Air Products & Chemicals 8-K
EarningsNew guidanceImpairment / charge
Project exits and China coal gasification plants drove $3.15B in FY2026 pre-tax charges; FY2027 adjusted EPS guided to $14.15-$14.50.
Filed 2026-11-05 06:16 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2026 results with FY2027 guidance. Revenue growth accelerated to +12.3% Q/Q from -0.3%, as higher volumes, pricing, energy cost pass-through and favorable currency lifted sales. GAAP results also reflected large business and asset-action charges tied mainly to project exits and two China coal gasification plants.
Q1 FY2027 adjusted EPS guidance of $3.35-$3.45 is -5.8% Q/Q from Q4’s $3.61, with 6%-9% Y/Y growth; FY2027 adjusted EPS guidance of $14.15-$14.50 implies 5%-8% Y/Y growth, or +6.5% at the midpoint, vs +12% in FY2026. FY2027 capital expenditures guidance of $3.0B-$3.5B has a midpoint -1.7% Y/Y from FY2026.
Developments
- The industrial gas project backlog expanded, including more than $2.0B of new electronics wins, supporting the company’s focus on growing its core industrial gases business.
Results with guidance
| Metric | Guided for Q4 FY2026 | Q4 FY2026 actual | Q1 FY2027 guide | FY2027 guide |
|---|---|---|---|---|
| Adjusted EPS (non-GAAP) | $13.39-$13.49 | $13.45 (in line)+12% Y/Y | — | — |
| Adjusted EPS (non-GAAP) | $3.55-$3.65 | $3.61 (in line)+4.0% Q/Q | $3.35-$3.45; 6%-9% growth Y/Y-5.8% Q/Q at midpoint (worse than reported) | $14.15-$14.50; 5%-8% growth Y/Y+6.5% Y/Y at midpoint; vs 12% Y/Y in Q4 FY2026 |
| Capital expenditures (non-GAAP) | $3.5B | $3.31B (beat)-35% Y/Y | — | — |
| Capital expenditures (non-GAAP) | — | — | — | $3.0B-$3.5B-1.7% Y/Y at midpoint |
Earlier guidance from the 8-K filed 2026-07-30.
Results without guidance
| Metric | Q4 FY2026 | Change | FY2026 |
|---|---|---|---|
| Revenue | $3.56B | +12% Y/Y, +12% Q/Q | $13.0B+7.9% Y/Y |
| Operating income | $633M | vs $16.8M Y/Y, vs -$2.10B Q/Q | $23.3Mvs -$877M Y/Y |
| Adjusted operating income (non-GAAP) | $856M | +5.7% Q/Q | $3.20B+11% Y/Y |
| Net income | $584M | vs $4.90M Y/Y, vs -$1.44B Q/Q | $532Mvs -$394M Y/Y |
| Diluted EPS | $2.62 | vs $0.02 Y/Y, vs -$6.47 Q/Q | $2.39vs -$1.77 Y/Y |
| Operating margin | 17.8% | +84.1 pp Q/Q | 0.2% |
| Adjusted operating margin (non-GAAP) | 24.1% | -1.5 pp Q/Q | 24.4% |
| Diluted shares | 223M | +0.0% Y/Y, +0.1% Q/Q | 223M+0.1% Y/Y |
What moved the numbers
- FY2026 business and asset-action charges were $3.15B pre-tax, or $2.44B after tax attributable to Air Products ($10.95 per share), primarily related to project exits announced in June 2026. Q4 charges included $224.5M pre-tax, or $203M after tax ($0.91 per share), largely reflecting updated sale-process estimates for the two China plants; one was sold in October 2026, while the remaining assets of the other were fully impaired.
- Americas segment sales were $1.63B, up 27% Y/Y, and segment operating income was $469M, up 20%, on higher on-site volumes, including a significant asset sale associated with an early contract termination and a contribution from a new asset.
- Asia segment sales were $909M, up 4% Y/Y, and segment operating income was $250M, up 10%; on-site volumes, new assets and helium contributed to sales growth.
- Europe segment sales were $856M, up 8% Y/Y, and segment operating income was $241M, up 2%. Higher on-site volumes and pricing were partly offset by costs; energy cost pass-through was an approximately 200-basis-point headwind to operating margin. Middle East and India equity affiliates’ income was $97M, up 6% Y/Y.
- Operating cash flow was $4.68B vs $3.26B in FY2025; cash used for investing activities was $4.15B vs $7.17B, principally reflecting lower capital spending.
Figures extracted from the filings and checked against their text; changes and verdicts computed from them.
The summary is written by an AI model reading the filing.
Model 005 · prompt v189 · 2026-11-05 20:52:03Z