Air Products and Chemicals, Inc. APD has announced its decision not to move forward with the Louisiana Clean Energy Complex (LCEC) project, as expected financial returns fail to meet the company’s required return criteria. Additionally, the company is also finalizing a marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia, with Yara International ASA. The decisions are independent of each other.
With regard to such portfolio actions, the company is expecting to record pre-tax charges not exceeding $2.9 billion in the third quarter of fiscal 2026. The charges are primarily tied to asset write-downs and the termination of contractual commitments related to the LCEC project.
Air Products will also discontinue its planned zero-carbon liquid hydrogen facility in Casa Grande, AZ, as well as several small-scale clean energy distribution projects. The decisions were driven by difficult market conditions, project-specific economic challenges, and slower-than-expected development in hydrogen for the mobility sector.
Air Products reiterated its commitment to grow in Louisiana, where it operates 18 industrial gas facilities and the world’s largest hydrogen pipeline network, serving refinery customers across the U.S. Gulf Coast. Under its agreement with Yara, the company will leverage Yara’s global supply chain to sell and distribute renewable ammonia worldwide.
APD shares have gained 1% over the past year against the industry’s 6.8% decline.
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Albemarle Corporation ALB, Dow Inc. DOW and Avino Silver & Gold Mines Ltd. ASM.
While ALB and DOW sport a Zacks Rank #1 (Strong Buy) each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.98 per share, indicating a 1,743.04% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed one, with an average surprise of 74.5%. ALB’s shares have jumped 98.6% over the past year.
The Zacks Consensus Estimate for DOW’s 2026 earnings is pegged at $2.61 per share, indicating a rise of 377.66% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 34 cents per share, indicating a 17.24% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%. DOW’sshares have gained 88.2% over the past year.
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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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