Air Products to record up to $2.9B pre-tax charge from clean energy project exits
Air Products determined on June 26, 2026 to exit the Louisiana Clean Energy Complex, the Casa Grande green hydrogen facility in Arizona, and other smaller clean energy distribution projects. The company expects to record a pre-tax charge of up to $2.9 billion, or $2.2 billion on an after-tax basis, in its fiscal 2026 third quarter, primarily to write down assets and terminate contractual commitments. Cash expenditures related to these charges are estimated not to exceed $925 million based on contractual terms.
Key facts
- Pre-tax charge of up to $2.9 billion ($2.2 billion after-tax) expected in fiscal 2026 third quarter
- Cash expenditures estimated not to exceed $925 million
- Louisiana Clean Energy Complex exit driven by expected financial returns not meeting return criteria
- Casa Grande Project and other smaller scale projects exited due to challenging commercial conditions and slower-than-expected hydrogen for mobility market development
- Decision made June 26, 2026 by Board of Directors and Chief Executive Officer
Why it matters
The exits represent a significant strategic retreat from Air Products' clean energy portfolio after the company had previously committed to executing a de-risking strategy for the Louisiana project; the impairment reduces near-term earnings while the company refocuses on existing industrial gas operations and the NEOM Green Hydrogen Project in Saudi Arabia.
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Derived from 8-K filed 2026-06-30. Not investment advice. View the source filing on SEC.gov →