Free cash flow has turned negative to -$42.6 million in 2026Q1, driven by a $36.6 million capital expenditure commitment and a substantial $108.8 million working capital absorption.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 198.4M | 233.3M | 130.75M | 208.94M | 183.59M | 140.25M | 201.24M | 48.39M | 151.27M | 182.7M | 118.66M | 104.81M | 75.59M | 35.32M | 110.78M | 38.09M | 18.34M | 9.19M | 24.08M | 61.81M | 88.31M | 36.05M | -11.38M | -12.99M | -15.3M | 7.86M | 22.75M | 10.1M | 8.72M | 8.09M | 3.25M |
| Operating CF Margin % | - | 12.97% | 8.82% | 12.62% | 9.95% | 9.63% | 14.21% | 6.13% | 21.04% | 27.23% | 24.53% | 25.27% | 12.96% | 6.46% | 24.51% | 7.37% | 3.99% | 4.93% | 7.32% | 16.07% | 21.5% | 11.08% | -2.88% | -4.95% | -6.41% | 4.06% | 6.32% | 5.49% | 6.99% | 5.7% | 3.29% |
| Operating CF Growth % | 579.01% | 78.44% | -37.42% | 13.81% | 30.9% | -30.31% | 315.85% | -68.01% | -17.2% | 53.96% | 13.22% | 38.66% | 114.03% | -68.12% | 190.79% | 107.69% | 99.59% | -61.83% | -61.05% | -30.01% | 144.95% | 416.85% | 12.38% | 15.15% | -294.62% | -65.44% | 125.21% | 15.86% | 7.79% | 148.8% | -12.11% |
| Net Income | 190.5M | 149.3M | 56.31M | 130.75M | 201.89M | 134.71M | 135.15M | 56.49M | 147.15M | 136.1M | 116.95M | 83.48M | 46.98M | 32.09M | 20.58M | 36.31M | 71.19M | -102.7M | -1.78M | 34.36M | 88.32M | 12.82M | -12.75M | -44.24M | -41.4M | -31.38M | 68.03M | 16.84M | -9.52M | 10.36M | 5.14M |
| Depreciation & Amortization | 61.6M | 61.9M | 68.45M | 66.53M | 60.3M | 52.89M | 47.77M | 26.15M | 13.59M | 9.42M | 7.81M | 8.83M | 20.92M | 18.87M | 17.79M | 14.53M | 10.74M | 9.01M | 10.72M | 12.22M | 16.45M | 18.38M | 21.12M | 21.83M | 23.29M | 17.29M | 11.58M | 7.76M | 6.58M | 3.76M | 2.66M |
| Stock-Based Compensation | 13.6M | 55.7M | 45.94M | 31M | 19.85M | 15.74M | 12.27M | 7.33M | 9.7M | 12.55M | 6.33M | 2.81M | 4.99M | 13.74M | 12.72M | 12.53M | 8.5M | 5.4M | 4.6M | 4.11M | 345K | 0 | 0 | 482K | 518K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -12.6M | -13.8M | -20.5M | -33.94M | -5.74M | 1.33M | -622K | -3.23M | 5.62M | 28.77M | 3.57M | 3.5M | -11.79M | -16.02M | -6.53M | 3.36M | 5.28M | -5.28M | 7.93M | 5.13M | -22.28M | -1.13M | 444K | 6.43M | -6.89M | -3.58M | -3.73M | 1.03M | -792K | -1.58M | -286K |
| Other Non-Cash Items | 49.5M | 3.5M | 2.76M | -3.55M | -4.11M | 189K | 1.09M | -12.5M | 325K | -3.64M | -7.54M | -14.46M | 14.29M | 37.8M | 7.76M | 8.98M | -12.53M | 72.72M | 9.97M | 1.39M | 3.72M | -2.69M | 17.57M | 6.46M | 3.87M | 18.57M | -23.09M | -1.35M | -545K | 3.95M | 41K |
| Working Capital Changes | -105.4M | -22.5M | -22.21M | 18.14M | -88.61M | -64.61M | 5.57M | -25.85M | -25.12M | -494K | -8.46M | 20.65M | 187K | -51.16M | 58.46M | -37.61M | -64.84M | 30.04M | -7.36M | 4.61M | 1.75M | 8.68M | -37.76M | -3.95M | 5.31M | 6.96M | -30.04M | -14.18M | 13M | -8.4M | -4.3M |
