Air Products reported fourth quarter revenue that exceeded expectations, driven by significant volume growth in the Americas and higher pricing across core segments. While the company met adjusted earnings targets, GAAP results were heavily impacted by $3.2 billion in full-year pre-tax charges related to strategic project exits in Louisiana, Arizona, and China. Management is emphasizing a pivot toward capital discipline, evidenced by an $1.8 billion year-over-year reduction in capital expenditures for the full fiscal year.
Key Highlights
- Quarterly revenue of $3.56 billion surpassed analyst estimates of $3.33 billion, a 12% increase year-over-year driven by a 9% rise in volumes.
- Full-year capital expenditures decreased to $3.3 billion from $5.1 billion in the prior year, aligning with the new leadership's focus on capital allocation discipline.
- The company recorded $222.5 million in fourth-quarter charges to impair two coal gasification plants in China, reflecting updated fair value estimates during the sale process.
- Fiscal 2027 adjusted EPS guidance was set at $14.15 to $14.50, representing 5% to 8% growth over fiscal 2026 results.