# EDGAR Filing Document

**Accession Number:** 0000002969
**File Stem:** 0000002969-26-000008
**Filing Date:** 2026-1
**Character Count:** 271108
**Document Hash:** 6ba1b5f705c57dce14499ea673ce8950
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000002969-26-000008.hdr.sgml**: 20260130

**ACCESSION NUMBER**: 0000002969-26-000008

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 101

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260130

**DATE AS OF CHANGE**: 20260130

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Air Products & Chemicals, Inc.
- **CENTRAL INDEX KEY:** 0000002969
- **STANDARD INDUSTRIAL CLASSIFICATION:** INDUSTRIAL INORGANIC CHEMICALS [2810]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 231274455
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-04534
- **FILM NUMBER:** 26583695

**BUSINESS ADDRESS:**
- **STREET 1:** 1940 AIR PRODUCTS BLVD.
- **CITY:** ALLENTOWN
- **STATE:** PA
- **ZIP:** 18106-5500
- **BUSINESS PHONE:** 6104814911

**MAIL ADDRESS:**
- **STREET 1:** 1940 AIR PRODUCTS BLVD.
- **CITY:** ALLENTOWN
- **STATE:** PA
- **ZIP:** 18106-5500

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AIR PRODUCTS & CHEMICALS, INC.
- **DATE OF NAME CHANGE:** 20220408

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AIR PRODUCTS & CHEMICALS INC /DE/
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? apd-20251231

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q** 

**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended 31 December 2025

or

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Commission File Number 001-04534

![airproductslogoa16.jpg](apd-20251231_g1.jpg)

**AIR PRODUCTS AND CHEMICALS, INC.** 

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **23-1274455** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

**1940 Air Products Boulevard** 

**Allentown, Pennsylvania 18106-5500** 

(Address of principal executive offices and Zip Code)

**610-481-4911** 

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| Common Stock, par value $1.00 per share | APD | New York Stock Exchange |
| 0.500% Euro Notes due 2028 | APD28 | New York Stock Exchange |
| 2.950% Euro Notes due 2031 | APD31 | New York Stock Exchange |
| 0.800% Euro Notes due 2032 | APD32 | New York Stock Exchange |
| 3.250% Euro Notes due 2032 | APD32B | New York Stock Exchange |
| 4.000% Euro Notes due 2035 | APD35 | New York Stock Exchange |
| 3.450% Euro Notes due 2037 | APD37 | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of common stock, par value $1 per share, outstanding at 31 December 2025 was 222,656,008.

------

**AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries**

**QUARTERLY REPORT ON FORM 10-Q**

**For the quarterly period ended 31 December 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| <u>[Forward-Looking Statements](#i7e5db44558254b4f92434868e2b872f2_10)</u> | [3](#i7e5db44558254b4f92434868e2b872f2_10) |
| <u>[PART I—FINANCIAL INFORMATION](#i7e5db44558254b4f92434868e2b872f2_13)</u> | <u>[PART I—FINANCIAL INFORMATION](#i7e5db44558254b4f92434868e2b872f2_13)</u> |
| <u>[Item 1. Financial Statements (Unaudited)](#i7e5db44558254b4f92434868e2b872f2_16)</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Income Statements – Three](#i7e5db44558254b4f92434868e2b872f2_19)[Months Ended 3](#i7e5db44558254b4f92434868e2b872f2_19)[1](#i7e5db44558254b4f92434868e2b872f2_19)[December](#i7e5db44558254b4f92434868e2b872f2_19)[2025 and 2024](#i7e5db44558254b4f92434868e2b872f2_19)</u> | [5](#i7e5db44558254b4f92434868e2b872f2_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Comprehensive Income Statements – Three](#i7e5db44558254b4f92434868e2b872f2_22)[Months Ended 3](#i7e5db44558254b4f92434868e2b872f2_22)[1](#i7e5db44558254b4f92434868e2b872f2_22)[December](#i7e5db44558254b4f92434868e2b872f2_22)[2025 and 2024](#i7e5db44558254b4f92434868e2b872f2_22)</u> | [6](#i7e5db44558254b4f92434868e2b872f2_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheets – 31 December 2025 and 30 September 2025](#i7e5db44558254b4f92434868e2b872f2_25)</u> | [7](#i7e5db44558254b4f92434868e2b872f2_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows –](#i7e5db44558254b4f92434868e2b872f2_28)[Three](#i7e5db44558254b4f92434868e2b872f2_28)[Months Ended 3](#i7e5db44558254b4f92434868e2b872f2_28)[1](#i7e5db44558254b4f92434868e2b872f2_28)[December](#i7e5db44558254b4f92434868e2b872f2_28)[2025 and 2024](#i7e5db44558254b4f92434868e2b872f2_28)</u> | [8](#i7e5db44558254b4f92434868e2b872f2_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Equity – Three](#i7e5db44558254b4f92434868e2b872f2_31)[Months Ended 3](#i7e5db44558254b4f92434868e2b872f2_31)[1](#i7e5db44558254b4f92434868e2b872f2_31)[December](#i7e5db44558254b4f92434868e2b872f2_31)[2025 and 2024](#i7e5db44558254b4f92434868e2b872f2_31)</u> | [9](#i7e5db44558254b4f92434868e2b872f2_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i7e5db44558254b4f92434868e2b872f2_40)</u> | [10](#i7e5db44558254b4f92434868e2b872f2_40) |
| <u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i7e5db44558254b4f92434868e2b872f2_124)</u> | [38](#i7e5db44558254b4f92434868e2b872f2_124) |
| <u>[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#i7e5db44558254b4f92434868e2b872f2_169)</u> | [58](#i7e5db44558254b4f92434868e2b872f2_169) |
| <u>[Item 4. Controls and Procedures](#i7e5db44558254b4f92434868e2b872f2_172)</u> | [58](#i7e5db44558254b4f92434868e2b872f2_172) |
| <u>[PART II—OTHER INFORMATION](#i7e5db44558254b4f92434868e2b872f2_175)</u> | <u>[PART II—OTHER INFORMATION](#i7e5db44558254b4f92434868e2b872f2_175)</u> |
| <u>[Item 1A. Risk Factors](#i7e5db44558254b4f92434868e2b872f2_181)</u> | [59](#i7e5db44558254b4f92434868e2b872f2_181) |
| <u>[Item 5. Other Information](#i7e5db44558254b4f92434868e2b872f2_193)</u> | [59](#i7e5db44558254b4f92434868e2b872f2_193) |
| <u>[Item 6. Exhibits](#i7e5db44558254b4f92434868e2b872f2_196)</u> | [60](#i7e5db44558254b4f92434868e2b872f2_196) |
| <u>[Signature](#i7e5db44558254b4f92434868e2b872f2_199)</u> | [61](#i7e5db44558254b4f92434868e2b872f2_199) |

---

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and can generally be identified by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "future," "goal," "intend," "may," "outlook," "plan," "position," "possible," "potential," "project," "should," "target," "will," "would," and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. Forward-looking statements are based on management's expectations and assumptions as of the date of this report and are not guarantees of future performance. You are cautioned not to place undue reliance on our forward-looking statements.

Forward-looking statements may relate to a number of matters, including expectations regarding revenue, margins, expenses, earnings, tax provisions, cash flows, pension obligations, share repurchases or other statements regarding economic conditions or our business outlook; statements regarding capital expenditures and plans, projects, investment opportunities, and potential transactions that are subject to ongoing negotiations and their expected impact and timing; strategies and objectives for our future operations, including our ability to win new projects and execute the projects in our backlog; and statements regarding our expectations with respect to pending legal claims or disputes. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including, without limitation:

• changes in global or regional economic conditions, inflation, and supply and demand dynamics in the market segments we serve, including demand for technologies and projects to limit the impact of global climate change;

• changes in the financial markets that may affect the availability and terms on which we may obtain financing;

• the ability to execute agreements with customers and implement price increases to offset cost increases;

• disruptions to our supply chain and related distribution delays and cost increases;

• risks associated with having extensive international operations, including political risks, risks associated with unanticipated government actions and risks of investing in developing markets;

• project delays, scope changes, cost escalations, contract terminations, customer cancellations, or postponement of projects and sales;

• our ability to safely develop, operate, and manage costs of large-scale and technically complex projects;

• the future financial and operating performance of major customers, joint ventures, and equity affiliates;

• our ability to safely and effectively develop, implement, and operate new technologies and to market products produced utilizing new technologies;

• our ability to execute the projects in our backlog and refresh our pipeline of new projects;

• tariffs, economic sanctions and regulatory activities in jurisdictions in which we, our affiliates and joint ventures, and our customers and other counterparties operate;

• the impact of environmental, tax, safety, or other legislation, as well as regulations and other public policy initiatives affecting our business and the business of our affiliates and related compliance requirements, including legislation, regulations, or policies intended to address global climate change;

• changes in tax rates and other changes in tax law;

• safety incidents relating to our operations;

• the timing, impact, and other uncertainties relating to acquisitions, divestitures, joint venture activities and other commercial transactions, as well as our ability to integrate acquisitions and separate divested businesses, respectively;

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**FORWARD-LOOKING STATEMENTS (CONTINUED)**

• risks relating to cybersecurity incidents, including risks from the interruption, failure or compromise of our information systems or those of our business partners or service providers;

• catastrophic events, such as natural disasters and extreme weather events, pandemics and other public health crises, acts of war, including Russia's invasion of Ukraine and new and ongoing conflicts in the Middle East, or terrorism;

• the impact on our business and customers of price fluctuations in oil and natural gas and disruptions in markets and the economy due to oil and natural gas price volatility;

• costs and outcomes of legal or regulatory proceedings and investigations;

• asset impairments due to economic conditions or specific events;

• significant fluctuations in inflation, interest rates, and foreign currency exchange rates from those currently anticipated;

• damage to facilities, pipelines or delivery systems, including those we are constructing or that we own or operate for third parties;

• availability and cost of electric power, natural gas, and other raw materials; and

• the commencement and success of any productivity and operational improvement programs.

In addition to the foregoing factors, forward-looking statements contained herein are qualified with respect to the risks disclosed elsewhere in this document, including in Item 2, *Management's Discussion and Analysis of Financial Condition and Results of Operations*, and Item 3, *Quantitative and Qualitative Disclosures About Market Risk*, as well as with respect to the risks described in Item 1A, *Risk Factors*, to our Annual Report on Form 10-K for the fiscal year ended 30 September 2025 and in Part II, Item 1A, *Risk Factors*, of this Quarterly Report on Form 10-Q. Any of these factors, as well as those not currently anticipated by management, could cause our results of operations, financial condition or liquidity to differ materially from what is expressed or implied by any forward-looking statement. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in assumptions, beliefs, or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**PART I—FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**Air Products and Chemicals, Inc. and Subsidiaries**

**CONSOLIDATED INCOME STATEMENTS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| *(Millions of U.S. Dollars, except for share and per share data)* | 2025 | 2024 |
| **Sales** | $3102.5 | $2931.5 |
| Cost of sales | 2107.5 | 2016.5 |
| Selling and administrative expense | 228.7 | 242.4 |
| Research and development expense | 20.4 | 22.0 |
| Business and asset actions | 22.0 |  |
| Shareholder activism-related costs |  | 29.9 |
| Other income (expense), net | 10.6 | 22.9 |
| **Operating Income** | 734.5 | 643.6 |
| Equity affiliates' income | 172.2 | 150.6 |
| Interest expense | 54.5 | 42.6 |
| Other non-operating income (expense), net | (1.4) | 38.9 |
| **Income Before Taxes** | 850.8 | 790.5 |
| Income tax expense | 159.4 | 140.7 |
| **Net Income** | 691.4 | 649.8 |
| Net income attributable to noncontrolling interests | 13.2 | 32.4 |
| **Net Income Attributable to Air Products** | $678.2 | $617.4 |
| **Per Share Data** *(U.S. Dollars per share)* |  |  |
| Basic earnings per share attributable to Air Products | $3.04 | $2.77 |
| Diluted earnings per share attributable to Air Products | $3.04 | $2.77 |
| **Weighted Average Common Shares** *(in millions)* |  |  |
| Basic | 222.8 | 222.7 |
| Diluted | 222.9 | 222.9 |

---

The accompanying notes are an integral part of these statements.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**Air Products and Chemicals, Inc. and Subsidiaries**

**CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| *(Millions of U.S. Dollars)* | 2025 | 2024 |
| **Net Income** | $691.4 | $649.8 |
| **Other Comprehensive Income (Loss), net of tax:** |  |  |
| &nbsp;&nbsp;Translation adjustments, net of tax of ($1.2) and $46.2 | 73.5 | (624.0) |
| &nbsp;&nbsp;Net gain on derivatives, net of tax of $0.9 and ($22.0) | 35.5 | 65.7 |
| &nbsp;&nbsp;Reclassification adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives, net of tax of $4.8 and $27.8 | 16.6 | 91.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and postretirement benefits, net of tax of $3.4 and $3.3 | 9.3 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Comprehensive Income (Loss) | 134.9 | (455.4) |
| **Comprehensive Income** | $826.3 | $194.4 |
| Net Income Attributable to Noncontrolling Interests | 13.2 | 32.4 |
| Other Comprehensive Income Attributable to Noncontrolling Interests | 24.2 | 103.1 |
| **Comprehensive Income Attributable to Air Products** | $788.9 | $58.9 |

---

The accompanying notes are an integral part of these statements.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**Air Products and Chemicals, Inc. and Subsidiaries**

**CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | 31 December | 30 September |
| *(Millions of U.S. Dollars, except for share and per share data)* | 2025 | 2025 |
| **Assets** |  |  |
| **Current Assets** |  |  |
| Cash and cash items | $1026.4 | $1856.0 |
| Trade receivables, net | 1894.9 | 1901.2 |
| Inventories | 788.1 | 776.5 |
| Prepaid expenses | 163.8 | 174.9 |
| Assets held for sale | 472.6 | 427.7 |
| Other receivables and current assets | 757.4 | 689.5 |
| **Total Current Assets** | $5103.2 | $5825.8 |
| Investment in net assets of and advances to equity affiliates | 5440.1 | 5366.1 |
| Plant and equipment, at cost | 43785.2 | 42754.8 |
| Less: accumulated depreciation | 17643.1 | 17417.0 |
| Plant and equipment, net | $26142.1 | $25337.8 |
| Goodwill, net | 971.5 | 963.9 |
| Intangible assets, net | 294.4 | 293.5 |
| Operating lease right-of-use assets, net | 925.2 | 944.0 |
| Noncurrent lease receivables | 299.6 | 307.1 |
| Financing receivables | 964.6 | 1000.0 |
| Other noncurrent assets | 1100.0 | 1021.3 |
| **Total Noncurrent Assets** | $36137.5 | $35233.7 |
| **Total Assets**<sup>(A)</sup> | $41240.7 | $41059.5 |
| **Liabilities and Equity** |  |  |
| **Current Liabilities** |  |  |
| Payables and accrued liabilities | $3035.3 | $3237.7 |
| Accrued income taxes | 174.5 | 179.4 |
| Short-term borrowings | 66.7 | 34.7 |
| Current portion of long-term debt | 169.8 | 716.3 |
| Liabilities held for sale | 51.6 | 50.5 |
| **Total Current Liabilities** | $3497.9 | $4218.6 |
| Long-term debt | 17114.6 | 16769.9 |
| Long-term debt – related party | 180.7 | 177.5 |
| Noncurrent operating lease liabilities | 607.0 | 616.0 |
| Other noncurrent liabilities | 1341.5 | 1348.1 |
| Deferred income taxes | 661.9 | 579.6 |
| **Total Noncurrent Liabilities** | $19905.7 | $19491.1 |
| **Total Liabilities**<sup>(A)</sup> | $23403.6 | $23709.7 |
| **Commitments and Contingencies - See Note 11** |  |  |
| **Air Products Shareholders' Equity** |  |  |
| Common stock (par value $1 per share; issued 2026 and 2025 - 249,455,584 shares) | 249.4 | 249.4 |
| Capital in excess of par value | 1305.6 | 1306.5 |
| Retained earnings | 17838.0 | 17558.6 |
| Accumulated other comprehensive loss | (1977.1) | (2087.8) |
| Treasury stock, at cost (2026 - 26,799,576 shares; 2025 - 26,867,328 shares) | (2004.6) | (2001.8) |
| **Total Air Products Shareholders' Equity** | $15411.3 | $15024.9 |
| **Noncontrolling Interests**<sup>(A)</sup> | 2425.8 | 2324.9 |
| **Total Equity** | $17837.1 | $17349.8 |
| **Total Liabilities and Equity** | $41240.7 | $41059.5 |

---

<sup>(A)</sup>Includes balances associated with a consolidated variable interest entity ("VIE"), including amounts reflected in "Total Assets" that can only be used to settle obligations of the VIE of $7,684.6 and $7,134.7 as of 31 December 2025 and 30 September 2025, respectively, as well as liabilities of the VIE reflected within "Total Liabilities" for which creditors do not have recourse to the general credit of Air Products of $5,304.8 and $4,937.7 as of 31 December 2025 and 30 September 2025, respectively. Refer to Note 3, *Variable Interest Entities*, for additional information regarding the NEOM Green Hydrogen Company joint venture.

The accompanying notes are an integral part of these statements.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**Air Products and Chemicals, Inc. and Subsidiaries**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| *(Millions of U.S. Dollars)* | 2025 | 2024 |
| **Operating Activities** |  |  |
| Net income | $691.4 | $649.8 |
| Less: Net income attributable to noncontrolling interests | 13.2 | 32.4 |
| Net income attributable to Air Products | $678.2 | $617.4 |
| Adjustments to reconcile income to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | $370.7 | $366.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 78.2 | (6.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business and asset actions | 22.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed earnings of equity method investments | (28.5) | (48.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of assets and investments | (2.2) | (10.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 10.6 | 16.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncurrent lease receivables | 12.0 | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other adjustments | (25.2) | (122.6) |
| Working capital changes that provided (used) cash, excluding effects of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 6.1 | (47.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (11.0) | 6.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | (27.8) | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payables and accrued liabilities | (191.3) | 30.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other working capital | 8.9 | (14.6) |
| **Cash Provided by Operating Activities** | $900.7 | $811.7 |
| **Investing Activities** |  |  |
| Additions to plant and equipment, including long-term deposits | ($1251.2) | ($2117.6) |
| Investments in and advances to unconsolidated affiliates | (20.0) |  |
| Investments in financing receivables |  | (15.3) |
| Proceeds from sale of assets and investments | 26.1 | 34.4 |
| Purchases of short-term investments |  | (117.6) |
| Proceeds from short-term investments |  | 5.0 |
| Proceeds from other investing activities | 2.2 | 29.0 |
| **Cash Used for Investing Activities** | ($1242.9) | ($2182.1) |
| **Financing Activities** |  |  |
| Long-term debt proceeds | $382.5 | $459.2 |
| Payments on long-term debt | (569.6) | (12.1) |
| Net increase (decrease) in commercial paper and short-term borrowings | 67.3 | (21.5) |
| Dividends paid to shareholders | (398.4) | (393.6) |
| Investments by noncontrolling interests | 61.0 | 280.9 |
| Other financing activities | (32.9) | (38.7) |
| **Cash (Used for) Provided by Financing Activities** | ($490.1) | $274.2 |
| **Effect of Exchange Rate Changes on Cash** | 2.7 | (38.0) |
| Decrease in cash and cash items | ($829.6) | ($1134.2) |
| Cash and cash items – Beginning of Year | 1856.0 | 2979.7 |
| **Cash and Cash Items – End of Period** | $1026.4 | $1845.5 |

---

The accompanying notes are an integral part of these statements.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**Air Products and Chemicals, Inc. and Subsidiaries**

**CONSOLIDATED STATEMENTS OF EQUITY**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(Millions of U.S. Dollars, except for per share data)* | *(Millions of U.S. Dollars, except for per share data)* | *(Millions of U.S. Dollars, except for per share data)* | *(Millions of U.S. Dollars, except for per share data)* | *(Millions of U.S. Dollars, except for per share data)* |  |  |  |  |
|  | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 |
|  | Common<br> Stock | Capital in<br> Excess of<br> Par Value | Retained<br> Earnings | AOCL<sup>(A)</sup> | Treasury<br> Stock | Air Products<br>Share-holders'<br>Equity | Non-controlling Interests | Total<br>Equity |
| **Balance as of 30 September 2025** | $249.4 | $1306.5 | $17558.6 | ($2087.8) | ($2001.8) | $15024.9 | $2324.9 | $17349.8 |
| Net income |  |  | 678.2 |  |  | 678.2 | 13.2 | 691.4 |
| Other comprehensive income |  |  |  | 110.7 |  | 110.7 | 24.2 | 134.9 |
| Dividends on common stock ($1.79 per share) |  |  | (398.6) |  |  | (398.6) |  | (398.6) |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (0.4) | (0.4) |
| Share-based compensation |  | 10.5 |  |  |  | 10.5 |  | 10.5 |
| Issuance of treasury shares for award plans |  | (8.1) |  |  | (2.8) | (10.9) |  | (10.9) |
| Investments by noncontrolling interests |  |  |  |  |  |  | 60.6 | 60.6 |
| Purchase of noncontrolling interests |  | (3.3) |  |  |  | (3.3) | 3.3 |  |
| Other equity transactions |  |  | (0.2) |  |  | (0.2) |  | (0.2) |
| **Balance as of 31 December 2025** | $249.4 | $1305.6 | $17838.0 | ($1977.1) | ($2004.6) | $15411.3 | $2425.8 | $17837.1 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 |
| | Common<br> Stock | Capital in<br> Excess of<br> Par Value | Retained<br> Earnings | AOCL<sup>(A)</sup> | Treasury<br> Stock | Air Products<br>Share-holders'<br>Equity | Non-controlling Interests | Total<br>Equity |
| **Balance as of 30 September 2024** | $249.4 | $1253.2 | $19545.7 | ($2027.7) | ($1984.1) | $17036.5 | $1637.2 | $18673.7 |
| Net income |  |  | 617.4 |  |  | 617.4 | 32.4 | 649.8 |
| Other comprehensive income (loss) |  |  |  | (558.5) |  | (558.5) | 103.1 | (455.4) |
| Dividends on common stock ($1.77 per share) |  |  | (393.8) |  |  | (393.8) |  | (393.8) |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (1.4) | (1.4) |
| Share-based compensation |  | 14.3 |  |  |  | 14.3 |  | 14.3 |
| Issuance of treasury shares for stock option and award plans |  | (6.8) |  |  | (15.0) | (21.8) |  | (21.8) |
| Investments by noncontrolling interests |  |  |  |  |  |  | 281.0 | 281.0 |
| Purchase of noncontrolling interests |  |  |  |  |  |  | (5.9) | (5.9) |
| Other equity transactions |  | 0.2 | (2.0) |  |  | (1.8) |  | (1.8) |
| **Balance as of 31 December 2024** | $249.4 | $1260.9 | $19767.3 | ($2586.2) | ($1999.1) | $16692.3 | $2046.4 | $18738.7 |

---

<sup>(A)</sup>Accumulated other comprehensive loss.

