Industrial Gases

Air Products Inc. announced in mid-September 2026 that it has signed a long-term agreement with a leading semiconductor manufacturer and will invest about US$250,000,000 in Arizona to build, own and operate high-purity gas supply infrastructure for the customer's expanding U.S. manufacturing and advanced packaging facilities. The Arizona project is the second recent semiconductor manufacturing supply win for the company, and together with its large semiconductor gas supply project in Pyeongtaek, South Korea, it lifts total announced semiconductor investment above US$900,000,000. Air Products' narrative projects $16.0 billion in revenue and $3.9 billion in earnings by 2029, requiring 8.4% yearly revenue growth and an earnings increase of about $3.9 billion from -$47.3 million today. Three members of the Simply Wall St Community currently place Air Products' fair value in a tight US$342 to US$360 range, against a forecast fair value of $342.42 that implies 20% upside to the current price.

South Korea's Ministry of Trade, Industry and Energy announced on the 4th that four U.S. companies have decided to invest a total of $2 billion in South Korea in the fields of semiconductors, advanced materials, and energy. The investments were announced at a ceremony attended by Trade Minister Cheong In-kyo in Washington on the 3rd. U.S. industrial gas giant Air Products will expand facilities for semiconductor gases and rare gases in Pyeongtaek, Gyeonggi Province, and semiconductor equipment maker Axcelis will expand its production of ion implantation equipment in South Korea. Additionally, materials giant Corning will invest in advanced glass and other materials used in displays and semiconductors, and renewable energy developer Pacifico Energy will proceed with a 3.2-gigawatt offshore wind power project in the southwest, where a new semiconductor cluster is expected to be established.

Air Products and Chemicals, Inc.'s shares have gained 24.7% so far this year, outperforming the Zacks Chemicals Diversified industry's 21.1% rise. The company is benefiting from high-return industrial gas projects, new business deals, acquisitions, and productivity initiatives. Air Products has an industrial gas project backlog of around $3 billion, with most projects serving electronics customers, and plans to invest about $1.5 billion annually in traditional projects. It is also pursuing the NEOM green hydrogen project in Saudi Arabia, expected to supply up to 1.2 million tons per year of renewable ammonia, with a marketing and distribution agreement finalized with Yara International. The company raised its fiscal 2026 adjusted earnings guidance to $13.39-$13.49 per share from $13.00-$13.25, and expects fourth-quarter adjusted earnings of $3.55-$3.65 per share, implying 5-8% growth. Air Products also expects $250 million in annual cost savings from headcount reductions, having already realized roughly $75 million.

Linde secured two long-term agreements to supply ultra-high-purity industrial gases to one of the world's largest semiconductor manufacturers, backed by a combined $1.8 billion in investments. The first deal involves a $1 billion commitment in Phoenix, Arizona, featuring two new SPECTRA air separation units, while the second, through its Taiwan joint venture Linde LienHwa, earmarks roughly $800 million for air separation and hydrogen production units supporting the same customer's overseas expansion. The announcements came alongside Linde's record Q2 2026 earnings, where electronics emerged as the fastest-growing end market with an 18% year-over-year sales increase, contributing to a 9% rise in total sales to $9.29 billion and a 10% increase in adjusted diluted EPS to $4.50. The deals push Linde's sale-of-gas project backlog to a record $8.1 billion, though they also concentrate nearly $1.8 billion in capital on a single customer's build-out plans across two regions. Air Products and Chemicals also won a major semiconductor gas supply deal in Taiwan on July 21, intensifying the race for chip-industry infrastructure.

Linde reported second-quarter sales of $9.3 billion, up 9% from a year earlier, and adjusted earnings per share of $4.50, a 10% increase, while its sale-of-gas backlog reached a record $8.1 billion after securing a $1 billion electronics contract to support advanced node fabs in the Western US. Operating margin fell 60 basis points to 29.5%, or 30 basis points excluding cost pass-through, primarily due to the US homecare business, which management said is under strategic review. The company expects more than 20 project startups representing about $1.3 billion in investments for the remainder of the year, and it guided third-quarter EPS to $4.45 to $4.55 and full-year EPS to $17.70 to $17.90. Electronics was the fastest-growing end market with 18% growth, driven by AI-related hardware demand, while manufacturing growth was led by aerospace, which accounted for more than a third of that segment's expansion.

Linde plc raised the bottom end of its full-year EPS guidance to a range of $17.70 to $17.90 while actively evaluating the strategic fit of its US homecare business. The company achieved record sales and near double-digit EPS growth, supported by a record project backlog of $8.1 billion following significant electronics wins in the Western US. Operating margins excluding cost pass-through declined 30 basis points, primarily due to persistent headwinds in the US homecare business and a mix shift toward lower-margin equipment sales. Management expects to start up more than 20 projects in the remainder of the year, representing approximately $1.3 billion in investments, and projects the commercial space market to be a $1 billion-plus opportunity by 2030.

