PBF Energy Inc. (PBF) Cash Flow Statement

The 2026Q3 and 2026Q2 ratios of 1.23 and 1.32 suggest that recent profits are being backed by cash generation, with depreciation of roughly $170M per quarter contributing to the gap. The negative operating cash flow in 2026Q1 despite $198M of net income, driven by a $340M working capital outflow, indicates that reported earnings in that quarter were not yet realized in cash. Investors should monitor whether the recent conversion strength reflects durable working capital discipline or timing effects that could reverse.

The move from deeply negative free cash flow in early 2025 to a 14.0% margin in the latest quarter is substantial, yet the 2026Q1 reversal shows that a single quarter of working capital absorption can erase weeks of progress. Free cash flow of roughly $1.7B in 2026Q3 appears to rest heavily on a favorable operating cash flow quarter rather than a stable base. The trajectory warrants further investigation into how much of the latest result persists once working capital normalizes.

Capex intensity has been low relative to revenue for most quarters, which may reflect deferral of discretionary projects during the downturn and a focus on maintaining existing refining assets. Quarterly depreciation of roughly $155M to $175M suggests that capex has frequently run below the asset base's replacement pace in several periods, though the lumpy 2026 spending may indicate catch-up activity. Whether current spending levels are sufficient to sustain throughput without future cash calls is not determinable from the supplied data alone.

The magnitude of working capital swings relative to net income indicates that receivables, inventory, and payables are highly sensitive to commodity price movements and crude cost timing. The large 2026Q1 outflow alongside a rebound in operating cash flow in 2026Q2 suggests that some of the swing reflects timing rather than permanent cash loss. Investors should monitor whether inventory build-ups persist across successive quarters, as that would indicate a structural rather than timing-driven drag.

Summing the disclosed quarters, the aggregate relationship between net income and operating cash flow does not show a persistent one-directional gap, which suggests that accrual accounting is not systematically inflating reported earnings over this window. The large offsetting quarters, however, mean the short-term signal is noisy and a ten-quarter window is too brief to establish a durable cash conversion pattern. Analysts should extend the lookback to assess whether the relationship holds across a full refining cycle.