Free cash flow has rebounded to a robust 35.9% margin in 2026Q2, driven by a dramatic reduction in capital intensity to 8.1% of revenue, signaling a shift from investment to cash generation.
SFL Corporation Ltd. (SFL) cash flow statement — 25-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 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 263.81M | 290.14M | 369.86M | 343.09M | 355.13M | 293.6M | 276.48M | 249.71M | 200.97M | 177.8M | 230.07M | 258.4M | 132.4M | 140.12M | 86.57M | 163.66M | 153.77M | 125.52M | 211.39M | 202.42M | 193.5M | 280.83M | 178.53M | 415.52M | 115.66M | 307.17M |
| Operating CF Margin % | - | 40.31% | 41.48% | 46.48% | 54.16% | 59.35% | 69.05% | 54.75% | 48% | 46.68% | 55.71% | 63.53% | 40.43% | 51.73% | 27.08% | 55.46% | 45.74% | 33.93% | 44.43% | 50.76% | 45.57% | 64.19% | 36.28% | 59.78% | 31.67% | 63.12% |
| Operating CF Growth % | -74.56% | -21.55% | 7.8% | -3.39% | 20.96% | 6.19% | 10.72% | 24.25% | 13.04% | -22.72% | -10.96% | 95.17% | -5.51% | 61.86% | -47.1% | 6.43% | 22.51% | -40.62% | 4.43% | 4.61% | -31.1% | 57.31% | -57.04% | 259.27% | -62.35% | - |
| Net Income | 63.85M | -26.43M | 130.65M | 83.94M | 202.77M | 164.34M | -224.43M | 89.18M | 73.62M | 101.21M | 146.41M | 200.83M | 122.81M | 89.21M | 185.84M | 131.18M | 165.71M | 192.6M | 181.61M | 167.71M | 180.8M | 209.55M | 262.66M | 334.81M | 18.02M | 212.01M |
| Depreciation & Amortization | 227.22M | 243.45M | 239.18M | 214.06M | 187.83M | 138.33M | 111.28M | 116.38M | 115.52M | 95.91M | 103.94M | 78.08M | 76.68M | 58.44M | 58.82M | 54.24M | 36.3M | 35.74M | 31.82M | 23.99M | 14.49M | 19.91M | 34.62M | 106.02M | 96.77M | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 400K | 400K | 400K | 0 | 0 | 0 | 569K | 1.41M | 953K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -95.31M | -195.13M | -78.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 10.11M | 60.04M | 12.46M | 18.92M | -22.48M | -2.81M | 374.32M | 39.02M | 6.71M | -22.84M | -18.07M | -32.8M | -47.54M | -47.8M | -2.06M | 135.01M | 14.4M | -101.73M | 12.09M | -28.44M | -26.32M | -2.26M | -1.11M | -20.09M | 2.63M | 95.16M |
| Working Capital Changes | -37.37M | 13.08M | -12.44M | 26.17M | -12.99M | -6.27M | 15.3M | 5.12M | 5.13M | 3.51M | -2.2M | 12.29M | -19.56M | 40.28M | -61.29M | 36.95M | 14.91M | -1.09M | -14.13M | 39.16M | 24.53M | 53.64M | -117.63M | -5.21M | -1.76M | 0 |
| Change in Receivables | 0 | 0 | 4.3M | -20.94M | -9.03M | 2.44M | -4.98M | -8.7M | 9.61M | -9.03M | -1.49M | 1.2M | 5.11M | -4.31M | -7.79M | 864K | 799K | -1.44M | -407K | 1.25M | 3.98M | 7.18M | -256K | -472K | 0 | 0 |
| Change in Inventory | 0 | 0 | -5.66M | 4.67M | -6.27M | -1.31M | -873K | 613K | -3.42M | -42K | -27K | -2.53M | -320K | -3.66M | -97K | -744K | -390K | 158K | 15K | 64K | 352K | 3.19M | -112.59M | 4.54M | -10.72M | 0 |
| Change in Payables | 0 | 0 | 4.04M | 22.37M | 6.12M | 447K | -2.2M | 1.5M | 2.37M | -742K | 394K | -1.57M | -1.09M | 2.05M | 774K | 232K | 441K | -11K | -78K | -436K | -445K | -1.29M | 180K | -539K | 0 | 0 |
| Cash from Investing | 191.56M | 165.09M | -617.5M | -103.89M | -499.09M | -389.05M | 176.34M | -169.88M | -866.56M | 48.36M | 39.4M | -205.78M | -21.94M | -73.98M | 34.31M | -5.86M | 76.98M | 424.07M | -433.94M | -378.78M | -110.71M | -269.57M | 76.95M | -51.63M | -261.78M | -271.85M |
| Capital Expenditures | -46.06M | -70.48M | -644.86M | -264.42M | -602.5M | -581.62M | -120.05M | -250.39M | -1.14B | -81.66M | -188.14M | -496.66M | -395.2M | -109.34M | -167.55M | -307.79M | -191.31M | -71.47M | -82.59M | -586.94M | -342.36M | -309.57M | -8.37M | 0 | -249.29M | 0 |
| CapEx % of Revenue | 6.39% | 9.79% | 72.32% | 35.82% | 91.89% | 117.57% | 29.98% | 54.9% | 271.71% | 21.44% | 45.56% | 122.11% | 120.68% | 40.37% | 52.41% | 104.29% | 56.91% | 19.32% | 17.36% | 147.18% | 80.62% | 70.76% | 1.7% | - | 68.27% | - |