Linde raised the bottom end of its full-year earnings guidance and now expects adjusted EPS of $17.70 to $17.90, representing 8% to 9% growth, while its sale-of-gas backlog reached a record $8.1 billion after a $1 billion U.S. electronics win. CEO Sanjiv Lamba said the company plans to start up more than 20 projects totaling approximately $1.3 billion in investments this year and expects the backlog to finish the year with an 8 handle. Second-quarter sales rose 9% to $9.3 billion, and adjusted EPS of $4.50 grew 10% from the prior year, though operating margins excluding cost pass-through declined about 30 basis points, primarily due to the U.S. homecare business. Management said it is evaluating strategic options for that business and expects sequential margin improvement in the third quarter, while third-quarter EPS guidance was set at $4.45 to $4.55.

Linde has secured a new long-term agreement to supply ultra-high-purity industrial gases to a major semiconductor manufacturer, supporting the expansion of the customer's complex in Phoenix, Arizona. The company will invest $1 billion to expand its existing on-site industrial gases complex, building, owning, and operating two new SPECTRA air separation units and associated infrastructure that will complement the three existing units. This expansion will increase the supply of ultra-high-purity nitrogen, oxygen, and argon for two new semiconductor fabrication facilities. Separately, Linde's joint venture partner in Taiwan, Linde LienHwa, has been selected by the same customer to supply industrial gases to new semiconductor manufacturing and advanced packaging facilities at multiple sites in Taiwan, with a planned investment of around $800 million to build, own, and operate several air separation units and hydrogen production units.

Linde reported second-quarter adjusted earnings of $4.50 per share, topping the Zacks Consensus Estimate of $4.49 per share. Revenue came in at $9.29 billion, exceeding the consensus estimate by 3.62% and up from $8.5 billion a year ago. The company has now beaten consensus EPS and revenue estimates in each of the last four quarters. Linde shares have gained about 19.3% year to date, outpacing the S&P 500's 8.7% advance.

Linde reported second-quarter sales of $9.3 billion, up 9% year-over-year, and announced a $1 billion investment to expand its industrial gases complex in Phoenix, Arizona, supporting a major semiconductor manufacturer. Adjusted operating profit rose 7% to $2.7 billion, with an adjusted operating margin of 29.5%, and adjusted earnings per share came in at $4.50, up 10% year-over-year. For the third quarter, Linde expects adjusted diluted earnings per share of $4.45 to $4.55, representing growth of 6% to 8%, and maintained full-year 2026 adjusted EPS guidance of $17.70 to $17.90. The company also said full-year capital expenditure is expected in a range of $5.5 billion to $6.0 billion, including the $8.1 billion contractual sale of gas project backlog. The new Phoenix investment will add two new SPECTRA air separation units to the existing three on-site units, making it one of Linde's largest investments for an electronics customer globally.

Linde reported second-quarter 2026 net income of $1,928 million and diluted earnings per share of $4.15, up 9% and 11% respectively, with sales reaching $9.3 billion, a 9% increase year-over-year. Adjusted diluted earnings per share rose 10% to $4.50, while adjusted operating profit grew 7% to $2.7 billion, yielding an adjusted operating margin of 29.5%. The company also announced a record sale of gas backlog of $8.1 billion, part of an overall project backlog of $11 billion, and provided full-year 2026 adjusted EPS guidance of $17.70 to $17.90, representing 8% to 9% growth. Second-quarter operating cash flow increased 3% to $2.3 billion, and the company returned $1,590 million to shareholders through dividends and stock repurchases.

Linde has been awarded a new long-term agreement to supply ultra-high-purity industrial gases to one of the largest semiconductor manufacturers. The deal will support the expansion of the customer's semiconductor manufacturing complex in Phoenix, Arizona, where Linde will invest $1 billion to expand its existing on-site industrial gases complex, making the site one of Linde's largest investments for an electronics customer globally. Under the agreement, Linde will build, own, and operate two new SPECTRA air separation units and associated infrastructure, complementing the three existing units at the site, to increase supply of ultra-high-purity nitrogen, oxygen, and argon for two new semiconductor fabrication facilities. Separately, Linde LienHwa, Linde's joint venture partner in Taiwan, has been selected by the same customer to supply industrial gases to new semiconductor manufacturing and advanced packaging facilities at multiple sites in Taiwan, with plans to invest approximately $800 million to build, own, and operate several air separation units and hydrogen production units.

