Air Products and Chemicals Inc (NYSE:APD) reported fiscal second-quarter 2026 results, posting strong earnings growth.

The company raised full-year guidance, citing operational momentum and continued macro uncertainty.

Earnings Beat, Margin Expansion

The company reported fiscal second-quarter 2026 GAAP EPS of $3.19 and adjusted EPS of $3.20. Adjusted EPS beat the $3.06 estimate, while sales of $3.171 billion topped the $3.067 billion estimate.

Sales increased 9% year over year, driven by higher volumes, favorable currency, and energy cost pass-through, partly offset by lower pricing.

GAAP operating income rose to $753 million, up more than 130% from a year earlier, primarily reflecting prior-year business and asset action charges.

Adjusted operating income rose 19% to $753 million. Adjusted operating margin improved to 23.7% from 21.6%, supported by higher on-site volumes, productivity gains and favorable currency.

Helium pricing remained a headwind, partly offset by improvements across non-helium product lines.

Segment Performance

Americas sales rose 8% to $1.4 billion, with operating income up 2% to $374 million and margin down to 27.0%.

Asia sales increased 8% to $833 million, with operating income up 25% to $240 million and margin expanding to 28.8%.

Europe sales rose 8% to $789 million, with operating income up 8% to $212 million and margin slightly lower at 26.8%.

Middle East and India equity affiliates' income rose 1% to $79 million. Corporate and other sales increased 45% to $137 million, with the operating loss narrowing.

Operations, Projects and Helium Strategy

The company highlighted growth in electronics and aerospace, including a Samsung semiconductor project, support for NASA's Artemis II mission, and plans for a new air separation unit in Florida.

It also outlined actions to strengthen helium supply, including increased U.S. production, liquefaction and logistics optimization.

Cash Flow and Outlook

Operating cash flow totaled $2.0 billion for the first six months. Cash and cash equivalents stood at $951 million as of March 31, while total debt was approximately $17.8 billion.

Capital expenditures were $1.79 billion in the first half, with full-year spending expected at about $4.0 billion.

Air Products raised fiscal 2026 adjusted EPS guidance to $13.00 to $13.25 from $12.85 to $13.15, compared with a $13.13 estimate.

The company expects third-quarter adjusted EPS of $3.25 to $3.35, compared with a $3.31 estimate.

It remains cautious given macroeconomic uncertainty, while expecting second-half benefits from pricing, productivity and new assets.

Chief Executive Officer Eduardo Menezes commented, "Despite macroeconomic volatility, Air Products delivered 19% growth in adjusted EPS and adjusted operating income improvement across segments. We saw higher on-site volumes and made continued progress on productivity and pricing."

"We also took actions to strengthen helium supply chain resilience for customers, including drawing from our U.S. storage cavern, increasing U.S. liquefaction, and optimizing our logistics network and container fleet."

APD Price Action: Air Products shares were down 2.36% at $295.36 at the time of publication on Thursday, according to Benzinga Pro data.

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