Q3 profits rise as new CEO refocuses energy portfolio, boosting cash flow and maintaining buy rating.

In Q3, the company reported stronger profitability with a 110 basis point increase in adjusted operating margin and a 12% rise in earnings per share, prompting an upward revision of full-year guidance. The new CEO is strategically reshaping the energy-transition portfolio by exiting weaker projects and focusing on investments that offer higher returns and better capital efficiency. Reduced capital expenditures and a $3 billion industrial-gas backlog are expected to enhance free cash flow and lessen reliance on large transition projects. The company's valuation remains attractive compared to peers, supported by improved earnings quality and capital allocation, sustaining a Buy rating from analysts.