Financial Analysis

"COMMITMENTS AND CONTINGENCIES Litigation We are involved in various legal proceedings, including commercial, competition, environmental, intellectual property, regulatory, product liability, and insurance matters. We do not currently believe there are any legal proceedings for which it is reasonably possible, individually or in the aggregate, to have a material impact on our financial condition, results of operations, or cash flows. In September 2010, the Brazilian Administrative Council for Economic Defense (""CADE"") issued a decision against our Brazilian subsidiary, Air Products Brasil Ltda., and several other Brazilian industrial gas companies for alleged anticompetitive activities. CADE imposed a civil fine of R$179.2 million (approximately $34 as of 30 September 2025) on Air Products Brasil Ltda., which was based on a percentage of our total revenue in Brazil in 2003. In May 2014, our appeal was granted and the fine was dismissed. CADE appealed that ruling and in October 2025 the Supreme Court of Brazil rendered a judgment confirming the appellate ruling, which annulled the administrative proceeding and the fine imposed by CADE. Under applicable law, no further remedies are available and the judgment is final. Environmental In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (""CERCLA,"" the federal Superfund law), the Resource Conservation and Recovery Act (""RCRA""), a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT The table below summarizes our total outstanding debt as reflected on our consolidated balance sheets: 30 September 2025 2024 Short-term borrowings (A) $34.7 $83.5 Current portion of long-term debt (B) 716.3 611.4 Long-term debt 16,769.9 13,428.6 Long-term debt related party 177.5 104.4 Total Debt $17,698.4 $14,227.9 (A) Short-term borrowings include bank obligations with weighted average interest rates of 5.0% and 4.0% as of 30 September 2025 and 2024, respectively. (B) Current portion of long-term debt includes amounts of $59.0 and $200.0 owed to related parties as of 30 September 2025 and 2024, respectively. Related Party Debt As of 30 September 2025, total debt owed to related parties was $236.5, consisting of shareholder loans with our joint venture partner, LuAn Clean Energy Company. As of 30 September 2024, total debt owed to related parties was $304.4. Fiscal Year 2025 Registered Public Offerings In February 2025, we issued Euro-denominated senior fixed-rate notes with an aggregate principal amount of 1.0 billion (approximately $1.0 billion) in a registered public offering (the ""February 2025 Offering""). The related proceeds were reduced by deferred financing charges and discounts of approximately $8. In June 2025, we issued U.S. Dollar- and Euro-denominated senior fixed-rate notes with aggregate principal amounts of $1.1 billion and 500 million (approximately $570), respectively, in registered public offerings (the ""June 2025 Offerings""). The related procee …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"Disaggregation of Revenue The tables below present our consolidated sales disaggregated by supply mode for each of our reportable segments. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales. Americas Asia Europe Middle East and India Corporate and other Total % 2025 On-site $2,918.2 $2,190.9 $992.7 $78.6 $ $6,180.4 52% Merchant 2,207.7 1,080.1 1,991.8 57.3 5,336.9 44% Sale of equipment 520.0 520.0 4% Total $5,125.9 $3,271.0 $2,984.5 $135.9 $520.0 $12,037.3 100% 2024 On-site $2,844.4 $2,066.4 $910.5 $71.4 $ $5,892.7 49% Merchant 2,195.7 1,157.9 1,912.9 63.0 5,329.5 44% Sale of equipment (A) 878.4 878.4 7% Total $5,040.1 $3,224.3 $2,823.4 $134.4 $878.4 $12,100.6 100% 2023 On-site $3,143.9 $1,923.0 $1,036.6 $75.7 $ $6,179.2 49% Merchant 2,225.4 1,293.1 1,926.5 86.8 5,531.8 44% Sale of equipment (A) 889.0 889.0 7% Total $5,369.3 $3,216.1 $2,963.1 $162.5 $889.0 $12,600.0 100% (A) Through the end of fiscal year 2024, our Corporate and other segment included the liquefied natural gas (""LNG"") process technology and equipment business, which was sold to Honeywell International Inc. on 30 September 2024. Refer to Note 4, Gain on Sale of Business , for additional information regarding the sale. Interest income from financing and lease arrangements represented approximately 1% of our total consolidated sales in fiscal years 2025 and 2024, and less than 1% in fiscal year 2023." …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"SHARE-BASED