Air Products Dumps Flagship Clean Energy Project After Returns Fall Short
Air Products & Chemicals Inc. (NYSE: APD ) stock surged more than 9% on Tuesday after the company scrapped several clean-energy projects and shifted its focus toward higher-return investments. Investors appeared to welcome the move, viewing the project cancellations as a step toward stronger capital discipline and improved long-term returns. Air Products Scraps Louisiana Clean Energy Project Air Products said Tuesday it will not proceed with its Louisiana Clean Energy Complex after determining the project no longer met its return criteria. The decision will result in pre-tax charges of up to $2.9 billion, or about $2.2 billion after tax, in the company’s fiscal third quarter of 2026, primarily for asset write-downs and contract terminations. The company will also discontinue a zero-carbon liquid hydrogen facility in Casa Grande, Arizona, and several smaller clean-energy distribu...
Air Products & Chemicals Inc. (NYSE: APD ) stock surged more than 9% on Tuesday after the company scrapped several clean-energy projects and shifted its focus toward higher-return investments. Investors appeared to welcome the move, viewing the project cancellations as a step toward stronger capital discipline and improved long-term returns. Air Products Scraps Louisiana Clean Energy Project Air Products said Tuesday it will not proceed with its Louisiana Clean Energy Complex after determining the project no longer met its return criteria.
2 billion after tax, in the company’s fiscal third quarter of 2026, primarily for asset write-downs and contract terminations. The company will also discontinue a zero-carbon liquid hydrogen facility in Casa Grande, Arizona, and several smaller clean-energy distribution projects, citing weak commercial conditions, project-specific economic challenges and slower-than-expected growth in hydrogen-for-mobility markets. Separately, Air Products said it is finalizing a marketing and distribution agreement with Yara International ASA for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia.
The company said the agreement is independent of the Louisiana project decision. Technical Analysis Tuesday’s rally pushed Air Products further above its key moving averages. 66, reinforcing the longer-term uptrend. Momentum also improved.
The moving average convergence/divergence indicator remained above its signal line with a positive histogram, suggesting buying pressure continues to strengthen. However, the 20-day SMA remains below the 50-day SMA, indicating short-term momentum has not fully confirmed the breakout. 96. 50, close to the 200-day moving average.
Earnings And Analyst Outlook Air Products is expected to report fiscal third-quarter results on or around July 30. 02 billion in the prior-year quarter. 6 times forward earnings, reflecting a premium valuation. 44.
Recent analyst actions include: Morgan Stanley maintained an Equal-Weight rating and raised its price forecast to $310 on May 5. RBC Capital maintained an Outperform rating and raised its price forecast to $341 on May 5. UBS maintained a Neutral rating and raised its price forecast to $316 on May 1. 08% Weight Significance: Because APD carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
68 at the time of publication on Tuesday, according to Pro data. Photo via Shutterstock