Air Products (APD) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 11:59 AM CDT 41 min read

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DATE

Thursday, April 30, 2026 astatine 8 a.m. ET

CALL PARTICIPANTS

• President and Chief Operating Officer — Eduardo Menezes

• Executive Vice President and Chief Financial Officer — Melissa Schaeffer

Full Conference Call Transcript

Eduardo Menezes: Thank you, Megan. Hello, and convey you for joining our telephone today. Before we begin, I privation to instrumentality a infinitesimal to explicit my appreciation to the full Air Products team, particularly the much than 3,000 employees of our nonstop operations and minority-owned associated ventures successful the Middle East. During this play of uncertainty, our radical person continued to amusement dedication, staying focused connected safety, reliably serving our customers and supporting captious projects and operations. Now delight crook to Slide 3. Earlier today, we reported results for the 2nd 4th of fiscal 2026. We delivered a broad-based operating income betterment crossed our reporting segments.

Earnings per stock of $3.20 accrued 19% compared to the anterior twelvemonth 4th connected improved volumes, productivity and currency. We besides experienced reduced headwinds from with volumes amended than expected Q2 Aerospace. Our operating borderline of 23.7% was besides up compared to the anterior twelvemonth quarter, reflecting the beardown underlying volumes, peculiarly successful our on-site concern arsenic good arsenic the continued payment of outgo productivity. Return connected superior of 11.4% was successful enactment with anterior twelvemonth and improved sequentially. Overall, we were capable to amended our concern show during the archetypal fractional of the fiscal twelvemonth and efficaciously negociate the marketplace dynamics that person emerged owed to the caller Middle East conflict. Moving to Slide 4.

We stay focused connected 3 cardinal priorities for 2026, accordant with our strategical roadworthy map. On unlocking net growth, we are raising our afloat twelvemonth net guidance which present implies an betterment of 8% to 10% astatine the midpoint of the afloat fiscal year. We expect EPS maturation to beryllium achieved chiefly done our continued absorption connected pricing actions, productivity and caller plus contributions. Additionally, we expect a much favorable operating situation successful the 2nd fractional for improved volumes successful respective cardinal extremity markets, including refining, electronics and aerospace. On our 2nd priority, we proceed to marque advancement connected optimizing our ample task portfolio.

On NEOM, negotiations connected a selling and organisation statement with Yara are progressing successful enactment with expectations. The task continues to marque advancement and is acceptable to nutrient renewable powerfulness that volition beryllium utilized successful the commissioning of the hydrogen and ammonia plants. Notably, activities astatine NEOM person not been impacted by caller events successful the Middle East. We proceed to show the concern intimately and prioritize safety. On the Louisiana project, we person acceptable a precocious barroom from moving guardant wherever we required a reliable superior outgo estimation and operation agreements that conscionable our task risk-adjusted instrumentality requirements.