Air Products and Chemicals, Inc. Common Stock

Strong Q3 beat driven by volume/price; EPS up meaningfully - Q3 FY2026 operating income +9% YoY; operating margin 25.6% (up ~100 bps YoY), mainly from volume and price improvement partially offset by higher costs. - EPS $3.47 (+12% YoY), above guidance; helped by improved volume and stronger equity affiliate contributions. - Volume strength led by on-site business, new assets onstream, and helium (helium was a 2% headwind, better than expected vs. earlier expectation of ~3%+), plus currency favorable (~2%).

Raising full-year outlook; expectations for continued EPS growth - Company is raising FY2026 EPS guidance to $13.39–$13.49, implying ~11%–12% full-year growth YoY (vs prior year). - Q4 EPS guide $3.55–$3.65 (+5%–8% YoY). - Capital expenditures: now forecast about ~$3.5B in FY2026 (reduced vs prior outlook), reflecting timing changes and canceled projects. - Key driver expectation: EPS growth continues to be powered primarily by new asset contributions, pricing actions, and productivity—but management remains cautious on macro uncertainty.

Major negative: huge clean-energy project exit + large pretax charge - On June 30, Air Products decided to exit the Louisiana project (Casa Grande, AZ + other smaller clean energy distribution projects). - Recorded a pretax charge of $2.9B in the quarter. - Opportunity management: working to redeploy industrial gas assets and sell ammonia production assets tied to the Louisiana project; reduced capital needs are an additional benefit.