Operational liquidity is under pressure, evidenced by a $11.8M working capital outflow in 2024Q4 that highlights the cash-intensive nature of the firm's engineering and construction project cycles.
| Cash from Operations | -21.4M | -41.03M | -6.13M | -17.18M | -2.53M | 5.54M |
| Operating CF Margin % | - | -34% | -6.78% | -11.61% | -3.98% | 22.02% |
| Operating CF Growth % | -211.22% | -569.66% | 64.34% | -579.94% | -145.6% | - |
| Net Income | 1.38M | -5.66M | -5.65M | 7.15M | 3.94M | 1.92M |
| Depreciation & Amortization | 1.13M | 2.62M | 771.98K | 323.18K | 415.64K | 361.16K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 75.31K |
| Other Non-Cash Items | 18.65M | 2.55M | 2.87M | 1.1M | 233.15K | 1.95M |
| Working Capital Changes | -43.91M | -40.55M | -4.12M | -25.76M | -7.12M | 1.24M |
| Change in Receivables | -47.24M | -12.02M | 1.56M | -46.98M | -20.43M | -3.65M |
| Change in Inventory | -1.4M | 591.49K | -1.19M | -276K | -963.15K | -624.79K |
| Change in Payables | 465.72K | -9.08M | -11.02M | 19.86M | 13.43M | 5.19M |
| Cash from Investing | -6.74M | -7.93M | -5.38M | -4.29M | -937.66K | -887.59K |
| Capital Expenditures | -3.01M | -826.33K | -1.26M | -1.46M | -161.87K | -887.59K |
| CapEx % of Revenue | 2.24% | 0.68% | 1.4% | 0.98% | 0.25% | 3.53% |
| Acquisitions | 0 | -1.92M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -3.69M | -5.18M | -4.12M | -2.83M | -775.79K | 0 |
| Cash from Financing | 27.32M | 110.28M | 13.92M | 15.96M | 9.52M | -3.24M |
| Debt Issued (Net) | 21.32M | 28.37M | 8.41M | 19M | 4.28M | -51K |
| Equity Issued (Net) | 0 | 84.9M | 7.36M | 0 | 0 | 69.28K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 6M | -2.98M | -1.85M | -3.04M | 5.24M | -3.26M |
| Net Change in Cash | 5.6M | 61.65M | 2.62M | -5.51M | 6.17M | 1.29M |
| Free Cash Flow | -29.48M | -41.86M | -7.39M | -18.91M | -2.69M | 4.65M |
| FCF Margin % | -21.94% | -34.68% | -8.18% | -12.77% | -4.23% | 18.49% |
| FCF Growth % | - | -466.43% | 60.91% | -603.01% | -157.78% | - |
| FCF per Share | -174.23 | -126.72 | -43.68 | -111.74 | -15.89 | 27.51 |
| FCF Conversion (FCF/Net Income) | -21.36x | 5.29x | 1.19x | -2.40x | -0.64x | 2.89x |
| Interest Paid | 1.53M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and insolvency risk
As reported in recent financial filings, FGL's operating cash flow consistently trails net income, with the 2024Q4 period showing a negative $10.1M operating cash flow despite a $4.8M net loss, illustrating a fundamental inability to convert project-based accounting gains into actual cash liquidity for the firm.
The consistent divergence between net income and operating cash flow suggests that the company's accrual-based revenue recognition is not translating into timely cash collections. Investors should monitor whether this gap reflects aggressive billing practices or significant delays in milestone payments from industrial clients.
Based on the provided quarterly data, FGL's free cash flow remains deeply negative, culminating in a $7.6M outflow in 2024Q4, which highlights the company's ongoing struggle to fund its capital-intensive solar construction projects through internal cash generation rather than external debt or equity financing.
The persistent negative free cash flow margins suggest that the company is currently in a value-destructive growth phase. Without a clear path to positive cash generation, the reliance on external capital to sustain operations appears increasingly precarious given the firm's existing leverage profile.
According to the latest quarterly statements, FGL experienced a significant $11.8M working capital outflow in 2024Q4, a trend that has persisted over multiple periods and underscores the heavy cash burden required to manage the procurement and execution cycles of its solar engineering and construction contracts.
The recurring negative working capital changes suggest that the company is effectively financing its clients' projects through extended payment terms or inventory build-ups. This dynamic places immense pressure on the company's cash reserves and limits its operational flexibility during periods of project delays.
As indicated by the reported figures, FGL's capital expenditure reached 8.4% of revenue in 2024Q4, reflecting a high level of capital intensity that appears disproportionate to the company's thin gross margins and inability to generate positive operating cash flow from its core engineering and construction activities.
The level of capital expenditure suggests that the company is forced to continuously invest in equipment or infrastructure to maintain its project execution capabilities. This ongoing investment requirement, combined with negative operating margins, warrants further investigation into the long-term return on invested capital for these projects.
Quick answers to the most common questions about buying FGL stock.
Founder Group Limited Ordinary Shares (FGL) generated $-41.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Founder Group Limited Ordinary Shares (FGL) reported negative free cash flow of $41.9M in 2025, indicating capital requirements exceeded cash from operations.
Founder Group Limited Ordinary Shares (FGL) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.