The accompanying notes are an integral part of these statements.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**Air Products and Chemicals, Inc. and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

*Millions of U.S. Dollars, unless otherwise indicated*

1. <u>[Basis of Presentation and Major Accounting Policies](#i7e5db44558254b4f92434868e2b872f2_43)</u> [11](#i7e5db44558254b4f92434868e2b872f2_43)

2. <u>[New Accounting Guidance](#i7e5db44558254b4f92434868e2b872f2_46)</u> [11](#i7e5db44558254b4f92434868e2b872f2_46)

3. <u>[Variable Interest Entities](#i7e5db44558254b4f92434868e2b872f2_49)</u> [13](#i7e5db44558254b4f92434868e2b872f2_49)

4. <u>[Business and Asset Actions](#i7e5db44558254b4f92434868e2b872f2_55)</u> [16](#i7e5db44558254b4f92434868e2b872f2_55)

5. <u>[Revenue Recognition](#i7e5db44558254b4f92434868e2b872f2_61)</u> [18](#i7e5db44558254b4f92434868e2b872f2_61)

6. <u>[Inventories](#i7e5db44558254b4f92434868e2b872f2_73)</u> [19](#i7e5db44558254b4f92434868e2b872f2_73)

7. <u>[Goodwill](#i7e5db44558254b4f92434868e2b872f2_79)</u> [19](#i7e5db44558254b4f92434868e2b872f2_79)

8. <u>[Financial Instruments](#i7e5db44558254b4f92434868e2b872f2_85)</u> [20](#i7e5db44558254b4f92434868e2b872f2_85)

9. <u>[Fair Value Measurements](#i7e5db44558254b4f92434868e2b872f2_88)</u> [26](#i7e5db44558254b4f92434868e2b872f2_88)

10. <u>[Retirement Benefits](#i7e5db44558254b4f92434868e2b872f2_94)</u> [29](#i7e5db44558254b4f92434868e2b872f2_94)

11. <u>[Commitments and Contingencies](#i7e5db44558254b4f92434868e2b872f2_97)</u> [29](#i7e5db44558254b4f92434868e2b872f2_97)

12. <u>[Share-Based Compensation](#i7e5db44558254b4f92434868e2b872f2_100)</u> [32](#i7e5db44558254b4f92434868e2b872f2_100)

13. <u>[Accumulated Other Comprehensive Loss](#i7e5db44558254b4f92434868e2b872f2_103)</u> [33](#i7e5db44558254b4f92434868e2b872f2_103)

14. <u>[Earnings Per Share](#i7e5db44558254b4f92434868e2b872f2_106)</u> [34](#i7e5db44558254b4f92434868e2b872f2_106)

15. <u>[Supplemental Information](#i7e5db44558254b4f92434868e2b872f2_112)</u> [34](#i7e5db44558254b4f92434868e2b872f2_112)

16. <u>[Business Segment Information](#i7e5db44558254b4f92434868e2b872f2_115)</u> [35](#i7e5db44558254b4f92434868e2b872f2_115)

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**1. BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES** 

As used in this report, unless the context indicates otherwise, the terms "we", "our", "us", the "Company", "Air Products", or "registrant" include our controlled subsidiaries and affiliates.

**<u>Basis of Presentation</u>**

The interim consolidated financial statements of Air Products and Chemicals, Inc. and its controlled subsidiaries included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The accompanying notes are an integral part of these statements.

Certain information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") has been condensed or omitted as permitted under such rules and regulations. In management's opinion, the accompanying statements reflect adjustments necessary to fairly present our financial position, results of operations, and cash flows for the periods indicated and contain adequate disclosures to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the notes to the interim consolidated financial statements. Certain prior period information has been reclassified to conform to the current year presentation.

To fully understand the basis of presentation, the interim consolidated financial statements and related notes included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended 30 September 2025 (the "<u>[2025 Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/2969/000000296925000055/apd-20250930.htm)</u>"), which was filed with the SEC on 20 November 2025. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.

**<u>Major Accounting Policies</u>**

Refer to our 2025 Form 10-K for a description of our major accounting policies. There were no significant changes to these accounting policies during the first quarter of fiscal year 2026.

**<u>Estimates and Assumptions</u>**

Preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in these statements and the accompanying notes. Actual results could differ from those estimates.

**2. NEW ACCOUNTING GUIDANCE**

**<u>New Accounting Guidance to be Implemented</u>**

<u>Climate-Related Disclosures</u>

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.

The SEC subsequently announced its withdrawal of its legal defense to such challenges in March 2025; however, the rules have not been formally rescinded by the SEC. In April 2025, the appellate court suspended its proceedings indefinitely and directed the SEC to file a status report outlining its next steps. In response, the SEC stated in July 2025 that it does not intend to revisit the rules and requested the court to rule on the pending petitions.

In September 2025, the appellate court declined the SEC's request and placed the litigation in abeyance, which will remain in effect until the SEC reconsiders the rules by notice-and-comment rulemaking or renews its defense. We continue to monitor these developments.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

<u>Income Tax Disclosures</u>

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, although early adoption is permitted. 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.

<u>Disaggregation of Income Statement Expenses</u>

In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses", which requires additional disclosures of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, intangible asset amortization, as well as selling expenses in the notes to the financial statements. In January 2025, the FASB clarified that the update will be effective in our Annual Report on Form 10-K for the fiscal year ending 30 September 2028 as well as interim periods thereafter, although early adoption is permitted. The amendments should be applied either prospectively after the effective date or retrospectively to any or all periods presented. We are evaluating the impact this update will have on our disclosures.

<u>Measurement of Credit Losses for Accounts Receivable and Contract Assets</u>

In July 2025, the FASB issued ASU 2025-09, "Measurement of Credit Losses for Accounts Receivable and Contract Assets", which allows an entity to elect a practical expedient to assume that current conditions as of the balance sheet date do not change when estimating expected credit losses. This update will be effective at the beginning of fiscal year 2027, although early adoption is permitted. The amendments should be applied on a prospective basis. We are evaluating the implications of this update. At this time, we do not expect it will have a material impact on our financial statements.

<u>Accounting for Internal-Use Software</u>

In September 2025, the FASB issued ASU 2025-06, "Targeted Improvements to the Accounting for Internal-Use Software", which establishes criteria for commencing cost capitalization for software projects. This update will be effective at the beginning of fiscal year 2029, although early adoption is permitted. The amendments can be applied prospectively, retrospectively, or via a modified prospective transition method. We are evaluating the impact this update will have on our financial statements.

<u>Government Grants</u>

In December 2025, the FASB issued ASU 2025-10, "Accounting for Government Grants Received by Business Entities", which provides guidance on the recognition, measurement, and presentation of government grants. This update will be effective at the beginning of fiscal year 2030, although early adoption is permitted. The amendments can be applied on a modified prospective approach, modified retrospective approach, or a full retrospective approach. We are evaluating the impact this update will have on our financial statements.

<u>Interim Reporting</u>

In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements". This guidance addresses the form and content of interim financial statements, lists interim disclosures required by other codification topics, and establishes a principle for disclosing events since the end of the last annual reporting period that have a material impact. This update will be effective for interim periods beginning in fiscal year 2029, although early adoption is permitted. The ASU can be applied prospectively or retrospectively. We are evaluating the impact this update will have on our disclosures.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**3. VARIABLE INTEREST ENTITIES**

We are the primary beneficiary of the NEOM Green Hydrogen Company joint venture ("NGHC"), a variable interest entity ("VIE") that is consolidated in our Middle East and India segment. We are not the primary beneficiary of any other material VIEs.

Our other material VIEs are those in which we hold variable interests but are not the primary beneficiary. We have an equity interest and exercise significant influence in the Jazan Integrated Gasification and Power Company joint venture ("JIGPC"), which we account for as an equity method investment in our Middle East and India segment. We have no equity interest in World Energy, LLC ("World Energy"), but hold a variable interest through a financing receivable that was fully reserved in connection with our exit from the sustainable aviation fuel expansion project during the second quarter of fiscal year 2025.

**<u>NGHC Joint Venture</u>**

Air Products is an equal owner in NGHC with our joint venture partners, ACWA Power and NEOM Company. While we only hold one-third of the voting interests in the joint venture, substantially all the activities of the joint venture involve or are conducted on behalf of Air Products. Since we have disproportionately few voting rights relative to our economic interests in the joint venture, we determined that NGHC is a VIE. In addition, we determined that we are the primary beneficiary of NGHC since we have the power to unilaterally direct certain significant activities, including key design and construction decisions, and we share power with our joint venture partners related to other activities that are significant to the economic performance of NGHC. Therefore, we consolidate NGHC within the Middle East and India segment.

Under the project financing discussed below, the assets of NGHC can only be used to settle obligations of the joint venture, and creditors of NGHC do not have recourse to the general credit of Air Products. A table summarizing balances associated with NGHC as reflected on our consolidated balance sheets is provided on page <u>[14](#ib93a06dd5d734cff9965aa95724603a4_8685)</u>.

<u>Project Financing</u>

In May 2023, NGHC finalized the $6.7 billion engineering, procurement, and construction agreement, naming Air Products as the main contractor and system integrator for the facility. To support the project, NGHC secured project financing that is non-recourse to Air Products of approximately $6.1 billion, which is expected to fund about 73% of the project and is being drawn over the construction period. At the same time, NGHC secured additional credit facilities totaling approximately $500, primarily for NGHC's working capital needs. These facilities are also non-recourse to Air Products. Total principal borrowings were $5.3 billion and $4.9 billion as of 31 December 2025 and 30 September 2025, respectively. Long-term principal borrowings of approximately $365 during the first quarter of fiscal year 2026 were primarily drawn under a 2.00% stated-rate Saudi Riyal facility.

The borrowings discussed above are primarily from long-term facilities that are presented net of unamortized discounts and debt issuance costs within "Long-term debt" on our consolidated balance sheets. Short-term borrowings were $36.7 and $24.0 as of 31 December 2025 and 30 September 2025, respectively, under a variable-rate Saudi Riyal facility that carried an interest rate of 5.00% as of 31 December 2025.

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<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

<u>Interest Rate Swaps</u>

In May 2023, NGHC entered into floating-to-fixed interest rate swaps designed to hedge long-term variable-rate debt facilities available under the project financing during the construction period. In fiscal year 2024, we discontinued cash flow hedge accounting for certain swaps due to changes in the anticipated drawdown timeline for the hedged borrowings. As a result, unrealized gains and losses for the de-designated swaps were recorded to "Other non-operating income (expense), net" on our consolidated income statements. During the first quarter of fiscal year 2025, we recorded an unrealized gain of $38.8 ($10.3 attributable to Air Products after tax), with $25.2 attributable to our noncontrolling partners.

We re-designated the affected swaps as outstanding borrowings under the available project financing became commensurate with the swaps' notional values. The unrealized gain on swaps that remained de-designated during the first quarter of fiscal year 2026 was not material. As of 1 January 2026, all swaps have been re-designated as cash flow hedges.

<u>NGHC Balance Sheet</u>

The table below summarizes balances associated with NGHC as reflected on our consolidated balance sheets:

---

| | | |
|:---|:---|:---|
| | 31 December<br>2025 | 30 September<br>2025 |
| **Assets** |  |  |
| Cash and cash items | $128.7 | $40.3 |
| Trade receivables, net | 1.4 | 1.1 |
| Prepaid expenses | 18.0 | 20.7 |
| Other receivables and current assets | 133.5 | 107.2 |
| **Total Current Assets** | **$281.6** | **$169.3** |
| Plant and equipment, net | 6995.2 | 6593.9 |
| Operating lease right-of-use assets, net | 213.5 | 218.0 |
| Other noncurrent assets | 194.3 | 153.5 |
| **Total Noncurrent Assets** | **$7403.0** | **$6965.4** |
| **Total Assets** | **$7684.6** | **$7134.7** |
| **Liabilities** |  |  |
| Payables and accrued liabilities | $201.1 | $201.7 |
| Accrued income taxes | 3.0 | 1.2 |
| Short-term borrowings | 36.7 | 24.0 |
| **Total Current Liabilities** | **$240.8** | **$226.9** |
| Long-term debt | 5027.1 | 4677.6 |
| Noncurrent operating lease liabilities | 17.9 | 17.8 |
| Other noncurrent liabilities | 2.0 | 1.6 |
| Deferred income taxes | 17.0 | 13.8 |
| **Total Noncurrent Liabilities** | **$5064.0** | **$4710.8** |
| **Total Liabilities** | **$5304.8** | **$4937.7** |
| **Equity** |  |  |
| Accumulated other comprehensive income | $48.8 | $38.3 |
| Noncontrolling interests | 1580.2 | 1493.6 |

---

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<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**<u>JIGPC Joint Venture</u>**

JIGPC is a joint venture with Saudi Aramco Power Company (a subsidiary of Aramco), ACWA Power, and Air Products Qudra ("APQ"). JIGPC entered into project financing to purchase power blocks, gasifiers, air separation units, syngas cleanup assets, and utilities to supply electricity, steam, hydrogen, and utilities to Aramco's refinery and terminal complex under a 25-year agreement, which commenced in the first quarter of fiscal year 2022. JIGPC recorded financing receivables upon acquisition of the assets and recognizes financing income over the supply term.

We determined JIGPC is a VIE for which we exercise significant influence but are not the primary beneficiary as we do not have the power to direct the activities that are most significant to its economic performance. Instead, these activities, including plant dispatch, operating and maintenance decisions, budgeting, capital expenditures, and financing, require unanimous approval of the owners or are controlled by the customer. Accordingly, we account for our 55% investment, which includes 4% that is attributable to the noncontrolling partner of APQ, under the equity method within the Middle East and India segment.

Our loss exposure is limited to the carrying value of our investment in the joint venture which, including amounts attributable to noncontrolling interests, totaled $3.1 billion as of both 31 December 2025 and 30 September 2025.

Our total investment in JIGPC primarily consists of shareholder loans that qualify as in-substance common stock in the joint venture. Certain shareholders receive a preferred cash distribution pursuant to the joint venture agreement, which specifies each shareholder's share of income after considering the amount of cash available for distribution. As such, the earnings attributable to Air Products may not be proportionate to our ownership interest in the venture.

**<u>World Energy</u>**

In November 2023, we purchased a sustainable aviation fuel ("SAF") facility in Paramount, California, from World Energy and accounted for the transaction as a financing arrangement because the agreement contained an embedded sales-type lease. Additionally, we entered into a Master Project Agreement ("MPA") that included terms for operation of the acquired facility as well as amended terms for the construction and operation of an SAF expansion project subject to construction at the same location. We determined that World Energy is a VIE, and our financing receivable represented a variable interest in World Energy. We are not the primary beneficiary as we did not control key operating decisions.

In February 2025, we terminated the MPA and announced our decision to exit the project. Cumulative project exit charges recorded in connection with this decision totaled approximately $1.9 billion through 31 December 2025, the majority of which were recognized in the second quarter of fiscal year 2025 and primarily related to the write-down of plant and equipment. These project exit charges were recorded with other business and asset actions discussed in Note 4, *Business and Asset Actions*.

We have no further loss exposure related to our variable interest in World Energy as of 31 December 2025; however, future impacts to earnings may occur as we finalize our exit from the project. Estimates used to calculate the charges reflect our best judgment based on information available as of 31 December 2025.

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<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**4. BUSINESS AND ASSET ACTIONS**

**<u>Project Exit Costs</u>**

During the first quarter of fiscal year 2026, we recorded charges for business and asset actions totaling $28.3 ($24.6 after tax) related to project exits announced in fiscal year 2025. Of these charges, $22.0 were recorded within operating income to reflect updated cost estimates as we settle project-related commitments and sell associated assets. The remaining $6.3 was recorded to "Other non-operating income (expense), net" and reflects losses on cross-currency interest rate swaps terminated in connection with the early repayment of related intercompany loans for one of the affected gasification projects.

Project exit decisions reached in fiscal year 2025 were part of a review initiated by our Board of Directors and Chief Executive Officer to focus resources on projects we believe will deliver the greatest value to our shareholders. These actions primarily affected clean-energy generation and distribution projects, including three U.S.-based projects within the Americas segment, as well as several smaller-scale projects across our global portfolio. The exit decisions were driven by several factors, including challenging commercial conditions and unfavorable regulatory actions, as well as customer-related challenges for two coal gasification plants in China that resulted in assets and liabilities being classified as held for sale. Assets held for sale primarily include plant and equipment. The project review remains ongoing and may result in additional costs in future periods.

Cumulative charges incurred in connection with these decisions totaled approximately $3.6 billion through 31 December 2025, the majority of which were recognized in the second quarter of fiscal year 2025. Noncash expenses of approximately $3.3 billion included $2.5 billion to write down plant and equipment, with the remainder primarily related to other assets associated with our exit from the sustainable aviation fuel expansion project with World Energy as discussed in Note 3, *Variable Interest Entities*.

Cash obligations primarily relate to costs to terminate contractual commitments and settle asset retirement obligations. Total cash outflows are expected to be approximately $360 once the actions are fully implemented. Approximately $200 has been paid through 31 December 2025.

The table below provides a reconciliation of the beginning and ending liability balances associated with project exit activities, which are reflected within "Payables and Accrued Liabilities" on our consolidated balance sheets:

---

| | |
|:---|:---|
| Amount accrued as of 30 September 2025 | $178.3 |
| Changes in estimates | 9.3 |
| Cash payments | (25.7) |
| Currency translation adjustment | 0.1 |
| Amount accrued as of 31 December 2025 | $162.0 |

---

Both the held-for-sale assets and other marketable plant and equipment were subject to Level 3 fair value measurements due to the use of significant unobservable inputs. There were no material changes to the valuation assumptions during the first quarter of fiscal year 2026. Refer to Note 9, *Fair Value Measurements*, for additional information.

Estimates related to the actions described above reflect our best judgment based on information available as of 31 December 2025. Final settlement of these items may differ materially from current estimates, which could impact our consolidated financial statements in future periods. While we expect the related exit activities to be completed in fiscal year 2026, we cannot predict the occurrence of future events and circumstances that could extend this process beyond one year in certain cases.

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<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

*<u>Global Cost Reduction Plan</u>*

In June 2023, we initiated a global cost reduction plan that provides severance and other postemployment benefits to employees designated for involuntary separation. In accordance with our accounting policy, we recognize related costs in the period management formally commits to a defined set of actions under the plan. Benefits are determined based on the terms of our established ongoing benefit arrangements. Since the plan was initiated, we have incurred cumulative costs totaling $207.7 for approximately 3,600 employees globally. No costs were incurred under the plan for the periods presented on the consolidated income statements.

The table below provides a reconciliation of the beginning and ending liability balances associated with our global cost reduction plan, which are reflected within "Payables and Accrued Liabilities" on our consolidated balance sheets:

---

| | |
|:---|:---|
| Amount accrued as of 30 September 2025 | $101.6 |
| Cash payments | (14.8) |
| Currency translation adjustment | 0.1 |
| Amount accrued as of 31 December 2025 | $86.9 |

---

The remaining liability as of 31 December 2025 relates to employees identified during fiscal year 2025. We expect implementation of these actions to be substantially complete by the end of fiscal year 2026. However, position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond one year in certain cases.

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<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**5. 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.

**<u>Disaggregation of Revenue</u>**

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 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 | Three Months Ended 31 December 2025 |
| | Americas | Asia | Europe | Middle East<br> and India | Corporate<br>and other | Total | % |
| On-site | $783.9 | $569.7 | $264.0 | $16.3 | $— | $1633.9 | 53% |
| Merchant | 557.8 | 261.8 | 518.0 | 14.0 |  | 1351.6 | 43% |
| Sale of equipment |  |  |  |  | 117.0 | 117.0 | 4% |
| **Total** | $1341.7 | $831.5 | $782.0 | $30.3 | $117.0 | $3102.5 | 100% |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 | Three Months Ended 31 December 2024 |
| | Americas | Asia | Europe | Middle East<br> and India | Corporate<br>and other | Total | % |
| On-site | $713.1 | $529.3 | $228.3 | $17.6 | $— | $1488.3 | 51% |
| Merchant | 574.5 | 287.8 | 468.9 | 15.2 |  | 1346.4 | 46% |
| Sale of Equipment |  |  |  |  | 96.8 | 96.8 | 3% |
| **Total** | $1287.6 | $817.1 | $697.2 | $32.8 | $96.8 | $2931.5 | 100% |

---

Interest income associated with financing and lease arrangements accounted for approximately 1% of our total consolidated sales for the periods presented.

**<u>Remaining Performance Obligations</u>**

As of 31 December 2025, the transaction price allocated to remaining performance obligations is estimated to be approximately $26 billion. This amount includes fixed-charge contract provisions associated with our on-site and sale of equipment supply modes. We estimate that approximately half of this revenue will be recognized over the next five years and the balance thereafter.

Our remaining performance obligations do not include (1) expected revenue associated with new on-site plants that are not yet on-stream; (2) consideration associated with contracts that have an expected duration of less than one year; and (3) variable consideration for which we recognize revenue at the amount to which we have the right to invoice, including energy cost pass-through to customers.

In the future, actual amounts will differ due to events outside of our control, including, but not limited to, inflationary price escalations; currency exchange rates; and amended, terminated, or renewed contracts.

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**<u>Contract Balances</u>**

The table below details balances arising from contracts with customers:

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| | | | |
|:---|:---|:---|:---|
| |<br>Balance Sheet Location | 31 December<br>2025 | 30 September<br>2025 |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract assets – current | Other receivables and current assets | $142.0 | $152.6 |
| &nbsp;&nbsp;&nbsp;Contract fulfillment costs – current | Other receivables and current assets | 91.5 | 85.4 |
| &nbsp;&nbsp;&nbsp;Contract assets – noncurrent | Other noncurrent assets | 102.5 | 82.3 |
| &nbsp;&nbsp;&nbsp;Contract fulfillment costs – noncurrent | Other noncurrent assets | 37.1 | 33.8 |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract liabilities – current | Payables and accrued liabilities | $250.2 | $253.4 |
| &nbsp;&nbsp;&nbsp;Contract liabilities – noncurrent | Other noncurrent liabilities | 281.8 | 283.6 |

---

During the first three months of fiscal year 2026, we recognized sales of approximately $30 associated with sale of equipment contracts that were included within our current contract liabilities as of 30 September 2025.

**6. INVENTORIES**

The components of inventories are as follows:

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| | | |
|:---|:---|:---|
| | 31 December<br>2025 | 30 September<br>2025 |
| Finished goods | $199.5 | $191.9 |
| Work in process | 38.6 | 42.4 |
| Raw materials, supplies, and other | 550.0 | 542.2 |
| Inventories | $788.1 | $776.5 |

---

**7. GOODWILL**

Changes to the carrying amount of consolidated goodwill by segment for the three months ended 31 December 2025 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Americas | Asia | Europe | Middle East and India | Corporate and other | Total |
| Goodwill, net as of 30 September 2025 | $143.5 | $172.5 | $597.9 | $15.8 | $34.2 | $963.9 |
| Currency translation | 2.7 | (0.2) | 5.1 |  |  | 7.6 |
| **Goodwill, net as of 31 December 2025** | $146.2 | $172.3 | $603.0 | $15.8 | $34.2 | $971.5 |

---

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| | | |
|:---|:---|:---|
| | 31 December<br>2025 | 30 September<br>2025 |
| Goodwill, gross | $1265.8 | $1238.6 |
| Accumulated impairment losses<sup>(A)</sup> | ($294.3) | ($274.7) |
| Goodwill, net | $971.5 | $963.9 |

---

<sup>(A)</sup> Accumulated impairment losses are attributable to our Latin America reporting unit ("LASA") within the Americas segment and include the impact of currency translation.

We review goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable.

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**8. FINANCIAL INSTRUMENTS** 

**<u>Currency Price Risk Management</u>**

Our earnings, cash flows, and financial position are exposed to foreign currency risk from foreign currency-denominated transactions and net investments in foreign operations. It is our policy to seek to minimize our cash flow volatility from changes in currency exchange rates. This is accomplished by identifying and evaluating the risk that our cash flows will change in value due to changes in exchange rates and by executing strategies necessary to manage such exposures. Our objective is to maintain economically balanced currency risk management strategies that provide adequate downside protection.

**<u>Forward Exchange Contracts</u>**

We enter into forward exchange contracts to reduce the cash flow exposure to foreign currency fluctuations associated with highly anticipated cash flows and certain firm commitments, such as the purchase of plant and equipment. We also enter into forward exchange contracts to hedge the cash flow exposure on intercompany loans and third-party debt. This portfolio of forward exchange contracts consists primarily of the U.S. Dollar and each of the Chinese Renminbi, South Korean Won, and Canadian Dollar. The maximum remaining term of any forward exchange contract currently outstanding and designated as a cash flow hedge at 31 December 2025 is 2.2 years.

