Free cash flow generation has surged to $252.1M in Q2 2026, representing a 32.5% FCF margin, while capital expenditure has declined to just 2.4% of revenue, signaling a shift to a maintenance-focused spending posture.
Hafnia Limited (HAFN) cash flow statement — 10-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 | Dec'16 |
|---|
| Cash from Operations | 663M | 562M | 1.03B | 1.06B | 770.89M | 106.44M | 398.47M | 242.83M | 59.67M | 81.36M | 99.9M |
| Operating CF Margin % | - | 23.93% | 35.92% | 39.71% | 40.01% | 13.12% | 45.59% | 29.33% | 16.2% | 23.48% | 33.05% |
| Operating CF Growth % | -46.91% | -45.46% | -2.87% | 37.61% | 624.26% | -73.29% | 64.1% | 306.95% | -26.66% | -18.56% | - |
| Net Income | 645.46M | 349.66M | 774.03M | 793.27M | 751.59M | -55.49M | 148.78M | 71.73M | -19.78M | 2.96M | -186.61M |
| Depreciation & Amortization | 194.45M | 208.07M | 215.11M | 211.03M | 209.22M | 151.68M | 156.44M | 131.5M | 56.87M | 54.18M | 59.58M |
| Stock-Based Compensation | 1.65M | 0 | 2.96M | 2.82M | 1.76M | 3.15M | 1.18M | 823K | 0 | 0 | 0 |
| Deferred Taxes | 1.49M | 0 | 4.42M | 6.25M | 6.68M | 4.39M | 2.65M | 1.01M | 24K | 0 | 0 |
| Other Non-Cash Items | -86.7M | -37.28M | -10.76M | -1.29M | 34.48M | 46.74M | 52.98M | 73.66M | 37.94M | 25.52M | 214.17M |
| Working Capital Changes | -93.36M | 41.55M | 44.6M | 48.72M | -232.84M | -44.02M | 36.45M | -35.91M | -15.38M | -1.31M | 12.77M |
| Change in Receivables | -150.59M | -15.8M | 86.14M | -139.17M | -259.62M | -37.46M | 70.73M | -83.31M | -11.53M | -4.39M | 9.31M |
| Change in Inventory | -25.64M | 25.87M | 13.55M | -17.77M | -16.09M | -1.43M | 1.76M | 21.11M | -8.1M | -3.72M | -3.55M |
| Change in Payables | 6.37M | 42.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -85.13M | -386.76M | 29.89M | -31.68M | -179.13M | -47.88M | -50.56M | -282.43M | -16.99M | -117.82M | -51.65M |
| Capital Expenditures | -116.76M | -150.49M | -49.6M | -184.39M | -447.13M | -26.66M | -47.58M | -278.57M | -17.25M | -117.92M | -111.67M |
| CapEx % of Revenue | 4.44% | 6.41% | 1.73% | 6.9% | 23.21% | 3.29% | 5.44% | 33.65% | 4.68% | 34.03% | 36.94% |
| Acquisitions | 200.32M | 77.75M | -857K | -2.24M | -1.81M | -10.21M | 0 | -3.43M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 161.09M | 0 | 78.87M | 165.36M | 270.13M | -7.5M | -2.98M | -425K | 257K | 104K | 60.02M |
| Cash from Financing | -544.66M | -268.9M | -999.21M | -1.09B | -465.13M | -59.15M | -338.86M | 45.22M | -31.59M | 40.62M | -36M |
| Debt Issued (Net) | -64.58M | 491.24M | -200.33M | -457.62M | -226.04M | -20.81M | -190.67M | 39.21M | -47.01M | 41.21M | -15.37M |
| Equity Issued (Net) | 8.57M | -28.47M | -49.16M | 0 | 97.78M | 0 | -12.64M | 71.51M | 46M | 26.85M | 0 |
| Dividends Paid | -355.4M | -204.47M | -699.88M | -544.14M | -243.75M | 0 | -98.32M | 0 | 0 | 0 | 0 |
| Share Repurchases | 814.1K | -28.47M | -49.16M | 0 | 0 | 0 | -12.64M | -500K | 0 | 0 | 0 |
| Other Financing | -133.24M | -527.21M | -49.84M | -85.18M | -93.13M | -38.34M | -37.23M | -65.51M | -30.57M | -27.44M | -20.64M |
| Net Change in Cash | 38.25M | -90.27M | 61.05M | -57.8M | 126.62M | -596K | 9.06M | 39.15M | 11.09M | 4.16M | 12.25M |
| Free Cash Flow | 546.24M | 411.5M | 980.74M | 876.41M | 323.51M | 79.41M | 349.88M | -36.19M | 42.42M | -36.56M | -11.77M |
| FCF Margin % | 20.78% | 17.52% | 34.19% | 32.8% | 16.79% | 9.79% | 40.03% | -4.37% | 11.52% | -10.55% | -3.89% |
| FCF Growth % | -23.81% | -58.04% | 11.9% | 170.91% | 307.4% | -77.3% | 1066.91% | -185.3% | 216.02% | -210.65% | - |
| FCF per Share | 1.08 | 0.82 | 1.90 | 1.72 | 0.66 | 0.22 | 0.96 | -0.10 | 0.35 | -0.33 | -0.11 |
| FCF Conversion (FCF/Net Income) | 0.85x | 1.61x | 1.33x | 1.34x | 1.03x | -1.92x | 2.68x | 3.39x | -3.02x | 27.46x | -0.54x |
| Interest Paid | 0 | 0 | 41.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying HAFN stock.
