Air Products stock expands industrial gas backlog for fiscal 2027

Air Products & Chemicals enters fiscal 2027 with a stronger traditional industrial gas project backlog and a sharper focus on capital allocation. Management set out the priorities during the company's Nov. 5 earnings call, whose transcript was published by Yahoo Finance.

Air Products stock traded at 277.00 euros on Lang & Schwarz at 16:30 CET on Tuesday, November 10, 2026.

Industrial gas backlog expands

Chief Executive Officer Eduardo Menezes said the traditional industrial gas backlog had reached $3.3 billion, with more than $2 billion of project wins during the past 12 months. Electronics customers account for a significant share of the pipeline, supporting the company's shift toward recurring industrial gas projects and away from capital-intensive energy-transition developments.

More than $1 billion of fiscal 2027 capital spending is expected to support traditional industrial gas growth projects. Total capital expenditures are guided at $3.0 billion to $3.5 billion, compared with $3.3 billion in fiscal 2026.

Productivity supports earnings plan

Air Products reported $95 million of fiscal 2026 savings from its cost-reduction program and expects a further benefit of about $50 million in fiscal 2027. Management plans to combine productivity actions, pricing and new-asset contributions to improve operating margins.

The company expects fiscal 2027 adjusted earnings per share of $14.15 to $14.50, representing growth from the fiscal 2026 adjusted result of $13.45. First-quarter adjusted earnings are expected at $3.35 to $3.45 per share. Management also said it expects positive net cash flow as operating cash flow and asset proceeds offset capital spending and dividends.

Legacy projects remain an execution risk

The outlook assumes no material financial contribution from NEOM in fiscal 2027. Air Products also expects a first-quarter helium headwind from a contract renewal, while a change in helium inventory accounting will affect reported earnings without creating a cash headwind.

For investors, the main test is whether higher industrial gas volumes and new assets can offset project-exit costs, inflation and a roughly flat contribution from equity affiliates. The backlog offers growth potential, but execution and capital discipline remain central to the fiscal 2027 earnings profile.

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