Financial Data and Key Metrics Changes - The company reported a 12% improvement in adjusted operating income and a 10% increase in earnings per share (EPS) to $3.16 compared to the prior year, driven by stronger productivity despite weak economic conditions [4][12] - Operating margin increased to 24.4%, while return on capital (ROC) was 11%, slightly lower than the previous year but stable sequentially [4][12] - The company expects full-year earnings guidance to imply a 7%-9% improvement at the midpoint [5] Business Line Data and Key Metrics Changes - Sales in the Americas increased by 4%, driven by higher energy pass-through, while operating income improved due to price, on-site volume, and lower maintenance costs [15] - Asia segment sales rose by 2%, with operating income up 7%, attributed to productivity and reduced depreciation from certain gasification assets [15] - Europe saw increases in both sales and operating income due to volume and price improvements, although higher costs from depreciation and fixed cost inflation impacted margins [15] - The Middle East and India segment reported improved operating income due to lower costs, while corporate and other segments benefited from reduced costs [15] Market Data and Key Metrics Changes - The company noted resilience in key sectors such as refining, electronics, and aerospace, with new supply contracts with NASA for liquid hydrogen [6] - Helium headwinds continue to affect the business, with expectations of a 4% decline in EPS impact for the year [24] Company Strategy and Development Direction - The company is focused on three key priorities for 2026: unlocking earnings growth, optimizing large projects, and maintaining capital discipline [5] - Capital expenditures are expected to be reduced by approximately $1 billion in fiscal 2026, with a focus on de-risking clean energy projects [7] - The company is in advanced negotiations with Yara International for low-emission ammonia projects in the U.S. and Saudi Arabia, which aligns with its strategic goals [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the macroeconomic environment, highlighting pockets of resilience despite overall sluggishness [5][6] - The company is maintaining its fiscal full-year guidance of $12.85-$13.15, with expectations for EPS in Q2 2026 to be in the range of $2.95-$3.10, reflecting a 10%-15% improvement from the prior year [17][18] - Management emphasized the importance of disciplined capital allocation and the need for high certainty in capital costs before making final investment decisions [10][50] Other Important Information - The company returned nearly $400 million to shareholders and increased its dividend for the 44th consecutive year [16] - The net debt to EBITDA ratio stands at 2.2 times, with adjustments made for the consolidation of the NEOM green hydrogen project during its construction phase [16][73] Q&A Session Summary Question: How should we think about the returns on the $2 billion of capital already invested in the project? - The 45Q credit is included in the return, and the overall return for the project is being assessed [20][21] Question: How much of the continuing business is still down regarding helium? - The company expects a 4% decline in EPS impact for the year, with strong volume from the aerospace segment helping mitigate some losses [24] Question: What was the benefit from moving gasification plants in China to for sale? - The impact was about 1% on overall results for the quarter, with ongoing negotiations for asset sales [25] Question: Is Air Products receiving full income from Gulf Coast Ammonia? - The plant is running at 80-90% capacity, with expectations to finalize commitments soon [29][30] Question: Can you comment on the margin improvement seen in the Americas? - Strong on-site volumes and pricing improvements contributed to margin growth, despite some negative cost impacts [38] Question: What portion of your customers are running below take-or-pay minimums? - Utilization across regions is similar to previous years, with no significant changes noted [82][83] Question: Is there any dependency on the relationship with Yara at Darrow? - There is no dependency between the two projects, and the products from NEOM will not be affected by CBAM [98]

Core Insights - Air Products and Chemicals (APD) reported quarterly earnings of $3.16 per share, exceeding the Zacks Consensus Estimate of $3.04 per share, and up from $2.86 per share a year ago [1] - The company achieved revenues of $3.1 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.90% and increasing from $2.93 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +3.91%, while the previous quarter had a surprise of -0.59% [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] Stock Performance - Air Products and Chemicals shares have increased approximately 3.6% since the beginning of the year, compared to the S&P 500's gain of 1.8% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.05, with expected revenues of $3.05 billion, and for the current fiscal year, the EPS estimate is $12.97 on revenues of $12.48 billion [8] - The estimate revisions trend for the company was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Chemical - Diversified industry, to which Air Products and Chemicals belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Fiscal First Quarter 2026 Earnings Results Teleconference January 30, 2026 Forward-Looking Statements This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings and capital expenditure guidance, business outlook, investment opportunities and potential transactions that are subject to ongoing negotiations and their expected impact and timing. These forward-looking statements are based o ...

