Free cash flow generation remains highly erratic, swinging from a 24.5% margin in 2025Q4 to a negative 13.0% in 2024Q3, heavily dependent on lumpy working capital inflows.
| 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 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 206.2M | 146.6M | 9.1M | 26.5M | -9.5M | 89.5M | 41.1M | 110.7M | 341.4M | 6.14M | 79.15M | -32.56M | 32.81M | -20.32M | 23.57M | 42.93M | 36.48M | 28.98M | 8.78M | 11.47M | 12.87M | -50.72M | 69.21M | 66.95M | 34.63M | -110.06M | -131.02M | -55.57M | -71.3M | -14.76M | -6.94M |
| Operating CF Margin % | - | 11.77% | 0.82% | 1.86% | -0.58% | 7.43% | 5.73% | 10.28% | 17.27% | 0.38% | 5.08% | -2.91% | 6.04% | -8.81% | 9.05% | 4.34% | 4.77% | 3.55% | 0.98% | 1.27% | 1.27% | -4.27% | 5.12% | 5.2% | 3.38% | -10.17% | -10.92% | -6.67% | -16.91% | -5.27% | -4.01% |
| Operating CF Growth % | 822.41% | 1510.99% | -65.66% | 378.95% | -110.61% | 117.76% | -62.87% | -67.57% | 5458.45% | -92.24% | 343.08% | -199.23% | 261.52% | -186.19% | -45.1% | 17.67% | 25.89% | 230.11% | -23.44% | -10.9% | 125.38% | -173.28% | 3.38% | 93.3% | 131.47% | 16% | -135.77% | 22.06% | -383.13% | -112.64% | - |
| Net Income | -52.9M | -64M | -39.7M | -35.2M | -42M | -77.6M | -43.6M | -17.8M | 179.9M | -50.49M | -97.43M | -35.76M | -9.55M | 111.61M | 27.87M | -33.27M | -19.19M | 478.19M | -25.03M | 15.74M | -237.96M | -154.38M | -10.58M | 41.81M | -71.28M | -797.95M | -215.62M | -112.7M | -63.6M | -36.2M | -8.8M |
| Depreciation & Amortization | 26.7M | 30.4M | 32.9M | 36M | 42.2M | 37.6M | 26.8M | 31.5M | 38.7M | 36.57M | 28.86M | 30.94M | 8.97M | 23.96M | 43.24M | 65.15M | 68.4M | 51.69M | 32.8M | 30.59M | 48.16M | 87.73M | 92.74M | 86.07M | 82.38M | 157.8M | 121.06M | 55.32M | 24.55M | 6.73M | 2.16M |
| Stock-Based Compensation | 2.5M | 2.7M | 3.4M | 0 | 2.4M | 0 | 0 | 0 | 9M | 5.24M | 8.35M | 11.1M | 11.49M | 2.29M | 5.19M | 5.22M | 1.64M | 1.18M | 262K | 246K | 545K | 0 | 10K | 472K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -1.9M | -100K | 500K | -5.3M | 1.1M | 2M | -4.7M | -27.2M | -2.6M | -10.45M | 27.14M | -13.1M | -31.84M | -522K | 119K | -1.76M | -6.32M | -3.89M | 5.84M | -12.46M | 7.05M | 0 | -10K | -26.51M | -3.25M | 0 | 0 | 0 | 0 | 0 | 196K |
| Other Non-Cash Items | 30M | 26.4M | -100K | 2.9M | 6.8M | 114.1M | 47.8M | 106.1M | -213.6M | 10.06M | 39.19M | 18.24M | 11.94M | -138.68M | -47.79M | 20.69M | 9.71M | -477.78M | 20.2M | -20.94M | 202.1M | 47.67M | 24.25M | 15.86M | 36.67M | 586.96M | 2.59M | 42.7M | 9.5M | 5.78M | 41K |
| Working Capital Changes | 204M | 151.2M | 12.1M | 28.1M | -20M | 13.4M | 14.8M | 18.1M | 330M | 15.21M | 73.04M | -43.98M | 41.81M | -18.97M | -5.06M | -13.09M | -17.75M | -20.41M | -25.29M | -1.71M | -7.03M | -31.74M | -37.2M | -50.76M | -31.21M | -56.87M | -39.05M | -40.89M | -41.74M | 8.93M | -2.84M |
