Air Products and Chemicals Inc

F:AP3

EPS beat: Air Products reported third-quarter EPS of $3.47, up 12% year over year and above guidance, helped by stronger volumes, higher equity affiliate income and better-than-expected helium performance.

Guidance raised: Management lifted full-year fiscal 2026 EPS guidance to $13.39 to $13.49, implying 11% to 12% growth, and now expects fourth-quarter EPS of $3.55 to $3.65.

Project cleanup: The company exited the Louisiana project and other smaller clean energy distribution projects, taking a pretax charge of $2.9 billion this quarter while looking to recover value from the assets.

NEOM clarity: Air Products said the Yara marketing and distribution agreement on NEOM renewable ammonia removes volume risk, while 2027 is expected to have no gain or loss and no material financial impact.

Capital discipline: Capex guidance was cut to about $3.5 billion for fiscal 2026, mainly because of timing, lower maintenance and canceled projects, while the company still sees share buybacks starting toward the end of 2027 or early 2028.

Demand mix: Electronics and on-site volumes were the strongest drivers, while Europe remained weak, helium pricing was still a headwind, and management described the overall macro backdrop as uncertain.