Financial Performance - Fiscal 2026 Q1 GAAP operating income was $735 million, a 14% increase from the prior year, with a GAAP operating margin of 23.7%[1] - Adjusted operating income for Q1 was $757 million, up 12%, with an adjusted operating margin of 24.4%[1] - Q1 sales reached $3.1 billion, reflecting a 6% increase year-over-year, driven by a 3% higher energy cost pass-through and a 1% increase in pricing[1] - GAAP EPS for Q1 was $3.04, a 10% increase, while adjusted EPS was $3.16, also up 10% and exceeding guidance[3] - Operating income for the total segments increased to $756.5 million, a 12.3% rise compared to $673.5 million in the previous year[18] - Net income attributable to Air Products for the three months ended December 31, 2025, was $678.2 million, an increase of 9.8% from $617.4 million in the same period of 2024[15] - Total sales for the three months ended December 31, 2025, reached $3,102.5 million, up 5.8% from $2,931.5 million in the prior year[17] Guidance and Projections - The company maintains full-year fiscal 2026 adjusted EPS guidance of $12.85 to $13.15 and Q2 adjusted EPS guidance of $2.95 to $3.10[3] - Adjusted EPS for FY2025 is projected at $12.03, with an outlook for FY2026 adjusted EPS ranging from $12.85 to $13.15, reflecting a 7% to 9% increase[39] - The adjusted EPS guidance for FY2026 indicates a potential increase of $0.26 to $0.41 per share compared to FY2025[39] Capital Expenditures - Capital expenditures for fiscal 2026 are expected to be approximately $4.0 billion[3] - Capital expenditures for Q1 FY2026 were reported at $910.7 million, a decrease from $1,209.8 million in Q1 FY2025[33] - The company expects capital expenditures of approximately $4.0 billion for FY2026[35] Segment Performance - Americas segment sales were $1.3 billion, up 4%, with operating income of $404 million, a 4% increase[7] - Europe segment sales increased 12% to $782 million, with operating income rising 20% to $224 million[7] Cash Flow and Assets - Cash provided by operating activities was $900.7 million, compared to $811.7 million for the same period last year, reflecting a 10.9% increase[15] - Total current assets decreased to $5,103.2 million from $5,825.8 million, a decline of 12.4%[13] - Cash and cash items at the end of the period were $1,026.4 million, down from $1,845.5 million, a decrease of 44.4%[15] Liabilities and Debt - Total liabilities decreased to $23,403.6 million from $23,709.7 million, a reduction of 1.3%[13] - Long-term debt increased to $17,114.6 million from $16,769.9 million, reflecting a rise of 2.1%[13] Other Financial Items - The company recorded charges for business and asset actions totaling $28.3 million, impacting operating income by $22.0 million[25] - Non-service related pension items resulted in net non-operating costs of $3.4 million ($2.5 million after tax, or $0.01 per share) in Q1 FY2026, down from $10.5 million ($7.9 million after tax, or $0.04 per share) in Q1 FY2025[30] - Shareholder activism-related costs in Q1 FY2025 amounted to $29.9 million ($21.9 million after tax, or $0.10 per share) due to a proxy contest[27] - An unrealized gain of $38.8 million ($10.3 million attributable to Air Products after tax, or $0.05 per share) was recorded in Q1 FY2025 from the de-designation of cash flow hedges[28] - The unrealized gain on swaps that remained de-designated during Q1 FY2026 was not material, with all swaps re-designated as cash flow hedges as of January 1, 2026[29] Contracts and Negotiations - The company announced advanced negotiations with Yara International for low emission ammonia projects in the U.S. and Saudi Arabia[3] - Air Products secured supply contracts from NASA totaling over $140 million for liquid hydrogen[3]

Core Insights - Air Products and Chemicals reported an increase in profit and revenue for its fiscal first quarter, driven by higher prices resulting from increased energy costs [1] Financial Performance - The company experienced higher profit and revenue compared to previous periods, indicating strong financial performance [1]

Group 1 - Air Products and Chemicals, Inc. (APD) expects adjusted earnings for Q2 in the range of $2.95 to $3.10 per share and maintains its full-year 2026 adjusted earnings guidance of $12.85 to $13.15 per share [1] - Analysts expect the company to report earnings of $3.02 per share for the quarter and $12.91 per share for the year, with estimates typically excluding special items [2] - The company anticipates capital expenditures of approximately $4.0 billion for the full-year fiscal 2026 [2] Group 2 - In pre-market trading, APD is trading at $258.90, reflecting an increase of $2.90 or 1.13 percent [3]

