Key Takeaways:
- GAAP loss per share of $6.47 on $2.1B in business and asset charges
- Adjusted EPS of $3.47 exceeded guidance; full-year view raised to $13.39-$13.49
- Company canceled Louisiana clean energy and Arizona hydrogen projects
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Air Products posts $6.47 loss on $2.1B charge, lifts adjusted EPS view
Air Products reported a GAAP loss per share of $6.47 on $2.1 billion in charges, while adjusted earnings topped guidance.
"The results reflect our decisive actions to optimize the project portfolio while continuing to execute on our core industrial gas business," the company said in its earnings release.
The company recorded $2.1 billion in operating losses during its fiscal third quarter, driven by charges for business and asset actions announced June 30. Adjusted operating income came in at $810 million, with adjusted EPS of $3.47 exceeding the top end of the company's guidance range.
Air Products raised its fiscal 2026 full-year adjusted EPS guidance to $13.39 to $13.49, up from its prior range. For the fiscal fourth quarter, the company expects adjusted EPS of $3.55 to $3.65. Capital expenditures for the year are expected at approximately $3.5 billion.
The company also announced it will not proceed with the Louisiana Clean Energy Complex and is discontinuing its zero-carbon liquid hydrogen facility in Casa Grande, Arizona, along with other smaller-scale clean energy distribution projects. On the growth side, Air Products finalized a marketing and distribution agreement with Yara for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia. Separately, Air Products San Fu signed a long-term agreement to build, own and operate four large air separation units, bulk gas supply systems and new underground pipeline systems supporting a semiconductor manufacturer's expansion in Taiwan.
The strategic pivot away from large-scale US clean energy projects while advancing the NEOM venture shows a shift in capital allocation toward international hydrogen opportunities. Investors will watch the Q4 earnings call for further details on the company's revised project portfolio and the timeline for the Taiwan semiconductor expansion.
This article is for informational purposes only and does not constitute investment advice.
