Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year, leading to a higher free cash flow and an improved margin. The company's cash conversion strengthened as capital expenditure decreased from the prior quarter.
- Revenue rose while operating cash flow increased more than proportionally, and capital expenditure declined from the prior quarter, resulting in a higher free cash flow and a positive free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter a year earlier, all metrics improved, with revenue, operating cash flow, and free cash flow all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$623.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$239.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$358.0M
Cash generated by operations before capital spending.
CapEx
$119.0M
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.8B | $274.5M | $88.4M | $186.1M | 10.3% |
| 2022-12-31 | $1.5B | $430.3M | $219.1M | $211.2M | 14.3% |
| 2023-03-31 | $1.4B | $161.0M | $174.0M | -$13.0M | -1.0% |
| 2023-06-30 | $1.8B | $358.0M | $119.0M | $239.0M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger cash generation
Revenue and operating cash flow both increased, while capital expenditure was lower than the prior quarter, contributing to an improvement in free cash flow and margin.
The company moved from a negative free cash flow position in the prior quarter to a positive one, reflecting stronger cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased more than proportionally, and capital expenditure declined from the prior quarter, resulting in a higher free cash flow and a positive free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter a year earlier, all metrics improved, with revenue, operating cash flow, and free cash flow all higher.
The company notes that the seasonal nature of construction activity affects interim operating cash flow, which is a factor to monitor in future quarters.