COMPENSATION Our outstanding share-based compensation program includes market-based and time-based deferred stock units. We issue shares from treasury stock upon the payout of deferred stock units and the exercise of stock options. As of 30 September 2025, there were 0.9 million shares available for future grant under our Long-Term Incentive Plan (""LTIP""), which is shareholder approved. Share-based compensation cost recognized on the consolidated income statements is summarized below: 2025 2024 2023 Before-tax share-based compensation cost (A) $76.6 $61.7 $60.7 Income tax benefit (18.3) (14.9) (14.6) After-tax share-based compensation cost $58.3 $46.8 $46.1 (A) Fiscal year 2025 includes noncash executive separation costs of $22.4 to accelerate vesting of share-based awards. Refer to the ""Shareholder Activism-Related Costs"" disclosure in Note 25, Supplemental Information , for additional information. Before-tax share-based compensation cost is primarily included in ""Selling and administrative expense"" on our consolidated income statements. The amount of share-based compensation cost capitalized in fiscal years 2025, 2024, and 2023 was not material. Deferred Stock Units We have granted deferred stock units to executives, selected employees, and outside directors. These deferred stock units entitle the recipient to one share of common stock upon vesting, which is conditioned, for employee recipients, on continued employment during the deferral period and may b …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Fair value is defined as an exit price, or the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 Inputs that are unobservable for the asset or liability based on our own assumptions about the assumptions market participants would use in pricing the asset or liability. The methods and assumptions used to measure the fair value of financial instruments are as follows: Short-term Investments Short-term investments primarily include time deposits with original maturities greater than three months and less than one year. We estimated the fair value of our short-term investments, which approximates carrying value as of the balance sheet date, using Level 2 inputs within the fair value hierarchy. Level 2 measurements were based on current interest rates for similar investments with comparable credit risk and time to maturity. Derivatives The fair value of our interest rate management contracts and forward exchange contracts are quantified using th …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The table below summarizes income from U.S. and foreign operations before taxes: 2025 2024 2023 United States income (Loss) ($1,911.8) $2,602.5 $1,050.5 Foreign income 823.4 1,571.0 1,227.6 Equity affiliates' income 647.7 647.7 604.3 Income (Loss) From Continuing Operations Before Taxes ($440.7) $4,821.2 $2,882.4 The table below details the components of our income tax provision: 2025 2024 2023 Current Tax Provision Federal $38.0 $550.3 $167.6 State 5.6 109.2 41.0 Foreign 416.9 354.7 367.3 Total Current Tax Provision $460.5 $1,014.2 $575.9 Deferred Tax (Benefit) Provision Federal (497.4) (97.8) (12.5) State (95.0) (15.0) (5.8) Foreign 37.6 43.5 (6.4) Total Deferred Tax (Benefit) Provision (554.8) (69.3) (24.7) Total Income Tax (Benefit) Provision ($94.3) $944.9 $551.2 Cash Paid for Taxes (Net of Cash Refunds) Income tax payments, net of refunds, were $940.7, $615.9, and $645.2 in fiscal years 2025, 2024, and 2023, respectively. Our income tax payments increased in fiscal year 2025 primarily due to tax payments of approximately $395 related to the gain on the sale of the LNG business in fiscal year 2024. Income tax payments for fiscal year 2024 include cash paid to purchase $50.0 of transferable tax credits that were used to offset estimated tax payments in 2024. U.S. Tax Cuts and Jobs Act On 22 December 2017, the United States enacted the U.S. Tax Cuts and Jobs Act (the Tax Act or ""Tax Reform""), which significantly changed existing U.S. tax laws, including a r …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"LEASES Lessee Accounting We are the lessee under various agreements for real estate, vehicles, aircraft, and other equipment that are accounted for as operating leases. Our finance leases principally relate to the right to use machinery and equipment and are not material. Amounts associated with operating leases and their presentation on our consolidated