| Change in Receivables | 57.9M | -6.5M | 104.1M | 20.8M | -52M | -57.4M | 56.8M | -6.6M | -30.2M | -47.07M | -55.91M | -60.72M | 23.31M | -2.89M | 16.37M | -540K | 3.4M | 12.52M | -15.66M | 5.28M | 14.82M | 19.28M | 361K | -26.71M | 13.5M | -9.88M | -79.71M | -64.8M | -20.8M | -34.2M | -19.4M |
| Change in Inventory | 4.3M | 4.8M | 1.9M | -3.5M | -1.9M | 0 | 0 | 0 | 226.9M | -37.35M | 2.22M | 2.61M | 6.62M | -17.29M | -18.97M | -6.36M | -10.14M | 0 | 0 | -8.96M | -4.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19.79M | 8.93M | 4.7M |
| Change in Payables | 23.6M | 57.1M | -57.2M | -60.2M | 21.7M | 57.9M | 5.8M | -18M | 6.6M | 54.37M | 11.9M | 36.22M | 23.96M | -2.01M | -8.39M | -9.75M | -8.48M | -20.47M | -5.93M | -2.65M | -18.43M | -33.79M | 7.94M | -8.9M | -21.18M | -28.62M | 37.6M | 56.2M | -8.2M | 30.2M | 11.7M |
| Cash from Investing | -28.3M | -22.6M | -13.9M | 23.2M | -22.5M | -299.2M | 99.2M | -269.3M | -224.6M | -139.25M | -140.22M | -14.74M | -216.46M | 258.14M | 149.74M | -2.33M | -21.22M | -15.11M | -18.69M | -39.47M | -17.87M | -44.25M | -71.39M | -26.92M | -31.61M | -89.65M | -240.01M | -200.17M | -54.22M | -104.24M | -39.57M |
| Capital Expenditures | -30.9M | -26.1M | -19M | -18.4M | -20.7M | -24.1M | -17.8M | -24.7M | -39.7M | -31.93M | -29.05M | -21.32M | -5.82M | -12.58M | -31.75M | -31.53M | -26.42M | -15.06M | -25.44M | -44.74M | -33.02M | -49.82M | -125.36M | -74.24M | -88.1M | -263.31M | -581.32M | -331.75M | -75.98M | -39.47M | -12.74M |
| CapEx % of Revenue | 2.31% | 2.09% | 1.72% | 1.29% | 1.26% | 2% | 2.48% | 2.29% | 2.01% | 1.95% | 1.86% | 1.9% | 1.07% | 5.45% | 12.18% | 3.19% | 3.45% | 1.85% | 2.84% | 4.96% | 3.26% | 4.2% | 9.28% | 5.76% | 8.6% | 24.33% | 48.47% | 39.84% | 18.02% | 14.08% | 7.37% |
| Acquisitions | 0 | 0 | 0 | -14.3M | 0 | -54.8M | 125.7M | -10.7M | 662.3M | -68.42M | -66.35M | 39.25M | -181.93M | 270.63M | 183.1M | 10.96M | 123K | -77K | 1.09M | 5.94M | 12.72M | -243K | -29.61M | -2.17M | -882K | -1.58M | -57.17M | -114.28M | -1.17M | -16.35M | -1.7M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2M | 900K | 7.1M | 700K | -1.8M | -220.3M | -94.8M | -46M | 6.3M | 2.42M | 8.35M | 9.68M | 1.92M | 87K | -1.62M | -78K | 5.08M | -165K | -102K | -668K | 2.43M | 5.81M | 167.14M | 98.98M | 71.89M | 351.08M | 387.54M | 442.33M | 22.93M | 0 | 0 |
| Cash from Financing | -77.1M | -61.2M | -26.5M | -49.4M | 68.1M | 17.8M | -141.6M | 68.1M | 115.2M | 115.34M | 18.79M | 103.17M | 284.62M | -250.1M | -191.14M | -38.76M | -13.87M | -12.67M | -28.08M | 41.46M | 25.47M | 89.7M | -6.39M | -70.07M | 984K | -107.21M | 307.35M | 591.01M | 146.83M | 200.13M | 79.47M |
| Debt Issued (Net) | -74.1M | -58.3M | -58.2M | -39.9M | 74M | 29.5M | -186M | 138.8M | 153.6M | 135.3M | 33.8M | 34.76M | 226.15M | -128.04M | -120.76M | -33.34M | -13.87M | -8.1M | -28.08M | 28.86M | 23.38M | 92.45M | -7.8M | 6.57M | -16.41M | -17.94M | 333.66M | 428.07M | 147.63M | 208.1M | 1.9M |
