Air Products & Chemicals (NYSE:APD) today reported fiscal first-quarter earnings that cleared the high end of its own guidance, fueled by robust pricing power and aggressive cost-cutting measures.
The Lehigh Valley, Pennsylvania-based industrial gas giant is leaning on its core merchant business to drive growth while navigating a strategic pivot away from capital-intensive clean-energy megaprojects.
For the quarter ended Dec. 31, 2025, GAAP operating income rose 14% to $735 million.
On an adjusted basis, earnings per share reached $3.16, up 10% from a year earlier and surpassing the company’s forecast range of $2.95 to $3.10.
The results highlight Air Products' ability to defend margins despite a "sluggish macroeconomic environment" and continued volatility in the global helium market.
While helium demand remained weak, the company successfully pushed through higher prices for other industrial gases.
Operating margins expanded by 170 basis points to 23.7%, even as higher energy costs in the Americas segment acted as a drag.
Sales for the quarter rose 6% to $3.1 billion.
While underlying volumes were flat, the top line was supported by energy cost pass-throughs and favorable currency movements.