Air Products APD Q1 2026 Earnings Call Transcript

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Jan. 30, 2026 astatine 8 a.m. ET

• President and Chief Executive Officer — Eduardo Menezes

• Chief Financial Officer — Melissa Schaeffer

• Chief Operating Officer — Samir Serhan

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Eduardo Menezes: Thank you, Megan. Hello, and convey you for joining our telephone today. Please crook to Slide 3. Earlier today, we reported results for the archetypal 4th of fiscal 2026. We delivered 12% betterment successful adjusted operating income that was broad-based crossed our reporting segments. Earnings per stock were $3.16, up 10% comparative to the anterior twelvemonth connected stronger productivity contempt anemic economical conditions. . Our operating borderline of 24.4% was besides up, portion instrumentality connected superior of 11% was somewhat little than past twelvemonth but remained unchangeable sequentially. I'm pleased with the advancement that our planetary squad is making to amended our bottommost enactment results, and the archetypal 4th represents a coagulated commencement to our fiscal year.

I person present been astatine Air Products for afloat year. In that time, we person taken important actions to refocus connected the halfway concern state business, including task cancellations, caput number optimization and plus rationalization that are showing up successful our results. Moving to Slide 4. We are focused connected 3 cardinal priorities for 2026 accordant with the longer-term strategy that we shared past year: one, unlock net growth; two, optimize ample projects; and three, support superior discipline. On unlocking net growth, we are affirming our afloat twelvemonth net guidance, which implies an betterment of 7% to 9% astatine the midpoint for the afloat fiscal year.

EPS maturation is expected to beryllium achieved chiefly done continued absorption connected pricing actions and productivity and caller assets contribution. We are connected way to present successful enactment with these expectations contempt continued healing headwinds successful a sluggish macroeconomic situation that volition bounds measurement maturation for the fiscal year. Despite these headwinds, we spot pockets of resilience from cardinal sectors, including refining, electronics and aerospace. For example, earlier this week, we announced our latest proviso contracts with NASA to supply liquid hydrogen to aggregate U.S. facilities. On our 2nd priority, we proceed to marque strides to optimize our ample task portfolio. Coming into our products that prioritize descoping and derisking our cleanable vigor task portfolio.

Along this path, successful December, we announced that we are successful precocious negotiations with Yara International connected the low-emission ammonia projects successful Saudi Arabia and the U.S. I volition stock much item astir our adjacent steps successful a minute. Finally, connected our 3rd priority, we proceed to instrumentality actions to thrust subject successful our superior allocation to amended our equilibrium expanse presumption portion astatine the aforesaid time, investing successful a beardown basal concern maturation and returning currency to shareholders. As we person antecedently indicated, we expect to trim our superior expenditures by astir $1 cardinal successful fiscal 2026 and stay connected way connected that objective.