Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
GE Vernova's third quarter free cash flow improved significantly from the prior quarter, driven by higher operating cash flow. However, free cash flow and margin were lower compared to the same quarter last year, despite revenue growth.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased substantially from the prior quarter but was lower year-over-year. Capital expenditure was higher in both comparisons. Consequently, free cash flow and free cash flow margin improved sharply from the prior quarter but weakened relative to the year-ago period.
- Compared to the immediately preceding quarter, free cash flow and margin showed strong improvement, with operating cash flow more than offsetting higher capital spending. Versus the same quarter one year earlier, free cash flow and margin declined, as operating cash flow decreased and capital expenditures rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$733.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$980.0M
Cash generated by operations before capital spending.
CapEx
$247.0M
Capital spending and related asset purchases.
FCF margin
7.4%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $10.6B | $921.0M | $350.0M | $571.0M | 5.4% |
| 2025-03-31 | $8.0B | $1.2B | $186.0M | $975.0M | 12.1% |
| 2025-06-30 | $9.1B | $367.0M | $173.0M | $194.0M | 2.1% |
| 2025-09-30 | $10.0B | $980.0M | $247.0M | $733.0M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Improvement
Operating cash flow rose sharply from the prior quarter, more than offsetting an increase in capital expenditure. This drove a substantial improvement in free cash flow and margin.
The quarter's cash conversion strengthened considerably, reversing the prior period's weaker performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased substantially from the prior quarter but was lower year-over-year. Capital expenditure was higher in both comparisons. Consequently, free cash flow and free cash flow margin improved sharply from the prior quarter but weakened relative to the year-ago period.
Compared to the immediately preceding quarter, free cash flow and margin showed strong improvement, with operating cash flow more than offsetting higher capital spending. Versus the same quarter one year earlier, free cash flow and margin declined, as operating cash flow decreased and capital expenditures rose.
Monitor the year-over-year decline in operating cash flow and free cash flow margin despite revenue growth, as it may signal shifts in cash conversion efficiency.