Description

Air Products’ Pricing Power vs. Project Risk—The Quiet Battle Shaping Free Cash Flow!

Air Products and Chemicals reported a first quarter of fiscal 2026 that reflected solid operational execution against a challenging macroeconomic backdrop, alongside ongoing portfolio repositioning and elevated project-related uncertainty. The company delivered adjusted earnings per share of $3.16, up 10% year over year, supported by a 12% increase in adjusted operating income and margin expansion to 24.4%. Performance was driven primarily by pricing actions, productivity initiatives, and favorable business mix, which more than offset weak volumes in certain end markets and continued headwinds in helium. The underlying base industrial gas business demonstrated resilience despite sluggish global economic conditions. On-site volumes were stable overall, with strength in refining, electronics, aerospace, and space-related applications partially offset by softness in helium and select industrial end markets. Pricing improved across non-helium merchant products, particularly in the Americas and Europe, while cost control and productivity gains helped absorb fixed cost inflation and higher energy pass-through.