Forward exchange contracts are also used to hedge the value of investments in certain foreign subsidiaries and affiliates by creating a liability in a currency in which we have a net equity position. The primary currency pair in this portfolio of forward exchange contracts is the U.S. Dollar and Chilean Peso.

We also utilize forward exchange contracts that are not designated as hedges. These contracts are used to economically hedge foreign currency-denominated monetary assets and liabilities, primarily working capital. The primary objective of these forward exchange contracts is to protect the value of foreign currency-denominated monetary assets and liabilities from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement. This portfolio of forward exchange contracts consists of multiple foreign currency pairs, with a profile that changes from time to time depending on our business activity and sourcing decisions.

The table below summarizes our outstanding currency price risk management instruments:

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| | | | | |
|:---|:---|:---|:---|:---|
| | 31 December 2025 | 31 December 2025 | 30 September 2025 | 30 September 2025 |
| | US$Notional | Years<br>Average<br>Maturity | US$Notional | Years<br>Average<br>Maturity |
| **Forward Exchange Contracts:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash flow hedges | $4094.9 | 0.4 | $3625.5 | 0.6 |
| &nbsp;&nbsp;&nbsp;Net investment hedges | 87.6 | 0.5 | 73.9 | 0.8 |
| &nbsp;&nbsp;&nbsp;Not designated | 2653.3 | 1.2 | 2968.6 | 1.2 |
| **Total Forward Exchange Contracts** | $6835.8 | 0.7 | $6668.0 | 0.9 |

---

We also use foreign currency-denominated debt to hedge the foreign currency exposures of our net investment in certain foreign subsidiaries. The designated foreign currency-denominated debt and related accrued interest was €3,174.8 million ($3,729.8) at 31 December 2025 and €3,188.1 million ($3,741.5) at 30 September 2025. The designated foreign currency-denominated debt is presented within "Long-term debt" on our consolidated balance sheets.

**<u>Debt Portfolio Management</u>**

It is our policy to identify, on a continuing basis, the need for debt capital and to evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, we manage our debt portfolio and hedging program with the intent to (1) reduce funding risk with respect to borrowings made by us to preserve our access to debt capital and provide debt capital as required for funding and liquidity purposes, and (2) manage the aggregate interest rate risk and the debt portfolio in accordance with certain debt management parameters.

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**<u>Interest Rate Management Contracts</u>**

We enter into interest rate swaps to change the fixed/variable interest rate mix of our debt portfolio in order to maintain the percentage of fixed- and variable-rate debt within the parameters set by management. In accordance with these parameters, the agreements are used to manage interest rate risks and costs inherent in our debt portfolio. Our interest rate management portfolio generally consists of fixed-to-floating interest rate swaps (which are designated as fair value hedges), pre-issuance interest rate swaps and treasury locks (which hedge the interest rate risk associated with anticipated fixed-rate debt issuances and are designated as cash flow hedges), and floating-to-fixed interest rate swaps (which are designated as cash flow hedges). As of 31 December 2025, the outstanding interest rate swaps were denominated in U.S. Dollars. The notional amount of the interest rate swap agreements is equal to or less than the designated debt being hedged. When interest rate swaps are used to hedge variable-rate debt, the indices of the swaps and the debt to which they are designated are the same. It is our policy not to enter into any interest rate management contracts which lever a move in interest rates on a greater than one-to-one basis.

**<u>Cross Currency Interest Rate Swap Contracts</u>**

We enter into cross currency interest rate swap contracts when our risk management function deems necessary. These contracts may entail both the exchange of fixed- and floating-rate interest payments periodically over the life of the agreement and the exchange of one currency for another currency at inception and at a specified future date. The contracts are used to hedge either certain net investments in foreign operations or non-functional currency cash flows related to intercompany loans. The current cross currency interest rate swap portfolio consists of fixed-to-fixed swaps primarily between the U.S. Dollar and each of the Chinese Renminbi, South Korean Won, and New Taiwan Dollar.

The table below summarizes our outstanding interest rate management contracts and cross currency interest rate swaps:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | 31 December 2025 | 31 December 2025 | 31 December 2025 | 31 December 2025 | 30 September 2025 | 30 September 2025 | 30 September 2025 | 30 September 2025 |
| | US$Notional | Average<br>Pay % | Average<br>Receive % | Years<br>Average<br>Maturity | US$Notional | Average<br>Pay % | Average<br>Receive % | Years<br>Average<br>Maturity |
| Interest rate swaps<br>(fair value hedge) | $600.0 | SOFR | 1.80% | 2.4 | $800.0 | SOFR | 1.64% | 2.0 |
| Interest rate swaps<br>(cash flow hedge)<sup>(A)</sup> | $3363.0 | 2.80% | SOFR | 19.9 | $3106.0 | 2.78% | SOFR | 20.1 |
| Interest rate swaps<br>(not designated)<sup>(A)</sup> | $135.2 | 3.28% | SOFR | 19.9 | $269.1 | 3.28% | SOFR | 20.2 |
| Cross currency interest rate swaps<br>(net investment hedge) | $2043.8 | 2.09% | 3.72% | 2.3 | $70.3 | 4.86% | 4.53% | 0.5 |
| Cross currency interest rate swaps<br>(cash flow hedge) | $102.4 | 5.23% | 2.94% | 1.0 | $247.7 | 5.21% | 3.12% | 1.6 |
| Cross currency interest rate swaps<br>(not designated) | $26.5 | 0.15% | 1.85% | 1.4 | $— | —% | —% | 0.0 |

---

<sup>(A)</sup>We temporarily discontinued cash flow hedge accounting for certain floating-to-fixed interest rate swaps related to project financing for the NEOM Green Hydrogen Project beginning in the third quarter of fiscal year 2024 due to changes in the anticipated drawdown timeline for the hedged borrowings. As of 1 January 2026, all swaps have been re-designated as cash flow hedges. Refer to Note 3, *Variable Interest Entities*, for additional information.

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The table below provides the amounts recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Carrying amounts of hedged item | Carrying amounts of hedged item | Cumulative hedging adjustment, included in carrying amount | Cumulative hedging adjustment, included in carrying amount |
| | 31 December | 30 September | 31 December | 30 September |
| Balance Sheet Location | 2025 | 2025 | 2025 | 2025 |
| Current portion of long-term debt | $— | $549.7 | $— | ($0.3) |
| Long-term debt | $1525.7 | $1522.5 | ($20.2) | ($23.1) |

---

The table below summarizes the fair value and balance sheet location of our outstanding derivatives:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Balance Sheet Location | | | Balance Sheet Location | | |
| | Balance Sheet Location | 31 December<br>2025 | 30 September<br>2025 | Balance Sheet Location | 31 December<br>2025 | 30 September<br>2025 |
| **Derivatives Designated as Hedging Instruments:** |  |  |  |  |  |  |
| Forward exchange contracts | Other receivables and current assets | $52.6 | $50.7 | Payables and accrued liabilities | $45.3 | $21.4 |
| Interest rate management contracts | Other receivables and current assets | 5.5 | 13.1 | Payables and accrued liabilities | 4.1 | 0.3 |
| Forward exchange contracts | Other noncurrent assets | 9.4 | 10.1 | Other noncurrent liabilities | 1.8 | 3.4 |
| Interest rate management contracts | Other noncurrent assets | 203.6 | 138.2 | Other noncurrent liabilities | 48.9 | 23.8 |
| **Total Derivatives Designated as Hedging Instruments** |  | $271.1 | $212.1 |  | $100.1 | $48.9 |
| **Derivatives Not Designated as Hedging Instruments:** |  |  |  |  |  |  |
| Forward exchange contracts | Other receivables and current assets | $9.9 | $17.8 | Payables and accrued liabilities | $8.9 | $14.2 |
| Forward exchange contracts | Other noncurrent assets | 0.4 | 2.7 | Other noncurrent liabilities | 28.6 | 30.5 |
| Interest rate management contracts | Other noncurrent assets | 7.3 | 11.8 | Other noncurrent liabilities | 0.5 |  |
| **Total Derivatives Not Designated as Hedging Instruments** |  | $17.6 | $32.3 |  | $38.0 | $44.7 |
| **Total Derivatives** |  | $288.7 | $244.4 |  | $138.1 | $93.6 |

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Refer to Note 9, *Fair Value Measurements*, which defines fair value, describes the method for measuring fair value, and provides additional disclosures regarding fair value measurements.

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The tables below summarize gains (losses) recognized in other comprehensive income during the period related to our net investment and cash flow hedging relationships:

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| **Net Investment Hedging Relationships** |  |  |
| Forward exchange contracts | ($5.1) | $53.9 |
| Foreign currency debt | (4.2) | 140.4 |
| Cross currency interest rate swaps<sup>(A)</sup> | (8.2) | 0.4 |
| **Total Amount Recognized in OCI** | (17.5) | 194.7 |
| Tax effects | 4.2 | (47.5) |
| **Net Amount Recognized in OCI** | ($13.3) | $147.2 |

---

<sup>(A)</sup>Excluded components for cross currency interest rate swaps are recognized in "Payables and accrued liabilities" and "Other receivables and current assets" as a component of accrued interest payable and accrued interest receivable, respectively. These excluded components are recorded in "Other non-operating income (expense), net" over the life of the cross currency interest rate swap consistent with forward exchange contracts.

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| **Derivatives in Cash Flow Hedging Relationships** |  |  |
| Forward exchange contracts | ($0.8) | ($177.8) |
| Forward exchange contracts, excluded components | (7.4) | (1.5) |
| Other<sup>(A)</sup> | 44.6 | 223.0 |
| **Total Amount Recognized in OCI** | 36.4 | 43.7 |
| Tax effects | (0.9) | 22.0 |
| **Net Amount Recognized in OCI** | $35.5 | $65.7 |

---

<sup>(A)</sup>Other primarily includes interest rate and cross currency interest rate swaps for which excluded components are recognized in "Payables and accrued liabilities" and "Other receivables and current assets" as a component of accrued interest payable and accrued interest receivable, respectively. These excluded components are recorded in "Other non-operating income (expense), net" over the life of the cross currency interest rate swap consistent with forward exchange contracts. Other also includes the recognition of our share of gains and losses, net of tax, related to interest rate swaps held by our equity affiliates.

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The table below summarizes the location and amounts recognized in income related to our cash flow and fair value hedging relationships by contract type:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December |
| | Sales | Sales | Cost of Sales | Cost of Sales | Interest Expense | Interest Expense | Other Non-Operating Income (Expense), Net | Other Non-Operating Income (Expense), Net |
| | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
| Total presented in consolidated income statements that includes effects of hedging below | $3102.5 | $2931.5 | $2107.5 | $2016.5 | $54.5 | $42.6 | ($1.4) | $38.9 |
| **(Gain) Loss Effects of Cash Flow Hedging:** |  |  |  |  |  |  |  |  |
| <u>Forward Exchange Contracts:</u> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount reclassified from OCI into income | ($1.1) | $0.2 | $0.2 | $0.9 | $— | $— | $7.2 | $129.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount excluded from effectiveness testing recognized in earnings based on amortization approach |  |  |  |  |  |  | 5.5 | 6.1 |
| <u>Other:</u> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount reclassified from OCI into income |  |  |  |  | (0.4) | 0.5 | 10.0 | (17.3) |
| **Total (Gain) Loss Reclassified from OCI to Income** | (1.1) | 0.2 | 0.2 | 0.9 | (0.4) | 0.5 | 22.7 | 118.1 |
| Tax effects | 0.2 |  |  | (0.1) | 0.1 | (0.2) | (5.1) | (27.5) |
| **Net (Gain) Loss Reclassified from OCI to Income** | ($0.9) | $0.2 | $0.2 | $0.8 | ($0.3) | $0.3 | $17.6 | $90.6 |
| **(Gain) Loss Effects of Fair Value Hedging:** |  |  |  |  |  |  |  |  |
| <u>Other:</u> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items | $— | $— | $— | $— | $3.2 | ($10.9) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments |  |  |  |  | (3.2) | 10.9 |  |  |
| **Total (Gain) Loss Recognized in Income** | $— | $— | $— | $— | $— | $— | $— | $— |

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The tables below summarize the location and amounts recognized in income related to our derivatives not designated as hedging instruments by contract type:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December |
| | Other Income (Expense), Net | Other Income (Expense), Net | Other Non-Operating Income (Expense), Net | Other Non-Operating Income (Expense), Net |
| | 2025 | 2024 | 2025 | 2024 |
| **The Effects of Derivatives Not Designated as Hedging Instruments:** | **The Effects of Derivatives Not Designated as Hedging Instruments:** | **The Effects of Derivatives Not Designated as Hedging Instruments:** |  |  |
| Forward exchange contracts | $0.5 | ($3.9) | ($0.4) | ($1.9) |
| De-designated interest rate swaps |  |  | (1.9) | (38.8) |
| Other |  |  | 0.5 | (1.7) |
| **Total (Gain) Loss Recognized in Income** | $0.5 | ($3.9) | ($1.8) | ($42.4) |

---

The amount of unrealized gains and losses related to cash flow hedges as of 31 December 2025 that are expected to be reclassified to earnings in the next twelve months is not material.

The cash flows related to derivative contracts are generally reported in the operating activities section of the consolidated statements of cash flows.

<u>Credit Risk-Related Contingent Features</u>

Certain derivative instruments are executed under agreements that require us to maintain a minimum credit rating with both Standard & Poor's and Moody's. If our credit rating falls below this threshold, the counterparty to the derivative instruments has the right to request full collateralization on the derivatives' net liability position. The net liability position of derivatives with credit risk-related contingent features was $79.9 and $43.3 as of 31 December 2025 and 30 September 2025, respectively. Because our current credit rating is above the various pre-established thresholds, no collateral has been posted on these liability positions.

<u>Counterparty Credit Risk Management</u>

We execute financial derivative transactions with counterparties that are highly rated financial institutions, all of which are investment grade at this time. Some of our underlying derivative agreements give us the right to require the institution to post collateral if its credit rating falls below the pre-established thresholds with Standard & Poor's, Moody's, or Fitch. The collateral that the counterparties would be required to post was $225.8 and $174.0 as of 31 December 2025 and 30 September 2025, respectively. No financial institution is required to post collateral at this time, as all have credit ratings at or above threshold.

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**9. 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*&nbsp;&nbsp;&nbsp;&nbsp;— Quoted prices (unadjusted) in active markets for identical assets or liabilities.

*Level 2*&nbsp;&nbsp;&nbsp;&nbsp;— 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*&nbsp;&nbsp;&nbsp;&nbsp;— 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:

**<u>Derivatives</u>**

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 and forward rates; therefore, the fair value of our derivatives is classified as a Level 2 measurement. On an ongoing basis, we randomly test a subset of our valuations against valuations received from the transaction's counterparty to validate the accuracy of our standard pricing models. Counterparties to these derivative contracts are highly rated financial institutions.

Refer to Note 8, *Financial Instruments*, for a description of derivative instruments, including details related to the balance sheet line classifications.

**<u>Long-term Debt, Including Related Party</u>**

The fair value of our debt is based on estimates using standard pricing models that 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 valuation models utilize observable market data such as interest rate yield curves and currency spot rates; therefore, the fair value of our debt is classified as a Level 2 measurement.

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The carrying values and fair values of financial instruments were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | 31 December 2025 | 31 December 2025 | 30 September 2025 | 30 September 2025 |
| | Carrying Value | Fair Value | Carrying Value | Fair Value |
| **Assets** |  |  |  |  |
| Derivatives |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Forward exchange contracts | $72.3 | $72.3 | $81.3 | $81.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate management contracts | 216.4 | 216.4 | 163.1 | 163.1 |
| **Liabilities** |  |  |  |  |
| Derivatives |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Forward exchange contracts | $84.6 | $84.6 | $69.5 | $69.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate management contracts | 53.5 | 53.5 | 24.1 | 24.1 |
| Long-term debt, including current portion and related party | 17465.1 | 17141.2 | 17663.7 | 17348.7 |

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The carrying amounts reported on the consolidated balance sheets for cash and cash items, trade receivables, payables and accrued liabilities, accrued income taxes, and short-term borrowings approximate fair value due to the short-term nature of these instruments. Accordingly, these items have been excluded from the above table.

The table below summarizes assets and liabilities on the consolidated balance sheets that are measured at fair value on a recurring basis:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | 31 December 2025 | 31 December 2025 | 31 December 2025 | 31 December 2025 | 30 September 2025 | 30 September 2025 | 30 September 2025 | 30 September 2025 |
| | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
| **Assets at Fair Value** |  |  |  |  |  |  |  |  |
| Derivatives |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forward exchange contracts | $72.3 | $— | $72.3 | $— | $81.3 | $— | $81.3 | $— |
| &nbsp;&nbsp;&nbsp;Interest rate management contracts | 216.4 |  | 216.4 |  | 163.1 |  | 163.1 |  |
| Total Assets at Fair Value | $288.7 | $— | $288.7 | $— | $244.4 | $— | $244.4 | $— |
| **Liabilities at Fair Value** |  |  |  |  |  |  |  |  |
| Derivatives |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forward exchange contracts | $84.6 | $— | $84.6 | $— | $69.5 | $— | $69.5 | $— |
| &nbsp;&nbsp;&nbsp;Interest rate management contracts | 53.5 |  | 53.5 |  | 24.1 |  | 24.1 |  |
| Total Liabilities at Fair Value | $138.1 | $— | $138.1 | $— | $93.6 | $— | $93.6 | $— |

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**<u>Nonrecurring Fair Value Measurements – Project Exit Activities</u>**

We estimate the value of certain long-lived assets associated with exited projects using Level 3 inputs under the fair value hierarchy due to the absence of observable market prices and significant reliance on management judgment and estimation techniques. These assets are described below. For additional information regarding project exit activities, refer to Note 4, *Business and Asset Actions*.

<u>Long-lived assets that met the held-for-sale criteria and are actively being marketed for sale.</u> 

Because there were no observable market prices available, fair value, including costs to sell, for long-lived assets that met the held-for-sale criteria was estimated using an internally developed discounted cash flow analysis, which resulted in an impairment charge of $350.6 in the fourth quarter of fiscal year 2025. There were no material changes to valuation assumptions during the first quarter of fiscal year 2026. We continue to expect the sales of these assets to be completed in fiscal year 2026. Any gain or loss from the sales will be recognized upon closing based on the carrying amounts classified as held for sale. Interim adjustments may be recorded prior to closing if market participant assumptions or other valuation inputs change, including updates to expected selling price or transaction timing.

<u>Plant and equipment that did not meet the held-for-sale criteria but are capable of being sold through secondary equipment markets.</u>

These assets were evaluated for recoverability in fiscal year 2025, and the resulting impairment loss of approximately $2.1 billion was recorded primarily during the second quarter using an orderly liquidation valuation approach. The impairment charge reflects the difference between the estimated liquidation value and the net book value of the assets as of 31 March 2025. There were no material changes in the estimated net realizable value for any remaining assets not disposed as of 31 December 2025.

The table below presents the nonrecurring fair value measurements of these long-lived assets, categorized within the fair value hierarchy:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Balance Sheet Location | Total Estimated Value | Level 1 | Level 2 | Level 3 |
| Assets held for sale | $447.9 | $— | $— | $447.9 |
| Plant and equipment, net | 13.5 |  |  | 13.5 |

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**10. RETIREMENT BENEFITS** 

The components of net periodic cost for our defined benefit pension plans for the three months ended 31 December 2025 and 2024 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits |
| | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| Three Months Ended 31 December | U.S. | International | Total | U.S. | International | Total |
| Service cost | $1.9 | $3.0 | $4.9 | $2.3 | $2.9 | $5.2 |
| Non-service cost: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest cost | 29.0 | 14.6 | 43.6 | 29.9 | 13.9 | 43.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected return on plan assets | (35.2) | (17.0) | (52.2) | (33.2) | (14.7) | (47.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service cost amortization | 0.3 | 0.3 | 0.6 | 0.3 | 0.2 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial loss amortization | 8.9 | 2.5 | 11.4 | 11.7 | 2.4 | 14.1 |
| Other |  | 0.3 | 0.3 |  | 0.1 | 0.1 |
| Net Periodic Cost | $4.9 | $3.7 | $8.6 | $11.0 | $4.8 | $15.8 |

---

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 three months of fiscal years 2026 and 2025 were not material. The non-service related impacts are presented outside operating results within "Other non-operating income (expense), net."

For the three months ended 31 December 2025 and 2024, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $5.1 and $8.2, respectively. Total contributions for fiscal year 2026 are expected to be approximately $25 to $35. During fiscal year 2025, total contributions were $29.9.

During the three months ended 31 December 2025 and 2024, we recognized actuarial loss (gain) amortization of $0.7 and ($0.3) for our other postretirement benefits plans.

**11. COMMITMENTS AND CONTINGENCIES** 

**<u>Litigation</u>**

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.

**<u>Environmental</u>**

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 26 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 31 December 2025 and 30 September 2025, the consolidated balance sheets included accruals of $85.1 and $85.6, respectively, primarily as part of other noncurrent liabilities. These environmental liabilities will be paid over a period of up to 30 years. We estimate the exposure for environmental loss contingencies to range from $85 to a reasonably possible upper exposure of $98 as of 31 December 2025.

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Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Using reasonably possible alternative assumptions of the exposure level could result in an increase to the environmental accrual. Due to these inherent uncertainties, a significant increase to the reasonably possible upper exposure level could occur if a new site is designated, the scope of remediation is increased, a different remediation alternative is identified, or a significant increase in our proportionate share occurs. We do not expect that any sum we may have to pay in connection with environmental matters in excess of the amounts recorded or disclosed above would have a material adverse impact on our financial position or results of operations in any one year.

<u>Pace</u>

As of 31 December 2025, $53.4 of the environmental accrual was related to our facility in Pace, Florida.

In 2006, we sold our Amines business, which included operations at the Pace facility and recognized a liability for retained environmental obligations associated with remediation activities at the facility. We are required by the Florida Department of Environmental Protection ("FDEP") and the United States Environmental Protection Agency ("USEPA") to continue our remediation efforts. We recognized a before-tax expense of $42 in fiscal year 2006 in results from discontinued operations and recorded an environmental accrual of $42 in continuing operations on the consolidated balance sheets.

In the first quarter of 2015, we entered into a consent order with the FDEP requiring us to continue our remediation efforts at the Pace facility and complete a cost review every five years. In fiscal year 2020, we completed an updated cost review of the environmental remediation status at the Pace facility and increased our environmental accrual for this site by $19 in continuing operations on the consolidated balance sheet and recognized a before-tax expense of $19 in results from discontinued operations. In fiscal year 2024, we completed our most recent cost review of the environmental remediation status at the Pace facility. Based on our review, we expect ongoing activities to continue for 30 years. Additionally, we increased our estimate of near-term spending for an optimized groundwater recovery system and future annual costs due to higher inflation. As a result of these changes, we increased our environmental accrual for this site by $19 in continuing operations on the consolidated balance sheets and recognized a before-tax expense of $19 in results from discontinued operations in fiscal year 2024. There have been no significant changes to the estimated exposure.

We have implemented many of the remedial corrective measures at the Pace facility required under the 1995 consent orders issued by the FDEP and the USEPA. Contaminated soils have been bioremediated, and the treated soils have been secured in a lined on-site corrective action management unit. Several groundwater recovery systems have been installed to contain and remove contamination from groundwater. We completed an extensive assessment of the site to determine the efficacy of existing measures, what additional corrective measures may be needed, and whether newer remediation technologies that were not available in the 1990s might be better suited for groundwater remediation. Based on assessment results, we completed a focused feasibility study that identified alternative approaches that may more effectively remove contaminants. We continue to review alternative remedial approaches with the FDEP, and we completed additional field work during 2021 to support the design of an improved groundwater recovery network. This network targets areas of higher contaminant concentration and avoids areas of high groundwater iron which has proven to be a significant operability issue for the project. The design of the optimized recovery system was completed in fiscal year 2024, with construction expected to begin in fiscal year 2026. In the fourth quarter of fiscal year 2024, we completed an updated cost review which resulted in a change in assumptions regarding future operating costs as discussed above.

