Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter ended March 2025, free cash flow and margin both improved compared to the prior quarter and the same quarter last year. Revenue remained stable sequentially while operating cash flow increased, supporting stronger cash conversion.
- Revenue held steady from the prior quarter, but operating cash flow rose, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly lower sequentially, contributing to the better conversion.
- Compared to the immediately preceding quarter, revenue was stable, while free cash flow and margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all increased, with the margin strengthening as well.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$208.0M
Capital spending and related asset purchases.
FCF margin
13.1%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $9.1B | $911.0M | $295.0M | $616.0M | 6.8% |
| 2024-09-30 | $9.8B | $1.5B | $266.0M | $1.2B | 12.6% |
| 2024-12-31 | $9.9B | $1.3B | $267.0M | $1.0B | 10.4% |
| 2025-03-31 | $9.9B | $1.5B | $208.0M | $1.3B | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Stronger Operating Cash Flow
Operating cash flow increased from both the prior quarter and the year-ago period, outpacing the relatively stable capital expenditure. This directly lifted free cash flow and margin.
Higher operating cash flow was the primary observable factor behind the improved free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady from the prior quarter, but operating cash flow rose, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly lower sequentially, contributing to the better conversion.
Compared to the immediately preceding quarter, revenue was stable, while free cash flow and margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all increased, with the margin strengthening as well.
Monitor whether the improvement in free cash flow margin can be sustained as the company’s aftermarket services business, which constitutes the majority of revenue, continues to evolve.