| Equity Issued (Net) | 0 | 0 | 33.2M | -7M | 0 | 100K | 75.2M | 600K | -5.8M | 0 | 0 | 68.01M | 70.4M | 1.16M | 124K | 732K | 0 | 0 | 0 | 19.17M | 2.08M | 256K | 1.4M | 10.51M | 32.44M | 10.58M | 3.12M | 173.59M | 4.71M | 1.5M | 77.58M |
| Dividends Paid | -2.3M | -2.2M | -1.2M | -2.2M | -5.2M | 0 | 0 | 0 | -2M | -3.64M | -4.22M | -5.69M | -1.63M | -121.02M | -55.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -7M | 0 | -10.4M | 0 | -8.3M | -5.8M | 0 | 0 | 0 | 0 | 0 | 0 | -378K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -700K | -700K | -300K | -300K | -700K | -11.8M | -30.8M | -71.3M | -30.6M | -16.26M | -10.79M | 6.09M | -10.3M | -2.2M | -15.11M | -6.14M | 0 | -4.57M | 0 | -6.57M | 0 | -3M | 0 | -87.15M | -15.04M | -99.84M | -29.43M | -10.65M | -5.5M | -9.5M | 0 |
| Net Change in Cash | 101.3M | 63.4M | -33M | 1M | 34.7M | 2.2M | -148.4M | -131.3M | 231.5M | -17.49M | -43.25M | 50.65M | 98.98M | -14.2M | -17.86M | -482K | -1M | 5.54M | -44.28M | 16.96M | 21.32M | -6.67M | -14.4M | -28.43M | 8.54M | -309.86M | -73.16M | 335.35M | 20.96M | 79.76M | 33.18M |
| Free Cash Flow | 175.3M | 120.5M | -9.9M | 8.1M | -30.2M | 65.4M | 23.3M | 86M | 301.7M | -25.78M | 50.1M | -53.88M | 26.99M | -32.89M | -8.18M | 11.4M | 10.06M | 13.92M | -16.66M | -33.28M | -20.15M | -100.54M | -56.15M | -7.29M | -53.47M | -373.37M | -712.34M | -387.32M | -147.28M | -54.22M | -19.68M |
| FCF Margin % | 13.12% | 9.67% | -0.89% | 0.57% | -1.84% | 5.43% | 3.25% | 7.99% | 15.26% | -1.58% | 3.22% | -4.81% | 4.97% | -14.26% | -3.14% | 1.15% | 1.32% | 1.71% | -1.86% | -3.69% | -1.99% | -8.47% | -4.16% | -0.57% | -5.22% | -34.49% | -59.39% | -46.51% | -34.93% | -19.35% | -11.38% |
| FCF Growth % | 7521.74% | 1317.17% | -222.22% | 126.82% | -146.18% | 180.69% | -72.91% | -71.49% | 1270.15% | -151.46% | 192.98% | -299.62% | 182.07% | -302.2% | -171.74% | 13.28% | -27.73% | 183.57% | 49.93% | -65.18% | 79.96% | -79.06% | -669.99% | 86.36% | 85.68% | 47.59% | -83.92% | -162.98% | -171.62% | -175.45% | - |
| FCF per Share | 13.14 | 9.12 | -0.76 | 1.03 | -3.90 | 8.48 | 4.63 | 19.20 | 64.47 | -6.02 | 13.43 | -20.35 | 13.68 | -3.92 | -0.59 | 0.88 | 1.03 | 1.44 | -0.27 | -0.54 | -0.32 | -1.59 | -0.89 | -0.12 | -0.83 | -6.98 | -17.92 | -12.75 | -6.02 | -2.98 | -1.42 |
| FCF Conversion (FCF/Net Income) | -3.31x | -2.42x | -0.26x | -0.75x | 0.26x | -0.39x | -0.45x | -3.51x | 2.46x | -0.12x | -0.75x | 0.82x | -2.01x | 1.15x | -0.53x | -1.11x | -1.91x | 0.06x | -0.35x | 0.73x | -0.05x | 0.33x | -6.54x | 1.22x | -1.00x | 0.36x | 0.75x | 0.49x | 1.12x | 0.41x | 0.79x |
| Interest Paid | 0 | 0 | 48.6M | 0 | 42.5M | 32.6M | 0 | 0 | 69.9M | 47.6M | 39.2M | 39.45M | 7.53M | 10.37M | 24.91M | 26.73M | 35.58M | 29.52M | 53.44M | 59.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 3.5M | 0 | 5.9M | 5.4M | 0 | 0 | 13.1M | 19.2M | 20.9M | 1.13M | 8.79M | 616K | 2.35M | 1.59M | 3M | 3.98M | 1.91M | 1.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High debt service burden