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<u>Piedmont</u> 

As of 31 December 2025, $10.0 of the environmental accrual was related to a production facility site in Piedmont, South Carolina.

On 30 June 2008, we sold our Elkton, Maryland, and Piedmont, South Carolina, production facilities and the related North American atmospheric emulsions and global pressure sensitive adhesives businesses. In connection with the sale, we recognized a liability for retained environmental obligations associated with remediation activities at the Piedmont site. This site is under active remediation for contamination caused by an insolvent prior owner.

We are required by the South Carolina Department of Health and Environmental Control ("SCDHEC") to address both contaminated soil and groundwater. Numerous areas of soil contamination have been addressed, and contaminated groundwater is being recovered and treated. The SCDHEC issued its final approval to the site-wide feasibility study on 13 June 2017 and the Record of Decision for the site on 27 June 2018, after which we signed a Consent Agreement Amendment memorializing our obligations to complete the cleanup of the site.

Remediation has started in accordance with the design, which includes in-situ chemical oxidation treatment, as well as soil vapor extraction to remove volatile organic compounds from the unsaturated soils beneath the impacted areas of the plant. We estimate that source area remediation and groundwater recovery and treatment will continue through 2033. Thereafter, we currently expect this site to go into a state of monitored natural attenuation through 2038. We recognized a before-tax expense of $24 in 2008 as a component of income from discontinued operations and recorded an environmental liability of $24 in continuing operations on the consolidated balance sheets.

In the third quarter of fiscal year 2025, we completed an updated cost review of the environmental remediation status at Piedmont. Based on our review, we increased our estimate of remaining costs due to the extended period of time that will be required to complete the remediation along with higher annual costs due to inflation. As a result of these changes, we increased the environmental accrual for this site by $9 in continuing operations on the consolidated balance sheets and recognized a before-tax expense of $9 in results from discontinued operations.

<u>Pasadena</u>

As of 31 December 2025, $9.7 of the environmental accrual was related to a production facility site in Pasadena, Texas.

During fiscal year 2012, management committed to permanently shutting down our polyurethane intermediates ("PUI") production facility in Pasadena, Texas. In shutting down and dismantling the facility, we have undertaken certain obligations related to soil and groundwater contaminants. We have been pumping and treating groundwater to control off-site contaminant migration in compliance with regulatory requirements and under the approval of the Texas Commission on Environmental Quality ("TCEQ"). We estimate that the pump and treat system will continue to operate until 2042.

We continue to perform additional work to address other environmental obligations at the site. This additional work includes remediating impacted soils as required, investigating groundwater west of the former PUI facility, cleaning production wells, continuing post closure care for two closed RCRA surface impoundment units, and maintaining engineering controls. Additionally, we have conducted an interim corrective action to treat impacted soils as recommended in the TCEQ 2019 Annual Report. We are currently in the process of renewing the site's RCRA permit. In 2012, we estimated the total exposure at this site to be $13. There have been no significant changes to the estimated exposure.

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**12. 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 31 December 2025, 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 | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Before-tax share-based compensation cost | $10.3 | $16.5 |
| Income tax benefit | (2.4) | (4.0) |
| After-tax share-based compensation cost | $7.9 | $12.5 |

---

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 three months of fiscal years 2026 and 2025 was not material.

**<u>Deferred Stock Units</u>**

During the three months ended 31 December 2025, 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 awards, which consider total shareholder return ("TSR") measured against a fixed group of companies that comprise the S&P 500 Industrials Index and the S&P Materials Index and awards that consider an internal performance measure for return on capital.

The fair value of the portion of the awards subject to the achievement of return on capital targets were valued based on the closing stock price of $260.86 on the grant date. The portion of the awards subject to market conditions were valued using a Monte Carlo simulation on the date of grant with an estimated grant-date fair value of $275.21 per unit. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the grant and calculates the fair value of the awards.

The calculation of the fair value of market-based deferred stock units used the following assumptions:

---

| | |
|:---|:---|
| Expected volatility | 34.5% |
| Risk-free interest rate | 3.6% |
| Expected dividend yield | 2.7% |

---

In addition, during the three months ended 31 December 2025, we granted 121,005 time-based deferred stock units at a weighted average grant-date fair value of $260.80.

We generally expense the grant-date fair value of these awards on a straight-line basis over the applicable vesting period. For the portion of performance shares subject to the achievement of return on capital, we consider the probability of meeting performance targets when recording compensation expense throughout the performance period.

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**13. ACCUMULATED OTHER COMPREHENSIVE LOSS**

The table below summarizes changes in accumulated other comprehensive loss ("AOCL"), net of tax, attributable to Air Products for the three months ended 31 December 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Derivatives<br>qualifying<br>as hedges | Foreign<br>currency<br>translation<br>adjustments | Pension and<br>postretirement<br>benefits | Total |
| **Balance at 30 September 2025** | $49.3 | ($1640.7) | ($496.4) | ($2087.8) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income before reclassifications | 35.5 | 73.5 |  | 109.0 |
| &nbsp;&nbsp;&nbsp;Amounts reclassified from AOCL | 16.6 |  | 9.3 | 25.9 |
| Net current period other comprehensive income | $52.1 | $73.5 | $9.3 | $134.9 |
| Amount attributable to noncontrolling interests | 27.3 | (3.0) | (0.1) | 24.2 |
| **Balance at 31 December 2025** | $74.1 | ($1564.2) | ($487.0) | ($1977.1) |

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The table below summarizes the reclassifications out of AOCL and the affected line item on the consolidated income statements:

---

| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Loss on Cash Flow Hedges, net of tax |  |  |
| &nbsp;&nbsp;Sales | ($0.9) | $0.2 |
| &nbsp;&nbsp;Cost of sales | 0.2 | 0.8 |
| &nbsp;&nbsp;Interest expense | (0.3) | 0.3 |
| &nbsp;&nbsp;Other non-operating income (expense), net | 17.6 | 90.6 |
| Total Loss on Cash Flow Hedges, net of tax | $16.6 | $91.9 |
| Pension and Postretirement Benefits, net of tax<sup>(A)</sup> | $9.3 | $11.0 |

---

<sup>(A)</sup>The components of net periodic benefit/cost reclassified out of AOCL include items such as prior service cost amortization, actuarial loss amortization, settlements, and curtailments and are included in "Other non-operating income (expense), net" on the consolidated income statements. Refer to Note 10, *Retirement Benefits*, for additional information.

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**14. EARNINGS PER SHARE** 

The table below details the computation of basic and diluted earnings per share:

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| **Numerator** |  |  |
| Net income attributable to Air Products | $678.2 | $617.4 |
| **Denominator** *(in millions)* |  |  |
| Weighted average common shares — Basic | 222.8 | 222.7 |
| Effect of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp;Employee award plans | 0.1 | 0.2 |
| Weighted average common shares — Diluted | 222.9 | 222.9 |
| **Per Share Data** *(U.S. Dollars per share)* |  |  |
| Basic earnings per share attributable to Air Products | $3.04 | $2.77 |
| Diluted earnings per share attributable to Air Products | $3.04 | $2.77 |

---

The table below summarizes antidilutive outstanding share-based awards that were excluded from the computation of diluted earnings per share:

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Antidilutive outstanding share-based awards | 0.1 | 0.1 |

---

**15. SUPPLEMENTAL INFORMATION** 

**<u>Related Party Transactions</u>**

We have related party sales to some of our equity affiliates and joint venture partners as well as other income primarily from fees charged for use of Air Products' patents and technology. Sales to and other income from related parties totaled approximately $85 and $80 for the three months ended 31 December 2025 and 2024, respectively. Sales agreements with related parties include terms that are consistent with those that we believe would have been negotiated at an arm's length with an independent party. As of 31 December 2025 and 30 September 2025, our consolidated balance sheets included related party trade receivables of approximately $160 and $105, respectively.

As of 31 December 2025, total debt owed to related parties was $240.7, consisting of shareholder loans with our joint venture partner, Lu'An Clean Energy Company. As of 30 September 2025, total debt owed to related parties was $236.5. These amounts included $60.0 and $59.0, respectively, presented within "Current portion of long-term debt" on the consolidated balance sheets.

**<u>Prior Year Shareholder Activism-Related Costs</u>**

During the first quarter of fiscal year 2025, we recorded shareholder activism-related costs of $29.9 ($21.9 after tax) in connection with a proxy contest. These costs included legal and other professional service fees and proxy solicitation expenses.

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**<u>Income Taxes</u>**

<u>Effective Tax Rate</u>

Our effective tax rate was 18.7% and 17.8% for the three months ended 31 December 2025 and 2024, respectively.

<u>Cash Paid for Taxes, Net of Refunds</u>

Income tax payments, net of refunds, were $109.1 and $123.6 for the three months ended 31 December 2025 and 2024, respectively.

**<u>Debt Repayment</u>**

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.

**<u>Changes in Estimates</u>**

Changes in estimates on sale of equipment projects accounted for under the cost incurred input method are recognized as a cumulative adjustment for the inception-to-date effect of such change. Changes to project revenue and cost estimates unfavorably impacted operating results by approximately $33 and $28 for the first three months of fiscal years 2026 and 2025, respectively.

**16. 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Americas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Asia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Europe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Middle East and India; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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**<u>Summary by Business Segment</u>**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Americas | Asia | Europe | Middle East and India | Corporate and other | Total |
| **Three Months Ended 31 December 2025** | **Three Months Ended 31 December 2025** | **Three Months Ended 31 December 2025** | **Three Months Ended 31 December 2025** | **Three Months Ended 31 December 2025** | **Three Months Ended 31 December 2025** | **Three Months Ended 31 December 2025** |
| Sales<sup>(A)</sup> | $1341.7 | $831.5 | $782.0 | $30.3 | $117.0 | $3102.5 |
| Cost of sales | (886.6) | (573.2) | (491.7) | (19.9) | (136.1) | (2107.5) |
| Selling and administrative expense | (55.2) | (28.0) | (67.0) | (5.0) | (73.5) | (228.7) |
| Other segment items<sup>(B)</sup> | 3.9 | 2.0 | 0.2 | 0.4 | (16.3) | (9.8) |
| Operating income (loss)<sup>(C)</sup> | 403.8 | 232.3 | 223.5 | 5.8 | (108.9) | 756.5 |
| <u>Other segment information:</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 171.9 | 112.7 | 69.8 | 6.2 | 10.1 | 370.7 |
| &nbsp;&nbsp;Equity affiliates' income (loss) | 51.7 | 13.8 | 23.4 | 84.5 | (1.2) | 172.2 |
| &nbsp;&nbsp;Expenditures for long-lived assets | 503.7 | 103.6 | 209.1 | 405.3 | 29.5 | 1251.2 |
| **Three Months Ended 31 December 2024** | **Three Months Ended 31 December 2024** | **Three Months Ended 31 December 2024** | **Three Months Ended 31 December 2024** | **Three Months Ended 31 December 2024** | **Three Months Ended 31 December 2024** | **Three Months Ended 31 December 2024** |
| Sales<sup>(A)</sup> | $1287.6 | $817.1 | $697.2 | $32.8 | $96.8 | $2931.5 |
| Cost of sales | (855.1) | (572.1) | (449.4) | (25.7) | (114.2) | (2016.5) |
| Selling and administrative expense | (54.4) | (31.5) | (61.9) | (7.8) | (86.8) | (242.4) |
| Other segment items<sup>(B)</sup> | 10.1 | 2.9 | 0.6 | 0.1 | (12.8) | 0.9 |
| Operating income (loss)<sup>(C)</sup> | 388.2 | 216.4 | 186.5 | (0.6) | (117.0) | 673.5 |
| <u>Other segment information:</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 173.4 | 122.9 | 54.5 | 6.5 | 9.5 | 366.8 |
| &nbsp;&nbsp;Equity affiliates' income | 35.1 | 10.3 | 18.2 | 85.0 | 2.0 | 150.6 |
| &nbsp;&nbsp;Expenditures for long-lived assets | 690.7 | 99.9 | 230.6 | 1040.4 | 56.0 | 2117.6 |
| **As of 31 December 2025** |  |  |  |  |  |  |
| Investment in net assets of and advances to equity affiliates | $600.3 | $338.8 | $671.6 | $3714.6 | $114.8 | $5440.1 |
| Total assets | 12447.2 | 6766.2 | 7086.5 | 11313.5 | 3627.3 | 41240.7 |
| **As of 30 September 2025** |  |  |  |  |  |  |
| Investment in net assets of and advances to equity affiliates | $555.2 | $331.3 | $649.9 | $3713.2 | $116.5 | $5366.1 |
| Total assets | 12058.7 | 6712.2 | 6916.8 | 10919.4 | 4452.4 | 41059.5 |

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<sup>(A)</sup>Sales relate to external customers only. All intersegment sales are eliminated in consolidation.

<sup>(B)</sup>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.

<sup>(C)</sup>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.

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**<u>Reconciliation of Total Segment Operating Income to Consolidated Results</u>**

The table below reconciles total segment operating income to income before taxes as reflected on our consolidated income statements:

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| **Total Segment Operating Income** | $756.5 | $673.5 |
| Business and asset actions | (22.0) |  |
| Shareholder activism-related costs |  | (29.9) |
| **Consolidated Operating Income** | $734.5 | $643.6 |
| Equity affiliates' income | 172.2 | 150.6 |
| Interest expense | 54.5 | 42.6 |
| Other non-operating income (expense), net | (1.4) | 38.9 |
| **Income Before Taxes** | $850.8 | $790.5 |

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

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| | |
|:---|:---|
| <u>[First Quarter 2026 in Summary](#i7e5db44558254b4f92434868e2b872f2_127)</u> | [39](#i7e5db44558254b4f92434868e2b872f2_127) |
| <u>[First Quarter 2026 Results of Operations](#i7e5db44558254b4f92434868e2b872f2_130)</u> | [41](#i7e5db44558254b4f92434868e2b872f2_130) |
| <u>[Reconciliations of Non-GAAP Financial Measures](#i7e5db44558254b4f92434868e2b872f2_139)</u> | [48](#i7e5db44558254b4f92434868e2b872f2_139) |
| <u>[Liquidity and Capital Resources](#i7e5db44558254b4f92434868e2b872f2_157)</u> | [52](#i7e5db44558254b4f92434868e2b872f2_157) |
| <u>[Pension Benefits](#i7e5db44558254b4f92434868e2b872f2_163)</u> | [56](#i7e5db44558254b4f92434868e2b872f2_163) |
| <u>[Critical Accounting Policies and Estimates](#i7e5db44558254b4f92434868e2b872f2_166)</u> | [57](#i7e5db44558254b4f92434868e2b872f2_166) |

---

This Management's Discussion and Analysis contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding business outlook. These forward-looking statements are based on management's expectations and assumptions as of the date of this Quarterly Report on Form 10-Q and are not guarantees of future performance. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management. These factors include, without limitation, those described in "*Forward-Looking Statements*" and Item 1A, *Risk Factors*, of our Annual Report on Form 10-K for the fiscal year ended 30 September 2025 (the "<u>[2025 Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/2969/000000296925000055/apd-20250930.htm)</u>"), which was filed with the SEC on 20 November 2025, as well as in "*Forward-Looking Statements*" and Part II, Item 1A, *Risk Factors*, of this Quarterly Report on Form 10-Q.

This discussion should be read together with the accompanying interim consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q. Financial information is presented on a continuing operations basis. Unless otherwise stated, amounts are stated in millions of U.S. Dollars, except for per share data, which is calculated and presented on a diluted basis in U.S. Dollars per weighted-average common share.

The financial measures discussed below are presented in accordance with U.S. generally accepted accounting principles ("GAAP"), except as noted. We discuss certain financial measures on an "adjusted", or "non-GAAP", basis, which exclude gains or losses that management does not consider to be representative of our underlying business operations. These adjustments, which are described below for the periods presented, are not reflected in the results of our reportable segments. When viewed together with our GAAP results, we believe these non-GAAP financial measures offer a more complete understanding of the factors and trends affecting our financial performance and support analysis of our results on a more consistent basis. For each non-GAAP financial measure, including adjusted operating income, adjusted operating margin, adjusted earnings per share, the adjusted effective tax rate, and capital expenditures, we present a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP. These reconciliations and further explanations of our use of non-GAAP financial measures are presented under the "*Reconciliations of Non-GAAP Financial Measures*" section beginning on page <u>[48](#i7e5db44558254b4f92434868e2b872f2_139)</u>.

Comparisons included in the discussion that follows are for the first quarter of fiscal year 2026 versus ("vs.") the first quarter of fiscal year 2025. The disclosures provided in this Quarterly Report on Form 10-Q are complementary to those made in our <u>[2025 Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/2969/000000296925000055/apd-20250930.htm)</u>.

We manage our operations, assess performance, and report earnings under five reportable segments: Americas, Asia, Europe, Middle East and India, and Corporate and other. Refer to Note 16, *Business Segment Information*, to the consolidated financial statements for additional information.

For information concerning activity with our related parties, refer to Note 15, *Supplemental Information*, to the consolidated financial statements.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**FIRST QUARTER 2026 VS. FIRST QUARTER 2025** 

**FIRST QUARTER 2026 IN SUMMARY**

&nbsp;&nbsp;&nbsp;&nbsp;• Sales of $3.1 billion increased 6%, or $171.0, due to higher energy cost pass-through to customers of 3%, a favorable impact from currency of 2%, and higher pricing of 1%. Volumes were flat on a percentage basis as higher on-sites were offset by lower helium demand and a significant prior year, non-recurring helium sale to an existing merchant customer in the Americas segment.

&nbsp;&nbsp;&nbsp;&nbsp;• Operating income of $734.5 increased 14%, or $90.9, primarily due to favorable business mix, lower costs, and higher non-helium merchant pricing. Operating margin of 23.7% increased 170 basis points ("bp") from 22.0% in the prior year. On a non-GAAP basis, adjusted operating income of $756.5 increased 12%, or $83.0, and adjusted operating margin of 24.4% increased 140 bp compared to 23.0% in the prior year. These non-GAAP results exclude charges recorded in fiscal year 2026 to update cost estimates related to prior-year business and asset actions as well as prior-year shareholder activism-related costs as discussed below.

&nbsp;&nbsp;&nbsp;&nbsp;**•** Earnings per share ("EPS") of $3.04 increased 10%, or $0.27 per share. A summary table of changes in EPS is presented on page <u>[40](#ib0dea7168a994a4da2af0505c03219e8_2443)</u>. On a non-GAAP basis, adjusted EPS of $3.16 increased 10%, or $0.30 per share, and also excludes non-operating adjustments for a prior-year gain on certain de-designated hedging instruments and non-service pension cost as discussed below.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**<u>Summary of Changes in EPS</u>**

The per share impacts for the items presented in the table below were calculated independently and may not sum to the total change in EPS due to rounding.

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Change vs.<br>Prior Year |
| | 31 December | 31 December | Change vs.<br>Prior Year |
| | 2025 | 2024 | Change vs.<br>Prior Year |
| **EPS** | **$3.04** | **$2.77** | **$0.27** |
| **% Change from prior year** |  |  | **10%** |
| **Operating Items** |  |  |  |
| Underlying business: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Volume |  |  | 0.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Price, net of variable costs |  |  | 0.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other costs |  |  | 0.08 |
| Currency |  |  | 0.04 |
| Business and asset actions<sup>(A)</sup> |  |  | (0.09) |
| Shareholder activism-related costs |  |  | 0.10 |
| **Total Operating Items** |  |  | **$0.31** |
| **Other Items** |  |  |  |
| Equity affiliates' income |  |  | 0.08 |
| Interest expense |  |  | (0.05) |
| <u>Other non-operating income/expense, net:</u> |  |  |  |
| &nbsp;&nbsp;Gain on de-designation of cash flow hedges<sup>(B)</sup> |  |  | (0.05) |
| &nbsp;&nbsp;Non-operating expense associated with business and asset actions<sup>(A)</sup> |  |  | (0.02) |
| &nbsp;&nbsp;&nbsp;Non-service pension cost, net |  |  | 0.03 |
| &nbsp;&nbsp;&nbsp;Other non-operating |  |  | (0.01) |
| Change in effective tax rate |  |  | 0.01 |
| Noncontrolling interests<sup>(B)</sup> |  |  | (0.03) |
| **Total Other Items** |  |  | **($0.04)** |
| **Total Change** |  |  | **$0.27** |
| **% Change from prior year** |  |  | **10%** |

---

<sup>(A)</sup>EPS impacts associated with charges for business and asset actions were calculated based on a total after-tax charge of $24.6 ($0.11 per share).

<sup>(B)</sup>EPS impact reflected within "Gain on de-designation of cash flow hedges" was calculated based on an after-tax gain attributable to Air Products of $10.3. The gain attributable to our noncontrolling partners was $25.2.

The table below summarizes the per share impact of our non-GAAP adjustments for the first quarter of fiscal years 2026 and 2025. These impacts were calculated independently and may not sum to totals due to rounding.

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Change vs.<br>Prior Year |
| | 31 December | 31 December | Change vs.<br>Prior Year |
| | 2025 | 2024 | Change vs.<br>Prior Year |
| **EPS** | **$3.04** | **$2.77** | **$0.27** |
| Business and asset actions | 0.11 |  | 0.11 |
| Shareholder activism-related costs |  | 0.10 | (0.10) |
| Gain on de-designation of cash flow hedges |  | (0.05) | 0.05 |
| Non-service pension cost, net | 0.01 | 0.04 | (0.03) |
| **Adjusted EPS** | **$3.16** | **$2.86** | **$0.30** |
| **% Change from prior year** |  |  | **10%** |

---

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**FIRST QUARTER 2026 RESULTS OF OPERATIONS**

**<u>Discussion of First Quarter Consolidated Results</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | | |
| | 31 December | 31 December | <u>Change vs. Prior Year</u> | <u>Change vs. Prior Year</u> |
| | 2025 | 2024 | $% | % |
| **GAAP Financial Measures** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales | $3102.5 | $2931.5 | 6 | % |
| &nbsp;&nbsp;&nbsp;Operating income | 734.5 | 643.6 | 14 | % |
| &nbsp;&nbsp;&nbsp;Operating margin | 23.7% | 22.0% | 170 | bp |
| &nbsp;&nbsp;&nbsp;Equity affiliates' income | $172.2 | $150.6 | 14 | % |
| **Non-GAAP Financial Measures** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted operating income | $756.5 | $673.5 | 12 | % |
| &nbsp;&nbsp;&nbsp;Adjusted operating margin | 24.4% | 23.0% | 140 bp | 140 bp |

---

<u>Sales</u>

The table below summarizes the major factors that impacted consolidated sales for the periods presented:

---

| | |
|:---|:---|
| Volume | —% |
| Price | 1% |
| Energy cost pass-through to customers | 3% |
| Currency | 2% |
| **Total Consolidated Sales Change** | 6% |

---

Sales of $3.1 billion increased 6%, or $171.0, due to higher energy cost pass-through to customers of 3%, a favorable impact from currency of 2%, and higher pricing of 1%. The increase in energy cost pass-through to customers primarily reflects higher natural gas prices in North America, which are contractually recoverable under our on-site agreements. Currency was favorable as the U.S. Dollar weakened, most notably against the Euro. The 1% total company price improvement, which equates to a 2% improvement for the merchant business, was driven by non-helium pricing actions in the Americas and Europe segments. Volumes were flat as higher on-sites were offset by lower helium demand and a significant, non-recurring helium sale to an existing merchant customer in the Americas segment in the prior year.

