Air Products & Chemicals Inc.

Q3 FY26 results beat expectations (good): - Operating income +9% YoY; operating margin 25.6% (up 100 bps), driven by volume & price improvement partially offset by higher costs (fixed cost inflation). - EPS $3.47 (+12% YoY), above guidance range, helped by better volume and stronger equity affiliate contributions. - Volume tailwinds: higher on-site results, new assets onstream (Asia/Americas), and helium (headwind 2%, better than expected 3% guidance). - Return on capital 11.7% (up 60 bps YoY; improved sequentially).

Full-year outlook raised (good): - Company raised FY26 EPS guidance to $13.39–$13.49, implying +11% to +12% full-year growth (about +14% EPS growth YTD). - Q4 EPS guide $3.55–$3.65 (+5% to +8% YoY), assuming continued benefits from new assets, pricing, and productivity. - Caution remains due to macro uncertainty and ongoing helium headwind risk (expected to persist from lower price).

Capital discipline + major project cancellations (bad/major negative): - Announced decision to exit Louisiana project (Casa Grande, AZ, and smaller clean energy distribution projects); recorded a $2.9B pretax charge in the quarter. - Goal: redeploy/monetize industrial gas assets and work to sell ammonia production assets tied to Louisiana; reduce capex through cancellations. - CapEx reduced: now targeting ~$3.5B total FY26 (down ~$0.5B vs prior outlook), largely due to timing/payment adjustments, lower maintenance, and cancellations (not a fundamental demand collapse).