Liquidity is under intense pressure as evidenced by a negative free cash flow margin of 26.6% in 2026Q1, driven largely by a $254.5 million consumption of working capital.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Jan'23 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Jan'17 | Dec'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 |
|---|
| Cash from Operations | 452.79M | 585.54M | 501.39M | 546.61M | 413.49M | 617.51M | 415.03M | 361.03M | 538.54M | 613.36M | 537.9M | 219.81M | 264.1M | 427.16M | 219.58M | 181.55M | 301.55M | 169.18M | 238.9M | 91.16M | 94.81M | 93.15M | 58.86M | 66.66M | 112.22M | -7.83M | 26.81M | -31.57M | -11.23M | -3.6M |
| Operating CF Margin % | - | 15.91% | 15.33% | 17.1% | 12.76% | 21.13% | 20.95% | 12.78% | 18.52% | 22.3% | 20.81% | 9.1% | 11.19% | 19.56% | 11.27% | 10.52% | 22.99% | 16.29% | 19.12% | 9.45% | 12.25% | 14.26% | 11.05% | 14.3% | 29.65% | -2.44% | 8.77% | -13.88% | -7.95% | -4.14% |
| Operating CF Growth % | 17.38% | 16.78% | -8.27% | 32.19% | -33.04% | 48.79% | 14.96% | -32.96% | -12.2% | 14.03% | 144.7% | -16.77% | -38.17% | 94.53% | 20.95% | -39.79% | 78.24% | -29.19% | 162.06% | -3.85% | 1.78% | 58.26% | -11.7% | -40.6% | 1533.79% | -129.19% | 184.92% | -181.23% | -211.95% | - |
| Net Income | 249.24M | 400.83M | 381.62M | 533.58M | 541.54M | 607.18M | -225.28M | 259.81M | 350.77M | 362.33M | 346.64M | 237.3M | 359.55M | 320.18M | 148.46M | 8.43M | 198.25M | 95.33M | 144.59M | 130.02M | 106.93M | 85.95M | 60.19M | 57.15M | 41.9M | 517.41K | 36.35M | 16.49M | 8.62M | 4.1M |
| Depreciation & Amortization | 184.37M | 157.51M | 132.26M | 121.64M | 124.93M | 135.4M | 147.19M | 156.79M | 158.08M | 162.15M | 140.6M | 116.63M | 95.62M | 95.28M | 94.57M | 76.39M | 69.2M | 62.97M | 58.93M | 42.27M | 32.41M | 25.59M | 22.25M | 17.46M | 11.08M | 10.28M | 6.24M | 4.7M | 2.71M | 1.7M |
| Stock-Based Compensation | 25.38M | 0 | 64.53M | 26.96M | 32.39M | 37.66M | 2.09M | 16.27M | 19.51M | 15.87M | 15.37M | 11.01M | 10.21M | 8.27M | 4.61M | 4.9M | 4.08M | 3.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -28.28M | -4.75M | 12.06M | 10.15M | -151K | -965K | -7.72M | -23.62M | 8.87M | 4.89M | -3.16M | -1.52M | -3.08M | 2.19M | -10.34M | -19.12M | -11.43M | -2.43M | -15.84M | -8.92M | 1.77M | 175.82K | 2.94M | 4.52M | 3.16M | -169.94K | 1.42M | 599.51K | 1.3M | 1.1M |
| Other Non-Cash Items | -139.19M | 43.32M | -26.32M | -61.25M | 21.87M | -65.03M | 103.25M | 26.11M | 15.79M | -7.71M | 5.63M | -3.52M | -9.12M | 3.29M | 5.38M | 240.16M | 10.51M | 635K | 2.87M | 8.6M | 16.07M | 11M | 3.01M | 1 | 2.77M | -1 | 1 | -599.51K | -100.24K | 199.95K |
| Working Capital Changes | 11.14M | -11.37M | -62.76M | -84.47M | -307.09M | -96.74M | 395.51M | -74.33M | -14.48M | 75.83M | 32.81M | -140.09M | -189.08M | -2.04M | -23.1M | -129.21M | 30.95M | 9.67M | 46.75M | -80.89M | -64.68M | -29.56M | -29.54M | -12.68M | 53.31M | -18.19M | -15.63M | -52.76M | -23.56M | -10.7M |
| Change in Receivables | -9.66M | -88.85M | -127.92M | -161.89M | 77.94M | -135.1M | 125.15M | -3.52M | -79.71M | 38.92M | 57.1M | -69.11M | -90.55M | 2.99M | -36.66M | -18.86M | 16.02M | 48.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -9.03M | -119.22M | -19.82M | 143.22M | -448.84M | -33.74M | 320.38M | -115.08M | 2.18M | 27.1M | -15.19M | -15.17M | -149.23M | -38.09M | 77.11M | -182.08M | -32.28M | 16.74M | -32.13M | -39.31M | -35.47M | -17.77M | -13.1M | -18.96M | 41.2M | -35.91M | -15.33M | -25.98M | -26.36M | -2.2M |