<u>Cost of Sales and Gross Margin</u>

Cost of sales of $2.1 billion increased 5%, or $91.0, primarily due to higher energy cost pass-through to customers of $79 and an unfavorable currency impact of $47. These increases were partially offset by $22 of lower costs related to sales volumes and $10 driven by productivity improvements and lower maintenance, which more than offset fixed-cost inflation. Gross margin of 32.1% increased 90 bp from 31.2% in the prior year as the benefits from favorable business mix and higher pricing were partially offset by higher energy cost pass-through to customers.

<u>Selling and Administrative Expense</u>

Selling and administrative expense of $228.7 decreased 6%, or $13.7, as productivity improvements were partially offset by labor inflation. Selling and administrative expense as a percentage of sales decreased to 7.4% from 8.3% in the prior year.

<u>Research and Development Expense</u>

Research and development expense of $20.4 decreased 7%, or $1.6. Research and development expense as a percentage of sales decreased to 0.7% from 0.8% in the prior year.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

<u>Business and Asset Actions</u>

During the first quarter of fiscal year 2026, we recorded charges of $28.3 ($24.6 after tax, or $0.11 per share) related to updated estimates for prior year project exits as described in Note 4, *Business and Asset Actions*, to the consolidated financial statements. These charges are not reflected in the results of our reportable segments.

Of the first quarter charge, $22.0 was recorded to operating income and related to the settlement of project-related commitments and sale of associated assets. The remaining $6.3 was recorded to "Other non-operating income (expense), net" and reflects losses on cross-currency interest rate swaps terminated in connection with the early repayment of related intercompany loans for one of the affected gasification projects.

Our estimates reflect our best judgment based on information available as of 31 December 2025. Final settlement of these items may differ materially from current estimates, which could impact our consolidated financial statements in future periods.

<u>Prior Year Shareholder Activism-Related Costs</u>

During the first quarter of fiscal year 2025, we recorded shareholder activism-related costs of $29.9 ($21.9 after tax, or $0.10 per share) in connection with a proxy contest. These costs, which were not reflected in the results of our reportable segments, included legal and other professional service fees and proxy solicitation expenses.

<u>Other Income (Expense), Net</u>

Other income of $10.6 decreased 54%, or $12.3, primarily due to the prior year sale of a U.S. equity method investment.

<u>Operating Income and Operating Margin</u>

Operating income of $734.5 increased 14%, or $90.9, due to favorable business mix of $26, lower costs of $23, higher pricing, net of power and fuel costs, of $22 driven by non-helium merchant, and favorable currency of $12. The lower costs include productivity improvements and lower maintenance, partially offset by fixed-cost inflation and the prior year sale of a U.S. equity method investment. A charge of $22 recorded in fiscal year 2026 to update cost estimates related to prior-year business and asset actions was more than offset by prior-year shareholder activism-related costs of $30. Operating margin of 23.7% increased 170 bp compared to 22.0% in the prior year, despite an approximate 50-basis-point headwind from higher energy cost pass-through to customers driven by the Americas segment.

On a non-GAAP basis, which excludes the charge for business and asset actions and prior year shareholder activism-related costs discussed above, adjusted operating income of $756.5 increased 12%, or $83.0, and adjusted operating margin of 24.4% increased 140 bp compared to 23.0% in the prior year.

<u>Equity Affiliates' Income</u>

Equity affiliates' income of $172.2 increased 14%, or $21.6, driven by affiliates in the Americas and Europe segments.

<u>Interest Expense</u>

---

| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Interest incurred | $168.0 | $139.9 |
| Less: Capitalized interest | 113.5 | 97.3 |
| **Interest expense** | $54.5 | $42.6 |

---

Interest expense increased 28%, or $11.9, driven by higher interest incurred on principal borrowings from Euro- and U.S. Dollar-denominated senior fixed-rate notes issued in fiscal year 2025. Higher interest incurred was partially offset by a higher carrying value of ongoing projects under construction.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

<u>Other Non-Operating Income (Expense), Net</u>

Other non-operating expense of $1.4 decreased $40.3 compared to income of $38.9 in the prior year, which included a $38.8 gain ($10.3 attributable to Air Products after tax, or $0.05 per share) on certain interest rate swaps held by the NEOM Green Hydrogen Company joint venture. The majority of these swaps were re-designated as cash flow hedges by the end of fiscal year 2025, and the impact of any swaps that remained de-designated in the first quarter of fiscal year 2026 was not material. Refer to Note 3, *Variable Interest Entities*, and Note 8, *Financial Instruments*, to the consolidated financial statements for additional information.

Lower interest income on short-term investments and a loss on cross-currency interest rate swaps terminated in connection with business and asset actions were partially offset by lower non-service pension costs, which decreased to $3.4 ($2.5 after tax, or $0.01 per share) for the first quarter of fiscal year 2026 compared to $10.5 ($7.9 after tax, or $0.04 per share) in the prior year.

<u>Effective Tax Rate</u>

The effective tax rate equals the income tax provision divided by income before taxes. Equity affiliates' income is primarily included net of income taxes within income before taxes on our consolidated income statements.

Our effective tax rate was 18.7% and 17.8% for the three months ended 31 December 2025 and 2024, respectively. Our effective rate was higher in fiscal year 2026 primarily due to higher net costs on foreign-related income taxed in the U.S. and lower U.S. tax benefits for foreign-derived income, which were impacted by tax deductions for prior year business and asset actions. Also contributing to the higher current year rate were prior-year non-recurring gains on the de-designation of cash flow hedges in jurisdictions with lower tax rates. These increases were partially offset by the release of certain unrecognized tax benefits resulting from tax settlements in the current year.

Our adjusted effective tax rate, which excludes the impact of adjustments presented in the "Reconciliations of Non-GAAP Financial Measures" section beginning on page <u>[48](#i7e5db44558254b4f92434868e2b872f2_139)</u>, was 18.5% and 18.7% for the three months ended 31 December 2025 and 2024, respectively.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**<u>Discussion of First Quarter Results by Business Segment</u>**

<u>Americas</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | | |
| | 31 December | 31 December | <u>Change vs. Prior Year</u> | <u>Change vs. Prior Year</u> |
| | 2025 | 2024 | $%/bp | %/bp |
| Sales | $1341.7 | $1287.6 | 4 | % |
| Operating income | 403.8 | 388.2 | 4 | % |
| Operating margin | 30.1% | 30.1% |  | bp |
| Equity affiliates' income | $51.7 | $35.1 | 47 | % |

---

The table below summarizes the major factors that impacted sales in the Americas segment for the periods presented:

---

| | |
|:---|:---|
| Volume | (4%) |
| Price | 2% |
| Energy cost pass-through to customers | 6% |
| Currency | —% |
| **Total Americas Sales Change** | 4% |

---

Sales of $1.3 billion increased 4%, or $54.1, as higher energy cost pass-through to customers of 6% and favorable pricing of 2% were partially offset by lower volumes of 4%. The higher energy cost pass-through reflects increased natural gas rates in the U.S. Gulf Coast and California. Pricing improved for non-helium products. The 2% total segment price increase equates to a 4% improvement in our merchant business. Volumes were unfavorable primarily due to a significant, non-recurring helium sale to an existing merchant customer in the prior year. Currency was flat compared to the prior year.

Operating income of $403.8 increased 4%, or $15.6, as higher pricing of $16 and favorable business mix of $3 were partially offset by higher costs of $4. Costs were modestly unfavorable as prior-year income from the sale of an equity method investment and fixed-cost inflation more than offset lower maintenance. Operating margin of 30.1% was flat compared to prior year, as the benefits from favorable business mix and pricing were offset by a headwind of approximately 150 basis points from higher energy cost pass-through to customers.

Equity affiliates' income of $51.7 increased 47%, or $16.6, driven by an affiliate in Mexico.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

<u>Asia</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | | |
| | 31 December | 31 December | <u>Change vs. Prior Year</u> | <u>Change vs. Prior Year</u> |
| | 2025 | 2024 | $%/bp | %/bp |
| Sales | $831.5 | $817.1 | 2 | % |
| Operating income | 232.3 | 216.4 | 7 | % |
| Operating margin | 27.9% | 26.5% | 140 | bp |
| Equity affiliates' income | $13.8 | $10.3 | 34 | % |

---

The table below summarizes the major factors that impacted sales in the Asia segment for the periods presented:

---

| | |
|:---|:---|
| Volume | —% |
| Price | (1%) |
| Energy cost pass-through to customers | 2% |
| Currency | 1% |
| **Total Asia Sales Change** | 2% |

---

Sales of $831.5 increased 2%, or $14.4, as higher energy cost pass-through to customers of 2% and a favorable currency impact of 1% were partially offset by lower pricing of 1% primarily driven by helium. The 1% total segment price decrease equates to a 4% decline in our merchant business. Volumes were flat as new on-site assets were offset by lower demand for helium.

Operating income of $232.3 increased 7%, or $15.9, due to lower costs of $15 driven by productivity, favorable business mix of $7, and favorable currency of $4, partially offset by lower pricing of $10. Depreciation was reduced in fiscal year 2026 due to certain coal gasification assets being classified as held for sale. Operating margin of 27.9% increased 140 bp from 26.5% in the prior year.

Equity affiliates' income of $13.8 increased 34%, or $3.5, driven by affiliates in China.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

<u>Europe</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | | |
| | 31 December | 31 December | <u>Change vs. Prior Year</u> | <u>Change vs. Prior Year</u> |
| | 2025 | 2024 | $%/bp | %/bp |
| Sales | $782.0 | $697.2 | 12 | % |
| Operating income | 223.5 | 186.5 | 20 | % |
| Operating margin | 28.6% | 26.7% | 190 | bp |
| Equity affiliates' income | $23.4 | $18.2 | 29 | % |

---

The table below summarizes the major factors that impacted sales in the Europe segment for the periods presented:

---

| | |
|:---|:---|
| Volume | 5% |
| Price | 1% |
| Energy cost pass-through to customers | (2%) |
| Currency | 8% |
| **Total Europe Sales Change** | 12% |

---

Sales of $782.0 increased 12%, or $84.8, due to favorable currency of 8%, higher volumes of 5%, and higher pricing of 1%, partially offset by lower energy cost pass-through to customers of 2%, primarily due to lower natural gas rates. Favorable currency primarily reflected the weakening of the U.S. Dollar against the Euro. The higher volumes were driven by on-sites, including the impact of a prior-year turnaround, and non-helium merchant. Pricing improved for non-helium products. The 1% total segment price increase equates to a 2% improvement in our merchant business.

Operating income of $223.5 increased 20%, or $37.0, due to higher volumes of $21, higher pricing of $16, and favorable currency of $11, partially offset by higher costs of $11. The increase in costs was primarily due to higher depreciation and fixed-cost inflation, partially offset by productivity-driven improvements. Operating margin of 28.6% increased 190 bp from 26.7% in the prior year, as the benefits from higher volumes and pricing were partially offset by higher costs.

Equity affiliates' income of $23.4 increased 29%, or $5.2, driven by an affiliate in Italy.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

<u>Middle East and India</u>

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | |
| | 31 December | 31 December | |
| | 2025 | 2024 |<br><u>Change vs. Prior Year</u><br>$% |
| Sales | $30.3 | $32.8 | (8%) |
| Operating income (loss) | 5.8 | (0.6) | \*\* |
| Equity affiliates' income | 84.5 | 85.0 | (1%) |

---

<sup>\*\*</sup> Percentage change versus prior period is not meaningful.

Sales of $30.3 decreased 8%, or $2.5, due to lower volumes. Operating income was $5.8 compared to a loss of $0.6 in the prior year, primarily due to lower costs following the deconsolidation of Blue Hydrogen Industrial Gases Company ("BHIG") in the second quarter of fiscal year 2025 as well as productivity improvements.

Equity affiliates' income of $84.5 decreased 1%, or $0.5.

<u>Corporate and other</u>

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | |
| | 31 December | 31 December | |
| | 2025 | 2024 |<br><u>Change vs. Prior Year</u><br>$% |
| Sales | $117.0 | $96.8 | 21% |
| Operating loss | (108.9) | (117.0) | 7% |
| Equity affiliates' income (loss) | (1.2) | 2.0 | \*\* |

---

<sup>\*\*</sup> Percentage change versus prior period is not meaningful.

Sales of $117.0 increased 21%, or $20.2. Operating loss of $108.9 decreased 7%, or $8.1, primarily due to productivity-driven cost improvements.

Equity affiliates' loss was $1.2 compared to income of $2.0 in the prior year, driven by an affiliate in Algeria.

------

<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

**RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES**

We present certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") because they exclude items that management does not consider to be representative of our underlying business operations. We provide these adjusted non-GAAP financial measures to allow investors, potential investors, securities analysts, and others to evaluate our business in the same manner as management. When viewed together with our GAAP results, we believe these non-GAAP financial measures offer a more complete understanding of the factors and trends affecting our financial performance and support analysis of our results on a more consistent basis.

Readers are cautioned that non-GAAP financial measures have inherent limitations and should not be considered in isolation or as a substitute for the corresponding GAAP measures. Our definitions and calculations of non-GAAP financial measures may differ from those used by other companies, which may limit comparability.

**<u>Non-GAAP Performance Measures</u>**

Management uses non-GAAP performance measures, including adjusted operating income, adjusted operating margin, and adjusted earnings per share ("EPS"), to assess our performance because these measures exclude items that management does not consider to be representative of our underlying business operations. In addition, adjusted operating income and adjusted EPS are important components of our incentive compensation plans. We also use adjusted operating margin to assess operational efficiency, cost discipline, and overall profitability.

Our non-GAAP performance measures are adjusted to exclude gains or losses that management believes are not associated with the ongoing operations of our business. These adjustments, which are described below for the periods presented, are not reflected in the results of our reportable segments. Although these items are often difficult to predict, readers should be aware that similar gains or losses may occur in future periods. The related tax effects reflect the expected current and deferred income tax impacts of our non-GAAP adjustments, which are primarily driven by the statutory tax rates of the applicable jurisdictions and the taxability of the underlying adjustments in those jurisdictions.

We reconcile each non-GAAP performance measure to its most directly comparable GAAP measure in the table below, followed by descriptions of each non-GAAP adjustment. Margins are calculated by dividing the applicable line item by consolidated sales for the relevant period. In addition to our non-GAAP performance measures, we also present components used in calculating adjusted EPS to illustrate the per share effect of our non-GAAP adjustments. All per share amounts are calculated on a diluted basis from continuing operations attributable to Air Products. Because margins and per share amounts are calculated independently, the individual components may not sum to the related totals due to rounding.

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<u>[**Table of Contents**](#i7e5db44558254b4f92434868e2b872f2_7)</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December | Three Months Ended 31 December |
| **Q1 2026 vs. Q1 2025** | Operating<br>Income | Operating Margin | Operating Margin | Other Non-<br>Operating<br>Inc/Exp, Net | Income Tax<br>Expense | Net Income Attributable to Air Products | EPS |
| Q1 2026 GAAP Measures | $734.5 | 23.7% | 23.7% | ($1.4) | $159.4 | $678.2 | $3.04 |
| Q1 2025 GAAP Measures | 643.6 | 22.0% | 22.0% | 38.9 | 140.7 | 617.4 | 2.77 |
| $ GAAP Change | $90.9 |  |  |  |  |  | $0.27 |
| %/bp GAAP Change | 14% | 170 | bp |  |  |  | 10% |
| Q1 2026 GAAP Measures | $734.5 | 23.7% | 23.7% | ($1.4) | $159.4 | $678.2 | $3.04 |
| Business and asset actions<sup>(A)</sup> | 22.0 | 0.7% | 0.7% | 6.3 | 3.1 | 24.6 | 0.11 |
| Non-service pension cost, net |  | —% | —% | 3.4 | 0.9 | 2.5 | 0.01 |
| Q1 2026 Adjusted Measures | $756.5 | 24.4% | 24.4% | $8.3 | $163.4 | $705.3 | $3.16 |
| Q1 2025 GAAP Measures | $643.6 | 22.0% | 22.0% | $38.9 | $140.7 | $617.4 | $2.77 |
| Shareholder activism-related costs | 29.9 | 1.0% | 1.0% |  | 8.0 | 21.9 | 0.10 |
| Gain on de-designation of cash flow hedges<sup>(B)</sup> |  | —% | —% | (38.8) | (3.3) | (10.3) | (0.05) |
| Non-service pension cost, net |  | —% | —% | 10.5 | 2.6 | 7.9 | 0.04 |
| Q1 2025 Adjusted Measures | $673.5 | 23.0% | 23.0% | $10.6 | $148.0 | $636.9 | $2.86 |
| $ Adjusted Change | $83.0 |  |  |  |  |  | $0.30 |
| %/bp Adjusted Change | 12% | 140 | bp |  |  |  | 10% |
| <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. | <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. | <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. | <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. | <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. | <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. | <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. | <sup>(A)</sup>Charge attributable to noncontrolling interests was $0.6.<br><sup>(B)</sup>Gain attributable to noncontrolling interests was $25.2. |

---

<u>Business and Asset Actions</u>

During the first quarter of fiscal year 2026, we recorded charges for business and asset actions totaling $28.3 ($24.6 after tax, or $0.11 per share) related to project exits announced in fiscal year 2025. Of these charges, $22.0 were recorded within operating income to reflect updated cost estimates as we settle project-related commitments and sell associated assets. The remaining $6.3 was recorded to "Other non-operating income (expense), net" and reflects losses on cross-currency interest rate swaps terminated in connection with the early repayment of related intercompany loans for one of the affected gasification projects.

Our estimates reflect our best judgment based on information available as of 31 December 2025. Final settlement of these items may differ materially from current estimates, which could impact our consolidated financial statements in future periods.

<u>Prior Year Shareholder Activism-Related Costs</u>

During the first quarter of fiscal year 2025, we recorded shareholder activism-related costs of $29.9 ($21.9 after tax, or $0.10 per share) in connection with a proxy contest. These costs included legal and other professional service fees and proxy solicitation expenses.

<u>Prior Year Gain on De-designation of Cash Flow Hedges</u>

In fiscal year 2024, we discontinued cash flow hedge accounting for certain interest rate swaps due to changes in the anticipated drawdown timeline for hedged borrowings related to the NEOM Green Hydrogen Project. These swaps are held by NEOM Green Hydrogen Company, a consolidated joint venture accounted for under the variable interest model, in which Air Products holds a one-third ownership interest. As a result, unrealized gains and losses for the de-designated swaps were recorded to "Other non-operating income (expense), net" on our consolidated income statements. During the first quarter of fiscal year 2025, we recorded an unrealized gain of $38.8 ($10.3 attributable to Air Products after tax, or $0.05 per share), with $25.2 attributable to our noncontrolling partners.

We re-designated the affected swaps as outstanding borrowings under the available project financing became commensurate with the swaps' notional values. The unrealized gain on swaps that remained de-designated during the first quarter of fiscal year 2026 was not material. As of 1 January 2026, all swaps have been re-designated as cash flow hedges.

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<u>Non-Service Related Pension Items</u>

Non-service related pension items resulted in net non-operating costs of $3.4 ($2.5 after tax, or $0.01 per share) in the first quarter of fiscal year 2026 compared to $10.5 ($7.9 after tax, or $0.04 per share) in the first quarter of fiscal year 2025. Non-service related components are recurring, non-operating items that include interest cost, expected returns on plan assets, prior service cost amortization, actuarial loss amortization, as well as special termination benefits, curtailments, and settlements. The net impact of non-service related components is reflected within "Other non-operating income (expense), net" on our consolidated income statements. Adjusting for the impact of non-service pension components provides management and users of our financial statements with a more accurate representation of our underlying business performance because these components are driven by factors that are unrelated to our operations, such as volatility in equity and debt markets. Further, non-service related components are not indicative of our defined benefit plans' future contribution needs due to the funded status of the plans.

**<u>ADJUSTED EFFECTIVE TAX RATE</u>**

The effective tax rate represents income tax expense divided by income before taxes as reported under GAAP. We calculate our adjusted effective tax rate by adjusting both the numerator and the denominator to exclude the tax and pre-tax effects of our non-GAAP adjustments, respectively.

The table below presents a reconciliation of the GAAP effective tax rate to our adjusted effective tax rate:

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>31 December | Three Months Ended<br>31 December |
| | 2025 | 2024 |
| Income tax expense | $159.4 | $140.7 |
| Income before taxes | 850.8 | 790.5 |
| Effective tax rate | 18.7% | 17.8% |
| <u>Reconciliations of GAAP to Non-GAAP:</u> |  |  |
| &nbsp;&nbsp;Income tax expense | $159.4 | $140.7 |
| &nbsp;&nbsp;Business and asset actions tax impact | 3.1 |  |
| &nbsp;&nbsp;Shareholder activism-related costs tax impact |  | 8.0 |
| &nbsp;&nbsp;Gain on de-designation of cash flow hedges tax impact |  | (3.3) |
| &nbsp;&nbsp;Non-service pension cost, net tax impact | 0.9 | 2.6 |
| &nbsp;&nbsp;Adjusted income tax expense | $163.4 | $148.0 |
| &nbsp;&nbsp;Income before taxes | $850.8 | $790.5 |
| &nbsp;&nbsp;&nbsp;Business and asset actions | 28.3 |  |
| &nbsp;&nbsp;Shareholder activism-related costs |  | 29.9 |
| &nbsp;&nbsp;Gain on de-designation of cash flow hedges |  | (38.8) |
| &nbsp;&nbsp;Non-service pension cost, net | 3.4 | 10.5 |
| &nbsp;&nbsp;Adjusted income before taxes | $882.5 | $792.1 |
| Adjusted effective tax rate | 18.5% | 18.7% |

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**<u>CAPITAL EXPENDITURES (NON-GAAP)</u>**

Capital expenditures is a non-GAAP financial measure that management uses to evaluate our deployment of capital and assess alignment with our strategic priorities. Our calculation of this measure begins as the sum of cash paid for additions to plant and equipment, including long-term deposits, acquisitions (less cash acquired), investment in and advances to unconsolidated affiliates, and investment in financing receivables, each of which are reported on our consolidated statements of cash flows.

We then adjust this amount to exclude spending for additions to plant and equipment by our consolidated joint venture, NEOM Green Hydrogen Company ("NGHC"), to the extent such spending is funded by sources other than Air Products' cash. These other funding sources include NGHC's project financing, which is non-recourse to Air Products, as well as equity contributions from the other joint venture partners. Management believes this adjustment provides a more useful view of the capital we deploy to support the ongoing growth of our business.

The most directly comparable GAAP measure to our non-GAAP capital expenditures is "Cash used for investing activities," as reported on our consolidated statements of cash flows. The reconciliation of cash used for investing activities to our reported capital expenditures is provided below:

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Cash used for investing activities | $1242.9 | $2182.1 |
| Proceeds from sale of assets and investments | 26.1 | 34.4 |
| Purchases of short-term investments |  | (117.6) |
| Proceeds from short-term investments |  | 5.0 |
| Proceeds from other investing activities | 2.2 | 29.0 |
| NGHC expenditures not funded by Air Products' equity<sup>(A)</sup> | (360.5) | (923.1) |
| Capital expenditures | $910.7 | $1209.8 |

---

<sup>(A)</sup>Reflects the portion of "Additions to plant and equipment, including long-term deposits" that is associated with NGHC, less our approximate cash investment in the joint venture. Substantially all the funding we provide to NGHC is limited for use by the joint venture for its capital expenditures.

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**LIQUIDITY AND CAPITAL RESOURCES**

We believe we have sufficient cash, cash flows from operations, and access to funding sources to meet our liquidity needs. As further discussed in the "Cash Flows From Financing Activities" section below, we are able to raise capital through a variety of financing activities, including accessing capital or commercial paper markets or drawing upon our credit facilities.

