Free cash flow turned negative at -$25.2M in 2026Q2, driven by a $58.1M working capital outflow, while stock-based compensation of $24.2M exceeded operating income, raising questions about cash flow quality.
TIC Solutions, Inc. (TIC) cash flow statement — 3-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 |
|---|
| Cash from Operations | 62.19M | 95.02M | 23.07M | 95.81M |
| Operating CF Margin % | - | 6.21% | 2.1% | 9.12% |
| Operating CF Growth % | 94.54% | 311.9% | -75.92% | - |
| Net Income | -115.98M | -87.12M | -121.16M | -6.29M |
| Depreciation & Amortization | 316.21M | 178.33M | 93.09M | 94.82M |
| Stock-Based Compensation | 32.12M | 17.16M | 0 | 4.97M |
| Deferred Taxes | -72.45M | -32.97M | -22.36M | -23.44M |
| Other Non-Cash Items | 27.22M | 24.91M | 109.57M | 22.1M |
| Working Capital Changes | -78.84M | -5.29M | -36.08M | 3.65M |
| Change in Receivables | 115.19M | 41.08M | -5.01M | 881K |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | -12.76M | -1.44M | -14.17M | 2.92M |
| Cash from Investing | -1.18B | -874.09M | -1.89B | -26.53M |
| Capital Expenditures | -59.35M | -33.76M | -27.57M | -22.14M |
| CapEx % of Revenue | 2.89% | 2.21% | 2.51% | 2.11% |
| Acquisitions | -1.13B | -845.02M | -1.87B | -6.01M |
| Investments | - | - | - | - |
| Other Investing | 3.87M | 4.69M | 0 | 1.62M |
| Cash from Financing | 1.35B | 1.08B | 1.42B | -49.18M |
| Debt Issued (Net) | 1.12B | 825.27M | 755.53M | 103.67M |
| Equity Issued (Net) | 234.77M | 250.45M | 666.63M | 0 |
| Dividends Paid | 0 | 0 | 0 | -150M |
| Share Repurchases | -15.68M | 0 | 0 | 0 |
| Other Financing | -2.75M | 0 | 0 | -2.84M |
| Net Change in Cash | 276.33M | 300.4M | 136.47M | 24.48M |
| Free Cash Flow | 2.84M | 61.26M | -4.51M | 73.67M |
| FCF Margin % | 0.14% | 4% | -0.41% | 7.02% |
| FCF Growth % | -90.33% | 1459.22% | -106.12% | - |
| FCF per Share | 0.02 | 0.39 | -0.04 | 14.66 |
| FCF Conversion (FCF/Net Income) | -0.02x | -1.09x | -0.19x | -15.23x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TIC stock.
TIC Solutions, Inc. (TIC) generated $95.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TIC Solutions, Inc. (TIC) generated $61.3M 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.
TIC Solutions, Inc. (TIC) spent $33.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Negative FCF despite growth
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Charges
TIC's operating cash flow turned positive at $158K in 2026Q2 despite a $13.3M net loss, per the latest quarterly report, but this conversion relies heavily on $119.3M in D&A and $24.2M in SBC.
The gap between net income and operating cash flow is stark: in 2026Q2, OCF/NI was -0.01, indicating that reported losses are not fully reflected in cash terms. The large non-cash charges (D&A and SBC) are inflating operating cash flow relative to net income, suggesting that the company's cash generation is not as robust as the headline OCF might imply. Investors should monitor whether these non-cash items can be sustained as the company scales.
Free Cash Flow Volatility Amidst Expansion
TIC's free cash flow swung from $37.1M in 2025Q4 to -$25.2M in 2026Q2, as reported in financial statements, with FCF margins ranging from 12.1% to -4.3% over the last five quarters.
The trajectory of FCF is highly erratic, reflecting the company's aggressive growth phase. While 2025Q4 and 2026Q1 showed positive FCF, the most recent quarter saw a significant deterioration, driven by a surge in capex to $25.4M and a working capital outflow of $58.1M. This suggests that the company's cash generation is not yet stable, and the negative FCF in 2026Q2 may indicate that growth is consuming more cash than it generates.
Capital Intensity Rising with Revenue Scale
CapEx jumped to $25.4M in 2026Q2, representing 4.3% of revenue, up from 1.2% in 2026Q1, according to the latest financials, signaling a shift toward heavier investment.
The increase in capital expenditure as a percentage of revenue suggests that TIC is investing in capacity to support its rapid growth. However, the absolute level of capex is still modest relative to the company's revenue base, and the depreciation charge of $119.3M in 2026Q2 far exceeds capex, implying that the company may be under-investing relative to its asset base. This could lead to future maintenance capex needs, but the current data does not clarify the split between maintenance and growth spending.
Working Capital Swings Reflect Scaling Pains
Working capital changes were a major drag in 2026Q2, with a $58.1M outflow, per the cash flow statement, reversing the $19.8M inflow in 2025Q4, indicating volatile cash conversion cycles.
The working capital swings are substantial and appear to be tied to the company's rapid revenue growth. The $58.1M outflow in 2026Q2 suggests that receivables or inventory are building faster than payables, which is common during periods of expansion. However, the inconsistency of these swings—ranging from positive to negative—makes it difficult to assess the efficiency of TIC's working capital management. Investors should monitor whether these outflows are temporary or indicative of a structural issue.
Capital Deployment Focused on Growth and Buybacks
TIC allocated $15.7M to share repurchases and $10.3M to acquisitions in 2026Q2, per the cash flow statement, while paying no dividends, signaling a reinvestment strategy.
The company's capital deployment is heavily skewed toward growth initiatives, with acquisitions and buybacks consuming cash in the most recent quarter. The $1.1B acquisition outflow in 2025Q3 stands out as a major deployment, though it is not repeated in subsequent quarters. The lack of dividends and the use of buybacks suggest that management is confident in the company's growth prospects, but the negative free cash flow in 2026Q2 raises questions about the sustainability of such deployment.
What the Cash Flow Statement Obscures
Stock-based compensation of $24.2M in 2026Q2, as reported in the cash flow statement, exceeds operating income, suggesting that reported cash flow may overstate the company's cash-generating ability.
The cash flow statement adds back SBC to operating cash flow, but this is a non-cash expense that dilutes shareholders. In 2026Q2, SBC of $24.2M was larger than the net loss, indicating that a significant portion of the company's 'cash' generation is actually a non-cash charge. Additionally, the large acquisition outflows in 2025Q3 and 2026Q2 may not be fully reflected in the operating cash flow, potentially obscuring the true cash burn. Investors should adjust for these items to assess the company's underlying cash generation.