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Air Products’ NEOM Bet Moves Forward — Can Renewable Ammonia Unlock The Next Growth Phase?

Air Products reported solid third-quarter fiscal 2026 results, navigating volatile market conditions to achieve a 9% increase in operating income year-over-year and delivering earnings per share of $3.47, a 12% increase that exceeded prior guidance. Operating margins expanded to 25.6%, driven largely by volume growth, pricing improvements, and contributions from new assets coming online, particularly in Asia and the Americas, and the helium business performed better than expected. Return on capital improved to 11.7%. The company reiterated three key priorities for 2026: earnings growth through volume and pricing, optimizing the project portfolio, and capital discipline. A significant development during the quarter was Air Products’ decision to exit the Louisiana Casa Grande project and other smaller clean energy distribution projects, resulting in a pre-tax charge of $2.9 billion. Management is focusing on redeploying assets and selling ammonia production units associated with Louisiana.