Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Deere & Company generated positive free cash flow in the current quarter, a sharp improvement from the previous quarter's negative result. Revenue decreased compared to the same quarter last year, but lower capital expenditure helped maintain free cash flow at a similar level.
- Revenue increased sequentially but declined year-over-year. Operating cash flow turned positive, capital expenditure decreased, and free cash flow became positive with an improved margin.
- Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and margin turned from negative to positive. Against the same quarter a year ago, revenue was lower, operating cash flow was slightly lower, capital expenditure was lower, free cash flow was stable, and margin was higher.
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
$1.7B
Cash generated by operations before capital spending.
CapEx
$203.0M
Capital spending and related asset purchases.
FCF margin
11.7%
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 |
|---|---|---|---|---|---|
| 2024-07-28 | $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% |
| 2025-04-27 | $12.8B | $1.7B | $203.0M | $1.5B | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Flow Recovery
Operating cash flow turned from negative in the prior quarter to positive in the current quarter, a strong improvement. Capital expenditure also decreased, supporting the positive free cash flow.
This recovery drove the swing from negative to positive free cash flow and improved the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased sequentially but declined year-over-year. Operating cash flow turned positive, capital expenditure decreased, and free cash flow became positive with an improved margin.
Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and margin turned from negative to positive. Against the same quarter a year ago, revenue was lower, operating cash flow was slightly lower, capital expenditure was lower, free cash flow was stable, and margin was higher.
Monitor the year-over-year revenue trend, as it decreased while free cash flow held steady.