Air Products & Chemicals : APD IR Slides Q2 FY26

Published: 2026-04-30 06:19:02 ET APD

Published on 04/30/2026 at 06:19 am EDT

April 30, 2026

Performance Highlights

Q2 FY2026 (comparisons versus prior year second quarter)

Sales ($B)

Up 9%: volume +4%, currency +4%,

energy pass-through +2%, price (1)%

Adjusted Earnings Per

Share* ($/share)

Up 19% on improved volume, continued productivity, and currency

Adjusted Operating Income* ($B)

Up 19% with improvement in all reporting segments; includes 4% currency

Adjusted Operating

Margin* (%)

Improved 210 bps, primarily volume and productivity partially offset by energy cost pass-through and price

Operating Cash Flow ($B) YTD

Base business supports stable

cash flow

Adjusted ROC*

(%) LTM

In line with prior year, up 40 bps sequentially

Unlock earnings growth

Maintain capital discipline

First half adjusted EPS* up 15% year-to-date; raising full year adjusted EPS guidance*

Volume growth led by strong on-sites; new asset start-ups on track to further contribute to earnings in second half

Non-helium pricing combined with

productivity more than offset inflation

Year-to-date SG&A costs lower 2% vs. prior year, reflecting progress on rightsizing the organization

Negotiations with Yara progressing on low-emission ammonia projects

NEOM Green Hydrogen Complex substations energized

Louisiana Clean Energy Complex construction cost bids under review

Disciplined capital deployment to fund sustained growth; reduced capex from prior year

Free cash flow1 positive year-to-date on strong operating cash flow

Strong new project wins in Electronics

and Aerospace

Continue to return cash to shareholders in the form of dividends

5-Year Roadmap Target Metrics

High single-digit annual earnings per share growth

Adjusted operating margin improvement

Net cash flow neutral to positive through 2029

Mid-teens adjusted ROC by 2030

~2.0x adjusted net debt-to-adjusted EBITDA

Diversity of Sources

Primarily sourced from U.S. with secondary sources of supply in Algeria and Qatar

Dedicated Storage Cavern

Dedicated storage cavern in the U.S. ensures a strong buffer for potential global disruptions

Logistical Flexibility

Expect a more stable helium earnings profile over time due to growing volume with strategic customers

Responding to customer outreach for additional supply

Increasing run rate across liquefaction assets

Repositioning our ISO container fleet

Drawing supply from our U.S. cavern

Increasing production in our

U.S. network

Ongoing Actions

A large helium ISO container fleet provides flexibility in managing supply flows and supporting customer supply needs during periods of uncertainty

Contracting Model

Approximately 90% of our volume is contracted and average contract length is 3 - 5 years, supporting reduced volatility

Energy 21%

Chemicals 21%

Electronics 17%

Metals 15%

Higher volumes driven by increased production at our refinery customers

Stable volumes outside Europe; ramp up of new asset in Americas in 2H

Resilient volumes in Americas and Asia; partial benefit from ramping up of new assets in Asia

Pressure from imports in Europe limiting margins; stable volume in other regions

Manufacturing

10%

Medical

Food

Aerospace

Mixed performance environment, including continued pressure in Europe due to higher costs

Limited growth, but high

stability and low cyclicality

Consistent food processing and packaging demand with minimal cyclicality

Strong volumes led by contract renewals with strategic customers

6 Percentages reflect end market exposure as a % of FY25 sales

Remaining balance of % of Sales relates to Other

Adjusted Op Inc* ($MM) Adjusted Operating Margin* Adjusted EPS* ($/share) Adjusted ROC*#

Q2FY26

$753

Q2FY25 $631

19%

vs PY

Q1FY26

$757 (1)%

vs PQ

Q2FY26

23.7%

Q2FY25

21.6%

210bp vs PY

Q1FY26

24.4%

(70)bp

vs PQ

Q2FY26

$3.20

Q2FY25

$2.69

19%

vs PY

Q1FY26

$3.16

vs PQ

Q2FY26

11.4%

Q2FY25

11.5%

(10)bp vs PY

Q1FY26

11.0%

40bp

vs PQ

# Construction in Progress ~(400)bps of Adjusted ROC

Sales

vs Q2FY25

vs Q1FY26

Volume

Price

(1)%

Energy pass-through

Currency

Performance Highlights

(comparisons to prior year unless otherwise noted)

