Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year, leading to higher free cash flow and an improved free cash flow margin. The company's cash conversion strengthened as operating cash flow grew at a faster pace than revenue.
- Revenue was higher than the prior quarter and the year-ago period. Operating cash flow increased, and capital expenditure also rose. The resulting free cash flow and free cash flow margin were both higher, reflecting improved cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all increased. Versus the same quarter one year earlier, all metrics were also higher, with the most notable improvement in free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$720.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$283.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$454.0M
Cash generated by operations before capital spending.
CapEx
$171.0M
Capital spending and related asset purchases.
FCF margin
14.2%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $2.0B | $454.0M | $171.0M | $283.0M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Conversion
Revenue increased while operating cash flow grew at a faster rate, resulting in a higher free cash flow margin. This improvement was consistent both sequentially and year-over-year.
The stronger cash conversion supports the company's ability to fund capital expenditures and other cash needs.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago period. Operating cash flow increased, and capital expenditure also rose. The resulting free cash flow and free cash flow margin were both higher, reflecting improved cash conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all increased. Versus the same quarter one year earlier, all metrics were also higher, with the most notable improvement in free cash flow margin.
Monitor the impact of seasonal construction activity on operating cash flow, as noted in the filing's discussion of liquidity and capital resources.