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Cash conversion is strong with an operating cash flow to net income ratio of 1.98 in 2026Q2, though free cash flow generation is volatile, ranging from $2.3 billion to $17.4 billion over the last two quarters due to significant working capital swings.
Shell plc (SHEL) cash flow statement — 28-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 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 49.14B | 42.86B | 54.69B | 54.19B | 68.41B | 45.1B | 34.1B | 42.18B | 53.09B | 35.65B | 20.61B | 29.81B | 45.04B | 40.44B | 46.14B | 36.77B | 27.35B | 21.49B | 43.92B | 34.46B | 31.7B | 30.11B | 21.5B | 21.72B | 16.28B | 16.93B | 18.36B | 11.06B | 14.73B |
| Operating CF Margin % | - | 16.06% | 19.23% | 17.12% | 17.94% | 17.25% | 18.89% | 12.23% | 13.67% | 11.68% | 8.83% | 11.25% | 10.7% | 8.96% | 9.88% | 7.82% | 7.43% | 7.54% | 9.43% | 9.69% | 9.94% | 9.82% | 8.07% | 10.95% | 9.77% | 12.52% | 12.31% | 10.5% | 15.72% |
| Operating CF Growth % | -0.32% | -21.62% | 0.92% | -20.79% | 51.68% | 32.25% | -19.14% | -20.55% | 48.91% | 72.93% | -30.85% | -33.82% | 11.38% | -12.35% | 25.48% | 34.45% | 27.28% | -51.07% | 27.44% | 8.72% | 5.26% | 40.07% | -1.02% | 33.38% | -3.84% | -7.77% | 66.01% | -24.92% | - |
| Net Income | 25.97B | 29.76B | 29.92B | 32.63B | 64.81B | 29.83B | -26.97B | 25.48B | 35.62B | 18.13B | 4.78B | 2.2B | 14.73B | 16.53B | 26.96B | 31.09B | 20.47B | 12.72B | 26.48B | 31.93B | 26.31B | 26.26B | 31.66B | 12.31B | 9.72B | 10.85B | 12.72B | 8.58B | 350M |
| Depreciation & Amortization | 22.87B | 22.17B | 26.87B | 23.11B | 22.39B | 23.07B | 24.98B | 25.11B | 21.7B | 26.22B | 24.99B | 26.71B | 24.5B | 21.51B | 14.62B | 13.23B | 15.6B | 14.46B | 13.66B | 13.18B | 12.62B | 11.98B | 12.85B | 11.71B | 8.62B | 6.12B | 7.88B | 6.52B | 9.42B |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -7.15B | -7.26B | -4.17B | -9.38B | -13.36B | 2.57B | 31.48B | -3.64B | -7.68B | -6.45B | -729M | -4.63B | -590M | -583M | 1.17B | -1.08B | -2.79B | -3.36B | -4.15B | -4.44B | -3.18B | -2.46B | -17.94B | -3.69B | -1.14B | -1.83B | -711M | -3M | 1.39B |
| Working Capital Changes | -6.49B | -1.8B | 2.06B | 7.84B | -5.43B | -10.37B | 4.61B | -4.78B | 3.44B | -2.25B | -8.43B | 5.52B | 6.41B | 2.99B | 3.39B | -6.47B | -5.93B | -2.33B | 7.93B | -6.21B | -4.05B | -5.66B | -5.07B | 1.39B | -920M | 1.8B | -1.53B | -4.04B | 3.56B |
| Change in Receivables | -7.6B | 2.24B | 6.58B | 12.4B | -8.99B | -20.57B | 9.63B | -921M | 1.96B | -2.58B | -4.13B | 9.85B | -1.54B | 5.65B | 14.14B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -1.86B | 1.92B | 1.27B | 6.33B | -8.36B | -7.32B | 4.48B | -2.63B | 2.82B | -2.08B | -5.66B | 2.83B | 7.96B | 608M | -1.75B | -1.93B | -2.89B | -7.14B | 8.03B | 0 | 0 | 0 | 0 | -236M | -2.08B | 1.07B | -1.27B | -2.06B | 1.11B |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -14.49B | -16.81B | -15.15B | -17.73B | -22.45B | -4.76B | -13.28B | -15.78B | -13.66B | -8.03B | -30.96B | -22.41B | -19.66B | -40.15B | -28.45B | -20.44B | -21.97B | -26.23B | -19.59B | -14.57B | -20.86B | -8.38B | -6.43B | -8.25B | -20.63B | -9.11B | -1.57B | -3.02B | -12.5B |
| Capital Expenditures | -17.59B | -18.95B | -19.6B | -22.99B | -22.6B | -19B | -16.59B | -22.97B | -23.01B | -20.84B | -22.12B | -26.13B | -31.85B | -40.15B | -32.58B | -26.3B | -26.94B | -26.52B | -35.06B | -24.58B | -22.92B | -15.9B | -13.57B | -12.25B | -12.1B | -9.63B | -6.21B | -7.41B | -12.86B |
| CapEx % of Revenue | 5.93% | 7.1% | 6.89% | 7.26% | 5.93% | 7.27% | 9.19% | 6.66% | 5.92% | 6.83% | 9.47% | 9.86% | 7.56% | 8.9% | 6.97% | 5.59% | 7.32% | 9.3% | 7.53% | 6.91% | 7.19% | 5.18% | 5.09% | 6.18% | 7.26% | 7.12% | 4.16% | 7.03% | 13.72% |