Core Insights - Air Products reported strong first quarter results for fiscal 2026, exceeding guidance with adjusted EPS of $3.16, a 10% increase, and adjusted operating income of $757 million, up 12% [1][2] Financial Performance - GAAP EPS for Q1 FY26 was $3.04, reflecting a 10% increase year-over-year, while GAAP operating income rose to $735 million, a 14% increase [1][2] - Total sales for the first quarter reached $3.1 billion, marking a 6% increase from the previous year, driven by higher energy cost pass-through and favorable currency effects [1][2] - Adjusted operating margin improved to 24.4%, up 140 basis points compared to the prior year [1][2] Business Segments - Sales in the Americas segment increased by 4% to $1.3 billion, with operating income rising to $404 million, a 4% increase [2][4] - Europe saw a 12% increase in sales to $782 million, with operating income up 20% to $224 million [2][4] - Asia's sales increased by 2% to $832 million, with operating income rising 7% to $232 million [2][4] Guidance and Outlook - The company maintains its full-year fiscal 2026 adjusted EPS guidance in the range of $12.85 to $13.15, with Q2 adjusted EPS guidance set at $2.95 to $3.10 [2][6] - Capital expenditures for fiscal 2026 are expected to be approximately $4.0 billion [2][6] Recent Developments - Air Products secured over $140 million in supply contracts from NASA for liquid hydrogen [1][6] - The company increased its quarterly dividend to $1.81 per share, marking the 44th consecutive year of dividend increases [1][6] - Advanced negotiations were announced with Yara International for low emission ammonia projects in the U.S. and Saudi Arabia [1]

Core Insights - Air Products has been awarded contracts from NASA totaling over $140 million to supply liquid hydrogen for various NASA facilities, including the Kennedy Space Center and Cape Canaveral Space Force Station [1][2] Group 1: Company Overview - Air Products is a leading industrial gases company with over 85 years of operation, focusing on energy, environmental, and emerging markets [6] - The company generated $12 billion in sales for fiscal 2025, operating in approximately 50 countries [7] Group 2: Relationship with NASA - Air Products has supported NASA since 1957, supplying critical industrial gases for various space missions, including Apollo and Artemis [2][3] - The company will supply approximately 36.5 million pounds of liquid hydrogen under the new contract for NASA facilities in Florida, Alabama, and Mississippi [2] Group 3: Infrastructure and Capabilities - In 2025, Air Products completed the first fill of the world's largest hydrogen sphere at the Kennedy Space Center, delivering over 730,000 gallons of liquid hydrogen [4] - The hydrogen sphere measures 90 feet tall and 83 feet in diameter, showcasing the company's capability to handle large-scale hydrogen projects [4] Group 4: Market Engagement - Air Products is actively involved in supporting privatized space launches and missions, providing gases necessary for rocket and satellite manufacturing, testing, and launches [5]

thMarks 44 Consecutive Year of Quarterly Dividend Increases on Company's Common Stock thLEHIGH VALLEY, Pa., Jan. 27, 2026 /PRNewswire/ -- The Board of Directors of Air Products (NYSE:APD) has increased the quarterly dividend on the Company's common stock to $1.81 per share, marking the 44 consecutive year of dividend increases. The dividend is payable on May 11, 2026 to shareholders of record at the close of business on April 1, 2026. About Air Products  Air Products (NYSE: APD) is a world-leading industr ...

Core Viewpoint - The analysis compares Avient (AVNT) and Air Products and Chemicals (APD) to determine which stock represents a better value opportunity for investors interested in the Chemical - Diversified sector [1]. Group 1: Zacks Rank and Earnings Estimates - Avient currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Air Products and Chemicals has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, which positions AVNT as having a more favorable earnings outlook compared to APD [3]. Group 2: Valuation Metrics - Avient has a forward P/E ratio of 12.40, significantly lower than Air Products and Chemicals' forward P/E of 20.37, indicating that AVNT may be undervalued relative to APD [5]. - The PEG ratio for Avient is 1.25, while for Air Products and Chemicals, it is 2.60, suggesting that AVNT is expected to grow earnings at a more favorable rate relative to its price [5]. - Avient's P/B ratio stands at 1.44, compared to APD's P/B of 3.39, further indicating that AVNT is trading at a lower valuation relative to its book value [6]. - Based on these valuation metrics, Avient holds a Value grade of A, while Air Products and Chemicals has a Value grade of C, reinforcing the view that AVNT is the better investment option at this time [6].