Linde has been awarded a new long-term agreement to supply ultra-high-purity industrial gases to one of the world's largest semiconductor manufacturers, supporting the expansion of the customer's semiconductor manufacturing complex in Phoenix, Arizona. Linde will invest $1 billion to expand its existing on-site industrial gases complex in Phoenix, building, owning and operating two new SPECTRA air separation units and associated infrastructure that will complement the three existing units at the site. The expansion will increase supply of ultra-high-purity nitrogen, oxygen and argon for two new semiconductor fabrication facilities. Separately, Linde LienHwa, Linde's joint venture partner in Taiwan, has been selected by the same customer to supply industrial gases to new semiconductor manufacturing and advanced packaging facilities at multiple sites in Taiwan, with plans to invest approximately $800 million to build, own and operate several air separation units and hydrogen production units.

Air Products and Chemicals reported adjusted earnings of $3.47 per share for its fiscal third quarter, beating the Zacks Consensus Estimate of $3.36 by 3.3% and rising 12.3% from a year ago. Sales increased 4.6% to $3.16 billion but missed the consensus mark of $3.18 billion by 0.5%, supported by higher on-site volumes, favorable currency, and pricing. The company raised its full-year adjusted earnings guidance to $13.39 to $13.49 per share from the prior range of $13.00 to $13.25, and now expects fiscal 2026 capital expenditures of approximately $3.5 billion, down from an earlier projection of about $4 billion. Americas sales grew 5% to $1.32 billion, Asia sales rose 9% to $886 million, and Europe sales advanced 6% to $815.7 million. Air Products ended the quarter with cash and cash equivalents of $980.5 million and long-term debt of $16.59 billion.

Air Products reported fiscal 2026 third quarter adjusted earnings per share of $3.47, exceeding the top end of its guidance, and raised its full-year adjusted EPS outlook to a range of $13.39 to $13.49. GAAP results included a loss per share of $6.47 and an operating loss of $2.1 billion, driven by approximately $2.9 billion in pre-tax charges for project exit decisions announced on June 30, 2026, including the discontinuation of the Louisiana Clean Energy Complex and a zero-carbon liquid hydrogen facility in Arizona. Adjusted operating income rose 9 percent to $810 million on higher on-site volumes, favorable currency, and higher pricing, while sales increased 5 percent to $3.2 billion. The company also finalized a marketing and distribution agreement with Yara for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia and now expects fiscal year 2026 capital expenditures of approximately $3.5 billion.

Linde has signed six new power purchase agreements to source renewable electricity across Europe, Africa, and India. The agreements will supply approximately 0.63 terawatt-hours per year of renewable energy from newly developed wind and solar assets, supporting operations in Spain, Greece, South Africa, and India. Low-carbon power currently accounts for around 50% of Linde's global electricity consumption, and the company has increased its active renewable power purchasing by 2.7 times compared to its 2021 baseline, from 2.8 terawatt-hours to 7.6 terawatt-hours in 2025. The move accelerates progress toward Linde's target to reduce absolute emissions 35% by 2035, according to Vice President of Sustainability Erin Catapano. In 2025, Linde helped its customers avoid 98 million metric tons of carbon dioxide equivalent, more than twice the greenhouse gases emitted in its own global operations.

Air Products' Board of Directors declared a quarterly dividend of $1.81 per share of common stock. The dividend is payable on November 9, 2026 to shareholders of record at the close of business on October 1, 2026. Air Products is a world-leading industrial gases company with fiscal 2025 sales of $12.0 billion from operations in approximately 50 countries.

Air Products San Fu has been awarded a long-term agreement to support a semiconductor manufacturer's expansion in Taiwan. The company will build, own, and operate four large air separation units and bulk gas supply systems with new underground pipeline systems, supplying nitrogen, oxygen, argon, and helium to multiple new semiconductor fabs and back-end packaging facilities. The new pipelines will connect to Air Products' existing network in Taiwan, enhancing supply reliability and operational efficiency. This project reinforces Air Products' position as a key supplier to the electronics industry in Taiwan, where it has served the market for more than 70 years.

Air Products and Chemicals completed a $70 million expansion of its Missouri Manufacturing and Logistics Center in Maryland Heights. The new facility will produce advanced membrane separators for bio-LNG and nitrogen separation. The expansion, the company's largest-ever investment, was driven by growing demand for biogas and hydrogen recovery products, as well as nitrogen for the aerospace industry and cleaner fuels. It has resulted in more than 70 new hires supporting the local economy.

Air Products and Chemicals shares rallied 8% in the last trading session to close at $293.18, driven by higher-than-usual trading volume. The gains follow the company's decision to exit investments that do not meet its return thresholds and streamline its clean energy strategy to optimize its project portfolio. Its strategic partnership with Yara International for renewable ammonia from the NEOM Green Hydrogen Project further strengthens its capabilities to support future demand. The company is expected to report quarterly earnings of $3.35 per share, up 8.4% year-over-year, on revenues of $3.17 billion, a 5% increase. The consensus earnings estimate for the quarter has been revised marginally higher over the last 30 days, and the stock currently carries a Zacks Rank of 2, or Buy.

