Air Products & Chemicals Inc (APD) reported first-quarter revenue of $3.1 billion, up 6% year-over-year. Revenue growth was primarily technical, comprising 3% energy cost pass-through, 2% favorable currency, and 1% pricing, while total volumes remained flat. Adjusted EPS reached $3.16, up 10% from the prior year and exceeding the Zacks Consensus Estimate of $3.04.
Adjusted operating margins expanded 140 basis points to 24.4%. CEO Eduardo Menezes attributed the expansion to “pricing excellence and productivity” which more than offset inflationary pressures. The company also benefited from right-sizing efforts initiated in 2025, which reduced corporate overhead. Similar to trends in the SaaS sector, APD is focusing on “net cash flow neutrality” by 2029 through headcount and cost rationalization.