balance sheets are as follows: 30 September 2025 2024 Operating lease right-of-use assets, net $944.0 $1,047.7 Operating lease liabilities Payables and accrued liabilities 91.8 100.3 Noncurrent operating lease liabilities 616.0 677.9 Total operating lease liabilities $707.8 $778.2 30 September 2025 2024 Weighted-average remaining lease term in years (A) 20.7 20.0 Weighted-average discount rate (B) 2.9 % 2.9 % (A) Calculated on the basis of the remaining lease term and the lease liability balance for each lease as of the reporting date. (B) Calculated on the basis of the discount rate used to calculate the lease liability for each lease and the remaining balance of the lease payments for each lease as of the reporting date. The following maturity analysis of our operating lease liabilities as of 30 September 2025 presents the undiscounted cash flows for each of the next five years and thereafter with a reconciliation to the lease liability recognized on our balance sheet: Operating Leases 2026 $109.0 2027 72.6 2028 62.0 2029 49.9 2030 48.5 Thereafter 647.9 Total undiscounted lease payments 989.9 Imputed interest (282.1) Prese …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Accounting Guidance Implemented in Fiscal Year 2025 Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, ""Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures"". We adopted the update upon its effective date in fiscal year 2025 and implemented the expanded disclosure requirements in Note 26, Business Segment and Geographic Information , of this Annual Report on Form 10-K. Pursuant to the update, we expanded our disclosures to include significant expense categories that are regularly provided to our Chief Operating Decision Maker, as well as other segment items included in the reported measure of segment profit or loss. Prior period segment disclosures presented in this report have been updated to reflect the additional information now required under the new guidance. These updates will also be reflected in our Quarterly Reports on Form 10-Q beginning with the first quarter of fiscal year 2026. New Accounting Guidance to be Implemented Climate-Related Disclosures In March 2024, the SEC issued Release No. 33-11275, ""The Enhancement and Standardization of Climate-Related Disclosures for Investors"", which includes final rules for providing annual qualitative and quantitative disclosures regarding certain climate-related topics. As a result of legal challenges, the SEC issued an order in April 2024 to stay the effectiveness of the rules pending the complet …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"RETIREMENT BENEFITS We and certain of our subsidiaries sponsor defined benefit pension plans and defined contribution plans that cover a substantial portion of our worldwide employees. The principal defined benefit pension plans are the U.S. salaried pension plan and the U.K. pension plan. These plans were closed to new participants in 2005, after which defined contribution plans were offered to new employees. The principal defined contribution plan is the Retirement Savings Plan, in which a substantial portion of the U.S. employees participate. A similar plan is offered to U.K. employees. We also provide other postretirement benefits consisting primarily of healthcare benefits to U.S. retirees who meet age and service requirements. Defined Benefit Pension Plans Pension benefits earned are generally based on years of service and compensation during active employment. The components of net periodic cost for our defined benefit pension plans for fiscal years 2025, 2024, and 2023 were as follows: Fiscal Year Ended 30 September 2025 2024 2023 U.S. Inter- national Total U.S. Inter- national Total U.S. Inter- national Total Service cost $9.1 $11.6 $20.7 $9.6 $11.3 $20.9 $10.9 $12.3 $23.2 Non-service cost (benefit): Interest cost 119.5 57.0 176.5 134.9 60.0 194.9 129.9 59.9 189.8 Expected return on plan assets (132.6) (60.0) (192.6) (120.1) (47.3) (167.4) (127.1) (49.2) (176.3) Prior service cost amortization 1.1 1.0 2.1 1.1 0.9 2.0 1.2 0.7 1.9 Actuarial loss amortization 46.8 9.7 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"BUSINESS AND ASSET ACTIONS The table below summarizes charges related to business and asset actions as reflected on our consolidated income statements. These charges are not included in segment results. 