Costamare Inc. (CMRE) Cash Flow Statement

The persistent OCF/NI ratio above 1.0 suggests that reported net income is backed by actual cash generation, a positive signal for earnings quality. This pattern implies that non-cash charges like depreciation are the primary reconciling item, which is typical for a capital-intensive shipping business. Investors should note that the ratio spiked to 3.69 in Q4 2024, likely due to a non-cash net income adjustment, but the underlying trend remains robust.

The FCF margin has ranged from -127.5% to 139.9% over the past ten quarters, a direct result of the company's aggressive counter-cyclical vessel acquisition strategy. This volatility is not a sign of operational distress but rather a reflection of management's capital allocation decisions. The negative FCF in recent quarters appears to be a deliberate investment phase, which should be evaluated against the long-term contracted revenue from the acquired vessels.

The CapEx/Revenue ratio is extremely volatile, ranging from 1.3% to 178.2%, which is characteristic of a company making large, discrete investments in long-lived assets. The positive CapEx figure in Q2 2025 suggests a net proceeds from vessel sales, which is a common part of fleet renewal. This pattern implies that maintenance capex is likely a smaller, more stable portion of the total, with the majority being growth-oriented investments.

The working capital swings are relatively small compared to the scale of operating cash flow, indicating that the core charter business has predictable receivables and payables cycles. The negative quarters, such as the -$36.4M in Q2 2026, may reflect timing of charter payments or inventory build-up for the dry bulk segment. This is not a major red flag but warrants monitoring as the dry bulk fleet grows, as it introduces more variable working capital needs.

The steady dividend stream, maintained even during quarters of negative FCF, signals management's confidence in the long-term cash flow stability provided by the container charter backlog. The absence of buybacks suggests that management sees greater value in deploying capital toward fleet growth, particularly in the dry bulk sector. The small, recurring acquisition outflows likely represent tuck-in vessel purchases to optimize the fleet.