Stored helium supports longer contracts
The Middle East conflict has taken roughly one-third of global helium production capacity offline. On Air Products' fiscal 2026 fourth-quarter earnings call, reported November 5, 2026, Menezes said the company was not counting on availability recovering in the near term.
Air Products' dedicated storage cavern in Texas can meet about 40% to 50% of the company's helium needs for many quarters, Menezes said. He attributed customers' willingness to make long-term commitments to that supply cushion.
Some new agreements pair helium supply with contracts for new on-site oxygen and nitrogen plants. Menezes said the helium commitments can cover the air separation plant's entire operating life, reaching 15 years—a contract structure the company had not previously seen.
Allocations and surcharges elsewhere in the market
Other suppliers have restricted deliveries. According to a May 2026 explainer from WestAir Gases, Airgas declared force majeure on helium shipments effective March 17, 2026. The major industrial gas supplier was prioritizing healthcare customers and expected some clients to receive no more than 50% of their normal monthly allocations.
Airgas also added $13.50 per hundred cubic feet to contracted prices. WestAir Gases reported that helium spot prices had risen by 40% to 100% since the crisis began.
Fiscal 2027 outlook includes first-quarter pressure
CFO Melissa Schaeffer said helium represented a 3% headwind to Air Products' fiscal 2026 results. The company expects helium's overall effect on fiscal 2027 results to be neutral, although lower pricing under a contract renewal with strategic customers is expected to weigh on the first quarter.
Schaeffer also said Air Products will begin using average costing for its helium inventory in fiscal 2027. The accounting change is expected to create a modest non-cash headwind.