2025 2024 2023 Project exit costs $3,623.3 $ $217.6 Global cost reduction plan 123.7 57.0 27.0 Business and asset actions recorded through operating results $3,747.0 $57.0 $244.6 Project exit-related impairment of equity method investment (A) 6.8 Subtotal $3,753.8 $57.0 $244.6 Income tax benefit 695.2 13.2 34.7 Amount attributable to noncontrolling interests 10.7 5.0 Business and asset actions attributable to Air Products after-tax $3,047.9 $43.8 $204.9 (A) Amount recorded through ""Equity affiliates' income"" reflects an other-than-temporary impairment of a joint venture in China that had been formed to develop clean hydrogen infrastructure in the region. Project Exit Costs Fiscal Year 2025 During the second quarter of fiscal year 2025, our Board of Directors and Chief Executive Officer initiated a project review to focus resources on projects we believe will deliver the greatest value to our shareholders. As a result of this review, we made the decision to exit various projects, primarily related to clean energy generation and distribution. The review remains ongoing and may result in additional costs in future periods. In connection with this review, we recognized project exit costs totaling approximately $3.6 billion in fiscal year 2025. These costs primarily consisted of …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"REVENUE RECOGNITION Nature of Goods and Services The principal activities from which we generate revenue under our contracts with customers are described below, along with the related revenue recognition policies. For a comprehensive overview of these policies, including payment terms and presentation, refer to Note 1, Basis of Presentation and Major Accounting Policies . Regional Industrial Gases Our industrial gases business, which is organized and operated regionally in the Americas, Asia, Europe, and Middle East and India segments, produces and sells atmospheric gases such as oxygen, nitrogen, and argon (primarily recovered by the cryogenic distillation of air); process gases such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas (a mixture of hydrogen and carbon monoxide); and specialty gases. The majority of our revenue is generated from our sale of gas customers within these regional industrial gases segments. We distribute product to our industrial gas customers through either our on-site or merchant supply mode depending on various factors, including the customer's volume requirements and location. Each sale of gas supply mode is described below: On-site Gases This supply mode serves customers who require large volumes of gases and have relatively constant demand. Gases are produced and supplied through large facilities constructed or acquired on or near customer facilities, or by pipeline systems from centralized production locations. These sale of g …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"BUSINESS SEGMENT AND GEOGRAPHIC 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, the largest of which operate in Algeria, China, India, Italy, Mexico, and Saudi Arabia. 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. Segmen …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

CAPITAL STOCK Common Stock Authorized common stock consists of 300 million shares with a par value of $1 per share. As of 30 September 2025, 249 million shares were issued, with 223 million issued and outstanding. On 15 September 2011, the Board of Directors authorized the repurchase of up to $1.0 billion of our outstanding common stock. This program does not have a stated expiration date. If we repurchase shares pursuant to this authorization, we may do so under Rules 10b5-1 and 10b-18 under the Securities Exchange Act through repurchase agreements established with one or more brokers. We have not purchased any of our outstanding shares under this program since fiscal year 2013. As of 30 September 2025, $485.3 in share repurchase authorization remained available. A summary of the changes in common shares issued and outstanding in fiscal year 2025 is presented below: Fiscal Year Ended 30 September 2025 2024 2023 Number of common shares, beginning of year 222,372,418 222,199,845 221,838,696 Issuance of treasury shares for stock option and award plans 215,838 172,573 361,149 Number of common shares, end of year 222,588,256 222,372,418 222,199,845 Preferred Stock Authorized preferred stock consisted of 25 million shares with a par value of $1 per share. There were no preferred shares issued or outstanding as of 30 September 2025 and 2024.