| Acquisitions | 48.31M | 0 | 2.81M | 2.92M | 2.92M | 10M | 14.68M | 0 | 83.48M | 27.32M | 193.52M | 111.09M | 88.58M | 0 | 157.18M | 37.05M | 0 | 68M | 24.85M | -91K | -35.32M | -518.18M | -536.79M | -70.05M | -7.49M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 189.31M | 235.57M | 24.84M | 157.88M | 85.51M | 183.89M | 241.41M | 15.93M | 187.65M | -4.02M | -25.49M | 128.82M | 42.12M | 53.49M | -13.89M | 77.06M | 93.34M | 219.09M | -33.12M | 244.07M | 132.7M | 558.18M | 622.11M | 18.41M | -5M | -271.85M |
| Cash from Financing | -498.08M | -438.96M | 216.7M | -262.06M | 178.37M | 25.02M | -431.43M | -89.2M | 724.93M | -135.49M | -277.26M | -33.26M | -118.28M | -68.04M | -155.25M | -149.85M | -227.97M | -511.48M | 190.38M | 190.05M | -51.08M | -7.6M | -226.28M | -358.01M | 140.71M | -24.55M |
| Debt Issued (Net) | -453.6M | -294.39M | 408.6M | -96.04M | 297.08M | 21.31M | -362.53M | 107.48M | 882.45M | 49.07M | -104.2M | 135.81M | 41.59M | -78.97M | -87.37M | -27.21M | -99.14M | -437.72M | 325.52M | 354.79M | 121.87M | 317.93M | -82.61M | -178.24M | 101.97M | 0 |
| Equity Issued (Net) | -63.01M | -10.03M | -36.87M | -10.17M | 0 | 89.28M | 61.48M | 0 | 0 | 88K | 323K | 675K | 927K | 128.88M | 89.6M | 0 | 0 | 16.47M | 0 | 0 | -7.21M | -33.08M | 9.98M | 0 | 0 | 0 |
| Dividends Paid | -109.39M | -125.11M | -138.49M | -122.99M | -111.57M | -77.55M | -109.39M | -150.66M | -149.26M | -152.91M | -168.29M | -162.59M | -152.14M | -109.11M | -152.01M | -122.64M | -117.23M | -75.57M | -122.94M | -159.34M | -149.12M | -148.86M | -78.91M | 0 | 0 | 0 |
| Share Repurchases | -63.01M | -10.03M | -133.12M | -10.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.21M | -33.08M | -14.71M | 0 | 0 | 0 |
| Other Financing | 127.91M | -9.43M | -16.53M | -32.86M | -7.14M | -8.03M | -21M | -46.03M | -8.26M | -31.74M | -5.1M | -7.16M | -8.66M | -8.84M | -5.47M | 0 | -11.59M | -14.67M | -12.21M | -5.41M | -16.62M | -143.58M | -74.75M | -179.77M | 38.74M | -24.55M |
| Net Change in Cash | -42.72M | 16.28M | -30.94M | -22.87M | 34.4M | -70.44M | 21.38M | -9.38M | 59.34M | 90.67M | -7.79M | 19.36M | -7.82M | -1.9M | -34.37M | 7.95M | 2.78M | 38.11M | -32.18M | 13.69M | 31.71M | 3.66M | 29.19M | 5.88M | -5.41M | 10.77M |
| Free Cash Flow | 217.75M | 219.66M | -275M | 78.67M | -247.37M | -288.03M | 156.43M | -684K | -936.73M | 96.13M | 41.93M | -238.26M | -262.8M | 30.79M | -80.98M | -144.12M | -37.54M | 54.05M | 128.79M | -384.53M | -148.86M | -28.74M | 170.16M | 415.52M | -133.63M | 307.17M |
| FCF Margin % | 30.19% | 30.52% | -30.84% | 10.66% | -37.73% | -58.22% | 39.07% | -0.15% | -223.72% | 25.24% | 10.15% | -58.58% | -80.25% | 11.37% | -25.33% | -48.84% | -11.17% | 14.61% | 27.07% | -96.42% | -35.05% | -6.57% | 34.58% | 59.78% | -36.59% | 63.12% |
| FCF Growth % | 245.56% | 179.88% | -449.55% | 131.8% | 14.11% | -284.13% | 22969.74% | 99.93% | -1074.42% | 129.26% | 117.6% | 9.34% | -953.59% | 138.02% | 43.81% | -283.92% | -169.45% | -58.03% | 133.49% | -158.32% | -417.99% | -116.89% | -59.05% | 410.94% | -143.5% | - |
| FCF per Share | 1.62 | 1.65 | -2.12 | 0.62 | -1.80 | -2.07 | 1.44 | -0.01 | -8.85 | 1.01 | 0.45 | -2.55 | -2.82 | 0.32 | -1.00 | -1.82 | -0.47 | 0.73 | 1.77 | -5.27 | -2.04 | -0.38 | 2.26 | 5.62 | -1.81 | 4.16 |
| FCF Conversion (FCF/Net Income) | 3.41x | -10.98x | 2.83x | 4.09x | 1.75x | 1.79x | -1.23x | 2.80x | 2.73x | 1.76x | 1.57x | 1.29x | 1.08x | 1.57x | 0.47x | 1.25x | 0.93x | 0.65x | 1.16x | 1.21x | 1.07x | 1.34x | 0.68x | 1.24x | 6.42x | 1.45x |
| Interest Paid | 0 | 0 | 161.24M | 148.5M | 109.68M | 96.83M | 71.48M | 72.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 8.29M | 1.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying SFL stock.
