Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Ecolab's free cash flow margin improved significantly from the prior quarter and the year-ago quarter, driven by higher operating cash flow. Revenue was stable compared to the same quarter last year but increased from the preceding quarter.
- Operating cash flow rose relative to both the prior quarter and the year-ago period, while capital expenditure was lower than the prior quarter but slightly higher than a year earlier. The combination lifted free cash flow and its margin, indicating improved cash conversion.
- Compared to the prior quarter, revenue was higher and free cash flow margin improved substantially from a lower base. Versus the year-ago quarter, revenue was unchanged while free cash flow margin was higher, reflecting stronger cash generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$485.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$701.8M
Cash generated by operations before capital spending.
CapEx
$216.7M
Capital spending and related asset purchases.
FCF margin
12.1%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $4.0B | $786.7M | $236.4M | $550.3M | 13.8% |
| 2024-12-31 | $4.0B | $766.7M | $359.7M | $407.0M | 10.2% |
| 2025-03-31 | $3.7B | $369.4M | $237.9M | $131.5M | 3.6% |
| 2025-06-30 | $4.0B | $701.8M | $216.7M | $485.1M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 Expansion
The quarter's operating cash flow was higher than both the prior quarter and the same quarter last year, enabling a higher free cash flow margin despite a slight increase in capital expenditure relative to the year-ago period.
This stronger cash conversion enhances the company's ability to fund operations and investments internally.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to both the prior quarter and the year-ago period, while capital expenditure was lower than the prior quarter but slightly higher than a year earlier. The combination lifted free cash flow and its margin, indicating improved cash conversion.
Compared to the prior quarter, revenue was higher and free cash flow margin improved substantially from a lower base. Versus the year-ago quarter, revenue was unchanged while free cash flow margin was higher, reflecting stronger cash generation.
Monitor the six-month operating cash flow trend, which was lower than the prior year period despite the quarterly improvement, as noted in the liquidity discussion.