StockholdersEquityNoteDisclosureTextBlock

"COMMITMENTS AND CONTINGENCIES Litigation We are involved in various legal proceedings, including commercial, competition, environmental, intellectual property, regulatory, product liability, and insurance matters. We do not currently believe there are any legal proceedings for which it is reasonably possible, individually or in the aggregate, to have a material impact on our financial condition, results of operations, or cash flows. Environmental In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (""CERCLA,"" the federal Superfund law), the Resource Conservation and Recovery Act (""RCRA""), and similar state and foreign environmental laws relating to the designation of certain sites for investigation or remediation. Presently, there are 25 sites on which a final settlement or remediation has not been achieved where we, usually along with others, have been designated as a potentially responsible party by environmental authorities or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our former and current manufacturing sites. We continually monitor these sites for which we have environmental exposure. Accruals for environmental loss contingencies are recorded when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. As of 30 June 2026 and 30 September 2025, the consolidated balance she …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT U.S. Committed Credit Facilities On 26 March 2026, we amended our existing 364-day $500 revolving credit agreement to extend its maturity date from 26 March 2026 to 25 March 2027. The amendment also provides that if we elect to convert the facility into a term loan, the maturity date of the term loan would be 25 March 2028. Fees incurred in connection with the amendment were not material. We also maintain a five-year $3.0 billion revolving credit agreement that matures on 31 March 2029. Both the 364-day agreement and the five-year agreement are syndicated committed facilities that provide a source of liquidity and support our commercial paper program through the availability of senior unsecured debt to us and certain of our subsidiaries. No borrowings were outstanding under either of the agreements as of 30 June 2026 or 30 September 2025. NEOM Green Hydrogen Project Financing During the first nine months of fiscal year 2026, NGHC borrowed long-term principal of $543 from project financing available to the joint venture to support the NEOM Green Hydrogen Project. Refer to Note 3, Variable Interest Entities , for additional information. Repayments During the first quarter of fiscal year 2026, we repaid at maturity $550.0 aggregate principal amount of our 1.50% senior notes due October 2025, plus accumulated and unpaid interest through the maturity date. Related Party Debt Refer to Note 17, Supplemental Information .

DebtDisclosureTextBlock

The tables provided below present our consolidated sales disaggregated by supply mode for each of our reportable segments. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales. Three Months Ended 30 June 2026 Americas Asia Europe Middle East and India Corporate and other Total % On-site $783.1 $594.3 $277.7 $15.8 $ $1,670.9 53 % Merchant 538.3 291.7 538.0 19.0 1,387.0 44 % Sale of equipment 103.1 103.1 3 % Total $1,321.4 $886.0 $815.7 $34.8 $103.1 $3,161.0 100 % Three Months Ended 30 June 2025 Americas Asia Europe Middle East and India Corporate and other Total % On-site $708.1 $546.2 $265.5 $23.9 $ $1,543.7 51 % Merchant 552.9 263.8 505.0 14.4 1,336.1 44 % Sale of equipment 142.9 142.9 5 % Total $1,261.0 $810.0 $770.5 $38.3 $142.9 $3,022.7 100 % Nine Months Ended 30 June 2026 Americas Asia Europe Middle East and India Corporate and other Total % On-site $2,407.4 $1,744.8 $816.3 $48.0 $ $5,016.5 53 % Merchant 1,639.6 805.3 1,570.4 46.3 4,061.6 43 % Sale of equipment 357.2 357.2 4 % Total $4,047.0 $2,550.1 $2,386.7 $94.3 $357.2 $9,435.3 100 % Nine Months Ended 30 June 2025 Americas Asia Europe Middle East and India Corporate and other Total % On-site $2,181.7 $1,598.6 $743.0 $61.2 $ $4,584.5 52 % Merchant 1,654.1 802.6 1,452.1 42.7 3,951.5 44 % Sale of equipment 334.4 334.4 4 % Total $3,835.8 $2,401.2 $2,195.1 $103.9 $334.4 $8,870.4 100 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"SHARE-BASED COMPENSATION Our share-based compensation program includes performance and time-based deferred stock units. We issue shares from treasury stock upon the payout of deferred stock units. As of 30 June 2026, there were 0.6 million shares available for future grant under our Long-Term Incentive Plan (""LTIP""), which is shareholder approved. Share-based compensation cost recognized on the consolidated income statements is summarized below: Three Months Ended Nine Months Ended 30 