APD · Air Products and Chemicals, Inc.

Air Products reported strong fiscal 2026 second quarter results, with GAAP EPS of $3.19 and adjusted EPS of $3.20, each up 19% year-over-year and exceeding the top end of guidance. Sales increased 9% to $3.2 billion, driven by 4% higher volumes, 4% favorable currency, and 2% higher energy cost pass-through, partially offset by 1% lower pricing. Adjusted operating income rose 19% to $753 million, reflecting higher on-site volumes, favorable currency, and lower costs from productivity and lower depreciation, partially offset by fixed-cost inflation and higher Americas maintenance. Adjusted operating margin expanded 210 basis points to 23.7%. By segment, Americas operating income grew 2% on higher volumes, Asia increased 25% driven by reduced depreciation and productivity, Europe rose 8% on higher volumes and favorable currency, and Middle East and India equity affiliates' income was up 1%. Management highlighted strong underlying performance, with CEO Eduardo Menezes noting 19% growth in adjusted EPS despite macroeconomic volatility. The company raised its full-year fiscal 2026 adjusted EPS guidance to $13.00-$13.25 from prior expectations, and provided Q3 guidance of $3.25-$3.35. Capital expenditures are expected to be approximately $4.0 billion for the full year. Key strategic wins include an electronics contract with Samsung and actions to strengthen helium supply chain resilience, including drawing from its U.S. storage cavern and increasing liquefaction.