Linde’s take-or-pay contracts and on-site gas plants create a structural moat that generated a $7.1 billion sale-of-gas backlog and a 30% adjusted operating margin in Q1 2026. The company has raised its dividend for 33 consecutive years at a 13% average rate, with the quarterly payout nearly doubling from $0.825 in 2018 to $1.60 in 2026, supported by $10.4 billion in FY2025 operating cash flow. Linde posted 10% EPS growth and adjusted EPS of $4.33 in Q1 2026, marking eight straight quarters of beating consensus, and guided for FY2026 adjusted EPS of $17.60 to $17.90 despite challenging global conditions. With a beta of 0.73, the stock offers low-volatility compounding for long-term, retirement-focused investors.

Air Products and Chemicals currently pays a quarterly dividend of $1.81 per share, yielding 2.59%, which exceeds the Chemical - Diversified industry average of 1.61% and the S&P 500's 1.45%. The company's annualized dividend of $7.24 represents a 1.7% increase from last year, and it has raised its dividend five times over the past five years for an average annual increase of 6.01%. With a payout ratio of 56% and a Zacks Consensus Estimate for fiscal 2026 earnings of $13.23 per share, implying 9.98% growth, the stock holds a Zacks Rank of #2 (Buy).

Air Products will highlight its flash freezing solutions for specialty foods at the Summer Fancy Food Show 2026 at the Javits Center in New York City from June 28 to 30. Attendees can visit booth 2581 to learn how cryogenic gases like liquid nitrogen and carbon dioxide enable chilling or freezing in minutes instead of hours, reducing yield losses and preserving moisture and quality. The company will feature its Freshline IQ Freezer, which offers continuous high throughput in a modular design, and the Freshline MP Tunnel Freezer, built to the latest hygiene standards. Air Products also operates a food lab at its Allentown headquarters where customers can test cryogenic processes on production-scale equipment without capital investment.

Billionaire Daniel Sundheim's D1 Capital Partners disclosed two new non-AI stock picks in its second-quarter filings. The fund bought over 340,000 shares of Linde plc, a stake worth about $177.2 million and 0.51% of the portfolio, and 1.6 million shares of Builders FirstSource, Inc., worth about $146.7 million and 0.42% of the portfolio. Linde is the largest industrial gas company in the world, selling oxygen, nitrogen, hydrogen and argon to refiners, steelmakers, chemical plants and hospitals. Builders FirstSource, a building materials company, is down about 38% so far this year, and bulls argue the housing downturn may be close to a bottom. The stock trades at about 20 times forward non-GAAP earnings, roughly in line with the sector median of 19.9 times, and at about 11 times forward EBITDA versus a sector median of 12 times.

Air Products and Chemicals reported third quarter results that combined higher sales with a sizeable net loss, raised its adjusted earnings outlook, and confirmed another quarterly dividend. The company's share price stands at US$294.89, giving a year-to-date return of 17.73%, though the stock has pulled back 3.76% over the past month. One widely followed narrative values the stock at US$335.95 per share, implying it is 12.2% undervalued, based on expectations that heavy investments in large-scale hydrogen, blue/green ammonia, and carbon capture projects will drive robust earnings and higher margins. However, a separate fair ratio analysis shows the stock trades at a price-to-sales multiple of 5.2x, well above the fair ratio of 2.7x and the US Chemicals industry average of 1.1x, indicating potential valuation risk if growth expectations are not met.

Ten of the 13 S&P 500 materials companies that reported quarterly results this week surpassed earnings expectations, while three fell short, and 12 beat revenue forecasts. The State Street Materials Select Sector SPDR ETF fell nearly 2% for the week, compared to the S&P 500's 1% rise. Among the reporters, Nucor easily beat adjusted earnings estimates and achieved record steel shipments of 7.1 million tons, while LyondellBasell Industries posted an earnings beat but missed on revenue. Corteva raised its full-year 2026 guidance on a profit beat, though quarterly revenue missed by $220 million, and Air Products and Chemicals lifted its annual and fourth-quarter adjusted EPS guidance after third-quarter results topped estimates. Linde also reported a beat, supported by 7% growth in quarterly operating profit. Next week, Albemarle and DuPont de Nemours are scheduled to report second-quarter results, with analysts expecting Albemarle to post earnings of $3.24 per share on revenue of $1.63 billion and DuPont to report earnings of $1.76 per share on revenue of $1.81 billion.

Linde plc declared a quarterly dividend of $1.60 per share. The dividend is payable on September 17, 2026, to shareholders of record on September 3, 2026. Linde is a leading global industrial gases and engineering company with 2025 sales of $34 billion.