Free cash flow generation remains highly unstable, contracting from $10.0 billion in 2024Q3 to $1.6 billion in 2026Q1, partly due to significant working capital outflows of $11.2 billion in the most recent quarter.
| 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 | 37.78B | 40.81B | 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 % | - | 15.29% | 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 % | -107.51% | -25.38% | 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 | 18.71B | 17.88B | 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 | 22.72B | 22.22B | 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 | 3.32B | 2.52B | -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 | -9.34B | -1.81B | 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 | -5.54B | 2.25B | 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 | -5.61B | 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 | 5.8B | -5.97B | 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 | -17.2B | -18.83B | -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 | -13.58B | -18.99B | -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 | 5.09% | 7.12% | 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 | 548.03M | 1.13B | 0 | -728M | -1.46B | 105M | 216M | 1.86B | 714M | 1.58B | -11.19B | -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 | -3.88B | -239.56M | 4.53B | 6.13B | 1.76B | 14.06B | 3.03B | 5.07B | 8.64B | -9.61B | -19.78B | -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 | -33.31B | -31.76B | -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) | -13.49B | -9.17B | -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) | -14.67B | -15.21B | -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 | -8.37B | -8.49B | -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 | -14.66B | -15.21B | -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 | 3.22B | 1.11B | -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 | -12.48B | -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 | 18.8B | 21.82B | 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 % | 7.05% | 8.18% | 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 % | -39.86% | -37.81% | 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 | 6.59 | 7.34 | 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) | 1.01x | 2.29x | 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 |
Commodity price volatility exposure
As reported in quarterly financial statements, Shell's operating cash flow consistently dwarfs net income, with the OCF/NI ratio reaching an extreme 26.63x in 2023Q4, suggesting that headline earnings are heavily obscured by non-cash charges and significant accounting adjustments inherent to the integrated energy business model.
The persistent gap between net income and operating cash flow indicates that reported profitability is a poor proxy for actual cash generation. Investors should monitor this divergence, as it suggests that large non-cash items, likely related to DD&A and asset impairments, are creating a structural disconnect between accounting performance and liquidity.
Based on the provided cash flow data, free cash flow has exhibited significant instability, peaking at $10.0 billion in 2024Q3 before contracting to $1.6 billion in 2026Q1, reflecting the company's high sensitivity to commodity price cycles and the resulting variability in its underlying cash generation capacity.
The sharp decline in FCF margins to 2.3% in 2026Q1 highlights the vulnerability of Shell's cash flow to market downturns. This trend suggests that while the company maintains a large cash base, its ability to generate consistent free cash flow is heavily dependent on favorable price environments that may not be sustainable.
According to recent SEC filings, working capital movements have been highly erratic, including a massive $11.2 billion outflow in 2026Q1, which significantly pressured the company's net cash position and underscores the volatility inherent in managing global energy supply chains and inventory valuation adjustments.
These dramatic swings in working capital suggest that Shell's cash flow is frequently disrupted by timing differences in inventory and payables. Such volatility warrants further investigation, as it may indicate that the company's cash position is more sensitive to operational timing than to underlying structural profitability.
As evidenced by the reported figures, Shell has maintained a consistent capital return program, with combined dividends and buybacks frequently exceeding $5 billion per quarter, even during periods of significant FCF contraction, which may indicate a management priority on shareholder yield over long-term reinvestment.
The commitment to returning cash to shareholders appears to be a core pillar of the current strategy, yet the sustainability of this approach is questionable given the volatility of FCF. Investors should monitor whether this aggressive deployment limits the company's flexibility to fund necessary capital projects during future downturns.
Quick answers to the most common questions about buying SHEL stock.
Shell plc (SHEL) generated $40.81B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Shell plc (SHEL) generated $21.82B 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 $18.99B 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 $8.49B to shareholders via cash dividends and spent $15.21B on share repurchases. This shows the company's commitment to returning capital to its equity investors.