Air Products has reported robust first-quarter results for fiscal 2026, surpassing guidance and demonstrating resilience in its core business.

 

The industrial gases giant posted GAAP earnings per share of $3.04, up 10 percent year-over-year, with GAAP operating income rising 14 percent to $735 million. On an adjusted basis, EPS reached $3.16—also a 10 percent increase—exceeding the top end of guidance, while adjusted operating income climbed 12 percent to $757 million.

 

First-quarter sales totaled $3.1 billion, a six percent increase, driven by higher energy cost pass-through, favorable currency movements, and pricing gains. Volumes were flat as gains from new on-site operations were offset by lower helium demand and the absence of a significant, one-time helium sale from the prior year.

 

CEO Eduardo Menezes highlighted the company’s strong performance, stating: "We had strong results from the base business, with a 10 percent increase in adjusted EPS compared to the prior year period and also posted a 12 percent improvement in adjusted operating income despite helium headwinds in the quarter. This is a solid start as the Air Products team continues to focus on unlocking earnings growth, optimizing large projects and maintaining capital discipline."

 

 

Americas: Sales rose 4 percent to $1.3 billion, with operating income up 4 percent to $404 million. Volume was down due to the prior-year helium sale, while pricing improved for non-helium products. Operating margin held steady at 30.1 percent.

 

Asia: Sales increased 2 percent to $832 million. Operating income grew 7 percent to $232 million, aided by productivity improvements and lower depreciation, despite flat volumes. Margin rose 140 basis points to 27.9 percent.

 

Europe: Sales jumped 12 percent to $782 million, with operating income soaring 20 percent to $224 million. Operating margin expanded 190 basis points to 28.6 percent, reflecting favorable volumes, pricing, and currency effects.

 

Middle East & India: Equity affiliate income remained flat at $85 million.

 

Corporate & Other: Sales climbed 21 percent to $117 million; operating loss improved seven percent to $109 million.

 

On guidance, Air Products reaffirmed its full-year fiscal 2026 adjusted EPS guidance of $12.85 to $13.15 and second-quarter EPS guidance of $2.95 to $3.10. Capital expenditures for the year are expected to total approximately $4.0 billion.

 

Recent milestones include advanced negotiations with Yara International on low-emission ammonia projects in the U.S. and Saudi Arabia, awarding NASA supply contracts totaling over $140 million for liquid hydrogen, and increasing its quarterly dividend to $1.81 per share—marking 44 consecutive years of dividend growth.