Free cash flow has reached an inflection point, turning positive at $19.9 million in 2026Q1 as capital expenditure intensity moderated from a peak of 108.3% of revenue in 2023Q4 to 23.1%.
| Cash from Operations | 396.79M | 358.57M | 145.42M | 163.1M | 143.39M | 364.59M | 162.84M | 127.83M | 82.94M | 21.24M | -9.08M |
| Operating CF Margin % | - | 44.84% | 30.92% | 38.15% | 33.63% | 74.42% | 50.25% | 44.88% | 35.58% | 14.33% | - |
| Operating CF Growth % | 733.54% | 146.58% | -10.84% | 13.75% | -60.67% | 123.9% | 27.39% | 54.12% | 290.55% | 333.85% | - |
| Net Income | 291.94M | 268.34M | -67.79M | 94.51M | 103.07M | 202.63M | 52.5M | 92.45M | -2.99M | 18.29M | -2.95M |
| Depreciation & Amortization | 109.45M | 140.07M | 87.41M | 91.93M | 58.97M | 47.29M | 39.35M | 46.17M | 45.3M | 32.73M | 843.73K |
| Stock-Based Compensation | 7.76M | 0 | 9.98M | 9.22M | 7.93M | 7.85M | 9.06M | 5.79M | 3.23M | 879K | 0 |
| Deferred Taxes | 28.96M | 24.78M | -7.65M | 18.05M | 23.32M | 34.29M | 39K | -39.21M | 5.65M | -16.61M | -119.54K |
| Other Non-Cash Items | -6.3M | -21.98M | 149.16M | -42.23M | -31.87M | 87.63M | 71.42M | 24.2M | 37.42M | -272K | -929.68K |
| Working Capital Changes | -35.1M | -52.64M | -25.69M | -8.37M | -18.03M | -15.1M | -9.53M | -1.57M | -5.66M | -13.77M | -4.12M |
| Change in Receivables | 14.64M | -22.77M | -13.98M | 6.92M | -1.87M | -12.18M | -13.27M | -756K | -4.62M | -2.28M | 22.5K |
| Change in Inventory | -32.37M | -42.37M | -12.59M | -5.27M | -1.71M | -2.33M | -6.36M | -5.95M | -5.22M | -2.4M | -122.51K |
| Change in Payables | 23.54M | 18.45M | 0 | 1.7M | 0 | 10.37M | -3.88M | 11.6M | 6.86M | -5.1M | 0 |
| Cash from Investing | -289.02M | -283.47M | -335.38M | -308.17M | -425.81M | -179.53M | -116.56M | -106.74M | -100.97M | -62.32M | -70.15K |
| Capital Expenditures | -293.19M | -287.38M | -337.59M | -460.65M | -295.82M | -181.83M | -117.81M | -106.27M | -101.17M | -58.19M | -199.57K |
| CapEx % of Revenue | 31.69% | 35.94% | 71.79% | 107.76% | 69.38% | 37.11% | 36.35% | 37.31% | 43.4% | 39.25% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.96M | 129.42K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.62M | 3.92M | 0 | 0 | 0 | 0 | 1.25M | -467K | 198K | 832K | 196.5K |
| Cash from Financing | -87.63M | -17.29M | 131.16M | 77.75M | 327.3M | -115.43M | 288K | -18.02M | -7.33M | 72.33M | 27.31M |
| Debt Issued (Net) | -71.02M | 2.71M | 159.1M | -4.77M | 338.42M | -112.61M | 7.24M | -7.52M | 14.12M | 40.8M | 0 |
| Equity Issued (Net) | 8.5M | 7.38M | 0 | 104.33M | 0 | 0 | 4.4M | 1.94M | 1.64M | 83.7M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -25.11M | -27.38M | -27.94M | -21.8M | -11.12M | -2.82M | -11.35M | -12.44M | -23.09M | -64.7M | 27.31M |
| Net Change in Cash | 10.78M | 54.88M | -61.34M | -65.96M | 47.57M | 67.62M | 41.02M | 2.54M | -32.21M | 32.78M | 18.07M |
| Free Cash Flow | 120.67M | 91.22M | -192.17M | -297.55M | -152.43M | 182.76M | 45.03M | 21.56M | -18.23M | -36.95M | -9.28M |
| FCF Margin % | 13.04% | 11.41% | -40.86% | -69.61% | -35.75% | 37.3% | 13.9% | 7.57% | -7.82% | -24.93% | - |
| FCF Growth % | 226.08% | 147.47% | 35.42% | -95.2% | -183.41% | 305.85% | 108.9% | 218.24% | 50.66% | -298.13% | - |
| FCF per Share | 1.15 | 0.88 | -1.86 | -3.14 | -1.65 | 2.01 | 0.49 | 0.24 | -0.22 | -0.56 | -0.19 |
| FCF Conversion (FCF/Net Income) | 0.41x | 1.34x | -2.12x | 1.76x | 1.41x | 1.81x | 3.15x | 1.39x | -26.29x | 0.95x | 3.02x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Jurisdictional and commodity volatility
As reported in recent financial filings, ERO's operating cash flow to net income ratio has fluctuated significantly, reaching a low of -2.41 in 2024Q1 before stabilizing to 0.70 in 2026Q1, which highlights the inherent difficulty in reconciling accounting profits with actual cash generation in mining.
The wide variance between net income and operating cash flow suggests that non-cash items, such as deferred taxes and unrealized foreign exchange gains, frequently distort the company's reported profitability. Investors should monitor this divergence closely, as the current 0.70 ratio implies that a portion of earnings remains tied up in non-cash accounting adjustments rather than immediate liquidity.
Based on the provided cash flow statements, ERO has transitioned from a period of heavy cash burn, with FCF reaching -$90.6M in 2024Q1, to positive territory at $19.9M in 2026Q1, signaling a potential shift toward self-funded growth as major capital projects reach completion.
The move to positive free cash flow appears to be a direct result of scaling production volumes, which allows the company to absorb fixed costs more efficiently. This trajectory warrants further investigation into whether the current FCF margin of 7.7% is sustainable or if it remains vulnerable to future commodity price cycles.
According to historical data, ERO's capital expenditure intensity has moderated from a peak of 108.3% of revenue in 2023Q4 to 23.1% in 2026Q1, indicating that the company is moving past the most intensive phase of its infrastructure development and into a more sustainable maintenance cycle.
The high capital intensity observed in earlier periods reflects the aggressive investment required to bring new mining assets online. The current reduction in the CapEx-to-revenue ratio suggests that the company may be nearing a period of improved cash flow conversion, provided that exploration spending remains sufficient to replace high-grade reserves.
As indicated by quarterly cash flow disclosures, working capital changes have been highly erratic, with a significant outflow of $52.9M in 2025Q4, suggesting that inventory management and the timing of concentrate shipments remain primary drivers of short-term liquidity fluctuations for the company.
The volatility in working capital appears to be linked to the timing of copper concentrate sales and the settlement of provisional pricing. Investors should monitor these swings, as they may mask underlying operational efficiency or indicate potential bottlenecks in the supply chain that could impact cash availability.
Quick answers to the most common questions about buying ERO stock.
Ero Copper Corp. (ERO) generated $358.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ero Copper Corp. (ERO) generated $91.2M 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.
Ero Copper Corp. (ERO) spent $287.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.