June 30 June 2026 2025 2026 2025 Before-tax share-based compensation cost (A) $12.3 $11.0 $38.6 $65.8 Income tax benefit (2.9) (2.8) (9.1) (15.8) After-tax share-based compensation cost $9.4 $8.2 $29.5 $50.0 (A) Fiscal year 2025 includes noncash executive separation costs of $22.4 to accelerate vesting of share-based awards. Refer to the ""Shareholder Activism-Related Costs"" disclosure in Note 17, Supplemental Information , for additional information. Before-tax share-based compensation cost is primarily included in ""Selling and administrative expense"" on our consolidated income statements. The amount of share-based compensation cost capitalized in the first nine months of fiscal years 2026 and 2025 was not material. Deferred Stock Units During the nine months ended 30 June 2026, we granted 100,048 performance shares to be earned over the performance period beginning 1 October 2025 and ending 30 September 2028. The award conditions are equally weighted between market-based conditions, whic …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS Fair value is defined as an exit price, or the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 Inputs that are unobservable for the asset or liability based on our own assumptions about the assumptions market participants would use in pricing the asset or liability. The methods and assumptions used to measure the fair value of financial instruments are as follows: Derivatives The fair value of our interest rate management contracts and forward exchange contracts are quantified using the income approach and are based on estimates using standard pricing models. These models consider the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. These standard pricing models utilize inputs that are derived from or corroborated by observable market data such as interest rate yield curves as well as currency spot …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Effective Tax Rate Three Months Ended 30 June Nine Months Ended 30 June 2026 2025 2026 2025 Income tax expense (benefit) ($515.4) $159.6 ($197.3) ($205.5) Income (Loss) from continuing operations before taxes (1,937.7) 890.8 (203.4) (562.0) Effective tax rate 26.6 % 17.9 % 97.0 % 36.6 % As discussed in Note 4, Business and Asset Actions , to the consolidated financial statements , we recorded charges for business and asset actions, primarily related to project exit decisions, that contributed to significant variability in our effective tax rate for the periods presented. Net tax benefits of $698.5 associated with these charges during the first nine months of fiscal year 2026 were recorded primarily during the third quarter and consisted primarily of tax benefits recognized at local statutory income tax rates in the U.S. In the prior year, a net tax benefit of $649.3 was recognized primarily during the second quarter. This included $22.5 to establish reserves for uncertain tax positions associated with the deductibility of charges incurred by subsidiaries, as well as a $15.2 cost primarily attributable to lower U.S. tax benefits on foreign-derived income. The net tax benefit also included a $41.8 increase in our valuation allowance related to tax benefits arising from foreign business and asset actions for which no income tax benefit could be recognized. The prior year net income tax benefit also included several discrete tax items that affected the effective tax …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"New Accounting Guidance to be Implemented Climate-Related Disclosures In March 2024, the SEC issued Release No. 33-11275, ""The Enhancement and Standardization of Climate-Related Disclosures for Investors"", which includes final rules for providing annual qualitative and quantitative disclosures regarding certain climate-related topics. As a result of legal challenges, the SEC issued an order in April 2024 to stay the effectiveness of the rules pending the completion of judicial review of the consolidated challenges before the United States Court of Appeals for the Eighth Circuit. In May 2026, the SEC issued a formal proposal to rescind the 2024 climate disclosure rules in their entirety. We will continue to monitor litigation related to the SEC's climate rule as well as the SEC's proposal to rescind the rule. Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to expand income tax disclosures, primarily through disaggregation requirements for the rate reconciliation and income taxes paid. The update will be effective in our Annual Report on Form 10-K for the fiscal year ending 30 September 2026. The amendments should be applied on a prospective basis with a retrospective option. We are evaluating the impact this update will have on our disclosures. