APD Filings — Air Products and Chemicals, Inc. - FilingSpy
APD
Air Products and Chemicals, Inc.
One of the world's largest industrial gas makers, Air Products produces oxygen, nitrogen, argon, hydrogen, and helium used in refineries, electronics, medicine, and food. Founder Leonard Parker Pool started it in Detroit in 1940 with a then-radical idea: build oxygen plants right at the customer's site instead of shipping heavy tanks, which is how the company got its name — turning free air into a suite of valuable "products." During World War II it made mobile oxygen generators for high-altitude military flights, and today it is behind massive clean-hydrogen projects like Saudi Arabia's NEOM.
Q3 FY2026 GAAP operating loss of $2.1B from $2.9B clean energy project exit charges; revenue rose 5% to $3.2B.
A $2.9B charge for canceling clean energy projects drove a $2.1B operating loss this quarter. rose 4.6% to $3.2B and widened 0.3 points to 32.8% as volumes grew, but rose 9% to $810.3M showing the underlying business improved. The company is absorbing another round of exit costs while its core operations hold steady.
Key takeaways
operating loss was $2.1B (negative 66.3% margin) as $2.9B in pre-tax charges from canceling clean energy projects in Louisiana, Arizona, and other smaller projects were recorded, against a $752.7M profit a year earlier and $16.8M in Q2.
Consolidated sales rose 5% to $3.2B, driven by 3% volume growth from new on-site assets and HyCO facilities, 1% higher pricing, and 1% favorable currency.
rose 9% to $810.3M with adjusted up 110 to 25.6%, reflecting higher on-site volumes, favorable currency, and pricing partly offset by higher costs.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 sales rose 5% to $3.2B on higher volumes; GAAP operating loss of $2.1B driven by $2.9B in project exit charges.
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Consolidated sales increased 5% to $3.2 billion, driven by 3% volume growth from new on-site assets and HyCO facilities, 1% higher pricing, and 1% favorable currency.
grew 22% to $205.2M, led by affiliates in the Americas and Middle East and India segments.
for nine months were $2.6B, down from $4.0B, with spending declining as it nears completion; full-year expected at ~$3.5B.
fell to $17.0B from $17.2B on a $550M senior note repayment and a stronger dollar, with at 92%.
What changed
Q3 FY2026 rose 4.6% to $3.2B versus Q3 FY2025, reversing the prior-year quarter's flat 1.2% rise and extending the volume-led growth seen in Q2's 9% increase.
swung to a $2.1B loss from $790.6M profit in Q3 FY2025 and $752.7M in Q2 FY2026, as $2.9B of project exit charges recurred after the $3.7B FY2025 clean energy charge year.
rose 9% to $810.3M, continuing the underlying improvement flagged after Q1 (up 12%) and Q2 (up 19%) FY2026 as one-off charges faded.
Nine-month of $2.6B is down from $4.0B a year earlier and below the ~$4B FY2026 guide pace, with NEOM spending tapering as projected in the FY2025 watch items.
at $17.0B and 92% fixed-rate held near the FY2025 exit levels, with the $550M note repayment partially offset by $543M new project borrowings this quarter.
What to watch
Q4 FY2026 and volumes to see if the 3% volume growth holds or helium pricing and LNG divestiture effects resume.
Remaining FY2026 against the ~$3.5B guide after $2.6B spent, tied to completion.
Next quarter's to confirm the 9% Q3 gain holds without further project exit charges.
and 92% fixed-rate share as $17.0B services and NEOM financing continues.
operating loss was $2.1 billion (negative 66.3% margin) due to $2.9 billion in pre-tax charges from canceling clean energy projects in Louisiana, Arizona, and other smaller projects.
rose 9% to $810.3 million, with improving 110 bp to 25.6%, reflecting higher on-site volumes, favorable currency, and pricing, partially offset by higher costs.
grew 22% to $205.2 million, led by affiliates in the Americas and Middle East and India segments.
Adjusted increased 12% to $3.47, excluding $9.92 per share in after-tax project exit charges and other items.
for the first nine months were $2.6 billion, down from $4.0 billion, with spending on the declining as it nears completion; full-year capex expected at ~$3.5 billion.
Quantitative and Qualitative Disclosures About Market Risk
Net financial instrument liability fell to $17.0B, driven by debt repayment and Euro strengthening; portfolio remains 92% fixed-rate.
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Net financial instrument liability decreased from $17.2B to $17.0B, mainly due to repayment of a $550M 1.50% U.S. senior note and a stronger U.S. Dollar reducing Euro-denominated debt fair value, partially offset by $543M in new project borrowings.
Fixed-rate debt rose to 92% of the portfolio (from 91%) as variable-rate share fell to 8%, primarily because interest rate swaps designated as matured in October 2025.
A hypothetical 100 bp rise in interest rates would decrease the net liability by $1,010M, while a 100 bp fall would increase it by $1,135M, based on the fixed-rate debt sensitivity analysis.
A 10% strengthening of the functional currency against all others would decrease the net liability by $703M, while a 10% weakening would increase it by $703M, with sensitivity rising due to new cross currency swaps involving the Chinese Renminbi, South Korean Won, and New Taiwan Dollar.
The company uses currency and interest rate swap agreements to manage exposures, and there were no material changes in variable-rate debt sensitivity since September 2025.