Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year, while free cash flow declined. The free cash flow margin narrowed, reflecting higher capital spending relative to cash flow from operations.
- Operating cash flow was stable quarter over quarter but lower than a year earlier. With capital expenditure increasing, free cash flow decreased, and the margin contracted.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow was stable, but capital expenditure increased, leading to lower free cash flow and a lower margin. Versus the same quarter last year, revenue was higher, but operating cash flow was lower and capital expenditure was higher, resulting in a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$829.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$213.0M
Capital spending and related asset purchases.
FCF margin
20.4%
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 |
|---|---|---|---|---|---|
| 2023-12-29 | $3.8B | $719.0M | $151.0M | $568.0M | 14.8% |
| 2024-03-29 | $4.0B | $710.0M | $167.0M | $543.0M | 13.7% |
| 2024-06-28 | $4.0B | $1.0B | $149.0M | $857.0M | 21.5% |
| 2024-09-27 | $4.1B | $1.0B | $213.0M | $829.0M | 20.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 300.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | 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 Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow.
The higher capital spending reduced free cash flow and pressured the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable quarter over quarter but lower than a year earlier. With capital expenditure increasing, free cash flow decreased, and the margin contracted.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow was stable, but capital expenditure increased, leading to lower free cash flow and a lower margin. Versus the same quarter last year, revenue was higher, but operating cash flow was lower and capital expenditure was higher, resulting in a lower free cash flow and margin.
Monitor the impact of the new segment structure on revenue and cash flow, as the company expects sales increases in the Industrial Solutions segment to be partially offset by declines in the Transportation Solutions segment.