Earnings Performance: Air Products reported adjusted earnings per share (EPS) of $3.09 for Q3 2025, exceeding guidance of $2.90 to $3.00. This was a year-over-year decline of $0.11, primarily impacted by a $0.14 headwind from the sale of the LNG business and a $0.12 impact from project exits, offset partially by strong on-site volumes contributing to an improved adjusted operating margin, which improved about 300 basis points sequentially.

Guidance and Outlook: The company maintains its full-year adjusted EPS guidance at a range of $11.90 to $12.10. Despite this cautious outlook due to global economic uncertainties, they are targeting a high single-digit EPS growth rate from fiscal year 2026 onwards, aiming for operating margins of 30% and return on capital employed (ROCE) in the mid- to high-teens by 2030.

Cost Reduction Initiatives: Air Products is executing a global cost reduction plan expected to yield annual savings of $185 million to $195 million, on top of previous measures projecting around $100 million. The company highlights headcount reductions and investment in AI and digital transformation as key drivers of productivity enhancements.