Adjusted operating income* and operating margin* up on volume and lower costs, partially offset by lower price; currency improved results

Volume up on on-site; merchant stable

Price lower on helium; price up on non-helium products

Energy pass-through to on-site customers lowered operating margin ~(50)bp

Results relatively flat sequentially, primarily business mix and productivity offset lower price and higher maintenance; includes Lunar New Year seasonality

Adjusted EPS*

0.48 3.20

2.69

(0.06)

0.09

Q2FY25 Helium Currency Base ex

helium

Q2FY26

Change vs PY (2)% +3% +18% +19%

Base excluding helium

Strong on-site volume

New assets beginning to ramp up, expected to further contribute to earnings in second half

Strong pricing in Americas and Europe

Lower costs, including productivity, net of fixed-cost inflation and higher Americas maintenance

Helium

Lower price partially offset by volume improvement, primarily in Americas and Asia

Q2 FY2026

Sales

% change vs Q2 FY25

Op Income

% change vs Q2 FY25

Highlights

Americas

$1,384 million

+8%

$374 million

+2%

Strong on-sites; merchant volume up, including helium for space launches

Prior year included income from a one-time customer contract amendment

Price down despite non-helium improvements mitigating higher power costs

Higher maintenance turnarounds in the quarter

Asia

$833 million

+8%

$240 million

+25%

Favorable on-sites, including new assets, and improvement in helium

Continued strong productivity improvements

Lower depreciation from certain gasification assets held for sale

Price decline driven by helium

Europe

$789 million

+8%

$212 million

+8%

Favorable on-site volume, including prior year turnaround

Non-helium pricing improvement

Favorable currency

Headwinds from lower helium and higher costs

Middle East & India

$29 million

(11)%

$5 million

N.M.

Continued focus on productivity

Equity affiliates' income slightly positive

Corporate &

Other

$137 million

+45%

$(77) million

+35%

Lower cost headwinds from sale of equipment

Continued productivity improvements

Cash Flow and Balance Sheet

Q2 FY2026 year-to-date (unless otherwise noted)

Base business supports stable cash flow

On track to spend ~$1B less capex from prior year

40+ consecutive years of dividend increases

Long-term focus on A/A2 rating and rightsizing our balance sheet

1 Excludes net debt associated with NGHC joint venture; LTM calculation

Outlook

FY26 Adjusted EPS*

Up +8% to +10% vs prior year

Q3 FY26 Adjusted EPS*

Up +5% to +8% vs prior year

FY26 Capital Expenditures*

Down ~$1B vs prior year

Continued focus on price and productivity

New asset contributions in second half

Assumes minimal market growth in second half given macroeconomic uncertainty

Updated currency assumption to ~+2% vs

PY, up +1% vs prior outlook

~(4)% helium headwind similar to FY25

Benefits from portfolio actions

Continued focus on price and productivity

Assumes favorable currency ~+2% vs PY

~(3)% helium headwind

New asset contributions ramp up

Includes ~$1B associated to traditional IG

growth projects

Significant capital to make progress on prior commitments related to energy transition projects

Minimal investment beyond prior commitments on Louisiana Clean Energy Complex in FY26

Reduced maintenance capex

Q2FY26

$1,384

Q2FY25

$1,287

vs PY

Q1FY26

$1,342

vs PQ

Q2FY26

$374

Q2FY25

$366

vs PY

Q1FY26

$404

(7)%

vs PQ

Q2FY26

27.0%

Q2FY25

28.4%

(140)bp

vs PY

Q1FY26

30.1% (310)bp

vs PQ

Sales

vs Q2FY25

vs Q1FY26

Volume

(1)%

Price

(1)%

Energy pass-through

Currency

Performance Highlights

(comparisons to prior year unless otherwise noted)