As of 31 December 2025, we held cash and cash items of $1.0 billion, substantially all of which was held outside the U.S. We do not expect a significant portion of the earnings from our foreign subsidiaries and affiliates to be subject to U.S. income tax upon repatriation. Depending on the country in which these entities operate, repatriation of earnings may be subject to foreign withholding and other taxes. However, we intend to indefinitely reinvest the majority of our foreign cash and cash items that would be subject to additional taxes outside the U.S.

**<u>Cash Flows From Operations</u>**

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Net income attributable to Air Products | $678.2 | $617.4 |
| Adjustments to reconcile income to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 370.7 | 366.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 78.2 | (6.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business and asset actions | 22.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed earnings of equity method investments | (28.5) | (48.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of assets and investments | (2.2) | (10.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 10.6 | 16.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncurrent lease receivables | 12.0 | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other adjustments | (25.2) | (122.6) |
| Changes in working capital accounts | (215.1) | (16.5) |
| **Cash Provided by Operating Activities** | $900.7 | $811.7 |

---

For the first three months of fiscal year 2026, cash provided by operating activities was $900.7. The working capital accounts were a net use of cash of $215.1, primarily driven by a $191.3 use related to payables and accrued liabilities. This use included payments for incentive compensation under the fiscal year 2025 plan, contract terminations tied to our business and asset actions, and previously accrued severance actions under our global cost reduction plan.

For the first three months of fiscal year 2025, cash provided by operating activities was $811.7. Other adjustments of $122.6 primarily reflected non-cash currency impacts on intercompany balances. The working capital accounts were a net use of cash of $16.5. A $47.8 use of cash for trade receivables, driven by the timing of cash collections, was partially offset by a $30.5 source of cash within payables and accrued liabilities. The source of cash for payables and accrued liabilities primarily resulted from higher accrued utilities and changes in the fair value of derivative contracts that hedge intercompany loans, partially offset by payments for incentive compensation.

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**<u>Cash Flows From Investing Activities</u>**

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Additions to plant and equipment, including long-term deposits | ($1251.2) | ($2117.6) |
| Investments in and advances to unconsolidated affiliates | (20.0) |  |
| Investments in financing receivables |  | (15.3) |
| Proceeds from sale of assets and investments | 26.1 | 34.4 |
| Purchases of short-term investments |  | (117.6) |
| Proceeds from short-term investments |  | 5.0 |
| Proceeds from other investing activities | 2.2 | 29.0 |
| **Cash Used for Investing Activities** | ($1242.9) | ($2182.1) |

---

For the first three months of fiscal year 2026, cash used for investing activities of $1.2 billion was primarily driven by additions to plant and equipment, including long-term deposits, as discussed in the "Capital Expenditures" section below.

For the first three months of fiscal year 2025, cash used for investing activities was $2.2 billion. The use of cash primarily resulted from additions to plant and equipment, including long-term deposits, of $2.1 billion as discussed in the "Capital Expenditures" section below. Purchases of investments of $117.6 consisted of time deposits with maturities between three months and one year.

<u>Capital Expenditures</u> *(Non-GAAP Financial Measure)*

The components of our capital expenditures are detailed in the table below. Refer to page <u>[51](#i7e5db44558254b4f92434868e2b872f2_154)</u> for a definition of this non-GAAP financial measure as well as a reconciliation to cash used for investing activities.

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Additions to plant and equipment, including long-term deposits | $1251.2 | $2117.6 |
| Investments in and advances to unconsolidated affiliates | 20.0 |  |
| Investments in financing receivables |  | 15.3 |
| NGHC expenditures not funded by Air Products' equity<sup>(A)</sup> | (360.5) | (923.1) |
| Capital Expenditures | $910.7 | $1209.8 |

---

<sup>(A)</sup>Reflects the portion of "Additions to plant and equipment, including long-term deposits" that is associated with NGHC, less our approximate cash investment in the joint venture. Substantially all the funding we provide to NGHC is limited for use by the joint venture for its capital expenditures. For additional information regarding this adjustment, refer to page <u>[51](#i7e5db44558254b4f92434868e2b872f2_154)</u>.

Capital expenditures for the first three months of fiscal year 2026 totaled $910.7 compared to $1.2 billion in the prior year. Additions to plant and equipment in both periods primarily reflect cash deployed to support our clean energy initiatives, including the NEOM Green Hydrogen Project, and clean energy complexes in Louisiana, United States, and Alberta, Canada. Spending for the NEOM Green Hydrogen Project is lower in fiscal year 2026 as we near completion of the project.

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<u>Outlook for Investing Activities</u>

It is not possible, without unreasonable efforts, to reconcile our forecasted capital expenditures to future cash used for investing activities because management is unable to identify the timing or occurrence of our future investment activity, which is driven by our assessment of competing opportunities at the time we enter into transactions. These decisions, either individually or in the aggregate, could have a significant effect on our cash used for investing activities. Accordingly, management is unable to fully reconcile, without unreasonable efforts, our forecasted capital expenditures to future cash used for investing activities.

We expect capital expenditures for fiscal year 2026 to be approximately $4.0 billion, reflecting continued investment in our energy transition projects, traditional industrial gas projects, and maintenance within our core business. Approximately $1 billion is expected to be dedicated to traditional industrial gas projects. We anticipate funding these expenditures through our existing cash balance and cash generated from continuing operations. We also have access to capital and money market financing as well as other sources of funding as discussed in the "Financing and Capital Structure" section below.

**<u>Cash Flows From Financing Activities</u>**

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Long-term debt proceeds | $382.5 | $459.2 |
| Payments on long-term debt | (569.6) | (12.1) |
| Net increase (decrease) in commercial paper and short-term borrowings | 67.3 | (21.5) |
| Dividends paid to shareholders | (398.4) | (393.6) |
| Investments by noncontrolling interests | 61.0 | 280.9 |
| Other financing activities | (32.9) | (38.7) |
| **Cash (Used for) Provided by Financing Activities** | ($490.1) | $274.2 |

---

For the first three months of fiscal year 2026, cash used for financing activities was $490.1. The use of cash was driven by long-term debt repayments of $569.6, which included the repayment of $550.0 aggregate principal amount of our 1.50% senior notes due October 2025. Additionally, cash dividends paid to shareholders totaled $398.4. These uses of cash were partially offset by $382.5 of long-term debt proceeds driven by incremental borrowings under the project financing arrangement available to NGHC for the NEOM Green Hydrogen Project.

For the first three months of fiscal year 2025, cash provided by financing activities was $274.2. The source of cash was driven by long-term debt proceeds of $459.2 and investments by noncontrolling interests of $280.9, both of which primarily relate to capital spending by NGHC. These sources of cash were partially offset by dividend payments to shareholders of $393.6.

<u>Financing and Capital Structure</u>

*<u>Debt</u>*

Total debt decreased to $17.5 billion as of 31 December 2025 from $17.7 billion as of 30 September 2025. As noted above, 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. This repayment was partially offset by approximately $365 in incremental long-term principal borrowings under a project financing arrangement related to the NEOM Green Hydrogen Project, which is non-recourse to Air Products, as further discussed below. Total debt included related party debt of $240.7 and $236.5 as of 31 December 2025 and 30 September 2025, respectively.

Various debt agreements to which we are a party include financial covenants and other restrictions, including restrictions pertaining to the ability to create property liens and enter into certain sale and leaseback transactions. As of 31 December 2025, we were in compliance with all the financial and other covenants under our debt agreements.

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*<u>Committed Credit Facilities</u>*

During the second quarter of fiscal year 2025, we refinanced our existing 364-day $500 revolving credit agreement to extend its maturity date from 27 March 2025 to 26 March 2026 (the "364-Day Credit Agreement"). All other terms remain consistent with the original 364-Day Credit Agreement, including our ability to convert the facility into a term loan maturing 26 March 2027. Fees incurred in connection with the refinancing were not material.

We also maintain a five-year $3.0 billion revolving credit agreement that matures on 31 March 2029 (the "Five-Year Credit Agreement"). Both the 364-Day Credit Agreement and the Five-Year Credit 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 31 December 2025 or 30 September 2025.

Separately, certain of our foreign subsidiaries maintain access to committed credit facilities with a combined maximum borrowing capacity of $363.3, all of which was borrowed and outstanding as of 31 December 2025. The amount available and borrowed as of 30 September 2025 was $394.0.

*<u>NEOM Green Hydrogen Project Financing</u>*

To support the NEOM Green Hydrogen Project, NGHC has access to project financing of approximately $6.1 billion, which is expected to fund about 73% of the project and is being drawn over the construction period, as well as additional credit facilities totaling approximately $500 primarily for NGHC's working capital needs. Creditors of NGHC do not have recourse to the general credit of Air Products. As of 31 December 2025, the joint venture had borrowed short- and long-term principal amounts totaling $5.3 billion compared to $4.9 billion as of 30 September 2025. Refer to Note 3, *Variable Interest Entities*, to the consolidated financial statements for additional information.

<u>Dividends</u>

We believe that providing a consistent dividend plays a critical role in creating shareholder value. The Board of Directors determines whether to declare cash dividends on our common stock, and the timing and amount of those dividends, based on our financial condition and other factors it deems relevant. Dividends are paid quarterly, typically during the sixth week following the close of the fiscal quarter.

On 19 November 2025, the Board of Directors declared a quarterly dividend of $1.79 per share that is payable on 9 February 2026 to shareholders of record at close of business on 2 January 2026.

In January 2026, the Board of Directors approved a $0.02 per share increase to our quarterly dividend, raising it to $1.81 per share and marking our 44<sup>th</sup> consecutive year of dividend increases. The first dividend at this increased rate was declared on 27 January 2026 and is payable on 11 May 2026 to shareholders of record at close of business on 1 April 2026.

In total, we expect to return approximately $1.6 billion to shareholders in 2026.

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**PENSION 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 shift to defined contribution plans is expected to continue to reduce volatility of both plan expense and contributions. For additional information, refer to Note 10, *Retirement Benefits*, to the consolidated financial statements.

**<u>Net Periodic Cost</u>**

The table below summarizes the components of net periodic cost for our U.S. and international defined benefit pension plans:

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| | | |
|:---|:---|:---|
| | Three Months Ended | Three Months Ended |
| | 31 December | 31 December |
| | 2025 | 2024 |
| Service cost | $4.9 | $5.2 |
| Non-service cost | 3.4 | 10.5 |
| Other | 0.3 | 0.1 |
| Net Periodic Cost | $8.6 | $15.8 |

---

Net periodic cost was $8.6 and $15.8 for the three months ended 31 December 2025 and 2024, respectively. The lower non-service related costs are the result of higher expected return on plan assets from increases in the return assumption and a decrease in actuarial loss amortization. Non-service related components of net periodic cost are reflected within "Other non-operating income (expense), net" on our consolidated income statements.

Service costs result from benefits earned by active employees and are reflected as operating expenses primarily within "Cost of sales" and "Selling and administrative expense" on our consolidated income statements. The amount of service costs capitalized in the first three months of fiscal years 2026 and 2025 was not material.

**<u>Company Contributions</u>**

Management considers various factors when making pension funding decisions, including tax, cash flow, and regulatory implications. For the three months ended 31 December 2025 and 2024, our cash contributions to funded pension plans and benefit payments for unfunded pension plans were $5.1 and $8.2, respectively.

Total contributions for fiscal year 2026 are expected to be approximately $25 to $35. During fiscal year 2025, total contributions were $29.9.

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**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

A description of our major accounting policies, including those that we consider to be the most critical to understanding our financial statements, is included in our 2025 Form 10-K. There were no significant changes to our accounting policies during the first three months of fiscal year 2026.

Management's Discussion and Analysis of our financial condition and results of operations is based on the consolidated financial statements and accompanying notes that have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates reflect our best judgment about current and/or future economic and market conditions and their effect based on information available as of the date of our consolidated financial statements. If conditions change, actual results may differ materially from these estimates.

Judgments and estimates of uncertainties are required to apply our accounting policies in many areas. However, application of policies that management has identified as critical places significant importance on management's judgment, often as the result of the need to make estimates about the effects of matters that are inherently uncertain.

During the first quarter of fiscal year 2026, we recorded changes to project revenue and cost estimates on certain sale of equipment projects that are accounted for under the cost incurred input method. Accordingly, we recorded cumulative effect adjustments that unfavorably impacted operating results by approximately $33 for the three months ended 31 December 2025.

Additionally, we recorded a charge of $22.0 within operating income during the first quarter of fiscal year 2026 to update cost estimates related to previously announced project exit decisions as described in Note 4, *Business and Asset Actions*, to the consolidated financial statements. We estimate the value of certain long-lived assets associated with these decisions using Level 3 inputs under the fair value hierarchy due to the absence of observable market prices and significant reliance on management judgment and estimation techniques. For long-lived assets that met the held-for-sale criteria and are actively being marketed for sale, fair value, including costs to sell, was estimated using an internally developed discounted cash flow analysis as of 30 September 2025. There were no material changes to valuation assumptions related to assets held for sale during the first quarter of fiscal year 2026. For plant and equipment that did not meet the held-for-sale criteria but are capable of being sold through secondary equipment markets, we estimated the net realizable value of the assets as of 31 March 2025 using an orderly liquidation valuation approach. There were no material changes in the estimated net realizable value for any remaining assets not disposed as of 31 December 2025.

Estimates related to these actions are considered critical because they involve significant assumptions regarding future cash flows, asset disposition strategies, and market conditions, all of which are subject to change and could materially affect the amount and timing of impairment charges. Additionally, because the project review is ongoing, we may make further project-related decisions that could impact the intended use or recoverability of certain assets, potentially resulting in the recognition of additional charges in future periods.

There were no other changes to our estimates during the first three months of fiscal year 2026 that had a significant impact on our financial condition, change in financial condition, liquidity, or results of operations.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

Information on our utilization of financial instruments and an analysis of the sensitivity of these instruments to selected changes in market rates and prices is included in our 2025 Form 10-K.

Our net financial instrument position decreased from a liability of $17.2 billion at 30 September 2025 to a liability of $17.0 billion at 31 December 2025. The decrease was primarily due to the repayment of $550.0 principal amount outstanding of our 1.50% U.S. senior note at maturity in October 2025. This decrease was partially offset by approximately $365 of additional long-term principal borrowings under the project financing associated with the NEOM Green Hydrogen Project as discussed in Note 3, *Variable Interest Entities*, to the consolidated financial statements.

<u>Interest Rate Risk</u>

Our debt portfolio as of 31 December 2025, including the effect of currency and interest rate swap agreements, was composed of 92% fixed-rate debt and 8% variable-rate debt. Our debt portfolio as of 30 September 2025, including the effect of currency and interest rate swap agreements, was composed of 91% fixed-rate debt and 9% variable-rate debt. The decrease in variable-rate debt is primarily due to the maturity of interest rate swaps designated as fair value hedges during October 2025.

The sensitivity analysis related to the interest rate risk on the fixed portion of our debt portfolio assumes an instantaneous 100 bp parallel move in interest rates from the level at 31 December 2025, with all other variables held constant. A 100 bp increase in market interest rates would result in a decrease of $1,116 and $1,128 in the net liability position of financial instruments at 31 December 2025 and 30 September 2025, respectively. A 100 bp decrease in market interest rates would result in an increase of $1,276 and $1,290 in the net liability position of financial instruments at 31 December 2025 and 30 September 2025, respectively.

There were no material changes to the sensitivity analysis related to the variable portion of our debt portfolio since 30 September 2025.

<u>Foreign Currency Exchange Rate Risk</u>

The sensitivity analysis related to foreign currency exchange rates assumes an instantaneous 10% change in the foreign currency exchange rates from their levels at 31 December 2025, with all other variables held constant. A 10% strengthening or weakening of the functional currency of an entity versus all other currencies would result in a decrease or increase, respectively, of $750 and $565 in the net liability position of financial instruments at 31 December 2025 and 30 September 2025, respectively. The increase in sensitivity is primarily due to the origination of cross currency interest rate swaps between the U.S. Dollar and each of the Chinese Renminbi, South Korean Won, and New Taiwan Dollar.

**Item 4. Controls and Procedures**

*Disclosure Controls and Procedures*

We maintain a comprehensive set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Under the supervision of the Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our disclosure controls and procedures as of 31 December 2025. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of 31 December 2025, our disclosure controls and procedures were effective.

*Internal Control Over Financial Reporting*

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended 31 December 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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**PART II—OTHER INFORMATION**

**Item 1A. Risk Factors**

We are supplementing the risk factors described under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended 30 September 2025 with the additional risk factor set forth below.

**<u>The sale of our common stock could cause volatility in and otherwise adversely impact the price of our common stock.</u>**

The sale of a substantial number of shares of our common stock in the public market, or transactions by our directors or affiliated entities thereof, executive officers and significant stockholders, or the perception that these transactions might occur, could result in volatility in or otherwise adversely impact the price of our common stock. In this regard, Mantle Ridge LP, of which one of the Company's directors, Paul C. Hilal, is founder and chief executive officer, and certain of its affiliated entities (collectively, "Mantle Ridge") hold approximately 4.1 million shares of our common stock, representing approximately 1.8% of our outstanding shares. In January 2026 Mantle Ridge informed us that, pursuant to limited partner liquidity rights, it may effect distributions to its limited partners, either in kind or in cash funded by share sales, with respect to a significant percentage of its shares as early as the first half of calendar year 2026 and that it expects all such distributions to be completed no later than early 2028. To the extent that these investors receive shares of our common stock, they would be able to sell those shares at their discretion. We are unable to predict the specific timing of these transactions.

**Item 5. Other Information**

None of the Company's directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K) during the first quarter of fiscal year 2026.

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**Item 6. Exhibits**

(a) Exhibits required by Item 601 of Regulation S-K

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| | | |
|:---|:---|:---|
| | Exhibit No. | Description |
| | (3) | Articles of Incorporation and Bylaws |
| | 3.1 | <u>[Amended and Restated Bylaws of the Company, dated November 19, 2025 (incorporated herein by reference to Exhibit 3.2 to the Company's Annual Report on Form 10-K for the year ended September 30, 2025).](https://www.sec.gov/Archives/edgar/data/2969/000000296925000055/apd-exhibit32x30sep25.htm)</u> |
| | (10) | Material Contracts |
| | 10.1 | <u>[Form of Restricted Stock Unit Award Agreement under the Long-Term Incentive Plan of the Company, used for FY2026 Awards.](apd-exhibit101x31dec25.htm)</u><sup>†</sup> |
| | 10.2 | <u>[Form of Performance Stock Unit Award Agreement under the Long-Term Incentive Plan of the Company, used for FY2026 Awards.](apd-exhibit102x31dec25.htm)</u><sup>†\*</sup> |
| | (31) | Rule 13a-14(a)/15d-14(a) Certifications |
| | 31.1 | <u>[Certification by the Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](apd-exhibit311x31dec25.htm)</u> |
| | 31.2 | <u>[Certification by the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](apd-exhibit312x31dec25.htm)</u> |
| | (32) | Section 1350 Certifications |
| | 32.1 | <u>[Certification by the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](apd-exhibit321x31dec25.htm)</u> <sup>††</sup> |
| | (101) | Interactive Data Files |
| | 101.INS | Inline XBRL Instance Document. The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| | 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| | 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| | 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| | 104 | Cover Page Interactive Data File, formatted in Inline XBRL (included in Exhibit 101). |
| \* | Certain confidential portions of this exhibit were omitted by means of marking such portions with asterisks because the identified portions (i) are not material and (ii) would be competitively harmful if publicly disclosed. | Certain confidential portions of this exhibit were omitted by means of marking such portions with asterisks because the identified portions (i) are not material and (ii) would be competitively harmful if publicly disclosed. |
| † | Indicates management contract or compensatory arrangement. | Indicates management contract or compensatory arrangement. |
| †† | The certification attached as Exhibit 32.1 that accompanies this Quarterly Report on Form 10-Q is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Air Products and Chemicals, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing. | The certification attached as Exhibit 32.1 that accompanies this Quarterly Report on Form 10-Q is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Air Products and Chemicals, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing. |

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | |
|:---|:---|
| | Air Products and Chemicals, Inc. |
| (Registrant) | (Registrant) |
| By: | /s/ Melissa N. Schaeffer |
|  | Melissa N. Schaeffer<br>Executive Vice President and Chief Financial Officer<br>(Principal Financial Officer) |
| Date: | 30 January 2026 |

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## Exhibit 10.1

Exhibit 10.1

**Air Products and Chemicals, Inc. (the "Company")**

**Restricted Stock Unit Award Agreement**

Company Confidential Communication to: «Participant Name»

You have been granted a Restricted Stock Unit Award ("Award") under the Air Products and Chemicals, Inc. 2021 Long-Term Incentive Plan (the "Plan").

Your FY2026 Award consists of «Shares Granted» 4-Year Restricted Stock Units, each Unit being equivalent in value to one share of Common Stock.

Your FY2026 Restricted Stock Unit Award is subject to and contingent upon your agreement to the conditions described in Exhibit A and the terms described in Exhibit B (collectively, the "Conditions"). Please read the Conditions carefully, particularly the descriptions of the "Restrictive Covenants." This letter, together with its Exhibits, constitutes the agreement governing your FY2026 Restricted Stock Unit Award ("Award Agreement"). Your FY2026 Restricted Stock Unit Award is also at all times subject to the applicable provisions of the Plan and to any determinations made by the Administrator or its delegate, with respect to your FY2026 Restricted Stock Unit Award as contemplated or permitted by the Plan or the Conditions. By accepting this Award, you will be deemed to have accepted and agreed to the terms and conditions of the Award Agreement and the Plan.

None of your FY2026 Restricted Stock Unit Award, this Award Agreement or the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your FY2026 Restricted Stock Unit Award to vest, become exercisable, be earned or be paid out. Except as otherwise indicated all capitalized words used in this Award Agreement have the meanings described in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;WITNESSETH the due execution of this Award Agreement by the Company effective as of the 1st day of December 2025 and your acceptance of the Award Agreement intending to be legally bound hereby.

AIR PRODUCTS AND CHEMICALS, INC.

By:

![image_0b.jpg](image_0b.jpg)

Eduardo Menezes

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**EXHIBIT A**

**FY2026 AWARDS UNDER THE PLAN ARE SUBJECT TO THE FOLLOWING CONDITIONS:**

In the event the Company determines, in its sole discretion, that you have violated the restrictive covenants set forth in Paragraph 1 (the "Restrictive Covenants"), at any time during your employment, or within two years after termination of your employment from the Company, the Company shall be entitled to (i) preliminary and permanent injunctive relief, without the necessity of providing actual damages or posting of a bond, (ii) damages equal to an equitable accounting of all earnings, profits and other benefits arising from such violation of Paragraph 1, (iii) cancel, not deliver, modify, rescind, suspend, withhold, or otherwise limit or restrict any unexpired, unpaid, unexercised or deferred Awards outstanding under the Plan, and (iv) recoup the proceeds from any exercise, payment or delivery of an Award or any shares of Common Stock issued pursuant to an Award. In the event that the Company determines that you are subject to recoupment under these Restrictive Covenants, you shall repay the Company the amount determined by the Company, in such manner and on such terms as may be required by the Company, and the Company shall be entitled to set off against the amount due under this provision any amount owed to you by the Company (including by causing the cancellation of any outstanding incentive Award due to you).

