Air Products Stock Rises as Fiscal 2027 Earnings Guidance Expands

Air Products and Chemicals shares traded up to 281.75 euros on Lang & Schwarz on Wednesday, November 11, advancing 1.71 percent from the prior day's quote. The gain follows the industrial gas supplier's November 5 earnings report, in which leadership established higher adjusted profit targets for fiscal 2027 and pointed to expanding commercial demand.

For the fourth quarter of fiscal 2026, adjusted earnings per share rose 6 percent to $3.61 as revenue climbed 12 percent to $3.6 billion. Higher volumes, which increased 9 percent, were supported by on-site operations and an asset sale connected to an early Americas contract termination. Adjusted operating profit reached $856 million, though higher operational costs caused the adjusted operating margin to decline 150 basis points to 24.1 percent. Regional operating income rose 20 percent in the Americas to $469 million, 10 percent in Asia to $250 million, and 2 percent in Europe to $241 million.

On a GAAP basis, fourth-quarter diluted earnings per share reached $2.62, up from $0.02 in the prior-year period, while operating income reached $633 million compared to $17 million. Reported figures were reduced by business and asset charges tied to divesting a pair of coal gasification facilities in China, where one site was unloaded in October 2026. For the entire fiscal year, adjusted earnings per share rose 12 percent to $13.45 on $13.0 billion in sales, while annual capital expenditures dropped by $1.8 billion to $3.3 billion.

Looking forward, management guided fiscal 2027 adjusted earnings per share to between $14.15 and $14.50, alongside first-quarter guidance of $3.35 to $3.45. Planned capital expenditures are set at $3.0 billion to $3.5 billion, with over $1 billion allocated to traditional industrial gas ventures. The outlook assumes zero meaningful financial input from NEOM, while a first-quarter helium contract renewal poses an operational headwind.

Chief Executive Officer Eduardo Menezes emphasized disciplined capital management and a rotation toward recurring industrial gas ventures over energy-transition investments. The company's traditional backlog expanded to $3.3 billion, bolstered by over $2 billion in contracts secured during the preceding 12 months, predominantly with electronics clients. Management anticipates an additional $50 million in cost savings during fiscal 2027 after realizing $95 million in savings during fiscal 2026.