Free cash flow generation has improved significantly following the cessation of capital expenditures, which reached as high as $159.4 million in 2024Q2.
| Cash from Operations | 61.2M | 51.7M | 55.84M | 6.47M | -1.45M | -486.93K |
| Operating CF Margin % | - | 39.2% | 45.19% | 17.62% | - | - |
| Operating CF Growth % | 3196.7% | -7.41% | 762.53% | 547.72% | -196.97% | - |
| Net Income | 29.1M | 17.7M | 21.04M | 1.51M | -1.95M | -973.85K |
| Depreciation & Amortization | 23.2M | 31.9M | 28.9M | 9.12M | 0 | 0 |
| Stock-Based Compensation | 100K | 200K | 512K | 474K | 401K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 8.2M | 0 | -861K | 1.38M | 0 | 0 |
| Working Capital Changes | 600K | 1.9M | 6.25M | -6.01M | 106K | 486.93K |
| Change in Receivables | -200K | 500K | -438K | -3.51M | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 500K | 500K | 0 | 485K | 444K | 0 |
| Cash from Investing | 0 | 0 | -313.36M | -413.06M | -78.2M | -67M |
| Capital Expenditures | 0 | 0 | -313.05M | -413.06M | -78.2M | -67M |
| CapEx % of Revenue | 0% | - | 253.32% | 1124.39% | - | - |
| Acquisitions | 0 | 0 | -305K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -63.7M | -38.7M | 251.34M | 431.87M | 68.62M | 78.49M |
| Debt Issued (Net) | -27.4M | -33.3M | 274.28M | 373.63M | 70.83M | 0 |
| Equity Issued (Net) | 1.09M | 15.96M | 0 | 62.19M | -513K | 78.49M |
| Dividends Paid | -37.6M | -27.69M | -20.63M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -513K | 0 |
| Other Financing | 211.18K | 6.33M | -2.31M | -3.95M | -1.69M | 0 |
| Net Change in Cash | -2.5M | 13.03M | -6.18M | 25.29M | -11.02M | 11.29M |
| Free Cash Flow | 61.2M | 51.7M | -257.21M | -406.58M | -79.64M | -67.49M |
| FCF Margin % | 42.65% | 39.2% | -208.14% | -1106.76% | - | - |
| FCF Growth % | 153.46% | 120.1% | 36.74% | -410.5% | -18.01% | - |
| FCF per Share | 1.30 | 1.12 | -5.86 | -10.52 | -2.48 | -3.68 |
| FCF Conversion (FCF/Net Income) | 2.10x | 2.92x | 2.65x | 4.28x | 0.74x | 0.50x |
| Interest Paid | 25.7M | 49.5M | 40.29M | 12.99M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Single-class fleet concentration
According to reported financial statements, HSHP consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio frequently exceeding 1.5x, suggesting that non-cash depreciation charges and favorable working capital timing are the primary drivers of the company's reported cash generation capabilities.
The persistent divergence between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash depreciation of its modern fleet. Investors should interpret this as a sign that the business is more cash-generative than the bottom-line profit suggests, provided that the underlying charter rates remain stable.
Based on historical quarterly data, HSHP has successfully transitioned from a period of heavy capital expenditure-driven cash burn in 2024 to a robust free cash flow generation phase, with FCF margins reaching 58.9% in 2025Q4 as the fleet reached full operational status.
The shift from negative free cash flow to strong positive territory reflects the completion of the company's newbuild program. This trajectory suggests that the firm is now in a harvest phase, though the sustainability of these margins remains tethered to the volatility of the Baltic Capesize Index.
As noted in recent filings, HSHP's capital expenditure has effectively dropped to zero following the completion of its 12-vessel newbuild program, marking a significant pivot from the heavy investment cycles seen in 2024 where quarterly capex reached as high as $159.4 million.
The cessation of growth-related capex removes a major drag on liquidity and allows for the current dividend-heavy capital allocation strategy. However, analysts should monitor for future maintenance capex requirements, as the specialized dual-fuel engines may necessitate higher-than-average upkeep costs compared to standard dry bulk vessels.
Based on the provided cash flow data, HSHP has prioritized returning capital to shareholders, with dividend payments totaling $11.7 million in 2026Q1, a figure that represents a substantial portion of the company's quarterly operating cash flow and limits the accumulation of retained earnings.
The company's commitment to high dividend payouts appears to leave little room for balance sheet deleveraging or organic growth without external financing. This strategy warrants further investigation into whether management can maintain these distributions if charter rates experience a cyclical downturn.
Quick answers to the most common questions about buying HSHP stock.
Himalaya Shipping Ltd. (HSHP) generated $51.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Himalaya Shipping Ltd. (HSHP) generated $51.7M 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.
Himalaya Shipping Ltd. (HSHP) spent $0.0M 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, Himalaya Shipping Ltd. (HSHP) returned $27.7M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.