1.<u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Definitions</u>. For purposes of this Paragraph 1, the following words shall have the following definitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"<u>Affiliate</u>" of a specified Person shall mean any Person which is under common control with the specified Person, or of which the specified Person is an executive officer, manager, trustee, executor or similar controlling Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)"<u>Company</u>" shall include Air Products and Chemicals, Inc. and the subsidiaries and Affiliates of Air Products and Chemicals, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)"<u>Business of the Company</u>" means the production, manufacturing and distribution of industrial gases, including atmospheric and process gases; the designing and manufacturing of equipment for the production, processing, purification distribution or storage of gases or for natural gas liquefaction; and any other line of business conducted, developed or being developed by the Company during your employment with the Company, in each case, in which you are or were involved during the course of your employment with the Company or about which you possess Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)"<u>Confidential Information</u>" means any non-public, proprietary confidential or trade secret information of the Company and/or its customers, including but not limited to, business processes, know-how, practices, methods,

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plans, research, operations, services, strategies, techniques, formulae, manuals, data, notes, diagrams, customer or vendor information, pricing or cost information, product plans, designs, experimental processes and inventions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)"<u>Person</u>" means any natural person, corporation, general partnership, limited partnership, limited liability company or partnership, joint venture, proprietorship or other business organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)"<u>Provide Services</u>" means to directly or indirectly, own, manage, control, or participate in the ownership, management or control of, or be employed or engaged by, participate in, serve on the board of directors of, consult with, contribute to, hold a security interest in, render services for, give advice to, provide assistance to or be otherwise affiliated or associated with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)"<u>Restricted Area</u>" means any country in which you worked during your employment with the Company, over which you had supervisory responsibility for the Business of the Company while employed by the Company, or with respect to which you have Confidential Information pertaining to the Business of the Company. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Acknowledgment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)You hereby expressly acknowledge and agree that the obligations in this Award Agreement are in addition to, and shall not supersede, the obligations you may have pursuant to other agreements with the Company, including, without limitation, your obligations under your Employee Patent and Confidential Information Agreement that you entered into when you were employed by the Company, which shall continue to apply in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)You acknowledge and agree that (A) the Business of the Company is intensely competitive and that your employment with the Company has required you to have access to, and knowledge of, Confidential Information, which is of vital importance to the success of the Business of the Company; (B) the use, disclosure or dissemination of any Confidential Information, except on behalf of the Company, could place the Company at a serious competitive disadvantage and could do serious damage, financial and otherwise, to the Business of the Company; and (C) the Company is engaged in business, and has customers, throughout the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)You further understand and acknowledge that the Company invests in customer relationships and as a result, has developed and will develop considerable goodwill with and among its customers. You agree that the Restrictive Covenants articulated herein are necessary to protect the

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Company's legitimate business interests in its Confidential Information and goodwill, and that the Company would not have provided the good and valuable consideration set forth in this Award Agreement in absence of such restrictions. You further understand and acknowledge that the Company will be irreparably harmed if you violate the Restrictive Covenants articulated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Confidential Information</u>. You agree that you have and will at all times hereafter, (A) treat all Confidential Information as strictly confidential; and (B) not directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any Person who is not authorized by the Company to know such Confidential Information in the furtherance of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Non-Disparagement</u>. During your employment by the Company and for two years after your employment with the Company terminates for any reason, you agree not to directly or indirectly make, or cause to be made, any statement, observation or opinion that disparages or impugns the business or reputation of the Company, its products, services, agents or employees. You understand that this Section 1(d) does not, in any way, restrict or impede me from (i) exercising my rights under Section 7 of the National Labor Relations Act (or any other protected rights) to the extent that such rights cannot be waived by agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Permitted Disclosures</u>. Pursuant to 18 U.S.C. § 1833(b), you understand that you will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to your attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. You understand that if you file a lawsuit for retaliation by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court proceeding if you (I) file any document containing the trade secret under seal, and (II) do not disclose the trade secret, except pursuant to court order. Nothing in this Award Agreement, or any other agreement you have with the Company, is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in this Award Agreement or any other agreement you have with the Company shall prohibit or restrict you from making any disclosure of information or documents to any governmental agency or legislative body, or any self-regulatory organization, in each case, without advance notice to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Return of Company Property</u>. You represent that upon request from the Company at any time and, without request, upon termination of your employment with the Company for any reason, you will deliver to the Company all memoranda, notes,

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records, manuals, or other documents, including all electronic or other copies of such materials and all documentation prepared or produced in connection therewith, containing Confidential Information, which is in your possession, custody and control, whether made or compiled by you or furnished to you by virtue of your employment with the Company. You further represent that you will deliver to the Company all vehicles, computers, credit cards, telephones, handheld electronic devices, office equipment and other property furnished to you by virtue of your employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Notice</u>. You agree that during your employment with the Company and for two years after your employment with the Company terminates for any reason (the "<u>Restricted Period</u>"), you will give the Company ten (10) business days' written notice of your intention to Provide Services to any other Person that engages in or is preparing to engage in the Business of the Company within the Restricted Area. Such written notice must provide sufficiently detailed information so as to allow the Company to determine if you will be in breach of this Award Agreement if you Provide Services to such other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Non-Competition</u>. During your employment by the Company and, unless you are an Excluded Service Provider, during the Restricted Period, you agree that you will not Provide Services to any Person, other than the Company, that engages in or is preparing to engage in the Business of the Company within the Restricted Area, unless (i) such other Person also engages in lines of business that are separate, distinct and divisible from the Business of the Company, (ii) you do not Provide Services, Confidential Information or strategy to the Business of the Company conducted by such other Person, and (iii) you do not attend meetings where the Business of the Company conducted by such other Person is discussed or where you could, even inadvertently, disclose Confidential Information. Your passive ownership of not more than one percent (1%) of the capital stock or other ownership or equity interest, or voting power, in a public company, registered under the Securities Exchange Act of 1934, as amended, shall not be deemed to be a violation of this paragraph. For the avoidance of doubt, if you are an Excluded Service Provider, as described in Section 1(l) below (Grantees in California and Certain Other Jurisdictions), this Section 1(h) applies to you while you are providing services to the Company and does not apply to you during the Restricted Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Non-Solicitation; Non-Interference</u>. During your employment by the Company and, unless you are an Excluded Service Provider, during the Restricted Period, you also agree that you will not, directly or indirectly without the prior written consent of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)solicit, encourage, induce, or attempt to solicit, encourage, or induce any person who is an employee, an officer, or a director of the Company, in each case, to terminate such relationship with the Company; or hire or engage, participate in the hiring or engagement of, or solicit or make an offer of employment or engagement to any employee, officer or director of

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the Company who was employed or engaged by the Company as of your last day of employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)on behalf of any Person engaged in the Business of the Company (other than the Company) solicit, contact, or attempt to solicit or contact any current, former or prospective customer of the Company whom you had contacted within the twenty-four (24) months prior to your last day of employment with the Company or about whom you have any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)encourage or persuade, or attempt to encourage or persuade any (A) customer of the Company, (B) potential customer of the Company during the last twenty-four (24) months of your employment with the Company with which or with whom you knew to be such a potential customer, or (C) prior customer of the Company, in each case, not to do business with the Company or to reduce the amount of business it is doing or might do in the future with or through the Company.

For the avoidance of doubt, if you are an Excluded Service Provider, as described in Section 1(l) below (Grantees in California and Certain Other Jurisdictions), this Section 1(i) applies to you while you are providing services to the Company and does not apply to you during the Restricted Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Tolling</u>. If you violate any of the terms of the Restrictive Covenant obligations articulated herein, the obligation at issue will run from the first date on which you cease to be in violation of such obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Successors and Assigns</u>. The Award Agreement (including this Paragraph 1) shall inure to the benefit of the successors and assigns of the Company. The Company may assign this Award Agreement (including this Paragraph 1), without your consent. You may not assign the Award Agreement (or the obligations set forth in this Paragraph 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Grantees in California and Certain Other Jurisdictions</u>. If you primarily reside and work in California or another jurisdiction that would render, at the time your service with the Company terminates, (i) the non-competition provision in Section 2(h) (Non-Competition), and/or (ii) the non-solicitation or non-interference provisions in Section 2(i) (Non-Solicitation; Non-Interference) unenforceable during the Restricted Period, you will be considered an "<u>Excluded Service Provider</u>." If you are an Excluded Service Provider, the non-competition restrictions described in Section 2(h) and/or the non-solicitation and non-interference provisions in Section 2(i), as applicable, shall not apply to you during the Restricted Period, except as provided in the next sentence. If you are an Excluded Service Provider, during the Restricted Period, to the fullest extent enforceable by law, you will not directly or indirectly solicit, or attempt to solicit, any employee or consultant of the Company, or any individual who was an

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employee or consultant of the Company within the six (6) months preceding such solicitation or attempt.

2.<u>Interpretation</u>. All determinations regarding the interpretation, construction, enforcement, waiver, or modification of this Award Agreement and/or the Plan shall be made in the Administrator's sole discretion and shall be final and binding. Determinations made under this Award Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly situated.

3.<u>Conflict</u>. If any of the terms of this Award Agreement in the opinion of the Administrator conflict or are inconsistent with any applicable law or regulation of any governmental agency having jurisdiction, the Administrator reserves the right to modify this Award Agreement to be consistent with applicable laws or regulations.

4.<u>Personal Data</u>. You understand and acknowledge that the Company holds certain personal information about you, including but not limited to your name, home address, telephone number, date of birth, social security number, salary, nationality, job title, and details of all Shares awarded, cancelled, vested, unvested, or outstanding (the "personal data"). Certain personal data may also constitute "sensitive personal data" within the meaning of applicable local law. Such data include but are not limited to the information provided above and any changes thereto and other appropriate personal and financial data about you. You hereby provide explicit consent to the Company to process any such personal data and sensitive personal data. You also hereby provide explicit consent to the Company to transfer any such personal data and sensitive personal data outside the country in which you are employed, and to the United States. The legal persons for whom such personal data are intended are the Company and any third party providing services to the Company in connection with the administration of the Plan.

5.<u>Plan Documents</u>. By accepting this award, you acknowledge having received and read this Award Agreement and the Plan, and you consent to receiving information and materials in connection with this Award or any subsequent awards under the Company's long-term performance plans, including without limitation any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without limitation by e-mail, by website access, and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you. This Award Agreement and the Plan, which is incorporated herein by reference, constitute the entire agreement between you and the Company regarding the terms and conditions of this Award.

6.<u>Jurisdiction; Governing Law</u>. Any action arising out of or related to this Award Agreement or the Plan shall be brought exclusively in the United States District Court for the Eastern District of Pennsylvania, or in any court of general jurisdiction in Allentown, Pennsylvania; you and the Company consent to personal jurisdiction in any such court and waive any objection to the laying of venue of any such suit, action or proceeding in any such court. This Award Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without reference to its

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principles of conflict/choice of law. You and the Company also irrevocably and unconditionally consent to the service of any process, pleadings, notices, or other papers with respect thereto. YOU AND THE COMPANY IRREVOCABLY AGREE TO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS AWARD AGREEMENT.

7.<u>Modification; Severability</u>. If any court of competent jurisdiction finds any provision of this Award Agreement, and particularly the covenants set forth in Paragraph 1, or portion thereof, to not be fully enforceable, it is the intention and desire of the parties that the provision be fully enforced to the extent the court finds them enforceable and, if necessary, that the court modify any provisions of this Award Agreement to the extent deemed necessary by the court to render them reasonable and enforceable and that the court enforce them to such extent. To the extent that such provisions cannot be modified, it is the intention of the parties that the provisions be severable and that the invalidity of any one or more provisions of this Award Agreement shall not affect the legality, validity and enforceability of the remaining provisions of this Award Agreement. If Paragraph 1 is unenforceable in its entirety, then this Award Agreement shall be considered null and void *ab initio*.

8.<u>Waiver</u>. The failure of the Company to enforce any terms, provisions or covenants of this Exhibit shall not be construed as a waiver of the same or of the right of the Company to enforce the same. Waiver by the Company of any breach or default by you of any term or provision of the Award Agreement (including these Restrictive Covenants) shall not operate as a waiver of any other breach or default.

9.<u>No Contract</u>. None of your FY2026 Restricted Stock Unit Awards, this Award Agreement, nor the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your Awards to vest or become exercisable.

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**EXHIBIT B**

**RESTRICTED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Grant of Restricted Stock Units.</u> Restricted Stock Units ("Units") are granted to you subject to the terms of the Plan, as amended from time to time, and the terms and conditions of this Award Agreement. The Units are "Deferred Stock Units" as described in Section 9 of the Plan. The Deferral Period for Units begins on 1 December 2025 and ends on 1 December 2029.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Payment of Restricted Stock Units</u>. Each Unit granted to you represents the value of one share of Common Stock. Subject to the conditions described in this Award Agreement, payment in respect of the Units will be delivered in shares of Common Stock, cash, or both, as determined by the Administrator or its delegate, in its sole discretion, as soon as administratively practical following the end of the Deferral Period (but in no event later than 60 days thereafter) or at such other time as is specified below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Dividend Equivalents</u>. No cash dividends or other amounts shall be payable with respect to the Units during the Deferral Period. For each Unit that vests under this Award Agreement, you will be entitled to receive a payment equal to the dividends which would have been paid with respect to a share of Common Stock during the Deferral Period without interest ("Dividend Equivalents"). Such Dividend Equivalents will be paid in cash or shares of Common Stock following the end of the Deferral Period (but in no event later than 60 days thereafter) or at such other time as is specified below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Termination of Employment</u>. Except as provided below (with respect to a qualifying "Involuntary Termination," as such term is defined below), if your employment by the Company and all of its affiliates is terminated for any reason prior to 1 December 2026 for any reason other than death or Disability, all of your Units will be automatically forfeited in their entirety. If your employment by the Company and all its affiliates terminates on or after 1 December 2026, but during the Deferral Period, other than due to death, Disability, Retirement or a termination by the Company without Cause, all of your Units will be automatically forfeited in their entirety. For purposes of this Award Agreement, (i) a termination without Cause by the Company during the Deferral Period shall be referred to as an "Involuntary Termination," and (ii) Cause shall have the meaning set forth in the Plan, provided that if the administrator of the Air Products and Chemicals, Inc. Executive Separation Program (the "Program") determines that you are eligible for the benefits of the Program, Cause shall have the meaning set forth in the Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Termination Upon Death or Disability</u>. If your employment by the Company and all its affiliates is terminated during the Deferral Period (including before 1 December 2026), due to death or Disability, you will vest in all of your Units.&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Retirement</u>. If your employment by the Company and all its affiliates is terminated on or after 1 December 2026, but during the Deferral Period, due to Retirement, you will vest in all of your Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Involuntary Termination</u>. If your employment is terminated at any time during the Deferral Period (including before 1 December 2026) due to Involuntary Termination and you execute a general release of claims in favor of the Company within 50 days following your termination in a form satisfactory to the Administrator (a "Release"), you will vest in a pro-rata portion of your Units (which portion shall be based on the number of full months you worked during the Deferral Period and the total number of months in the Deferral Period) and all of your remaining Units will be forfeited. If you do not execute a Release, all of your Units will be automatically forfeited in their entirety.

With respect to an Involuntary Termination that also meets the definition of Retirement: (i) if services to the Company are terminated before 1 December 2026, such termination of employment shall be deemed to be, and shall be treated as, an Involuntary Separation for purposes of this Award Agreement; and (ii) if services to the Company are terminated on or after 1December 2026 and prior to the end of the Deferral Period, such termination of employment shall be deemed to be, and shall be treated as, a Retirement for purposes of this Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Dividend Equivalents (in cases of Retirement, Involuntary Termination, Death, or Disability)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.In the event of your termination of employment due to Retirement on or after 1 December 2026 and prior to the end of the Deferral Period, payment in respect of the Units due to you and of related Dividend Equivalents shall be made as soon as administratively practical following the end of the Deferral Period (but in no event later than 60 days thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.If your employment by the Company and all its affiliates terminates during the Deferral Period due to Involuntary Termination, payment in respect of Units that have not been forfeited and of related Dividend Equivalents shall be made as soon as administratively practical following your termination (but in no event later than 60 days thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.If your employment by the Company and all its affiliates terminates at any time during the Deferral Period (including before 1 December 2026) due to death or Disability, payment in respect of Units due to you and of related Dividend Equivalents shall be made as soon as practicable following the end of the Deferral Period (but in no event later than 60 days thereafter) to you, or, in the event of death, your Designated Beneficiary or, if none, your legal representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Notwithstanding anything to the contrary above, if your employment by the Company and its affiliates is terminated and such termination constitutes a "Termination of Employment" within the meaning of the Program and the administrator of the Program

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determines you are entitled to the benefits of the Program, your outstanding Awards under this Agreement shall be treated in accordance with the Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Recoupment and Forfeiture</u>. This Award, and any proceeds hereunder, shall be subject to the terms of the Air Products and Chemicals, Inc. Compensation Recoupment Policy and Air Products and Chemicals, Inc. Supplemental Executive Officer Recoupment Policy (each a "Policy"), each as may be amended from time to time. By accepting this Award, you acknowledge that this Award, and proceeds hereunder, are subject to reimbursement, repayment, recoupment, or forfeiture pursuant to the terms of each Policy in the event of an accounting restatement or covered conduct under the terms of the applicable Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Taxes</u>. The Company shall have the right to deduct from all Awards hereunder paid or any payment in respect of an Award, any federal, state, local or foreign taxes required or permitted by law to be withheld. In the case of a payment in respect of Units made in Common Stock, the Company shall reduce number of the shares of Common Stock to be distributed by an amount with a value equal to the value of such taxes required or permitted to be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Adjustments</u>. In the event of any change in the outstanding shares of Common Stock of the Company or the occurrence of certain other events as described in Section 12 of the Plan, an equitable adjustment of the number of Units covered by this Award Agreement shall be made as provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Code section 409A</u>. It is intended that the provisions of this Award Agreement avoid the adverse consequences under section 409A of the Internal Revenue Code (the "Code"), and all provisions of the Award Agreement shall be construed and interpreted in a manner consistent with that intent. The Administrator reserves the right to make amendments to the Award Agreement as the Administrator deems necessary or desirable to avoid the imposition of taxes or penalties under section 409A of the Code. In any case, you shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on you or for your account in connection with an Award (including any taxes and penalties under section 409A of the Code), and neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold you harmless from any or all of such taxes or penalties.

## Exhibit 10.2

Exhibit 10.2

Certain portions of this exhibit were omitted by means of marking such portions with bracketed double asterisks because the identified confidential portions would be competitively harmful if publicly disclosed and they are the type of information that the registrant treats as private or confidential.

**Air Products and Chemicals, Inc. (the "Company")**

**Performance Share Award Agreement**

Company Confidential Communication to: «Participant Name»

You have been granted a Performance Share Award under the Air Products and Chemicals, Inc. 2021 Long-Term Incentive Plan (the "Plan").

Your FY2026 award consists of «Shares Granted» Deferred Stock Units with a three-year performance period, each unit (a "Performance Share") being equivalent in value to one share of Common Stock.

Your FY2026 Performance Share Award is subject to and contingent upon your agreement to the conditions described in <u>Exhibit A</u> and the terms described in <u>Exhibit B</u> (collectively, the "Conditions"). Please read the Conditions carefully, particularly the descriptions of the "Restrictive Covenants." This letter, together with its Exhibits, constitutes the agreement governing your FY2026 Performance Share Award ("Award Agreement"). Your FY2026 Performance Share Award is also at all times subject to the applicable provisions of the Plan and to any determinations made by the Administrator or its delegate, with respect to your FY2026 Performance Share Award as contemplated or permitted by the Plan or the Conditions. By accepting this award, you will be deemed to have accepted and agreed to the terms and conditions of the Award Agreement and the Plan.

None of your FY2026 Performance Share Award, this Award Agreement or the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your FY2026 Performance Share Award to vest, become exercisable, be earned or be paid out. Except as otherwise indicated all capitalized words used in this Award Agreement have the meanings described in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;WITNESSETH the due execution of this Award Agreement by the Company effective as of the 1<sup>st</sup> day of December 2025 and your acceptance of the Award Agreement intending to be legally bound hereby.

AIR PRODUCTS AND CHEMICALS, INC.

By:

![image_0b.jpg](image_0b.jpg)

Eduardo Menezes

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**EXHIBIT A**

**FY2026 AWARDS UNDER THE PLAN ARE SUBJECT TO THE FOLLOWING CONDITIONS:**

In the event the Company determines, in its sole discretion, that you have violated the restrictive covenants set forth in Paragraph 1 (the "Restrictive Covenants"), at any time during your employment, or within two years after termination of your employment from the Company, the Company shall be entitled to (i) preliminary and permanent injunctive relief, without the necessity of providing actual damages or posting of a bond, (ii) damages equal to an equitable accounting of all earnings, profits and other benefits arising from such violation of Paragraph 1, (iii) cancel, not deliver, modify, rescind, suspend, withhold, or otherwise limit or restrict any unexpired, unpaid, unexercised or deferred Awards outstanding under the Plan, and (iv) recoup the proceeds from any exercise, payment or delivery of an Award or any shares of Common Stock issued pursuant to an Award. In the event that the Company determines that you are subject to recoupment under these Restrictive Covenants, you shall repay the Company the amount determined by the Company in such manner and on such terms as may be required by the Company, and the Company shall be entitled to set off against the amount due under this provision any amount owed to you by the Company (including by causing the cancellation of any outstanding incentive Award due to you).

1.<u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>a.</u><u>Definitions</u>. For purposes of this Paragraph 1, the following words shall have the following definitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"<u>Affiliate</u>" of a specified Person shall mean any Person which is under common control with the specified Person, or of which the specified Person is an executive officer, manager, trustee, executor or similar controlling Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)"<u>Company</u>" shall include Air Products and Chemicals, Inc. and the subsidiaries and Affiliates of Air Products and Chemicals, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)"<u>Business of the Company</u>" means the production, manufacturing and distribution of industrial gases, including atmospheric and process gases; the designing and manufacturing of equipment for the production, processing, purification distribution or storage of gases or for natural gas liquefaction; and any other line of business conducted, developed or being developed by the Company during your employment with the Company, in each case, in which you are or were involved during the course of your employment with the Company or about which you possess Confidential Information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)"<u>Confidential Information</u>" means any non-public, proprietary confidential or trade secret information of the Company and/or its customers, including but not limited to, business processes, know-how, practices, methods, plans, research, operations, services, strategies, techniques, formulae, manuals, data, notes, diagrams, customer or vendor information, pricing or cost information, product plans, designs, experimental processes and inventions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)"<u>Person</u>" means any natural person, corporation, general partnership, limited partnership, limited liability company or partnership, joint venture, proprietorship or other business organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)"<u>Provide Services</u>" means to directly or indirectly, own, manage, control, or participate in the ownership, management or control of, or be employed or engaged by, participate in, serve on the board of directors of, consult with, contribute to, hold a security interest in, render services for, give advice to, provide assistance to or be otherwise affiliated or associated with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)"<u>Restricted Area</u>" means any country in which you worked during your employment with the Company, over which you had supervisory responsibility for the Business of the Company while employed by the Company, or with respect to which you have Confidential Information pertaining to the Business of the Company.

2.<u>Acknowledgment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.You hereby expressly acknowledge and agree that the obligations in this Award Agreement are in addition to, and shall not supersede, the obligations you may have pursuant to other agreements with the Company, including, without limitation, your obligations under your Employee Patent and Confidential Information Agreement that you entered into when you were employed by the Company, which shall continue to apply in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.You acknowledge and agree that (i) the Business of the Company is intensely competitive and that your employment with the Company has required you to have access to, and knowledge of, Confidential Information, which is of vital importance to the success of the Business of the Company; (ii) the use, disclosure or dissemination of any Confidential Information, except on behalf of the Company, could place the Company at a serious competitive disadvantage and could do serious damage, financial and otherwise, to the Business of the Company; and (iii) the Company is engaged in business, and has customers, throughout the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.You further understand and acknowledge that the Company invests in customer relationships and as a result, has developed and will develop

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considerable goodwill with and among its customers. You agree that the Restrictive Covenants articulated herein are necessary to protect the Company's legitimate business interests in its Confidential Information and goodwill, and that the Company would not have provided the good and valuable consideration set forth in this Award Agreement in absence of such restrictions. You further understand and acknowledge that the Company will be irreparably harmed if you violate the Restrictive Covenants articulated herein.