Operating income up on strong volume, partially offset by higher maintenance

turnarounds and lower price

Volume up on on-sites and merchant, including helium, partially offset by prior year income from a one-time customer contract amendment

Pricing down despite non-helium improvements mitigating higher power costs

Energy pass-through to on-site customers lowered operating margin ~(100)bp

Results down sequentially, primarily on maintenance turnarounds

Q2FY26

$833

Q2FY25

$774

vs PY

Q1FY26

$832

Flat vs PQ

Q2FY26

$240

Q2FY25

$191

25%

vs PY

Q1FY26

$232

vs PQ

Q2FY26

28.8%

Q2FY25

24.7%

410bp

vs PY

Q1FY26

27.9% 90bp

vs PQ

Sales

vs Q2FY25

vs Q1FY26

Volume

Price

(1)%

Energy pass-through

Currency

Performance Highlights

(comparisons to prior year unless otherwise noted)

Operating income and operating margin up on volume, productivity improvements, and lower depreciation from certain gasification assets held for sale partially offset by lower price; currency improved results

Volume up on on-sites, including new assets, and improvement in helium

Price decline driven by helium

Results up sequentially on volume despite Lunar New Year impact

Q2FY26

$789

Q2FY25

$727 8%

vs PY

Q1FY26

$782

vs PQ

Q2FY26

$212

Q2FY25

$196

vs PY

Q1FY26

$224

(5)%

vs PQ

Q2FY26 26.8%

Q2FY25 26.9%

(10)bp

vs PY

Q1FY26

28.6%

(180)bp

vs PQ

Sales

vs Q2FY25

vs Q1FY26

Volume

(1)%

Price

(1)%

Energy pass-through

(2)%

Currency

Performance Highlights

(comparisons to prior year unless otherwise noted)

Operating income up on volume, currency, and price, partially offset by higher costs

Volume up on on-sites, including prior year turnaround, partially offset by

lower helium

Pricing up on non-helium product lines and lower power costs, partially offset by lower helium

Results down sequentially on lower helium and higher energy costs

Q1FY26 $30

Q1FY25 $33

Q4FY25 $32

Q2FY26

$29

Q2FY25

$33

(11)%

vs PY

Q1FY26

$30

(4)%

vs PQ

Q2FY26

Q2FY25 $(3)

N.M.

vs PY

Q1FY26

(21)%

vs PQ

Q2FY26

$79

Q2FY25

$78

vs PY

Q1FY26

$85

(6)%

vs PQ

Performance Highlights

(comparisons to prior year unless otherwise noted)

Operating income improved on lower costs

Equity affiliates' income slightly positive vs prior year; down sequentially on an affiliate in Saudi Arabia

Q2FY26

$137

Q2FY25

$95

45%

vs PY

Q1FY26

$117

17%

vs PQ

Q2FY26

$(77)

Q2FY25 $(118)

35%

vs PY

Q1FY26

$(109)

29%

vs PQ

Performance Highlights

Operating income up vs prior year and sequentially on lower changes to sale of equipment project estimates

and productivity improvements

Helium volume under contractual arrangements that are longer than one year

Sales from the global helium

product line in FY2025

ISO containers in the Air Products fleet as of the end of FY2025

Helium Volume by End Market

Aerospace 16%

Electronics

35%

Helium Volume

Medical 18%

Other 31%

Differentiated end markets, including Electronics, Aerospace, and Medical

Helium Volume by Segment

Europe 26%

Americas 37%

Helium Volume

Asia

32%

Middle East & India 2%

Corporate & Other 3%

Reliable global supplier to a global customer base

Adjusted Net Debt*1

Million USD

$16,807

$11,735

$(5,072)

Net Debt

(-) NGHC Net Debt

Adj. Net Debt*

Adjusted Net Debt*-to-Adjusted EBITDA*1

Ratio

3.2x

2.2x

(1.0x)

Net Debt/ Adj. EBITDA

(-) NGHC Net Debt

Adjustment

Adj. Net Debt/ Adj.

EBITDA*

1 Excludes net debt associated with NGHC joint venture; LTM calculation

Disclaimer

Air Products and Chemicals Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 10:16 UTC.