factors for the earnings profile.

Air Products stock trades below Xetra close

Air Products stock traded at 272.50 euros on Lang & Schwarz at 13:34 CET on Monday, November 9, 1.62 percent below the Xetra close of Friday, November 6. Yahoo Finance lists the Xetra instrument as AP3.DE and shows a 277.00-euro close at 17:35:33 CET on November 6. Investors can follow the real-time quote of Air Products & Chemicals stock.

Broader sentiment for US equities remains relevant for industrial and materials shares; investors can review current S&P 500 market developments.

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