Operating cash flow remains resilient, but capital expenditures have consistently consumed a large portion, with the CapEx/OCF ratio averaging 56% over the last ten quarters, resulting in a structural free cash flow deficit that necessitates external financing.
Brookfield Infrastructure Corporation (BIPC) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | 1.55B | 1.64B | 1.74B | 1.06B | 893M | 839M | 730M | 1.08B | 1.06B | 1.03B |
| Operating CF Growth % | -30.79% | -6.13% | 64.59% | 18.59% | 6.44% | 14.93% | -32.59% | 1.69% | 3.3% | - |
| Operating CF / Revenue % | 41.84% | 43.84% | 47.55% | 41.55% | 47.35% | 51.52% | 51.05% | 65.37% | 71.89% | 75.22% |
| Net Income | -351.61M | -245.22M | -608M | 111M | 1.09B | 27M | -232M | 570M | 202M | 207M |
| Depreciation & Amortization | 640M | 679.69M | 775M | 365M | 211M | 236M | 283M | 308M | 319M | 263M |
| Deferred Taxes | 38M | 6.11M | 9M | 20M | -79M | 171M | 102M | 97M | 100M | 101M |
| Other Non-Cash Items | 389M | 1.04B | 1.48B | 557M | -506M | 370M | 621M | 35M | 429M | 392M |
| Working Capital Changes | 142M | 155M | 87M | 6M | 173M | 35M | -44M | 73M | 15M | 68M |
| Capital Expenditures | -1.77B | -1.42B | -2.17B | -594M | -1.05B | -415M | -399M | -465.58M | -443M | -4.51B |
| CapEx / Revenue % | 46.34% | 37.98% | 59.14% | 23.3% | 55.51% | 25.48% | 27.9% | 28.1% | 29.9% | 329.28% |
| CapEx / D&A | 2.69x | 2.09x | 2.80x | 1.63x | 4.96x | 1.76x | 1.41x | 1.51x | 1.39x | 17.16x |
| CapEx Coverage (OCF/CapEx) | 0.90x | 1.15x | 0.80x | 1.78x | 0.85x | 2.02x | 1.83x | 2.33x | 2.40x | 0.23x |
| Cash from Investing | -1.24B | -1.73B | -2.17B | -263M | -1.05B | 326M | -399M | -441M | -435M | -4.51B |
| Acquisitions | 328M | -767.2M | -743M | -100M | 4M | 817M | 17.9M | 14.33M | -824.68M | -4.15B |
| Purchase of Investments | -48M | 0 | 0 | 0 | -455M | -76M | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 433.46M | 0 | 435M | 0 | 75.33M | 0 | 0 | 0 | 0 |
| Other Investing | 197M | 22.39M | -22M | -4M | -71M | -75.33M | -17.9M | 10.25M | 832.68M | 36M |
| Cash from Financing | -847M | -207.57M | 630M | -728M | -4M | -868M | -317M | -514M | -568M | 3.55B |
| Dividends Paid | -896M | 0 | 0 | 0 | 0 | 0 | -493.78M | -250M | -677M | 0 |
| Dividend Payout Ratio % | - | - | - | - | - | - | - | 126.9% | 335.15% | - |
| Debt Issuance (Net) | -2M | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K |
| Stock Issued | 170.35M | 38M | 1M | 0 | 0 | 128M | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 68.65M | -32.57M | -840M | -490M | -949M | -708M | 5.78M | -525M | -1.44B | 3.2B |
| Net Change in Cash | -527M | -243.38M | 135M | 94M | -24M | 277M | -12M | 105M | 21M | 68M |
| Exchange Rate Effect | 10M | 56.78M | -70M | 26M | 134M | -20M | -26M | -23M | -41M | -3M |
| Cash at Beginning | 589M | 673.6M | 539M | 445M | 469M | 192M | 204M | 99M | 78M | 10M |
| Cash at End | 690M | 430.22M | 674M | 539M | 445M | 469M | 192M | 204M | 99M | 78M |
| Free Cash Flow | -213.49M | 218.76M | -425M | 465M | -154M | 424M | 331M | 617.42M | 622M | -3.48B |
| FCF Growth % | -142.92% | 151.47% | -191.4% | 401.95% | -136.32% | 28.1% | -46.39% | -0.74% | 117.86% | - |
| FCF Margin % | -5.75% | 5.86% | -11.59% | 18.24% | -8.17% | 26.04% | 23.15% | 37.27% | 41.99% | -254.05% |
| FCF / Net Income % | 60.72% | -89.21% | 69.9% | 411.37% | -14.08% | -116.24% | -59.96% | 313.41% | 307.92% | -1623.73% |
Quick answers to the most common questions about buying BIPC stock.
