Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Deere's free cash flow turned deeply negative in the fiscal first quarter, driven by a significant operating cash outflow that far exceeded capital spending. The cash conversion profile weakened sharply compared with both the prior quarter and the same quarter last year.
- Revenue declined sequentially, while operating cash flow reversed from a large inflow to a sizable outflow, causing free cash flow and free cash flow margin to fall substantially. Capital expenditure was lower than the prior quarter but similar to the year-ago level.
- Compared with the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue and free cash flow were lower, operating cash flow was more negative, and free cash flow margin worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.1B
Cash generated by operations before capital spending.
CapEx
$352.0M
Capital spending and related asset purchases.
FCF margin
-17.4%
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 |
|---|---|---|---|---|---|
| 2024-04-28 | $15.2B | $1.9B | $357.0M | $1.5B | 9.8% |
| 2024-07-28 | $13.2B | $3.2B | $324.0M | $2.9B | 21.8% |
| 2024-10-27 | $11.1B | $5.1B | $597.0M | $4.5B | 40.3% |
| 2025-01-26 | $8.5B | -$1.1B | $352.0M | -$1.5B | -17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -170.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash outflow
The strongest observable driver of the quarter's cash flow performance was a large negative swing in operating cash flow relative to both the prior quarter and the year-ago quarter. This outflow overwhelmed capital expenditure, which itself was not elevated versus comparable periods.
Free cash flow and free cash flow margin were materially lower as a direct result of the operating cash outflow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined sequentially, while operating cash flow reversed from a large inflow to a sizable outflow, causing free cash flow and free cash flow margin to fall substantially. Capital expenditure was lower than the prior quarter but similar to the year-ago level.
Compared with the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue and free cash flow were lower, operating cash flow was more negative, and free cash flow margin worsened.
Monitor whether operating cash flow remains negative in subsequent quarters, as it is the dominant factor driving free cash flow.