Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 31 December 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-04534 AIR PRODUCTS AND CHEMICALS, INC. (Exact name of registrant as specified in its charter) Delaware 23-1274455 (Stat ...

Core Viewpoint - Air Products and Chemicals, Inc. reported strong financial results for its fiscal first quarter, demonstrating resilience in challenging market conditions and maintaining a positive outlook for the fiscal year 2026 [2][3][4]. Financial Performance - The company achieved an EPS of $3.16, exceeding the estimated $3.04, and revenue reached approximately $3.1 billion, surpassing the estimated $3.05 billion [2][6]. - The GAAP EPS was reported at $3.04, marking a 10% increase year-over-year, while GAAP operating income rose to $735 million, a 14% increase from the previous year [3]. - Adjusted EPS of $3.16 and adjusted operating income of $757 million reflect a 12% rise, indicating robust financial health [3]. Guidance and Projections - Air Products is maintaining its full-year adjusted EPS guidance for fiscal 2026, projected to be between $12.85 and $13.15 [4][6]. - For the second quarter, the adjusted EPS is expected to range from $2.95 to $3.10 [4]. Strategic Initiatives - The company is engaged in advanced negotiations with Yara International for low-emission ammonia projects and has secured a $140 million contract with NASA for liquid hydrogen supply [5]. - Air Products increased its quarterly dividend to $1.81 per share, marking the 44th consecutive year of dividend increases [5]. - The company has a strong liquidity position, with a current ratio of 1.38, supporting its strategic initiatives for future growth [5].

Key Takeaways Air Products posted Q1 adjusted EPS of $3.16, beating estimates, as revenue climbed 5.8% year over year.APD cited a favorable mix and lower costs, with Americas, Europe and Asia sales higher.Air Products guided fiscal 2026 adjusted EPS of $12.85-$13.15 and about $4 billion in capital spending.Air Products and Chemicals, Inc. (APD) logged first-quarter fiscal 2026 (ended Dec. 31, 2025) earnings of $3.04 per share, up from $2.77 recorded in the year-ago quarter. The growth was due to a favorable ...

Europe: Sales and operating income increased on volume and price, with favorable currency also contributing. Higher volumes were driven by on-site (including a prior-year turnaround comparison) and non-helium merchant volumes. Management also cited higher depreciation and fixed cost inflation as offsets despite productivity improvements. In response to a question about sequential margin pressure, Schaeffer attributed margin impacts to cost pressures including depreciation and wage inflation, with seasonalit ...

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 [5][15] - The operating margin increased to 24.4%, while return on capital (ROC) was 11%, slightly lower than last year but stable sequentially [5][15] 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 [17] - Asia segment sales rose by 2%, with operating income up 7%, attributed to productivity improvements and reduced depreciation from certain gasification assets [17] - 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 [17] - The Middle East and India segment experienced improved operating income due to lower costs, while the corporate segment also saw improvements from lower costs [18] Market Data and Key Metrics Changes - The company noted resilience in key sectors such as refining, electronics, and aerospace, with new supply contracts announced with NASA for liquid hydrogen [7][8] - The company expects continued headwinds from helium, projecting a 4% decline in EPS effect for the year [25] 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 [7] - Capital expenditures are expected to be reduced by approximately $1 billion in fiscal 2026, with a commitment to disciplined capital allocation and returning cash to shareholders [9][18] - The company is in advanced negotiations with Yara International for low-emission ammonia projects in Saudi Arabia and the U.S., which aligns with its clean energy strategy [10][11] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the macroeconomic environment, affirming full-year earnings guidance with an expected improvement of 7%-9% at the midpoint [7][19] - The company anticipates challenges from helium headwinds but remains focused on pricing actions and productivity improvements to drive results [20][64] Other Important Information - The company returned nearly $400 million to shareholders and increased its dividend for the 44th consecutive year [18] - The net debt to EBITDA ratio stands at 2.2 times, reflecting a strong balance sheet position [18] 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 will be disclosed later [22][23] Question: How much of the continuing business is still down regarding helium? - The company expects a 4% decline in EPS effect for the year, with strong volume from the aerospace segment in the Americas [25] 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 [26] Question: Is Air Products receiving full income from Gulf Coast Ammonia? - The plant is running at 80-90% capacity, and the company owns the hydrogen production and air separation assets [30][31] Question: What is the expected timing for the deconsolidation of NEOM? - The deconsolidation is expected to occur in mid-2027 when the joint venture becomes operational [73][74] Question: How is the company addressing the impact of CBAM on ammonia? - The company believes the impact of CBAM is indirect and is closely monitoring the situation [14][99] Question: What portion of customers are running below take-or-pay minimums? - Utilization across regions is in the mid- to high 70s, with some cases in Europe but not significantly impacting overall business [84][89]

Air Products and Chemicals (NYSE:APD) Q1 2026 Earnings call January 30, 2026 08:00 AM ET Company ParticipantsChristopher Parkinson - Managing DirectorEduardo Menezes - CEOEmily Fusco - Equity Research AssociateJames Hooper - VPJohn Roberts - Managing DirectorKevin McCarthy - PartnerMegan Britt - VP of Investor RelationsMelissa Schaeffer - CFOVincent Andrews - Managing DirectorConference Call ParticipantsDuffy Fischer - Equity Research AnalystJeffrey Zekauskas - AnalystJohn McNulty - Managing Director and Ch ...

Air Products and Chemicals (NYSE:APD) Q1 2026 Earnings call January 30, 2026 08:00 AM ET Speaker15Good morning, and welcome to Air Products' first quarter earnings release conference call. Today's call is being recorded at the request of Air Products. Please note that this presentation and the comments made on behalf of Air Products are subject to copyright by Air Products and all rights are reserved. Beginning today's call is Meghan Britt.Speaker12Hello, and welcome to the first quarter fiscal 2026 earning ...

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]