Air Products and Chemicals: The Buy Window Has Closed Now

Since February, Air Products and Chemicals has trounced the S&P 500 index. The company’s decision to not proceed with the Louisiana Clean Energy Project and the finalized agreement with Yara for renewable ammonia bode well for the future. APD’s adjusted net debt-to-EBITDA ratio remained unchanged at 2.2x in Q2 2026. Shares are priced 2% below my fair value estimate. APD could be positioned for 9% annual total returns through FY 2031.

In business, sometimes the most important projects are the ones that are never done. Pruning the project pipeline and walking away from ventures that would have likely underperformed is the ultimate sign of management’s commitment.