Air Products Q3 profit beats on higher on-site volumes

Overview

• U.S. industrial gases supplier's fiscal Q3 adjusted EPS rose 12% and beat analyst expectations

• Q3 sales rose 5% year-over-year, meeting analyst expectations

• Company took $2.9 bln charge for project exits, resulting in large GAAP net loss

Outlook

• Air Products raises fiscal 2026 full-year adjusted EPS guidance to $13.39-$13.49

• Company sees fiscal 2026 fourth quarter adjusted EPS of $3.55-$3.65

• Air Products expects fiscal 2026 capital expenditures of about $3.5 bln

Result Drivers

• ON-SITE VOLUMES AND PRICING - Co said higher on-site volumes, favorable currency, and increased pricing drove adjusted operating income and EPS, partially offset by higher costs

• ELECTRONICS AND NEW ASSETS - Co cited electronics growth and new long-term supply agreements, including for semiconductor expansion in Taiwan, as supporting volume growth

• PORTFOLIO OPTIMIZATION - Co said project exit decisions, including not proceeding with certain clean energy projects, are expected to reduce capital expenditures and focus on traditional industrial gas projects

Company press release: ID:nPnF5BpGa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for Air Products and Chemicals Inc is $343.50, about 16.7% above its July 29 closing price of $294.27

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• July 28 - Air Liquide reaffirms margin targets as investors await backlog payoff

• July 29 - LSB Industries Q2 sales beat estimates on higher prices

• July 28 - Ashland Q3 profit beats on higher volume, pricing; cuts FY EPS forecast

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)