| Acquisitions | -396M | -681M | -814M | -728M | -1.46B | 105M | 216M | 1.86B | 714M | 9.2B | -9.32B | -620M | 2.74B | -1B | -2.33B | 0 | 0 | 1.32B | 177M | 7.51B | 1.59B | 3.61B | 258M | -275M | -9.71B | -567M | 1.12B | -475M | -920M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3.51B | 2.87B | 4.76B | 6.13B | 1.76B | 14.06B | 3.03B | 5.07B | 8.64B | -644.79M | 243.02M | -21.79B | -21.81B | -38.76B | -26.12B | -19.11B | -26.8B | -26.24B | 16.96B | 9.79B | 2.61B | 8.51B | 4.88B | -7.98B | -10.92B | -8.54B | -2.69B | -2.38B | -11.44B |
| Cash from Financing | -35.51B | -35.81B | -38.43B | -38.23B | -41.95B | -34.66B | -7.22B | -35.21B | -32.55B | -27.09B | -771M | 3.81B | -12.79B | -8.98B | -10.63B | -18.13B | -1.47B | -829M | -8.02B | -18.16B | -12.45B | -17.83B | -4.26B | -12.59B | -53M | -11.56B | -9.13B | -6.26B | 2.41B |
| Debt Issued (Net) | -8.37B | -9.15B | -9.62B | -9.83B | -7.87B | -19.73B | 5.58B | -3.42B | -8.33B | -11.83B | 11.07B | 14.89B | 357M | 5.39B | -17M | -7.12B | 9.26B | 10.7B | 4.83B | 1.31B | 2.11B | -1.55B | -4.33B | -4.67B | 6.71B | -1.73B | -3.6B | -699M | 1.89B |
| Equity Issued (Net) | -14.17B | -15.18B | -14.69B | -15.51B | -19.03B | -3.17B | -2.08B | -11.36B | -5.06B | -717M | -160M | -448M | -3.1B | -5.57B | -1.53B | -2.04B | 187M | 27M | -3.05B | -3.51B | -7.55B | -4.54B | -698M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -8.44B | -8.47B | -8.67B | -8.39B | -7.41B | -6.25B | -7.42B | -15.2B | -15.68B | -10.88B | -9.68B | -9.37B | -9.44B | -7.2B | -7.39B | -6.88B | -9.98B | -10.72B | -9.52B | -9B | -8.14B | -10.56B | -7.23B | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -13.22B | -13.88B | -14.69B | -15.51B | -19.03B | -3.17B | -2.08B | -11.36B | -5.06B | -717M | -160M | -448M | -3.33B | -5.57B | -1.53B | -2.04B | 0 | 0 | -3.57B | -4.39B | -8.05B | -4.99B | -698M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -4.53B | -3.01B | -5.46B | -4.5B | -7.65B | -5.51B | -3.3B | -5.24B | -3.48B | -3.66B | -2.01B | -1.26B | -607M | -1.61B | -1.7B | -2.1B | -1.33B | -840M | -1.66B | -8.2B | -151M | -1.93B | -374M | -7.91B | -6.77B | -9.83B | -5.52B | -5.56B | -5.47B |
| Net Change in Cash | -1.31B | -8.89B | 336M | -1.47B | 3.28B | 5.14B | 13.78B | -8.69B | 6.43B | 1.18B | -12.62B | 10.14B | 11.91B | -8.85B | 7.26B | -2.15B | 3.73B | -5.47B | 5.53B | 654M | -2.73B | 2.53B | 7.09B | 396M | -5.11B | -4.76B | 7.39B | 1.33B | -1.59B |
| Free Cash Flow | 31.55B | 23.92B | 35.08B | 31.2B | 45.81B | 26.11B | 17.52B | 19.21B | 30.07B | 14.8B | -1.5B | 3.68B | 13.19B | 295M | 13.56B | 10.47B | 410M | -5.03B | -1.92B | 8.81B | 7.66B | 12.84B | 7.93B | 9.47B | 4.18B | 7.31B | 12.15B | 3.65B | 1.87B |
| FCF Margin % | 10.64% | 8.96% | 12.34% | 9.85% | 12.01% | 9.98% | 9.7% | 5.57% | 7.74% | 4.85% | -0.64% | 1.39% | 3.13% | 0.07% | 2.9% | 2.23% | 0.11% | -1.76% | -0.41% | 2.48% | 2.4% | 4.18% | 2.98% | 4.77% | 2.51% | 5.4% | 8.15% | 3.46% | 2% |
| FCF Growth % | 9.95% | -31.83% | 12.45% | -31.9% | 75.5% | 49% | -8.79% | -36.13% | 103.13% | 1086.34% | -140.8% | -72.11% | 4371.19% | -97.83% | 29.55% | 2453.66% | 108.15% | -161.88% | -121.8% | 15.02% | -40.35% | 61.81% | -16.21% | 126.43% | -42.78% | -39.86% | 232.88% | 95.19% | - |
| FCF per Share | 11.19 | 8.04 | 11.03 | 9.18 | 12.36 | 6.69 | 4.49 | 4.74 | 7.20 | 3.57 | -0.38 | 1.15 | 4.18 | 0.09 | 4.33 | 3.37 | 0.13 | -1.64 | -0.62 | 2.80 | 2.38 | 3.81 | 2.34 | 2.82 | 1.24 | 2.49 | 4.14 | 0.31 | 0.16 |
| FCF Conversion (FCF/Net Income) | 1.21x | 2.40x | 3.40x | 2.80x | 1.62x | 2.24x | -1.57x | 2.66x | 2.27x | 2.75x | 4.51x | 15.37x | 2.99x | 2.47x | 1.74x | 1.19x | 1.36x | 1.72x | 1.67x | 1.10x | 1.25x | 1.19x | 1.16x | 1.76x | 1.67x | 1.56x | 1.44x | 1.29x | 42.08x |
| Interest Paid | 0 | 0 | 4.56B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 SHEL stock.
