Air Products & Chemicals, Inc.
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 30, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Business Segment Information
- BUSINESS SEGMENT INFORMATION
We determine our reportable segments based on the manner in which our Chief Operating Decision Maker ("CODM") reviews financial results and allocates resources. The accounting policies applied to our reportable segments are consistent with those used in the preparation of our consolidated financial statements. Our reportable segments are as follows:
Americas;
Asia;
Europe;
Middle East and India; and
Corporate and other.
The Americas, Asia, Europe, and Middle East and India segments represent the operations of our regional industrial gases business. Each of these segments qualifies as an individual operating segment and does not reflect the aggregation of multiple operating segments. Corporate and other consists of two operating segments that meet the aggregation criteria under GAAP. All segments also include our share of results from several equity method joint ventures.
Our CODM, who is our Chief Executive Officer, evaluates the performance of our reportable segments through segment operating income. This measure is reviewed regularly in internal management reports and serves as a key metric to monitor actual results against forecasts and prior periods. Segment operating income informs decisions related to resource allocation, including capital investments and employees, and supports strategic planning and long-term project development.
Summary by Business Segment
| Americas | Asia | Europe | Middle East and India | Corporate and other | Total | |
|---|---|---|---|---|---|---|
| Three Months Ended 31 March 2026 | ||||||
| Sales(A) | $1,383.9 | $832.6 | $789.0 | $29.2 | $137.1 | $3,171.8 |
| Cost of sales | (959.5) | (561.6) | (508.9) | (21.5) | (132.9) | (2,184.4) |
| Selling and administrative expense | (53.8) | (33.0) | (69.7) | (4.6) | (66.1) | (227.2) |
| Other segment items(B) | 3.3 | 2.0 | 1.2 | 1.5 | (15.5) | (7.5) |
| Operating income (loss)(C) | 373.9 | 240.0 | 211.6 | 4.6 | (77.4) | 752.7 |
| Other segment information: | ||||||
| Depreciation and amortization | 171.7 | 116.8 | 72.5 | 6.0 | 8.0 | 375.0 |
| Equity affiliates' income | 55.8 | 11.7 | 31.9 | 79.2 | 0.8 | 179.4 |
| Three Months Ended 31 March 2025 | ||||||
| Sales(A) | $1,287.2 | $774.1 | $727.4 | $32.8 | $94.7 | $2,916.2 |
| Cost of sales | (873.5) | (554.4) | (474.0) | (32.3) | (119.7) | (2,053.9) |
| Selling and administrative expense | (49.8) | (30.0) | (59.2) | (6.3) | (76.7) | (222.0) |
| Other segment items(B) | 1.8 | 1.7 | 1.3 | 2.9 | (16.7) | (9.0) |
| Operating income (loss)(C) | 365.7 | 191.4 | 195.5 | (2.9) | (118.4) | 631.3 |
| Other segment information: | ||||||
| Depreciation and amortization | 178.4 | 131.8 | 56.8 | 6.4 | 10.2 | 383.6 |
| Equity affiliates' income(D) | 31.2 | 10.5 | 27.7 | 78.2 | 4.7 | 152.3 |
| Sales(A) | $2,725.6 | $1,664.1 | $1,571.0 | $59.5 | $254.1 | $6,274.3 |
| Cost of sales | (1,846.1) | (1,134.8) | (1,000.6) | (41.4) | (269.0) | (4,291.9) |
| Selling and administrative expense | (109.0) | (61.0) | (136.7) | (9.6) | (139.6) | (455.9) |
| Other segment items(B) | 7.2 | 4.0 | 1.4 | 1.9 | (31.8) | (17.3) |
| Operating income (loss)(C) | 777.7 | 472.3 | 435.1 | 10.4 | (186.3) | 1,509.2 |
| Other segment information: | ||||||
| Depreciation and amortization | 343.6 | 229.5 | 142.3 | 12.2 | 18.1 | 745.7 |