Hafnia Limited (HAFN) generated $562.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hafnia Limited (HAFN) generated $411.5M 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.
Hafnia Limited (HAFN) spent $150.5M 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, Hafnia Limited (HAFN) returned $204.5M to shareholders via cash dividends and spent $28.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cyclical rate volatility
Earnings Quality Strong, But Volatile
Hafnia's cash conversion has been consistently strong, with operating cash flow exceeding net income in 8 of the last 10 quarters, though the ratio has moderated from a peak of 2.49x in Q2 2025 to 1.02x in Q2 2026, as reported in recent financial statements.
The persistent premium of operating cash flow over net income suggests high-quality earnings, largely driven by the non-cash add-back of depreciation and amortization, which averaged ~$50M per quarter. The recent moderation in the OCF/NI ratio to near 1.0x in Q2 2026, despite record net income, indicates that the current earnings power is translating more directly into cash, reducing the reliance on non-cash adjustments. This trend warrants monitoring as it may signal a shift in the underlying cash generation profile.
FCF Surge Reflects Cyclical Peak
Free cash flow has surged to $252.1M in Q2 2026, representing a 32.5% FCF margin, a significant rebound from the trough of 12.6% in Q3 2025, as per the company's reported figures.
The FCF trajectory shows a clear cyclical recovery, with margins expanding from the mid-teens to over 30% in the most recent quarter. This expansion is driven by both the recovery in operating cash flow and a reduction in capital intensity, as CapEx/Revenue fell to 2.4% in Q2 2026 from a high of 7.5% in Q3 2025. The current FCF margin is now approaching the peak levels seen in mid-2024, suggesting the company is operating near the top of its current cycle.
Capital Intensity Declines Sharply
Capital expenditure as a percentage of revenue has fallen dramatically to 2.4% in Q2 2026, down from a peak of 7.5% in Q3 2025, indicating a shift from a growth-oriented spending phase to a more maintenance-focused posture, based on the provided data.
The sharp decline in CapEx intensity suggests Hafnia has completed a significant portion of its fleet investment cycle. With depreciation and amortization averaging ~$50M per quarter and CapEx now running at ~$19M, the company is currently spending well below the rate required to replace its asset base. This dynamic is a key driver of the expanding FCF margin but may raise questions about long-term fleet renewal if sustained.
Working Capital Swings Amplify Cash Flow
Working capital changes have been a major source of cash flow volatility, contributing a positive $7.0M in Q2 2026 but a negative $73.8M in Q1 2026, highlighting the lumpy nature of receivables and inventory cycles in the shipping industry.
The significant swings in working capital, ranging from a $64.6M inflow in Q4 2024 to a $73.8M outflow in Q1 2026, indicate that cash flow is heavily influenced by the timing of customer payments and operational cycles. The recent positive contribution in Q2 2026 appears to be a normalization after the large Q1 outflow. Investors should monitor this line item as it can obscure the underlying operational cash generation, particularly in a volatile rate environment.
Shareholder Returns Accelerate with Cycle
Hafnia has significantly increased its shareholder returns, with dividends paid rising to $133.6M in Q2 2026, while also deploying $140.4M for acquisitions, as reported in the cash flow statement.
The company's capital deployment strategy appears to be pro-cyclical, with dividend payments scaling up as cash flow improves. The Q2 2026 dividend of $133.6M represents a substantial increase from the $14.6M paid in Q1 2025. The concurrent $140.4M acquisition in Q2 2026 suggests management is using the cyclical peak to both reward shareholders and pursue strategic growth, a dual approach that requires careful balance to avoid overextending during a downturn.
Cash Flow Masked by Non-Cash Items
While operating cash flow is strong, a significant portion is non-cash depreciation, and the recent Q2 2026 acquisition of $140.4M may have obscured underlying organic cash generation, as per the cash flow statement.
The cash flow statement shows that depreciation and amortization, averaging ~$50M per quarter, is a major non-cash add-back inflating operating cash flow. Furthermore, the large Q2 2026 acquisition of $140.4M, while a use of cash, is an investing activity that does not reflect core operational performance. The absence of stock-based compensation in most quarters simplifies the analysis, but the lumpy nature of acquisitions and working capital swings means the headline OCF and FCF figures should be viewed with an understanding of these non-operational components.