| Change in Receivables | -99.1M | -57.4M | 14.62M | 23.28M | -59.63M | 5.27M | 15.41M | -18.88M | 3.44M | -7.5M | -21.6M | 17.92M | 4.2M | -31.86M | 49.58M | -12.13M | -62.14M | 5.28M | 14.16M | 14.16M | -1.74M | 0 | -8.93M | -14.56M | -5.07M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -88.5M | -47.4M | -27.9M | 39.3M | -32.24M | -115.74M | 11.66M | 3.69M | -11.28M | -19.26M | -6.36M | -6.71M | 6.81M | -12.01M | -375K | -3.46M | -41.3M | 8.19M | -2.35M | 1.88M | 1.55M | 11.74M | -19.78M | -11.34M | 3.02M | -5.48M | -16.86M | -4.06M | 9.79M | -9.58M | 2.13M |
| Change in Payables | 109.4M | 79.3M | -558K | -26.08M | -28.7M | 67.11M | -48.16M | -16.09M | -12.62M | 1.81M | 18.96M | 3.22M | -8.42M | -3.26M | -2.71M | -10.81M | 26.52M | 15.8M | -4.6M | -4.06M | 6M | 0 | -5.85M | 5.87M | 2.37M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -132.7M | -109.8M | -73.54M | -64.75M | -208.27M | -47.3M | -42.84M | -393.85M | -113.59M | -28.08M | 300K | -13.27M | -55M | -70.93M | -24.53M | -34.72M | -16.71M | 12.96M | 44.5M | -30.57M | -83.05M | 67.03M | 12.33M | -8.59M | 24.31M | -81.17M | 27.42M | -175.89M | -3.69M | -38.17M | -5.14M |
| Capital Expenditures | -130.1M | -107.4M | -56.79M | -61.01M | -58.88M | -31.88M | -36.48M | -25.19M | -20.33M | -9.04M | -6.82M | -4.01M | -6.11M | -9.61M | -10.23M | -18.89M | -18.93M | -5.61M | -7.2M | -8.87M | -6.14M | -10.82M | -14.02M | -20.51M | -10.71M | -12.44M | -14.06M | -6.84M | -5.29M | -5.18M | -5.14M |
| CapEx % of Revenue | 6.83% | 5.97% | 3.83% | 3.68% | 3.19% | 2.19% | 2.58% | 3.19% | 2.83% | 1.35% | 1.41% | 0.97% | 1.05% | 1.76% | 2.26% | 3.65% | 4.12% | 3.01% | 2.19% | 2.31% | 1.5% | 3.33% | 3.55% | 7.82% | 4.48% | 6.42% | 3.91% | 3.72% | 4.24% | 3.65% | 5.2% |
| Acquisitions | 0 | 0 | -13.76M | 0 | -149.39M | -21.54M | -5.48M | -366.1M | -93.76M | -17.35M | 0 | -128K | -57.14M | -75.37M | -15.31M | 0 | -32.32M | 0 | -2.15M | 0 | 0 | 0 | 0 | -1.68M | -50.48M | -29.93M | 150K | -175K | -2.5M | -12.99M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 6.11M | -1M | -4.3M | 494K | -3.49M | 7.12M | -46K | -156K | -68.34M | 2.2M | 0 | -32.32M | 0 | 2.15M | 2.15M | 539K | 13.34M | 2.56M | 4.8M | -2.43M | -7.19M | -1.23M | 0 | -1M | 0 | 0 |
| Cash from Financing | -87.6M | -56.1M | -377.09M | 445.68M | -61.87M | -25.37M | -29.61M | 338.84M | -97.13M | -31.31M | 2.76M | -45.64M | -32.48M | 26.31M | -54.86M | -17.09M | 1.38M | -3.4M | -47.88M | 4.82M | -741K | -85.97M | -5.19M | -8.61M | -22.63M | 124.08M | -37.51M | 173.32M | -5.05M | 30.51M | -283K |
| Debt Issued (Net) | -1.9M | -1.9M | -355M | 541.12M | -20M | 69.9M | -17.5M | 338.74M | 0 | 0 | 0 | 0 | -13.72M | 1.1M | 0 | 0 | -209K | -85K | -120K | -101K | -4.03M | -193.52M | -7.02M | -12.85M | -24.71M | 120.11M | -42.43M | 132.3M | -6M | 1.4M | 200K |
| Equity Issued (Net) | -30.2M | -30.2M | -1.77M | -40M | -26.64M | -78.13M | -11.63M | 0 | -95.13M | -29.99M | 0 | -50M | -25M | 0 | -57.12M | -17.89M | 1.4M | 508K | -47.77M | 4.92M | 3.29M | 107.55M | 1.83M | 4.24M | 2.08M | 3.97M | 4.91M | 41M | 900K | 29.1M | 200K |
