Air Products Raises Annual Forecast Despite Project Exit Charges
The industrial gas maker raised its full-year adjusted earnings per share guidance to a range of $13.39 to $13.49
Air Products & Chemicals (APD) reported third-quarter adjusted earnings per share of $3.47, exceeding the top end of its previous guidance.
The industrial gas maker faced a sharp divergence between its adjusted performance and GAAP results this quarter. The company reported a GAAP operating loss of $2.1 billion and a loss per share of $6.47, both declines of over 300% year-over-year. These results were driven by $2.9 billion in pre-tax charges related to project exits.
On an adjusted basis, the company saw growth across key metrics. Third-quarter sales rose 5% year-over-year to $3.2 billion, attributed to 3% higher volumes, 1% higher pricing, and 1% in favorable currency. Adjusted operating income increased 9% year-over-year to $810 million, while the adjusted operating margin expanded 110 basis points to 25.6%.
Regional performance varied by geography. The Asia segment saw sales increase 9% year-over-year to $886 million, with operating margin expanding 210 basis points to 28.9%. In the Americas, sales rose 5% year-over-year to $1.3 billion and operating margin increased 20 basis points to 29.9%.
Europe reported a 6% increase in sales to $816 million, though operating margin decreased 90 basis points to 28.3%. This margin decline included a 50-basis-point headwind from energy cost pass-through. Income from Middle East and India equity affiliates rose 18% year-over-year to $101 million.
Air Products updated its full-year fiscal 2026 outlook, raising adjusted EPS guidance to a range of $13.39 to $13.49. The company also updated its full-year capital expenditures guidance to approximately $3.5 billion.
The GAAP losses stemmed from a series of project portfolio optimizations announced June 30, 2026. These included the decision to not proceed with the Louisiana Clean Energy Complex and the discontinuation of a zero-carbon liquid hydrogen facility in Casa Grande, Arizona.