SFL Corporation Ltd. (SFL) generated $290.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SFL Corporation Ltd. (SFL) generated $219.7M 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.
SFL Corporation Ltd. (SFL) spent $70.5M 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, SFL Corporation Ltd. (SFL) returned $125.1M to shareholders via cash dividends and spent $10.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Leverage and margin volatility
Earnings Quality Masked by Non-Cash Items
SFL's operating cash flow consistently exceeds net income, with a 2.61x OCF/NI ratio in 2026Q2, suggesting reported earnings are heavily depressed by non-cash charges like depreciation and impairments rather than operational weakness.
The persistent and wide gap between operating cash flow and net income, which has swung from negative to positive OCF/NI ratios, indicates that the company's core cash generation is robust and largely independent of accounting profits. This pattern is typical for capital-intensive lessors where high depreciation and potential asset write-downs create a significant wedge between cash and earnings. Investors should focus on the operating cash flow stream as the more reliable indicator of the business's ability to service debt and fund dividends.
FCF Recovery Amid Fleet Rationalization
After a period of negative free cash flow driven by heavy capital expenditure, SFL's FCF margin has rebounded to a robust 35.9% in 2026Q2, indicating a shift from a growth investment phase to a cash harvesting phase.
The dramatic improvement in FCF margin from -89.1% in 2024Q3 to 35.9% in 2026Q2 is primarily a function of sharply reduced capital expenditure, which fell from $305.7M to $16.2M over the same period. This suggests management has completed a significant fleet renewal cycle and is now prioritizing cash generation over expansion. The sustainability of this high FCF margin depends on the company's ability to maintain its charter backlog without needing to reinvest heavily in new vessels in the near term.
Capital Intensity Declining After Fleet Build
SFL's capital intensity has normalized dramatically, with CapEx/Revenue falling from a peak of 121.0% in 2024Q3 to just 8.1% in 2026Q2, signaling the end of a major fleet investment cycle.
The extreme volatility in capital expenditure, peaking at over 120% of revenue, confirms the lumpy, project-based nature of SFL's fleet investments. The recent sharp decline suggests the company has moved past a period of aggressive fleet renewal and is now in a maintenance capex phase. This shift is critical for free cash flow generation but also implies that future growth will require a return to higher spending levels, potentially pressuring cash flows again.
Balancing Dividends with Debt Reduction
SFL has maintained a consistent quarterly dividend of approximately $26-30M while using significant cash for debt repayment and occasional share buybacks, indicating a priority on balance sheet repair and shareholder returns.
The company's capital deployment shows a clear pattern: after a period of heavy investment, cash is being directed toward reducing financial leverage and rewarding shareholders. The large $63.0M share buyback in 2026Q2, alongside steady dividends, suggests management believes the stock is undervalued. However, the sustainability of this dual return policy is contingent on the continued strength of operating cash flow and the absence of another major capital expenditure cycle.
Cash Flow Obscures True Leverage
The cash flow statement does not fully capture SFL's true economic leverage, as significant principal repayments on finance leases appear in the investing section, masking the company's debt servicing obligations.
A critical nuance for SFL is that cash inflows from principal repayments on finance leases are classified as investing activities, not operating. This means the headline operating cash flow figure understates the total cash generated by the asset portfolio. Conversely, the company's total debt burden, which funds these assets, is not fully reflected in the simple debt-to-equity ratio. Analysts must reconstruct the full cash flow picture by adding back these principal repayments to understand the true cash available for dividends and debt service.