Air Products to Exit Three U.S. Projects to Streamline Backlog

Core Viewpoint - Air Products and Chemicals, Inc. (APD) is exiting three U.S.-based projects as part of a strategic review by its new board and CEO [1] Project Termination - APD has terminated its agreement with World Energy for the Sustainable Aviation Fuel expansion project in California and canceled projects in Massena and Texas [2] - The Massena project aimed to construct a 35-metric-ton-per-day facility for green liquid hydrogen production, but recent regulatory changes made the hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit [2] - The Texas carbon monoxide project was shut down due to unfavorable project economics [2] Financial Impact - APD expects to incur a pre-tax charge of up to $3.1 billion in Q2 of fiscal 2025 due to contract and project cancellation costs, with potential revisions to capital expenditures forecast for fiscal 2025 to be provided during the earnings release [4] Ongoing Projects - APD is currently executing two major projects: the NEOM green hydrogen project in Saudi Arabia, expected to commence production by the end of 2026, and the Louisiana Clean Energy Complex, anticipated to start in 2028 [5] Stock Performance - APD's stock has increased by 36.9% over the past year, contrasting with a 5.3% decline in the industry [5]