Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin weakened from the prior quarter but improved compared to the same quarter last year. The sequential decline in operating cash flow and capital expenditure relative to revenue drove the margin compression.
- Revenue was lower than the prior quarter and higher than a year ago, while operating cash flow followed a similar pattern but with a larger proportional decline from the prior quarter. The free cash flow margin of 9.0% was lower than the previous quarter's 19.6% and higher than the year-ago quarter's 6.3%, reflecting a mixed conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, all metrics increased, with operating cash flow and free cash flow showing the largest relative improvements.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$933.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$484.0M
Capital spending and related asset purchases.
FCF margin
9.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-06-30 | $10.4B | $2.0B | $533.0M | $1.4B | 13.8% |
| 2024-09-30 | $10.6B | $2.7B | $556.0M | $2.1B | 20.2% |
| 2024-12-31 | $11.0B | $2.9B | $720.0M | $2.1B | 19.6% |
| 2025-03-31 | $10.4B | $1.4B | $484.0M | $933.0M | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow increased compared to the same quarter last year, attributed in the filing primarily to higher segment operating earnings. This improvement offset the rise in capital expenditure and pension contributions.
The stronger operating cash flow was the primary factor behind the year-over-year increase in free cash flow, despite higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and higher than a year ago, while operating cash flow followed a similar pattern but with a larger proportional decline from the prior quarter. The free cash flow margin of 9.0% was lower than the previous quarter's 19.6% and higher than the year-ago quarter's 6.3%, reflecting a mixed conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, all metrics increased, with operating cash flow and free cash flow showing the largest relative improvements.
Monitor the trajectory of working capital items, particularly inventories and trade receivables, which increased during the quarter as noted in the filing.