3.<u>Confidential Information</u>. You agree that you have and will at all times hereafter, (A) treat all Confidential Information as strictly confidential; and (B) not directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any Person who is not authorized by the Company to know such Confidential Information in the furtherance of the Company's business.

4.<u>Non-Disparagement</u>. During your employment by the Company and for two years after your employment with the Company terminates for any reason, you agree not to directly or indirectly make, or cause to be made, any statement, observation or opinion that disparages or impugns the business or reputation of the Company, its products, services, agents or employees. You understand that this Section 1(d) does not, in any way, restrict or impede me from (i) exercising my rights under Section 7 of the National Labor Relations Act (or any other protected rights) to the extent that such rights cannot be waived by agreement.

5.<u>Permitted Disclosures</u>. Pursuant to 18 U.S.C. § 1833(b), you understand that you will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to your attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. You understand that if you file a lawsuit for retaliation by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court proceeding if you (I) file any document containing the trade secret under seal, and (II) do not disclose the trade secret, except pursuant to court order. Nothing in this Award Agreement, or any other agreement you have with the Company, is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in this Award Agreement or any other agreement you have with the Company shall prohibit or restrict you from making any disclosure of information or documents to any governmental agency or legislative body, or any self-regulatory organization, in each case, without advance notice to the Company.

6.<u>Return of Company Property</u>. You represent that upon request from the Company at any time and, without request, upon termination of your employment with the Company for any reason, you will deliver to the Company all memoranda, notes, records, manuals, or other documents, including all electronic or other copies of such materials and all

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documentation prepared or produced in connection therewith, containing Confidential Information, which is in your possession, custody and control, whether made or compiled by you or furnished to you by virtue of your employment with the Company. You further represent that you will deliver to the Company all vehicles, computers, credit cards, telephones, handheld electronic devices, office equipment and other property furnished to you by virtue of your employment with the Company.

7.<u>Notice</u>. You agree that during your employment with the Company and for two years after your employment with the Company terminates for any reason (the "Restricted Period"), you will give the Company 10 business days' written notice of your intention to Provide Services to any other Person that engages in or is preparing to engage in the Business of the Company within the Restricted Area. Such written notice must provide sufficiently detailed information so as to allow the Company to determine if you will be in breach of this Award Agreement if you Provide Services to such other Person.

8.<u>Non-Competition</u>. During your employment by the Company and, unless you are an Excluded Service Provider, during the Restricted Period, you agree that you will not Provide Services to any Person, other than the Company, that engages in or is preparing to engage in the Business of the Company within the Restricted Area, unless (i) such other Person also engages in lines of business that are separate, distinct and divisible from the Business of the Company, (ii) you do not Provide Services, Confidential Information or strategy to the Business of the Company conducted by such other Person, and (iii) you do not attend meetings where the Business of the Company conducted by such other Person is discussed or where you could, even inadvertently, disclose Confidential Information. Your passive ownership of not more than one percent (1%) of the capital stock or other ownership or equity interest, or voting power, in a public company, registered under the Securities Exchange Act of 1934, as amended, shall not be deemed to be a violation of this paragraph. For the avoidance of doubt, if you are an Excluded Service Provider, as described in Section 1(l) below (Grantees in California and Certain Other Jurisdictions), this Section 1(h) applies to you while you are providing services to the Company and does not apply to you during the Restricted Period.

9.<u>Non-Solicitation; Non-Interference</u>. During your employment by the Company and, unless you are an Excluded Service Provider, during the Restricted Period, you also agree that you will not, directly or indirectly without the prior written consent of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.solicit, encourage, induce, or attempt to solicit, encourage, or induce any person who is an employee, an officer, or a director of the Company, in each case, to terminate such relationship with the Company; or hire or engage, participate in the hiring or engagement of, or solicit or make an offer of employment or engagement to any employee, officer or director of the Company who was employed or engaged by the Company as of your last day of employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.on behalf of any Person engaged in the Business of the Company (other than the Company) solicit, contact, or attempt to solicit or contact any current, former or prospective customer of the Company whom you had contacted

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within the 24 months prior to your last day of employment with the Company or about whom you have any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.encourage or persuade, or attempt to encourage or persuade any (A) customer of the Company, (B) potential customer of the Company during the last 24 months of your employment with the Company with which or with whom you knew to be such a potential customer, or (C) prior customer of the Company, in each case, not to do business with the Company or to reduce the amount of business it is doing or might do in the future with or through the Company.

For the avoidance of doubt, if you are an Excluded Service Provider, as described in Section 1(l) below (Grantees in California and Certain Other Jurisdictions), this Section 1(i) applies to you while you are providing services to the Company and does not apply to you during the Restricted Period.

10.<u>Tolling</u>. If you violate any of the terms of the Restrictive Covenant obligations articulated herein, the obligation at issue will run from the first date on which you cease to be in violation of such obligation.

11.<u>Successors and Assigns</u>. The Award Agreement (including this Paragraph 1) shall inure to the benefit of the successors and assigns of the Company. The Company may assign this Award Agreement (including this Paragraph 1), without your consent. You may not assign the Award Agreement (or the obligations set forth in this Paragraph 1).

12.<u>Grantees in California and Certain Other Jurisdictions</u>. If you primarily reside and work in California or another jurisdiction that would render, at the time your service with the Company terminates, (i) the non-competition provision in Section 2(h) (Non-Competition), and/or (ii) the non-solicitation or non-interference provisions in Section 2(i) (Non-Solicitation; Non-Interference) unenforceable during the Restricted Period, you will be considered an "<u>Excluded Service Provider</u>." If you are an Excluded Service Provider, the non-competition restrictions described in Section 2(h) and/or the non-solicitation and non-interference provisions in Section 2(i), as applicable, shall not apply to you during the Restricted Period, except as provided in the next sentence. If you are an Excluded Service Provider, during the Restricted Period, to the fullest extent enforceable by law, you will not directly or indirectly solicit, or attempt to solicit, any employee or consultant of the Company, or any individual who was an employee or consultant of the Company within the six (6) months preceding such solicitation or attempt.

13.<u>Interpretation</u>. All determinations regarding the interpretation, construction, enforcement, waiver, or modification of this Award Agreement and/or the Plan shall be made in the Administrator's sole discretion and shall be final and binding. Determinations made under this Award Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly situated.

14.<u>Conflict</u>. If any of the terms of this Award Agreement in the opinion of the Administrator conflict or are inconsistent with any applicable law or regulation of any

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governmental agency having jurisdiction, the Administrator reserves the right to modify this Award Agreement to be consistent with applicable laws or regulations.

15.<u>Personal Data</u>. You understand and acknowledge that the Company holds certain personal information about you, including but not limited to your name, home address, telephone number, date of birth, social security number, salary, nationality, job title, and details of all Shares awarded, cancelled, vested, unvested, or outstanding (the "personal data"). Certain personal data may also constitute "sensitive personal data" within the meaning of applicable local law. Such data include but are not limited to the information provided above and any changes thereto and other appropriate personal and financial data about you. You hereby provide explicit consent to the Company to process any such personal data and sensitive personal data. You also hereby provide explicit consent to the Company to transfer any such personal data and sensitive personal data outside the country in which you are employed, and to the United States. The legal persons for whom such personal data are intended are the Company and any third party providing services to the Company in connection with the administration of the Plan.

16.<u>Plan Documents</u>. By accepting this award, you acknowledge having received and read this Award Agreement and the Plan, and you consent to receiving information and materials in connection with this Award or any subsequent awards under the Company's long-term performance plans, including without limitation any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without limitation by e-mail, by website access, and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you. This Award Agreement and the Plan, which is incorporated herein by reference, constitute the entire agreement between you and the Company regarding the terms and conditions of this Award.

17.<u>Jurisdiction; Governing Law</u>. Any action arising out of or related to this Award Agreement or the Plan shall be brought exclusively in the United States District Court for the Eastern District of Pennsylvania, or in any court of general jurisdiction in Allentown, Pennsylvania; you and the Company consent to personal jurisdiction in any such court and waive any objection to the laying of venue of any such suit, action or proceeding in any such court. This Award Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without reference to its principles of conflict/choice of law. You and the Company also irrevocably and unconditionally consent to the service of any process, pleadings, notices, or other papers with respect thereto. YOU AND THE COMPANY IRREVOCABLY AGREE TO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS AWARD AGREEMENT.

18.<u>Modification; Severability</u>. If any court of competent jurisdiction finds any provision of this Award Agreement, and particularly the covenants set forth in Paragraph 1, or portion thereof, to not be fully enforceable, it is the intention and desire of the parties that the provision be fully enforced to the extent the court finds them enforceable and, if necessary, that the court modify any provisions of this Award Agreement to the extent

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deemed necessary by the court to render them reasonable and enforceable and that the court enforce them to such extent. To the extent that such provisions cannot be modified, it is the intention of the parties that the provisions be severable and that the invalidity of any one or more provisions of this Award Agreement shall not affect the legality, validity and enforceability of the remaining provisions of this Award Agreement. If Paragraph 1 is unenforceable in its entirety, then this Award Agreement shall be considered null and void *ab initio*.

19.<u>Waiver</u>. The failure of the Company to enforce any terms, provisions or covenants of this Exhibit shall not be construed as a waiver of the same or of the right of the Company to enforce the same. Waiver by the Company of any breach or default by you of any term or provision of the Award Agreement (including these Restrictive Covenants) shall not operate as a waiver of any other breach or default.

20.<u>No Contract</u>. None of your FY2026 Performance Share Awards, this Award Agreement, nor the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your Awards to vest or become exercisable.

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**EXHIBIT B**

**PERFORMANCE SHARES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>1.</u><u>Grant of Performance Shares</u>. Performance Shares are granted to you subject to the terms of the Plan, as amended from time to time and the terms and conditions described in this Award Agreement. The Performance Shares are "Deferred Stock Units" as described in Section 9 of the Plan. The Deferral Period begins on 1 December 2025 and ends on 1 December 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>2.</u><u>Payment of Deferred Stock Units</u>. The Performance Shares granted to you will be earned in accordance with the formula indicated in Attachment I based on Air Products' relative "Total Shareholder Return"(TSR) in relation to the "TSR comparator group" and Air Products' Return on Capital (ROC) over the three fiscal year performance period beginning 1 October 2025 and ending 30 September 2028 (the "Performance Period") as such terms are defined in Attachment I. Each factor, relative Total Shareholder Return and Return on Capital will be weighted at 50% (equal weighting). Subject to the conditions described in this Award Agreement, Performance Shares earned and not forfeited (including in the event of your termination of employment during the Deferral Period) shall be paid in shares of Common Stock, cash, or both, as determined by the Administrator or its delegate, in its sole discretion, as soon as administratively practical following the end of the Deferral Period (but in no event later than 60 days thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>3.</u><u>Dividends</u>. No cash dividends or other amounts shall be payable with respect to the Performance Shares during the Deferral Period. For each earned Performance Share that vests under this Award Agreement, you will be entitled to receive a payment equal to the dividends which would have been paid with respect to a share of Common Stock during the Deferral Period without interest ("Dividend Equivalents"). Such Dividend Equivalents will be paid in cash or shares of Common Stock following the end of the Deferral Period (but in no event later than 60 days thereafter) or at such other time as is specified below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>4.</u><u>Termination of Employment</u>. Except as provided below (with respect to a qualifying "Involuntary Termination" as such term is defined below), if your employment by the Company and all of its affiliates is terminated for any reason prior to 1 December 2026 for any reason other than death or Disability, all of your Performance Shares will be automatically forfeited in their entirety. If your employment by the Company and all its affiliates terminates on or after 1 December 2026, but during the Deferral Period, other than due to death, Disability, Retirement or a termination by the Company without Cause, all of your Performance Shares will be automatically forfeited in their entirety. For purposes of this Award Agreement, (i) a termination without Cause by the Company during the Deferral Period shall be referred to as an "Involuntary Termination," and (ii) Cause shall have the meaning set forth in the Plan, provided that if the administrator of the Air Products and Chemicals, Inc. Executive Separation Program (the "Program") determines that you are eligible for the benefits of the Program, Cause shall have the meaning set forth in the Program.<br>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Death or Disability</u>. If your employment by the Company and all its affiliates is terminated during the Deferral Period (including before 1 December 2026), due to death or Disability, you will vest in a pro-rata portion of your earned Performance Shares, based on actual financial performance, as determined by the Administrator in its sole discretion, (which portion in each case shall be based on the number of full months you worked during the Performance Period before your termination of employment *divided by* 36) and your remaining Performance Shares will be forfeited. If your employment by the Company and all its affiliates terminates at any time during the Deferral Period (including before 1 December 2026) due to death or Disability, payment in respect of earned Performance Shares that have not been forfeited and of related Dividend Equivalents shall be made, as soon as practicable following the end of the Deferral Period (but in no event later than 60 days thereafter), to you, or, in the event of death, your Designated Beneficiary or, if none, your legal representative.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Retirement</u>. If your employment by the Company and all its affiliates is terminated on or after 1 December 2026, but during the Deferral Period, due to Retirement, you will vest in a pro-rata portion of your earned Performance Shares, based on actual financial performance, as determined by the Administrator in its sole discretion, (which portion in each case shall be based on the number of full months you worked during the Performance Period before your termination of employment *divided by* 36) and your remaining Performance Shares will be forfeited. In the event of your termination of employment due to Retirement on or after 1 December 2026 and prior to the end of the Deferral Period, payment in respect of the Performance Shares due to you and of related Dividend Equivalents shall be made as soon as administratively practical following the end of the Deferral Period (but in no event later than 60 days thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>5.</u><u>Involuntary Termination</u>. If your employment is terminated at any time during the Deferral Period (including before 1 December 2026) due to Involuntary Termination and you execute a general release of claims in favor of the Company within 50 days following your termination in a form satisfactory to the Administrator (a "Release"), you will vest in a pro-rata portion of your earned Performance Shares, based on actual financial performance, as determined by the Administrator in its sole discretion, (which portion shall be based on the number of full months you worked during the Performance Period before your termination of employment *divided by* 36) and all of your remaining Performance Shares will be forfeited. If you do not execute a Release, all of your Performance Shares will be automatically forfeited in their entirety. With respect to an Involuntary Termination that also meets the definition of Retirement: (i) if services to the Company are terminated before 1 December 2026, such termination of employment shall be deemed to be, and shall be treated as, an Involuntary Separation for purposes of this Award Agreement; and (ii) if services to the Company are terminated on or after 1 December 2026 and prior to the end of the Deferral Period, such termination of employment shall be deemed to be, and shall be treated as, a Retirement for purposes of this Award Agreement. If your employment by the Company and all its affiliates terminates at any time during the Deferral Period due to Involuntary Termination,

------

payment in respect of Performance Shares that have not been forfeited and of related Dividend Equivalents shall be made as soon as administratively practical following the end of the Deferral Period (but in no event later than 60 days thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>6.</u>Notwithstanding anything to the contrary above, if your employment by the Company and its affiliates is terminated and such termination constitutes a "Termination of Employment" within the meaning of the Program and the administrator of the Program determines you are entitled to the benefits of the Program, your outstanding Awards under this Agreement shall be treated in accordance with the Program. <sup></sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>7.</u><u>Recoupment and Forfeiture</u>. This award, and any proceeds hereunder, shall be subject to the terms of the Air Products and Chemicals, Inc. Compensation Recoupment Policy and Air Products and Chemicals, Inc. Supplemental Executive Officer Recoupment Policy (each a "Policy"), each as may be amended from time to time. By accepting this award, you acknowledge that this award, and proceeds hereunder, are subject to reimbursement, repayment, recoupment, or forfeiture pursuant to the terms of each Policy in the event of an accounting restatement or covered conduct under the terms of the applicable Policy.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>8.</u><u>Taxes</u>. The Company shall have the right to deduct from all Awards hereunder paid or any payment in respect of an Award, any federal, state, local or foreign taxes required or permitted by law to be withheld. In the case of a payment in respect of Performance Shares made in Common Stock, the Company shall reduce number of the shares of Common Stock to be distributed by an amount with a value equal to the value of such taxes required or permitted to be withheld.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>9.</u>Adjustments. In the event of any change in the outstanding shares of Common Stock of the Company or the occurrence of certain other events as described in Section 12 of the Plan, an equitable adjustment of the number of Performance Shares covered by this Award Agreement shall be made as provided in the Plan. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>10.</u><u>Code section 409A</u>. It is intended that the provisions of this Award Agreement avoid the adverse consequences under section 409A of the Internal Revenue Code (the "Code"), and all provisions of the Award Agreement shall be construed and interpreted in a manner consistent with that intent. The Administrator reserves the right to make amendments to the Award Agreement as the Administrator deems necessary or desirable to avoid the imposition of taxes or penalties under section 409A of the Code. In any case, you shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on you or for your account in connection with an Award (including any taxes and penalties under section 409A of the Code), and neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold you harmless from any or all of such taxes or penalties.

------

**ATTACHMENT I**

**<u>FY2026-2028 Performance Share Payout Schedule</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Performance Shares Earned. For the avoidance of doubt, capitalized terms that are otherwise not defined in this Attachment will have the same definition as in the Award Agreement. The number of Performance Shares earned will be determined in accordance with the following formula:

<u>(PERFORMANCE SHARES AWARDED) x (PAYOUT FACTOR) =(PERFORMANCE SHARES EARNED)</u>

The Payout Factor is determined as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Total Shareholder Return (TSR) Goal<br> (50% Weight) | <br>+ | Return on Capital Goal <br>(50% Weight) | <br>= | Payout<br>Factor\* |

---

\*The Committee may increase or decrease the initial (scored) Payout Factor by 15 percentage points for other financial or non-financial performance (Committee Discretion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The <u>TSR (Total Shareholder Return) Payout Factor</u> (50% of the payout) is based on the Company's TSR Percentile Rank among the TSR comparator group for the Performance Period. The TSR Payout Factor is determined in accordance with the following schedule:

---

| | |
|:---|:---|
| Company's TSR Percentile Rank | TSR Payout Factor\* |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>></u> 75<sup>th</sup> %ile | &nbsp;&nbsp;&nbsp;&nbsp;200% |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>></u> 55<sup>th</sup> %ile | &nbsp;&nbsp;&nbsp;&nbsp;100% |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>></u> 30<sup>th</sup> %ile | &nbsp;&nbsp;&nbsp;&nbsp;30% |
| &nbsp;&nbsp;&nbsp;&nbsp;< 30<sup>th</sup> %ile | &nbsp;&nbsp;&nbsp;&nbsp;0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;\*Interpolate between points on the payout schedule

If the absolute TSR performance for the 3-year performance period is negative, the initial payout factor based on the Company's TSR Percentile Rank among the TSR comparator group will be capped at 100%.

------

The TSR Payout Factor will be interpolated for TSR Percentile Rank between discrete points, from a minimum Initial Payout Factor of 30 percentage points to a maximum Initial Payout Factor of 200 percentage points

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Definitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Beginning Price</u> means, with respect to the Company's and any other TSR comparator group company's common stock, the average of the closing sale prices of a share of such common stock on the principal exchange on which such stock is traded for the thirty (30) calendar days preceding the first day of the of the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Ending Price</u> means, with respect to the Company's and any other TSR comparator group company's common stock, the average of the closing sale prices of a share of such company's common stock on the principal exchange on which such stock is traded for thirty (30) calendar days ending with the last day of the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.<u>TSR Comparator Group</u> for purposes of calculating the TSR Percentile Rank, shall be a fixed group of the companies that comprise the S&P Industrials index and the S&P Materials index at the beginning of the Performance Period (*i.e.*, 1 October 2025), subject to the modifications described below. The TSR Comparator Group will be modified to reflect merger and acquisition activity during the Performance Period. If an S&P Industrials and S&P Materials constituent is acquired during the Performance Period, they will be removed from the index when calculating the payout. If an S&P Industrials or S&P Materials constituent has a spin, the RemainCo stays when calculating the payout, and SpinCo will be treated as a dividend. If an S&P Industrials or S&P Materials constituent goes bankrupt during the Performance Period, the company will remain in the comparator group, ranked at the bottom.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.<u>Total Shareholder Return</u> or <u>TSR</u> shall be the percent increase/decrease in value that would be experienced from purchasing a share of the Company's or a TSR comparator group company's common stock at the Beginning Price and holding it for the Performance Period and selling at the Ending Price of such a share, assuming that dividends and other distributions are reinvested in additional shares of such stock at the closing market price on the ex-dividend date. Any non-cash distributions shall be valued at market value that shall be determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.<u>TSR Rank</u> means the ranking of the Company's TSR among the TSRs for the TSR Comparator Group companies for the Performance Period. TSR Rank is determined by ordering the TSR comparator group companies and the Company from highest to lowest based on TSR for the Performance Period and counting

------

down from the company with the highest TSR (ranked first) to the Company's position on the list. If two companies are ranked equally, the ranking of the next company shall account for the tie, so that if one company is ranked first, and two companies are tied for second, the next company is ranked fourth. In the event of any ambiguity, the determination of the Committee shall be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.TSR Percentile Rank. The TSR Percentile Rank will be determined as follows:

The n<sup>th</sup> ranked company out of the N companies (including Air Products) would have the following TSR Percentile Rank

TSR Percentile Rank = *(N minus n) divided by (N minus 1)* 

*(N - n)* <br> *(N - 1)*

For illustrative purposes, if Air Products ranked 5<sup>th</sup> out of 16 companies, its TSR Percentile Rank would be 73.3% ((16-5)/(16-1)), which would give an Initial Payout Factor of 191.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The <u>Return on Capital Payout Factor</u> (50% of the payout) is based on the Company's 3-year annual average Return on Capital (ROC) for the FY26-FY28 performance period. The payout for the ROC factor will be based on the following payout schedule:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;3YR Average<br>Return on Capital | &nbsp;&nbsp;&nbsp;&nbsp;ROC Payout Factor\* |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>></u> [\*\*]% | &nbsp;&nbsp;&nbsp;&nbsp;200% |
| &nbsp;&nbsp;&nbsp;&nbsp;[\*\*]% | &nbsp;&nbsp;&nbsp;&nbsp;100% |
| &nbsp;&nbsp;&nbsp;&nbsp;[\*\*]% | &nbsp;&nbsp;&nbsp;&nbsp;50% |
| &nbsp;&nbsp;&nbsp;&nbsp;< [\*\*]% | &nbsp;&nbsp;&nbsp;&nbsp;0% |

---

\*Interpolate between points on the payout schedule

The ROC Payout Factor will be interpolated for ROC between discrete points, from a minimum ROC Payout Factor of 50 percentage points to a maximum ROC Payout Factor of 200 percentage points.

## Exhibit 31.1

Exhibit 31.1

**<u>PRINCIPAL EXECUTIVE OFFICER'S CERTIFICATION</u>**

I, Eduardo F. Menezes, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report of Air Products and Chemicals, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 30 January 2026

---

| |
|:---|
| /s/ Eduardo F. Menezes |
| Eduardo F. Menezes |
| Chief Executive Officer and Director |

---

## Exhibit 31.2

Exhibit 31.2

**<u>PRINCIPAL FINANCIAL OFFICER'S CERTIFICATION</u>**

I, Melissa N. Schaeffer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report of Air Products and Chemicals, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 30 January 2026

---

| |
|:---|
| /s/ Melissa N. Schaeffer |
| Melissa N. Schaeffer |
| Executive Vice President and Chief Financial Officer |

---

## Exhibit 32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Air Products and Chemicals, Inc. (the "Company") on Form 10-Q for the period ending 31 December 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, Eduardo F. Menezes, Chief Executive Officer of the Company, and Melissa N. Schaeffer, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| | /s/ Eduardo F. Menezes |
| Date: 30 January 2026 | Eduardo F. Menezes |
| | Chief Executive Officer and Director |
| | /s/ Melissa N. Schaeffer |
| | Melissa N. Schaeffer |
| | Executive Vice President and Chief Financial Officer |

---

<br>