Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Evergy's free cash flow was negative in the fourth quarter as capital expenditure exceeded operating cash flow. Compared to the same quarter a year earlier, the free cash flow deficit narrowed due to reduced capital spending.
- Operating cash flow was not sufficient to cover capital expenditure, resulting in a negative free cash flow margin. Revenue was similar to the prior year’s fourth quarter, but cash conversion weakened slightly.
- Sequentially, revenue and operating cash flow declined sharply, turning free cash flow from positive to negative. Compared to the same quarter last year, revenue was stable while capital expenditure decreased, leading to an improved free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$352.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$118.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$395.6M
Cash generated by operations before capital spending.
CapEx
$514.2M
Capital spending and related asset purchases.
FCF margin
-9.7%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $1.3B | $317.3M | $618.6M | -$301.3M | -23.5% |
| 2024-06-30 | $1.4B | $317.5M | $677.5M | -$360.0M | -25.6% |
| 2024-09-30 | $1.8B | $953.3M | $526.3M | $427.0M | 23.9% |
| 2024-12-31 | $1.2B | $395.6M | $514.2M | -$118.6M | -9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -151.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 41.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure in the current quarter was lower than the same quarter last year, allowing free cash flow to improve despite similar revenue. The filing notes risks that could affect capital spending and cash flows, including potential project delays and cost increases.
This reduction helped narrow the free cash flow deficit and margin from the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was not sufficient to cover capital expenditure, resulting in a negative free cash flow margin. Revenue was similar to the prior year’s fourth quarter, but cash conversion weakened slightly.
Sequentially, revenue and operating cash flow declined sharply, turning free cash flow from positive to negative. Compared to the same quarter last year, revenue was stable while capital expenditure decreased, leading to an improved free cash flow.
Monitor the trajectory of capital expenditure relative to operating cash flow, as elevated spending continues to pressure free cash flow.