Air Products Reports Fiscal 2026 First Quarter Results

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]