Business and Asset Actions

12 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

Business and Asset Actions

BUSINESS AND ASSET ACTIONS

The table below summarizes charges related to business and asset actions as reflected on our consolidated income statements. These charges are not included in segment results.

	2025	2024	2023
Project exit costs	$3,623.3	$—	$217.6
Global cost reduction plan	123.7	57.0	27.0
Business and asset actions recorded through operating results	$3,747.0	$57.0	$244.6
Project exit-related impairment of equity method investment(A)	6.8	—	—
Subtotal	$3,753.8	$57.0	$244.6
Income tax benefit	695.2	13.2	34.7
Amount attributable to noncontrolling interests	10.7	—	5.0
Business and asset actions attributable to Air Products after-tax	$3,047.9	$43.8	$204.9

(A)Amount recorded through "Equity affiliates' income" reflects an other-than-temporary impairment of a joint venture in China that had been formed to develop clean hydrogen infrastructure in the region.

Project Exit Costs

Fiscal Year 2025

During the second quarter of fiscal year 2025, our Board of Directors and Chief Executive Officer initiated a project review to focus resources on projects we believe will deliver the greatest value to our shareholders. As a result of this review, we made the decision to exit various projects, primarily related to clean energy generation and distribution. The review remains ongoing and may result in additional costs in future periods.

In connection with this review, we recognized project exit costs totaling approximately $3.6 billion in fiscal year 2025. These costs primarily consisted of noncash write-downs of project assets to their estimated net realizable value or fair value less cost to sell, as well as estimated costs to terminate contractual commitments. Of the total charge, approximately $2.4 billion related to our decision to exit three U.S.-based projects within our Americas segment in the second quarter and approximately $755 related to several smaller-scale projects across our global portfolio, primarily supporting the energy transition. These exits were driven by challenging commercial conditions, unfavorable regulatory actions, project-specific economic factors, and slower-than-expected development in certain markets. The remaining $425 charge related to the impairment of two coal gasification plants in China that we decided to market for sale in the fourth quarter of fiscal year 2025 due to customer-related challenges. These actions did not result in the impairment of goodwill or intangible assets.

The table below reconciles project exit charges recognized in operating results for fiscal year 2025 to the related accrual reflected in “Payables and Accrued Liabilities” on our consolidated balance sheet as of 30 September 2025:

Project exit costs	$3,623.3
Noncash expenses(A)	(3,282.7)
Cash payments(B)	(174.4)
Currency translation adjustment	12.1
Amount accrued as of 30 September 2025	$178.3

(A)Noncash expenses included approximately $2.5 billion to write down plant and equipment. The remaining amount primarily relates to other assets associated with our exit from the sustainable aviation fuel expansion project with World Energy as discussed in Note 3, Variable Interest Entities.

(B)Cash expenditures associated with these actions primarily reflect costs to terminate contractual commitments and settle asset retirement obligations. Total cash outflows are projected to be approximately $355 once the exit strategy is fully implemented.

We determined that assets and liabilities associated with two coal gasification plants in our Asia segment met the criteria for held-for-sale classification. As discussed above, we recorded an impairment charge of approximately $425 to write down the assets to their estimated fair value less costs to sell. Of the charge, $350.6 related to plant and equipment. As of 30 September 2025, our consolidated balance sheet included assets held for sale of $427.7, which primarily consisted of plant and equipment with an estimated value of $418.3, and liabilities held for sale of $50.5.

We expect to complete the sales of these plants in fiscal year 2026. Any gain or loss from the sales will be recognized at the time of the transaction based on the carrying amounts classified as held for sale. Interim adjustments to these amounts may be recorded prior to closing, depending on changes in market participant assumptions or updated indications of fair value, including developments in the expected selling price and transaction timing.

In addition, we identified plant and equipment with a net realizable value of $22.5 that did not meet the held-for-sale criteria but is capable of being marketed through a secondary equipment market. These assets remain classified within "Plant and equipment, net" on our consolidated balance sheet as of 30 September 2025.

Both the held-for-sale assets and the marketable plant and equipment were subject to Level 3 fair value measurements due to the use of significant unobservable inputs. Refer to Note 16, Fair Value Measurements, for additional information.

Estimates related to the actions described above reflect our best judgment based on information available as of 30 September 2025. Final settlement of these items may differ materially from our current estimates, which could impact our consolidated financial statements in future periods. While we expect to complete exit activities within the next twelve months, we cannot predict the occurrence of future events and circumstances that could extend this process beyond one year in certain cases.

Fiscal Year 2023

In fiscal year 2023, we recorded a noncash charge of $217.6 to write off assets associated with exited projects that were previously under construction in our Asia and Europe segments. The assets written off included those related to our withdrawal from coal gasification in Indonesia as well as a project in Ukraine that was permanently suspended due to Russia's invasion of the country.

Global Cost Reduction Plan

In June 2023, we initiated a global cost reduction plan that provides severance and other postemployment benefits to employees designated for involuntary separation. In accordance with our accounting policy, we recognize related costs in the period management formally commits to a defined set of actions under the plan. Benefits are determined based on the terms of our established ongoing benefit arrangements. Since the plan was initiated in 2023, we incurred costs totaling $207.7 for approximately 3,600 employees globally.

The table below reconciles costs related to our global cost reduction plan to payables and accrued liability balances as reflected on our consolidated balance sheets:

2023 Charge	$27.0
Cash payments	(6.8)
Currency translation adjustment	(0.4)
Amount accrued as of 30 September 2023	$19.8
2024 Charge	$57.0
Cash payments	(43.6)
Currency translation adjustment	0.8
Amount accrued as of 30 September 2024	$34.0
2025 Charge	$123.7
Cash payments	(57.5)
Currency translation adjustment	1.4
Amount accrued as of 30 September 2025	$101.6

The remaining liability as of 30 September 2025 primarily relates to employees identified during fiscal year 2025. We expect implementation of these actions to be substantially complete by the end of fiscal year 2026. However, position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond one year in certain cases.