As reported in financial statements, VATE's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching extreme levels like -13.66 in 2025Q4, suggesting that reported earnings are heavily influenced by non-cash items rather than actual cash generation from core operations.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are not reflective of its underlying cash-generating capacity. Investors should monitor whether this divergence is driven by aggressive revenue recognition or simply the high non-cash costs associated with the holding company structure.
Based on recent SEC filings, VATE's free cash flow trajectory remains highly erratic, swinging from a peak margin of 24.5% in 2025Q4 to a negative 13.0% in 2024Q3, highlighting the inherent instability of a project-based business model reliant on lumpy contract milestones.
The lack of consistent free cash flow generation suggests that the company may struggle to fund its own operations without external financing or asset divestitures. This volatility makes it difficult to forecast the company's ability to deleverage its balance sheet in the near term.
According to quarterly data, VATE's operating cash flow is heavily dependent on working capital fluctuations, with a significant $94.4 million inflow in 2025Q4 alone, which suggests that the company's liquidity is more sensitive to timing of project payments than to actual operational efficiency.
The reliance on working capital swings to bolster cash flow indicates that the company's core business may be cash-neutral or cash-negative on a normalized basis. Analysts should investigate whether these inflows are sustainable or if they represent a temporary deferral of cash outflows that will reverse in subsequent periods.
As indicated by the provided data, VATE maintains a modest capital intensity, with CapEx/Revenue ratios consistently below 3.0% over the last ten quarters, suggesting that the company's infrastructure segment does not require heavy, recurring investment to maintain its current level of project delivery.
While low capital intensity is generally a positive, it may also imply that the company is under-investing in the modernization of its fabrication facilities. This warrants further investigation into whether the current level of maintenance capex is sufficient to sustain long-term competitive positioning in the structural steel market.
Quick answers to the most common questions about buying VATE stock.
INNOVATE Corp. (VATE) generated $146.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
INNOVATE Corp. (VATE) generated $120.5M 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.
INNOVATE Corp. (VATE) spent $26.1M 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, INNOVATE Corp. (VATE) returned $2.2M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.