Air Products beats quarterly profit estimates, raises annual forecast

July 30 (Reuters) - Industrial gases company Air Products APD.N beat Wall Street estimates for third-quarter profit on Thursday and raised its fiscal 2026 earnings forecast, as higher on-site gas volumes and pricing gains helped offset increased costs.

Air Products announced plans to abandon several clean energy projects as Chief Executive Eduardo Menezes seeks to optimize its project portfolio and reduce capital spending as the company tries to improve profitability.

• "We have a clear pathway to reduce capital expenditures and drive continued profitable growth through high-quality, traditional industrial gas projects," Menezes said in a statement.
• On a reported basis, Air Products posted a net loss attributable to the company of $1.44 billion, or $6.47 per share, for the third quarter ended June 30, after recording about $2.9 billion in pre-tax charges.
• The charges stemmed from the company's decision to exit a clean energy complex under construction in Louisiana and a green hydrogen production facility under construction in Casa Grande, Arizona, as well as certain other smaller-scale clean energy distribution projects.
• The company posted adjusted earnings per share of $3.47 for the three months ended June 30. Analysts on average expected $3.34, according to data compiled by LSEG.
• Air Products raised its fiscal 2026 adjusted earnings forecast to $13.39 to $13.49 per share, from $13.00 to $13.25 previously. Analysts were expecting $13.17 per share.
• The company said it remains cautious on the macroeconomic outlook but expects new asset contributions, pricing actions and productivity initiatives to support fourth-quarter results.
• For the fourth quarter, Air Products expects adjusted profit of $3.55 to $3.65 per share, above average analysts' expectation of $3.51 per share.