Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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In Q3 2024, the significant increase in operating cash flow was driven by **higher net income** (rising to **$1,878.3 million** from **$1,607.6 million** in Q3 2023) and **lower use of cash in working capital** (using **$236.0 million** instead of **$759.4 million**). This improvement was largely due to smaller reductions in **payables and accrued liabilities** and a positive shift in **other receivables** related to refunds of value-added taxes from the NEOM Green Hydrogen Project. Additionally, **reduced charges for business and asset actions** (**$57.0 million** compared to **$244.6 million**) along with more favorable **other adjustments** (**$36.4 million** versus **$152.3 million**) contributed to the spike in operating cash flow.  **[0000002969-24-000043_apd-20240630.htm:7]** **[0000002969-24-000041_exhibit99130jun24.htm:9]** **[0000002969-24-000043_apd-20240630.htm:53]** 

What factors contributed to the spike in operating cash flow in Q3 2024?

The documents do not provide any information on free cash flow or its deterioration in Q1 2025. They only detail the significant increase in additions to plant and equipment, including long-term deposits. Without further details on free cash flow components, we cannot definitively explain its deterioration in that period.  **[0000002969-24-000010_apd-20231231.htm:7]** **[0000002969-25-000013_apd-20241231.htm:6]** **[0000002969-25-000013_apd-20241231.htm:39]** **[0000002969-25-000012_exhibit99131dec24.htm:14]** **[0000002969-24-000056_apd-20240930.htm:58]** 

Why did free cash flow deteriorate significantly in Q1 2025?

What drove the sharp increase in capital expenditures in Q1 2025?

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The significant drop in the cash balance in Q1 2025 was primarily due to **substantial cash outflows for investing activities**, which amounted to **($2,182.1 million)**, mainly driven by large investments in plant and equipment including long-term deposits (**($2,117.6 million)**). Although operating activities provided a cash inflow of **$811.7 million** and financing activities contributed **$274.2 million**, these were not sufficient to offset the heavy cash used in investing activities, resulting in an overall decrease of **($1,134.2 million)** in cash and cash items.  **[0000002969-25-000012_exhibit99131dec24.htm:8]** **[0000002969-25-000013_apd-20241231.htm:6]** 

Why did the cash balance drop significantly in Q1 2025?

The documents do not provide specific reasons for the sharp decline in short-term investments in Q4 2024. However, it is noted that the decrease—from **$332.2 million in Q4 2023** to **$5.0 million in Q4 2024**—might be attributable to a reallocation of funds, potentially toward increased capital expenditures or other strategic initiatives such as operating activities.  **[20241107PH50225:9]** **[0000002969-24-000050_exhibit99130sep24.htm:10]** **[0000002969-24-000056_apd-20240930.htm:79]** 

What caused the sharp decline in short-term investments in Q4 2024?

APD’s long-term debt surged in Q4 2024 mainly due to **three key factors**: the issuance of **$2.5 billion** in green senior notes, the acquisition of **$2.0 billion** in borrowings for the NEOM Green Hydrogen project, and other additional borrowings (which were partially offset by **$486.2 million** in debt repayments). These financing activities were undertaken to support the company’s clean energy initiatives and large-scale projects.  **[0000002969-24-000056_apd-20240930.htm:59]** **[0000002969-24-000056_apd-20240930.htm:114]** 

Why did long-term debt jump so steeply by Q4 2024?

The surge in the current portion of long-term debt in Q2 2024 was driven by the issuance of **$2.5 billion in green senior notes** during February 2024. This issuance, intended to finance or refinance projects under the company's **Green Finance Framework**, resulted in a significant increase in the current portion of long-term debt from **$615.0 million as of September 30, 2023, to $937.5 million as of March 31, 2024**—an increase of **$322.5 million**.  **[0000002969-24-000026_apd-20240331.htm:23]** **[0000002969-24-000026_apd-20240331.htm:6]** **[0000002969-24-000026_apd-20240331.htm:52]** 

What drove the surge in the current portion of long-term debt in Q2 2024?

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Air Products and Chemicals Inc (APD)

Financials