Shell plc (SHEL) generated $42.86B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Shell plc (SHEL) generated $23.92B 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.
Shell plc (SHEL) spent $18.95B 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, Shell plc (SHEL) returned $8.47B to shareholders via cash dividends and spent $13.88B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cyclical Margin Volatility
Earnings Quality Driven by Non-Cash Items
Operating cash flow consistently exceeds net income, with the OCF/NI ratio reaching 1.98 in 2026Q2, suggesting strong cash generation quality that is not fully captured by reported earnings due to significant non-cash charges like depreciation.
The persistent gap between operating cash flow and net income, where OCF has been 1.8 to 3.8 times net income over the past ten quarters, indicates that Shell's reported earnings are heavily depressed by non-cash items, primarily depreciation and amortization. This pattern is typical for capital-intensive energy firms but the magnitude suggests that net income alone is a poor proxy for the company's underlying cash-generating ability. Investors should focus on operating cash flow as the more reliable measure of core performance.
FCF Volatility Amidst Robust Generation
Free cash flow has been highly volatile, ranging from $2.3B in 2026Q1 to $17.4B in 2026Q2, yet the trailing twelve-month FCF margin of approximately 10% demonstrates the company's capacity for substantial cash generation when capital spending and working capital align favorably.
The FCF trajectory is erratic, driven by lumpy capital expenditure timing and significant swings in working capital, as seen in the -$11.2B working capital use in 2026Q1. Despite this volatility, the company has generated over $70 billion in cumulative FCF over the last ten quarters, underscoring its fundamental cash flow strength. The recent $17.4B quarter highlights the potential upside when operational cash flow is strong and capex is moderate, but the inconsistency makes forecasting challenging.
Working Capital Swings Mask Operational Efficiency
Working capital changes have been a major source of cash flow volatility, with a $28.0 billion use in 2025Q3 followed by a $11.2 billion use in 2026Q1, indicating that inventory and receivables management are significant, unpredictable drivers of quarterly cash flow.
The erratic working capital movements, which have swung from a $3.4 billion source in 2026Q2 to an $11.2 billion use in 2026Q1, suggest that the company's cash conversion cycle is influenced by factors beyond simple operational efficiency, likely including commodity price movements and strategic inventory positioning. These large swings can obscure the underlying trend in operating cash flow and make quarter-to-quarter comparisons difficult. The net effect over the period appears neutral, but the volatility itself is a risk factor for cash flow predictability.
Disciplined Returns to Shareholders
Shell has consistently returned over $5 billion per quarter to shareholders through dividends and buybacks, with buybacks averaging $3.5 billion per quarter, indicating a clear and sustained capital allocation priority toward shareholder returns.
The commitment to shareholder returns is evident in the steady dividend payments of approximately $2.1-2.2 billion per quarter and the aggressive share repurchase program. This allocation strategy appears sustainable given the robust free cash flow generation, but it also means that a significant portion of operating cash flow is not being reinvested in the business. The recent $116 million net acquisition spend in 2026Q2 is minimal compared to the $5.2 billion returned to shareholders, reinforcing the focus on returns over growth investment.
Cash Flow Statement Obscures True Capital Intensity
The reported capital expenditure figures may understate the true cash cost of maintaining operations, as the $5.6 billion in quarterly depreciation suggests that the $4.0 billion in 2026Q2 capex is likely insufficient for full asset replacement, potentially masking future reinvestment needs.
A key limitation of the cash flow statement is that it does not distinguish between maintenance and growth capital expenditure. Given that depreciation and amortization consistently runs at $5.5-5.9 billion per quarter, the reported capex of $4.0 billion in 2026Q2 appears low for a company of this scale and asset base. This discrepancy suggests that some necessary reinvestment may be deferred or capitalized in ways that are not immediately apparent, which could lead to higher future cash outflows to maintain production capacity.