| Dividends Paid | -15.6M | -15.6M | -15.37M | -15.22M | -15.2M | -15.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -30.2M | -30.2M | -1.77M | -40M | -26.64M | -78.13M | -11.63M | 0 | -95.13M | -29.99M | 0 | -50M | -25M | 0 | -57.12M | -17.89M | 0 | 0 | -49.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -39.9M | -8.4M | -4.95M | -40.21M | -26K | -1.76M | -482K | 104K | -2.01M | -1.31M | 2.14M | 4.46M | 6.24M | 25.21M | 2.25M | 803K | 190K | -3.82M | 6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47K | 14K | -683K |
| Net Change in Cash | -23.3M | 69.1M | -322.47M | 585.74M | -85.55M | 64M | 133.93M | -8.11M | -65.74M | 117.77M | 119.8M | 33.16M | -12.84M | -8.44M | 28.93M | -13.28M | -2.19M | 16.66M | 21.86M | 36.35M | 5.37M | 14.47M | -3.12M | -28.67M | -11.77M | 50.24M | 10.67M | 7.06M | 254K | 239K | -2.1M |
| Free Cash Flow | 68.3M | 125.9M | 73.96M | 147.93M | 124.7M | 108.37M | 164.75M | 23.2M | 130.94M | 173.66M | 111.84M | 100.79M | 69.48M | 25.7M | 100.54M | 19.21M | -590K | 3.58M | 16.88M | 52.94M | 82.17M | 25.23M | -25.4M | -33.49M | -26.02M | -4.57M | 8.69M | 3.26M | 3.43M | 2.91M | -1.89M |
| FCF Margin % | 3.58% | 7% | 4.99% | 8.93% | 6.76% | 7.44% | 11.64% | 2.94% | 18.21% | 25.88% | 23.12% | 24.3% | 11.92% | 4.7% | 22.25% | 3.72% | -0.13% | 1.92% | 5.13% | 13.76% | 20% | 7.75% | -6.42% | -12.76% | -10.89% | -2.36% | 2.42% | 1.77% | 2.75% | 2.05% | -1.91% |
| FCF Growth % | -30.49% | 70.23% | -50% | 18.63% | 15.07% | -34.22% | 610.02% | -82.28% | -24.6% | 55.27% | 10.96% | 45.07% | 170.3% | -74.43% | 423.45% | 3355.59% | -116.49% | -78.79% | -68.12% | -35.57% | 225.72% | 199.33% | 24.18% | -28.73% | -469.22% | -152.58% | 166.41% | -4.84% | 17.75% | 254.48% | -1785% |
| FCF per Share | 1.62 | 3.26 | 1.95 | 3.91 | 3.31 | 2.83 | 4.27 | 0.60 | 3.33 | 4.32 | 2.79 | 2.45 | 1.69 | 0.63 | 2.55 | 0.44 | -0.01 | 0.09 | 0.40 | 1.16 | 1.82 | 0.67 | -0.78 | -1.04 | -0.81 | -0.14 | 0.27 | 0.11 | 0.12 | 0.11 | -0.07 |
| FCF Conversion (FCF/Net Income) | 0.36x | 1.57x | 2.41x | 1.63x | 0.92x | 1.04x | 1.49x | 0.75x | 1.03x | 1.33x | 0.93x | -0.66x | 1.61x | 1.10x | 5.38x | 1.05x | 0.26x | -0.09x | -13.53x | 1.80x | 1.00x | 2.81x | 0.89x | 0.29x | 0.37x | -0.25x | 0.33x | 0.60x | -0.92x | 0.78x | 0.63x |
| Interest Paid | 7.2M | 0 | 17.27M | 14.43M | 6.61M | 4.04M | 5.28M | 3.48M | 228K | 66K | 173K | 361K | 234K | 63K | 17K | 74K | 55K | 16K | 9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 17.6M | 0 | 33.31M | 47.94M | 17.55M | 32.54M | 21.03M | 18.59M | 16.19M | 5.31M | 5.65M | 7.16M | 5.24M | 13.4M | 3.63M | 23.25M | 25.18M | 6.36M | 6.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working Capital Volatility
As indicated by the most recent quarterly data, AEIS reported a net income of $66.8 million against an operating cash flow of -$6.0 million, highlighting a significant disconnect between accounting profitability and actual cash generation that warrants close scrutiny from investors regarding the sustainability of current earnings.
