Air Products and Chemicals Inc at Citi Basic Materials Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : So look, I think a natural place to start would be your two largest outstanding projects, Louisiana and NEOM. Maybe first on Louisiana. It seems like you have several options on the table and only a few weeks left in the year. Any update on the direction that project is heading? How some of your commercial conversations are progressing there?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Yeah. And maybe I just have to wait a couple of weeks here for the news, but what -- you talked about OCI, Woodside, that being similar project. Obviously, that has more conventional returns for the industrial gas producers operating there. So how do you think about the return hurdle you need to make a go/no-go decision to justify executing that project with whatever the remaining capital outlay may be?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And then maybe just on NEOM. It seems like construction is progressing well, on track for 2027. I think you mentioned on the last earnings call, you would likely sell some ammonia from that asset as your offtake for green hydrogen is later in the decade. So conceptually, I guess my question is, does this make your downstream marketing of NEOM offtake an underperforming project similar to how you maybe classified some other parts of the portfolio? And then I have some follow-ups there as well.

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : I mean, how is that market developing? And I guess, how can investors get comfortable with what the returns may look like from 2027 to 2030 as you sell green ammonia? Like do you expect to get a premium? Is this more of just a cash return on that downstream marketing?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And somewhat related, I think you have a commitment to be free cash flow neutral to positive in 2026. You talked about this $4 billion CapEx number as that you have out there for 2026. Is that number a best case scenario if you ultimately decide to pursue some additional investment in NEOM and Louisiana in 2026, what's the sensitivity around that number for the project? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 1:40PM, APD.N - Air Products and Chemicals Inc at Citi Basic Materials Conference

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Got it. So I mean, just putting all of that together from the first few questions, it doesn't sound like there's a scenario where CapEx meaningfully steps up again because you decide maybe the returns justify economics like in terms of reinvesting it.

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And I just wanted to go back to NEOM just briefly. I think one of the links in the chain for getting green hydrogen landed in Europe would be building ammonia cracking capacity. I think one of your competitors recently started a pilot scale ammonia cracker. Can LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 1:40PM, APD.N - Air Products and Chemicals Inc at Citi Basic Materials Conference you just remind us the journey that Air Products has been on there? What you would need to see to make that investment and what it might look like?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And then maybe just pivoting to some of your other projects. Can you speak to some of the improvements you're hoping to deliver for Rotterdam and Edmonton, whether it's from a capital cost or commercial execution standpoint? And just in the context of making go-forward investments, can you just remind us how much volume commitment do you have there already?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : And maybe just wrapping up just with core industrial gas business and how you view that broadly. I mean, I think there's been this perception that the Air Products has taken its eye off the ball on core growth areas, whether it's electronics or decaps or maybe even lost out on some more capital-efficient energy transition projects. So like do you feel like you can win your fair share of projects in attractive growth areas during this transition time?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And look, we've gone this far in our chat without talking about quarter-to-date trends. How do you see the core industrial end markets and regions shaping up to end the calendar year and maybe exiting into 2026 at this point?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Got it. That's helpful. And maybe your $13 guidance for fiscal year anticipates some continued tough environment from the helium market, and that's been a fairly tough market for you. I guess, first, can you unpack how much of that has been and will continue to be price versus volume? And then if you could just remind us how much of your volume is contracted for the year versus what may be susceptible to additional changes in the market dynamics? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 1:40PM, APD.N - Air Products and Chemicals Inc at Citi Basic Materials Conference

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And we have a few minutes left. So I just want to open it up for any questions from the audience. Otherwise, I'm happy to crack on. Just on the cost side, you've committed to pretty healthy rightsizing, 60% of the actions already completed. How should we think about the timing to realize cash cost to deliver on the remaining 40%?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And just related to those cost actions, I guess, if there are further changes to the project landscape like potential write-downs, like is there a potential to be more aggressive on the cost actions? Or maybe said differently, how much of the cost structure that remains after these actions is devoted to some of these outstanding mega projects? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 1:40PM, APD.N - Air Products and Chemicals Inc at Citi Basic Materials Conference

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Yeah. And you mentioned some of the portfolio optimization, some of the assets held for sale there, right? Is there more to go there beyond just gas station assets, what may or may not happen with energy transition? Like how do you think about the rest of the portfolio?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : Understood. And maybe I'll just close with this one. I think there's obviously a lot baked in, in terms of cost takeout and rightsizing, but I think it doesn't include additional opportunities for efficiency and productivity. So maybe what might you hope to bring to the table from an efficiency productivity standpoint, areas where you can potentially leverage AI or other new technology?

Question: Patrick Cunningham - Citi Infrastructure Investments LLC - Analyst : That's great. Well, I wish we had another half an hour, but we'll have to leave it there. So please join me in thanking Eduardo and Melissa.