Air Products and Chemicals(APD) - 2025 Q2 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, Air Products reported sales of $2,916.2 million, a slight decrease of 0.5$2,930.2 million in the same period of 2024 [16]. - The net loss attributable to Air Products for the three months ended March 31, 2025, was $1,730.6 million, compared to a net income of$572.4 million in the same period of 2024, representing a significant decline [16]. - The company reported a comprehensive loss of $1,673.7 million for the three months ended March 31, 2025, compared to a comprehensive income of$487.8 million in the same period of 2024 [18]. - The company reported a net loss of $1,730.6 million for the three months ended March 31, 2025, compared to a net income of$572.4 million for the same period in 2024 [27]. - The basic earnings per share for the three months ended March 31, 2025, was ($7.77), a significant decrease from$2.57 in the prior year [128]. - The company reported a total of $5,847.7 million in sales for the six months ended March 31, 2025, compared to$5,927.6 million for the same period in 2024 [88]. Expenses and Costs - Research and development expenses decreased to $22.9 million for the three months ended March 31, 2025, down from$25.4 million in the same period of 2024, indicating a focus on cost management [16]. - The company incurred shareholder activism-related costs of $31.4 million for the three months ended March 31, 2025, which were not present in the same period of 2024 [16]. - The company recorded project exit costs of$2.861 billion during the second quarter of fiscal year 2025, primarily related to clean energy projects in the Americas segment [60]. - A project exit charge of approximately $1.8 billion was recorded due to the termination of the Master Project Agreement with World Energy, including$1.4 billion for asset write-downs [56]. - The company incurred business and asset actions costs of $2,927.9 million for the three months ended March 31, 2025, compared to$57.0 million in the same period of 2024 [16]. Assets and Liabilities - The total current assets decreased to $5,187.6 million as of March 31, 2025, from$6,363.0 million as of September 30, 2024, reflecting a reduction in cash and cash equivalents [21]. - Total liabilities increased to $22,093.3 million as of March 31, 2025, compared to$20,900.9 million as of September 30, 2024, indicating a rise in financial obligations [21]. - The company’s total equity decreased to $16,779.6 million as of March 31, 2025, down from$18,673.7 million as of September 30, 2024, reflecting the impact of the net loss [21]. - Total assets as of March 31, 2025, were $38,872.9 million, down from$39,574.6 million on September 30, 2024 [16]. - Long-term debt increased from $13,428.6 million as of September 30, 2024, to$14,153.1 million as of March 31, 2025, an increase of approximately 5.4% [21]. Cash Flow and Investments - Cash provided by operating activities decreased to $1,139.8 million for the six months ended March 31, 2025, down from$1,428.3 million in the prior year, reflecting a reduction of approximately 20.2% [23]. - Total cash used for investing activities increased to $4,419.4 million in the first half of 2025, compared to$3,226.0 million in the same period of 2024, marking a rise of about 37.0% [23]. - The balance of cash and cash items at the end of the period was $1,491.4 million, down from$2,535.0 million at the end of March 2024, indicating a decrease of approximately 41.1% [23]. - Cash payments related to unpaid benefits amounted to $23.9 million, with a remaining liability of$75.3 million expected to be resolved by the end of the second quarter of fiscal year 2026 [64]. Shareholder and Equity Information - Dividends paid to shareholders for the six months ended March 31, 2025, totaled $792.1 million, slightly up from$782.5 million in the same period of 2024 [25]. - The company’s total equity as of March 31, 2025, was $16,779.6 million, a decrease from$18,673.7 million as of September 30, 2024 [25]. - Dividends on common stock were $398.3 million, with a dividend per share of$1.79, compared to $393.5 million and$1.77 per share in the previous year [27]. Project and Joint Ventures - The NEOM Green Hydrogen Company joint venture has secured project financing of approximately $6.1 billion, expected to fund about 73$6.225 billion, an increase from $4.394 billion as of September 30, 2024 [48]. - The carrying value of the investment in the Jazan Integrated Gasification and Power Company joint venture was$3.060 billion as of March 31, 2025 [52]. - The NEOM Green Hydrogen Project is a multi-billion dollar facility powered by renewable energy, producing green ammonia for Air Products under a long-term agreement [42]. Tax and Regulatory Matters - Income tax payments, net of refunds, increased to $710.1 million for the six months ended March 31, 2025, compared to$321.8 million for the same period in 2024 [135]. - The effective tax rate for the three months ended March 31, 2025, was 22.5%, reflecting a tax benefit of $505.8 million on pre-tax losses [129]. - The company is evaluating the impact of new accounting guidance on climate-related disclosures, which may take effect in fiscal year 2026 [37]. - The company plans to adopt the new segment reporting standards effective for the fiscal year ending September 30, 2025, expanding segment financial information disclosures [38].