The negative operating cash flow in 2026Q1, despite healthy net income, suggests that the company is currently struggling to convert its reported profits into liquid assets. This divergence appears driven by aggressive working capital absorption, which may indicate that the company is building inventory or extending credit to support its recent revenue growth.
Based on the provided financial statements, AEIS's free cash flow margin swung from a positive 17.2% in 2023Q4 to a negative 8.3% in 2026Q1, illustrating a highly inconsistent cash trajectory that contrasts sharply with the company's recent top-line growth performance in the semiconductor equipment sector.
The erratic nature of free cash flow suggests that the company's cash generation is highly sensitive to the timing of large-scale industrial shipments and inventory cycles. Investors should monitor whether this negative trajectory is a temporary byproduct of scaling operations or a structural issue related to the lower-margin product mix.
According to recent SEC filings, AEIS has increased its capital expenditure to $36.6 million in 2026Q1, representing 7.2% of revenue, a notable step-up from the 3.1% intensity observed in 2024Q4, which may signal a shift toward more capital-intensive manufacturing processes or infrastructure expansion.
This rise in capital intensity suggests that the company is investing heavily in its production capabilities to meet demand, which could pressure free cash flow in the near term. Analysts should evaluate whether these investments are maintenance-focused or growth-oriented, as the latter would be necessary to justify the current margin profile.
As reported in financial statements, AEIS experienced a substantial $108.8 million outflow from working capital changes in 2026Q1, a sharp reversal from the $54.7 million inflow seen in 2023Q4, indicating that current operational growth is consuming cash at an unsustainable rate for the present business cycle.
The massive working capital drain suggests that the company is likely accumulating inventory or facing delayed collections from its major semiconductor OEM customers. This trend warrants further investigation, as it may indicate that the company is forced to carry higher inventory levels to mitigate supply chain risks.
Quick answers to the most common questions about buying AEIS stock.
Advanced Energy Industries, Inc. (AEIS) generated $233.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Advanced Energy Industries, Inc. (AEIS) generated $125.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Advanced Energy Industries, Inc. (AEIS) spent $107.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Advanced Energy Industries, Inc. (AEIS) returned $15.6M to shareholders via cash dividends and spent $30.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.