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expens …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"RETIREMENT BENEFITS The components of net periodic cost for our defined benefit pension plans for the three and nine months ended 30 June 2026 and 2025 were as follows: Pension Benefits 2026 2025 Three Months Ended 30 June U.S. International Total U.S. International Total Service cost $1.9 $2.8 $4.7 $2.3 $3.0 $5.3 Non-service cost: Interest cost 29.0 15.3 44.3 29.9 14.5 44.4 Expected return on plan assets (35.1) (17.3) (52.4) (33.1) (15.3) (48.4) Prior service cost amortization 0.2 0.2 0.4 0.2 0.3 0.5 Actuarial loss amortization 8.7 2.2 10.9 11.7 2.4 14.1 Settlements 0.3 0.3 Other 0.3 0.3 0.1 0.1 Net Periodic Cost $4.7 $3.5 $8.2 $11.0 $5.3 $16.3 Pension Benefits 2026 2025 Nine Months Ended 30 June U.S. International Total U.S. International Total Service cost $5.7 $8.4 $14.1 $6.9 $8.6 $15.5 Non-service cost: Interest cost 87.1 44.9 132.0 89.7 42.2 131.9 Expected return on plan assets (105.6) (51.5) (157.1) (99.5) (44.5) (144.0) Prior service cost amortization 0.8 0.7 1.5 0.8 0.7 1.5 Actuarial loss amortization 26.1 7.4 33.5 35.1 7.2 42.3 Settlements 1.2 0.1 1.3 0.4 0.4 Other 0.9 0.9 0.2 0.2 Net Periodic Cost $15.3 $10.9 $26.2 $33.0 $14.8 $47.8 Our service costs are primarily included within ""Cost of sales"" and ""Selling and administrative expense"" on our consolidated income statements. The amount of service costs capitalized in the first nine months of fiscal years 2026 and 2025 were not material. The non-service related impacts are presented outside operating results wit …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"BUSINESS AND ASSET ACTIONS The table below summarizes charges for business and asset actions within our consolidated income statements. These charges were not recorded in segment results. Three Months Ended Nine Months Ended 30 June 30 June 2026 2025 2026 2025 Project exit decisions $2,907.4 $24.1 $2,929.4 $2,885.9 Global cost reduction plan 66.1 Charges recorded to operating income/loss $2,907.4 $24.1 $2,929.4 $2,952.0 Project exit-related non-operating charges (A) 6.3 6.8 Charges recorded to income/loss from continuing operations before taxes $2,907.4 $24.1 $2,935.7 $2,958.8 Income tax benefit 695.4 8.7 698.5 649.3 Amounts attributable to noncontrolling interests 0.6 3.5 Charges attributable to Air Products, after-tax $2,212.0 $15.4 $2,236.6 $2,306.0 (A) Non-operating expenses in fiscal year 2026 were recorded through ""Other non-operating income (expense), net"" for losses on cross-currency interest rate swaps terminated in connection with the early repayment of intercompany loans for a gasification project being marketed for sale in China. Non-operating expenses in fiscal year 2025 were recorded through ""Equity affiliates' income"" and reflected an other-than-temporary impairment of a joint venture in China that had been formed to develop clean hydrogen infrastructure. Project Exit Decisions In February 2025, the Company approved actions to exit certain projects as part of a review of its project portfolio intended to focus resources on projects we believe will deliver …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION The majority of our revenue is generated from our sale of gas customers within the regional industrial gases segments. We distribute product to our industrial gas customers through either our on-site or merchant supply mode depending on various factors, including the customer's volume requirements and location. We also design and manufacture equipment for air separation, hydrocarbon recovery and purification, and liquid helium and liquid hydrogen transport and storage. The Corporate and other segment serves our sale of equipment customers. Disaggregation of Revenue The tables provided below present our consolidated sales disaggregated by supply mode for each of our reportable segments. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales. Three Months Ended 30 June 2026 Americas Asia Europe Middle East and India Corporate and other Total % On-site $783.1 $594.3 $277.7 $15.8 $ $1,670.9 53 % Merchant 538.3 291.7 538.0 19.0 1,387.0 44 % Sale of equipment 103.1 103.1 3 % Total $1,321.4 $886.0 $815.7 $34.8 $103.1 $3,161.0 100 % Three Months Ended 30 June 2025 Americas Asia Europe Middle East and India Corporate and other Total % On-site $708.1 $546.2 $265.5 $23.9 $ $1,543.7 51 % Merchant 552.9 263.8 505.0 14.4 1,336.1 44 % Sale of equipment 142.9 142.9 5 % Total $1,261.0 $810.0 $770.5 $38.3 $142.9 $3,022.7 100 % Nine Months Ended 30 June 2026 Americas Asia Europe Middle East and India Corporate and oth …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"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 Month …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing