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Air Products to Exit Three U.S.-Based Projects

1. Air Products exits three U.S. projects to streamline its backlog. 2. Pre-tax charge up to $3.1B will be recorded in fiscal Q2. 3. Asset write-downs and contract terminations will not affect adjusted EPS. 4. CEO emphasizes refocusing resources to enhance shareholder value.

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Why Bearish?

The significant $3.1B charge, though excluded from adjusted EPS, may unsettle investors in the short term. Historical asset write-downs in similar industrial companies have led to temporary stock price weakness.

How important is it?

The large pre-tax charge signals near-term financial pressure and strategic repositioning, prompting caution among investors despite limited adjustment EPS impact.

Why Short Term?

This charge is an immediate accounting adjustment with limited long-term operational impact, as seen in prior industry cases where reallocation strategies eventually stabilized performance.

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Company Will Write Down Assets and Expects to Record a Pre-Tax Charge Not to Exceed $3.1 Billion in Its Fiscal Second Quarter LEHIGH VALLEY, Pa., Feb. 24, 2025 /PRNewswire/ -- As part of a review initiated by Air Products' (NYSE: APD) newly-elected Board of Directors and Chief Executive Officer, the Company today announced its decision to exit three projects in the U.S. As a result, Air Products expects to record a pre-tax charge not to exceed $3.1 billion in its fiscal 2025 second quarter, primarily to write down assets and terminate contractual commitments. The estimated charge, which will not impact adjusted earnings per share for fiscal 2025, relates to the following projects: "The decision to exit these three projects will streamline our backlog and focus Company resources on projects that drive value for Air Products' shareholders," said Eduardo Menezes, Chief Executive Officer of Air Products. Estimated contract cancellation and other project cancellation costs are subject to further refinement and may ultimately differ from actual costs recorded in the Company's fiscal second quarter and beyond. Additional information, including revisions to the Company's capital expenditures forecast for fiscal 2025, will be provided in Air Products' fiscal second quarter earnings release. Air Products will continue to evaluate all projects in its backlog but does not currently expect any additional material cancellations going forward. The Company will provide an update on major projects during its next earnings call, but specific to Air Products' two largest projects under execution: About Air ProductsAir Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global supplier of hydrogen, Air Products also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects, supporting the transition to low- and zero-carbon energy in the industrial and heavy-duty transportation sectors. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally. Air Products had fiscal 2024 sales of $12.1 billion from operations in approximately 50 countries and has a current market capitalization of over $65 billion. Approximately 23,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, X, Facebook or Instagram. This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based. Media Inquiries: Katie McDonald, tel: (610) 481-3673; email: [email protected]Art George, tel: (610) 481-1340; email: [email protected] Investor Inquiries: Eric Guter, tel: (610) 481-1872; email: [email protected]Mun Shieh, tel: (610) 481-2951; [email protected] SOURCE Air Products

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