Air Products Offers a 2.6% Yield. The Bigger Question is What Comes Next

Air Products (APD) announced a new LNG-based Air Separation Unit (ASU) in Malaysia, producing 600+ metric tonnes of gases daily. The project, in a joint venture with PETRONAS Gas, is set to open in early 2027. APD shares were trading at $280.21, up 12% YTD.

Air Products signed an agreement with a Petronas Gas-led joint venture to build an LNG-based air separation unit in Malaysia. The facility will produce over 600 tons per day of industrial gases, serving various sectors. Located at the Pengerang LNG terminal, it is expected to start operations in early 2027, marking Malaysia's first such unit. According to Air Products, it will be their fifth in Asia.

Air Products (APD) finalized an agreement to build an LNG-based Air Separation Unit in Malaysia, expected to produce 600 tonnes of gases daily by 2027. The plant, a joint venture with PETRONAS Gas and DIALOG, aims to improve energy efficiency and reduce emissions. APD reported $12.0 billion in fiscal 2025 sales.

Air Products (APD) announced a $250M investment in Arizona to supply high-purity gases to a chipmaker, its second semiconductor deal with over $900M total investment. The company reported a 12% rise in Q3 adjusted EPS to $3.47, raising its full-year outlook. However, it recorded a GAAP loss of $6.47 per share due to exiting clean-energy projects, with $3.5B expected in capital spending for 2026.

Air Products (APD) will invest $250M in Arizona to supply gases and infrastructure for a semiconductor manufacturer's expansion, its second such deal. The company's shares were down slightly to $289.52 on Wednesday, up over 15% YTD.

Linde (LIN) leads AI chip contracts with $11B backlog, 30% margins, but shares are up only 10.2% YTD. Air Products (APD), despite a $6.47 GAAP loss, has gained 20.3% YTD. Analyst Harvey Stober calls Linde a key AI supplier at a 'mundane' valuation. Linde's Q2 revenue rose 9.35% YoY, with 29.5% operating margin.