| Equity affiliates' income (loss) | 107.5 | 25.5 | 55.3 | 163.7 | (0.4) | 351.6 |
| Expenditures for long-lived assets | 958.8 | 186.5 | 389.9 | 762.4 | 61.2 | 2,358.8 |
| Sales(A) | $2,574.8 | $1,591.2 | $1,424.6 | $65.6 | $191.5 | $5,847.7 |
| Cost of sales | (1,728.6) | (1,126.5) | (923.4) | (58.0) | (233.9) | (4,070.4) |
| Selling and administrative expense | (104.2) | (61.5) | (121.1) | (14.1) | (163.5) | (464.4) |
| Other segment items(B) | 11.9 | 4.6 | 1.9 | 3.0 | (29.5) | (8.1) |
| Operating income (loss)(C) | 753.9 | 407.8 | 382.0 | (3.5) | (235.4) | 1,304.8 |
| Other segment information: | ||||||
| Depreciation and amortization | 351.8 | 254.7 | 111.3 | 12.9 | 19.7 | 750.4 |
| Equity affiliates' income(D) | 66.3 | 20.8 | 45.9 | 163.2 | 6.7 | 302.9 |
| Expenditures for long-lived assets | 1,488.7 | 192.7 | 545.6 | 1,721.5 | 60.6 | 4,009.1 |
| Investment in net assets of and advances to equity affiliates | $632.2 | $348.1 | $661.3 | $3,651.8 | $115.9 | $5,409.3 |
| Total assets | 12,651.3 | 6,736.1 | 7,118.7 | 11,520.1 | 3,618.5 | 41,644.7 |
| Investment in net assets of and advances to equity affiliates | $555.2 | $331.3 | $649.9 | $3,713.2 | $116.5 | $5,366.1 |
| Total assets | 12,058.7 | 6,712.2 | 6,916.8 | 10,919.4 | 4,452.4 | 41,059.5 |
(A)Sales relate to external customers only. All intersegment sales are eliminated in consolidation.
(B)For the regional segments, other segment items primarily include impacts from transactions not directly related to our principal earnings activities, such as technology and royalty income and gains and losses on asset sales. For the Corporate and other segment, other segment items primarily include research and development expense and the net impact of gains and losses on foreign currency transactions.
(C)Operating income (loss) for our reportable segments does not include gains or losses that management does not consider to be indicative of underlying business performance, such as charges related to business and asset actions. Refer below for a reconciliation of total segment operating income to consolidated results.
(D)Segment equity affiliates’ income for the three and six months ended 31 March 2025 excludes a $6.8 impairment charge related to a joint venture in China, which was recorded as part of our business and asset actions during the second quarter of fiscal year 2025. As a result, total segment equity affiliates’ income does not reconcile to equity affiliates’ income for the total company as reported on the consolidated income statements for the three and six months ended 31 March 2025.
Reconciliation of Total Segment Operating Income to Consolidated Results
The table below reconciles total segment operating income to income (loss) before taxes as reflected on our consolidated income statements:
| Three Months Ended · Six Months Ended | ||||
|---|---|---|---|---|
| 31 March | 31 March | |||
| 2026 | 2025 | 2026 | 2025 | |
| Total Segment Operating Income | $752.7 | $631.3 | $1,509.2 | $1,304.8 |
| Business and asset actions | — | (2,927.9) | (22.0) | (2,927.9) |
| Shareholder activism-related costs | — | (31.4) | — | (61.3) |
| Consolidated Operating Income (Loss) | $752.7 | ($2,328.0) | $1,487.2 | ($1,684.4) |
| Equity affiliates' income | 179.4 | 145.5 | 351.6 | 296.1 |
| Interest expense | 49.5 | 42.2 | 104.0 | 84.8 |
| Other non-operating income (expense), net | 0.9 | (18.6) | (0.5) | 20.3 |
| Income (Loss) Before Taxes | $883.5 | ($2,243.3) | $1,734.3 | ($1,452.8) |
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