Air Products Announces Strategic Exit from Three Major U.S. Projects with $3.1 Billion Impairment Charge
February 25 – Air Products and Chemicals, Inc. (NYSE: APD) has withdrawn from three major U.S. projects under its new leadership team’s strategic initiative to streamline operations and prioritize shareholder value creation. The industrial gases giant anticipates recording pre-tax impairment charges of up to $3.1 billion in its Q2 2025 financial results, comprising asset write-downs, contractual penalties, and project termination costs.
The discontinued projects include:
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World Energy’s Sustainable Aviation Fuel (SAF) Expansion Project
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Massena Green Hydrogen Facility in New York
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Texas-based Carbon Monoxide Production Complex
All three initiatives were launched during the tenure of former Chairman, President and CEO Seifi Ghasemi. Current CEO Eduardo Menezes, who assumed his role earlier this month, moved swiftly to reassess the company’s project portfolio. “This decisive action aligns with our refined capital allocation strategy to focus on core competencies and higher-return opportunities,” Menezes stated in an internal memo.
The substantial financial adjustment reflects both changing market conditions and the new executive team’s commitment to rigorous portfolio optimization. Analysts suggest the move could improve the company’s capital efficiency amid evolving energy transition dynamics.
Post time: Feb-26-2025