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)

4548177a71f8bebc80805ae65ee9a9105d4a2d8a79bf031ff9e484a9b94c3bdf

4fbed56ddbfd2ff7b75b056a92f4306d18b41fb807213372ab69d47973ef379e

716e663c0549ea17a2813861e7dc7ba7f497dff2925b8e24826a4c180b7b535a

e75103fe25b6eeca22c2568afba82bd83439386cc7e0aca613be7ba74774aec9

d8e880b976f7c29af5787502d684223b484ed7a417c42c4ae3773734e2d807a7

21a86157e7d70772be627408b4283dd01eab21a3fefe00132b6d1578d8e12779

6ce31636c2228174734396cd9c1064fc3a5aa896b45f9a5fcbbcf84826df24e5

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?

a782ec8aa4087999b8ed17bcb29b29cefc40ada5c3d7debf658f0c71bc9f1ff4

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?

9c242827cfe37ea6caff9e32e6ca4b3ec99630c59c2b53273ceceb6a05c831f5

a587ef97d75621d137371f59728b4df51cbd1de03e4ba53da690e5f2a7317c7a

Sales (USD, millions)

Cost of Sales (USD, millions)

Selling and Administrative Expense (USD, millions)

Research and Development Expense (USD, millions)

Business and Asset Actions (USD, millions)

Shareholder Activism Costs (USD, millions)

Other Income (Expense), Net (USD, millions)

Operating Income (USD, millions)

Equity Affiliates' Income (USD, millions)

Interest Expense (USD, millions)

Other Non-Operating Income (Expense), Net (USD, millions)

Income Before Taxes (USD, millions)

Income Tax Provision (USD, millions)

Net Income (USD, millions)

Net Income Attributable to Noncontrolling Interests (USD, millions)

Net Income Attributable to Air Products (USD, millions)

Basic Earnings per Share Attributable to Air Products (USD per share)

Diluted Earnings per Share Attributable to Air Products (USD per share)

d8cf8a818036d22e5125b0ba6c7ec6719cdcc065f3cbfcbff0c83a8c5b928d90

Air Products and Chemicals Inc (APD)

Financials