Brookfield Infrastructure Corporation (BIPC) generated $1.64B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Brookfield Infrastructure Corporation (BIPC) generated $218.8M 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.
Brookfield Infrastructure Corporation (BIPC) spent $1.42B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Leverage constrains financing capacity
Regulated OCF Provides Stable Foundation
Operating cash flow has demonstrated resilience, averaging approximately $401 million per quarter over the last ten periods, which appears sufficient to cover core fixed obligations like interest payments, as reported in the company's financial statements.
The consistency of operating cash flow, despite volatile net income, underscores the quality of the regulated asset base. This stability suggests the underlying business generates predictable cash, which is the essential foundation for servicing the company's substantial debt load and funding its capital program.
Aggressive CAPEX Drives Structural Deficit
Capital expenditures have consistently consumed a large portion of operating cash flow, with the CapEx/OCF ratio averaging 56% over the last ten quarters, indicating a sustained investment cycle that is the primary driver of the company's free cash flow deficit.
The magnitude of capital deployment, particularly the $1.0 billion outflow in Q3 2025, confirms management's focus on growth through acquisition and expansion. This level of investment is normal for a regulated utility building rate base, but it necessitates continuous external financing, making the company's access to capital markets a critical vulnerability.
External Capital Funds the Growth Engine
The persistent negative free cash flow, which totaled $1.0 billion over the last four quarters, has been financed through a combination of long-term debt issuance and equity sales, as evidenced by the quarterly capital raises.
The company's model is entirely dependent on its ability to raise external capital on reasonable terms to fund its CAPEX deficit. The reliance on periodic debt and equity issuances, such as the $1.0 billion in long-term debt raised in Q2 2026, highlights a structural financing need that could become challenging if market conditions deteriorate or investor appetite wanes.
Dividend Coverage Appears Tenuous
In quarters where dividends were paid, the OCF-to-dividend coverage ratio was below 1.0x, specifically 0.4x in Q1 2026 and 0.7x in Q1 2024, suggesting that operating cash flow alone may not fully cover distribution obligations without support from financing activities.
The intermittent payment schedule and the sub-1.0x coverage ratios indicate that dividend payments are not being funded solely from operational cash generation. This pattern implies that distributions are being supported by the company's capital raises, which may not be a sustainable long-term strategy if financing conditions tighten.
GAAP Losses Mask Cash Generation
The stark divergence between negative GAAP net income, which averaged -$130 million per quarter, and positive operating cash flow averaging $401 million, suggests significant non-cash charges are distorting the reported profitability of the regulated operations.
This disconnect, as noted in prior analysis, means investors must focus on cash flow metrics rather than net income to assess operational health. The negative net income appears driven by non-cash items like depreciation and potentially mark-to-market adjustments, which do not reflect the actual cash-generating capacity of the infrastructure assets.
Hidden Risks in the Cash Flow Statement
The cash flow statement may obscure future obligations such as unfunded environmental liabilities or pending rate case settlements, while the lumpy dividend payments suggest potential timing mismatches between regulatory cash recovery and shareholder distributions.
Investors should monitor for any emergence of large, non-recurring cash outflows related to asset retirement obligations or litigation that are not captured in the standard CAPEX line. Furthermore, the pattern of large dividend payments in specific quarters could indicate a reliance on periodic refinancing events to fund distributions, creating a potential liquidity risk if capital markets become less accessible.