Cash conversion remains strong with an OCF/NI ratio of 1.22 in 2026Q1, though capital expenditure requirements remain high at 29.6% of revenue to support infrastructure growth.
| Cash from Operations | 501.11B | 642.72B | 484.17B | 412.82B | 240.15B | 183.8B | 83.84B | 27.74B |
| Operating CF Margin % | - | 32.33% | 40.13% | 42.67% | 22.26% | 34.9% | 51.34% | 27.91% |
| Operating CF Growth % | 137365.01% | 32.75% | 17.28% | 71.9% | 30.66% | 119.24% | 202.23% | - |
| Net Income | 459.36B | 490.32B | 370.16B | 51.21B | 219.16B | 126.97B | 9.66B | 26.31B |
| Depreciation & Amortization | 172.61B | 235.3B | 129.67B | 132.03B | 132.73B | 58.3B | 18.12B | 7.59B |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 127.62B | 6.28B | 211.94B | 43.79B | 115.7B | 77.26B | 12.95B | 8.27B |
| Other Non-Cash Items | -96.05B | 77.7B | -108.82B | 197.98B | -171.07B | -33.5B | 44.05B | -4.91B |
| Working Capital Changes | -131.01B | -166.88B | -118.78B | -12.19B | -56.36B | -45.23B | -944.85M | -9.53B |
| Change in Receivables | -158.43B | -212.43B | -164.76B | -116.51B | -97.13B | -58.91B | -2.35B | -11.49B |
| Change in Inventory | 2.08B | -7.81B | 4B | -12.71B | -4.5B | -3.63B | -775.82M | 108.16M |
| Change in Payables | 34.8B | 54.6B | 30.45B | 63.93B | 30.11B | 16.38B | 422.73M | 289.48M |
| Cash from Investing | -1T | -529.51B | -384.9B | -449.53B | -272.72B | -183.7B | -88.47B | -34.2B |
| Capital Expenditures | -356.97B | -373.36B | -289.81B | -294.16B | -171.62B | -58.53B | -22.84B | -32.74B |
| CapEx % of Revenue | 19.66% | 18.78% | 24.02% | 30.4% | 15.91% | 11.11% | 13.99% | 32.95% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -22.82B | -1.45K | -95.09B | -155.36B | -101.1B | -125.17B | -65.62B | -1.46B |
| Cash from Financing | 1T | 762.75B | -31.35B | 53.68B | 24.59B | -5.82B | -14.92B | -23.26B |
| Debt Issued (Net) | 1.02T | 1.03T | -31.35B | 53.68B | 41.22B | 0 | -3.98B | 2.12B |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.59B |
| Dividends Paid | -18.87B | -269.3B | 0 | 0 | 0 | 0 | -47K | -20.06B |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.59B |
| Other Financing | -242M | -964.96M | 0 | 0 | -16.63B | -5.82B | -10.94B | -2.73B |
| Net Change in Cash | 266.28B | 719.4B | 45.6B | -5.9B | -38.23B | -15.74B | -25.41B | -32.55B |
| Free Cash Flow | 144.14B | 269.36B | 194.36B | 118.66B | 68.54B | 125.28B | 60.99B | -5B |
| FCF Margin % | 7.94% | 13.55% | 16.11% | 12.26% | 6.35% | 23.79% | 37.35% | -5.03% |
| FCF Growth % | -41.21% | 38.59% | 63.8% | 73.13% | -45.29% | 105.39% | 1319.94% | - |
| FCF per Share | 957.44 | 1789.18 | 1290.95 | 788.14 | 455.23 | 832.11 | 400.02 | -32.21 |
| FCF Conversion (FCF/Net Income) | 0.31x | 1.31x | 1.31x | 8.06x | 1.10x | 1.45x | 8.68x | 1.05x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory and Inflationary Volatility
According to recent financial filings, TGS demonstrated a strong OCF/NI ratio of 1.22 in 2026Q1, suggesting that the company's reported net income is effectively supported by actual cash generation despite the complex accounting adjustments required by hyperinflationary reporting standards in the Argentine market.
The consistent ability to generate operating cash flow in excess of net income indicates that non-cash charges and accruals are not masking underlying operational weakness. Investors should monitor whether this conversion efficiency persists if regulatory tariff adjustments fail to keep pace with the inflationary environment.
As reported in quarterly statements, TGS achieved an FCF margin of 10.8% in 2026Q1, reflecting a recovery from the near-zero margins observed in mid-2025, which highlights the company's sensitivity to the timing of capital expenditures and the cyclical nature of its unregulated midstream business segments.
The fluctuation in free cash flow margins appears to be driven by the lumpy nature of infrastructure investment and the impact of local currency devaluation on cash reserves. While the current trajectory suggests stabilization, the historical volatility warrants caution regarding the sustainability of cash flow during periods of intense capital deployment.
Based on reported figures, TGS maintained a capital expenditure to revenue ratio of 29.6% in 2026Q1, underscoring the high capital intensity required to maintain its extensive pipeline network and support ongoing expansion projects within the Vaca Muerta formation to capture growing gas volumes.
This elevated level of capital intensity suggests that a significant portion of cash flow is committed to sustaining the physical integrity of the pipeline system. Analysts should evaluate whether these investments are primarily maintenance-oriented or if they represent strategic growth initiatives that will yield incremental returns in the coming years.
Data from recent filings reveals a working capital outflow of $35.5 billion in 2026Q1, which may indicate increased pressure on receivables or inventory management as the company navigates the volatile macroeconomic landscape and shifting demand patterns within the Argentine energy sector.
The periodic swings in working capital suggest that the company's cash cycle is highly susceptible to the payment behaviors of its counterparties and the inflationary impact on operational costs. Investors should monitor these outflows closely, as they may signal potential liquidity constraints if collection cycles continue to lengthen.
Quick answers to the most common questions about buying TGS stock.
Transportadora de Gas del Sur S.A. (TGS) generated $642.72B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Transportadora de Gas del Sur S.A. (TGS) generated $269.36B 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.
Transportadora de Gas del Sur S.A. (TGS) spent $373.36B 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, Transportadora de Gas del Sur S.A. (TGS) returned $269.30B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.