| Change in Payables | 189.12M | 156.36M | 69.61M | -60.95M | 0 | 0 | 0 | 49.62M | 74.73M | 15.22M | -14.45M | -100.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -246.01M | -240.13M | -112.12M | -154.86M | -182.4M | -187.83M | -57.51M | -135.75M | -110.87M | -210.03M | -303.36M | -390.74M | -389.54M | -172.14M | -162.02M | -523.94M | -141.25M | -34.2M | -8.27M | -134.69M | -96.15M | -83.76M | -53.77M | -43.32M | -42.32M | -31.25M | -32.96M | -19.48M | -17.54M | -4.6M |
| Capital Expenditures | -120.13M | -115.8M | -145.33M | -203.29M | -239.13M | -127.46M | -50.67M | -140.23M | -125.22M | -94.8M | -140.24M | -290.41M | -292.7M | -166.96M | -76.75M | -164.72M | -127.88M | -44.94M | 0 | -134.28M | -80.26M | -86.03M | -53.63M | -43.32M | -41.44M | -30.98M | -31.11M | -17.29M | -16.14M | -3.9M |
| CapEx % of Revenue | 2.94% | 3.15% | 4.44% | 6.36% | 7.38% | 4.36% | 2.56% | 4.97% | 4.31% | 3.45% | 5.42% | 12.02% | 12.4% | 7.64% | 3.94% | 9.54% | 9.75% | 4.33% | - | 13.92% | 10.37% | 13.17% | 10.07% | 9.3% | 10.95% | 9.68% | 10.18% | 7.6% | 11.43% | 4.48% |
| Acquisitions | -124.29M | -124.34M | 0 | 0 | 33.54M | -163.97M | 0 | -1.3M | -1.3M | -115.78M | -163.95M | -103.8M | -101.73M | -8.03M | -87.37M | -353.33M | -15.85M | -1.2M | 0 | 0 | -19.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.59M | 0 | 33.22M | 48.43M | 23.18M | 103.59M | -6.84M | 5.78M | 15.65M | 542K | 833K | 3.48M | 4.89M | 2.85M | 2.11M | -5.88M | 2.48M | 11.94M | -8.27M | -407K | 4.04M | 2.27M | -135.56K | 4.57K | -879.18K | -270.77K | -1.85M | -2.2M | -1.4M | -699.81K |
| Cash from Financing | -30.72M | -148.78M | -379.35M | -452.78M | -258.27M | -754.75M | 83.54M | -207.8M | -433.22M | -389.34M | -246.32M | 154.75M | 93.66M | -228.33M | -69.1M | 172.83M | -1.36M | -47.71M | -227.33M | 23.55M | -39.42M | -457.52K | -14.34M | 421.54K | -25.32M | 17.94M | 28.28M | 50.76M | 17.34M | 5.5M |
| Debt Issued (Net) | 533.05M | 412.88M | 549.76M | 30.11M | 313.44M | -421.47M | 139.58M | 162.47M | 39M | 30M | 225M | 200.78M | 157M | -181M | -28M | 191.77M | -4.39M | -48.62M | -9.39M | 22.3M | -42.19M | -8.82M | -17M | -4.07M | -28.06M | 17.57M | 28.37M | 10.29M | 2.51M | 5.4M |
| Equity Issued (Net) | -182.36M | -208.96M | -776.44M | -331.62M | -442.45M | -239.98M | -22.92M | -270.24M | -380.9M | -341.86M | -399.15M | -86.54M | -10.16M | -3.61M | -4.49M | -8.67M | 1.87M | 995.89K | 1.13M | 1.25M | 1.81M | 6.19M | 2.66M | 4.48M | 2.9M | 625.41K | 1.19M | 41.77M | 16.64M | 0 |
| Dividends Paid | -137.64M | -137.6M | -133.47M | -131.8M | -123.77M | -90.46M | -30.55M | -112.91M | -94.57M | -84.82M | -74.38M | -63.71M | -53.18M | -43.72M | -36.62M | -27.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -300.73K | 0 |
| Share Repurchases | -181.35M | -216.72M | -783.3M | -386.71M | -457.42M | -249.41M | -25.77M | -264.24M | -374.76M | -334.9M | -394.45M | -94.98M | -14.48M | -9.62M | -5.99M | -12.69M | 0 | 0 | -12K | -65K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -300.73K | 0 |
| Other Financing | -243.77M | -215.09M | -19.2M | -19.47M | -5.5M | -2.84M | -2.57M | 12.88M | 3.24M | 7.35M | 2.21M | 104.22M | 0 | 0 | 0 | 17.23M | 1.16M | -89.89K | -219.06M | 0 | 963.43K | 2.17M | 0 | 0 | -163.26K | -256.69K | -1.29M | -1.3M | -1.5M | 99.97K |
| Net Change in Cash | 165.04M | 185.2M | 9.16M | -60.77M | -28.83M | -326.02M | 441.14M | 17.47M | -6.14M | 14.6M | -12.48M | -18.07M | -32.2M | 26.96M | -11.62M | -169.64M | 158.71M | 87.38M | 3.11M | -19.76M | -40.83M | 9.12M | -8.66M | 16.24M | 44.68M | -21.24M | 22.29M | -1 | -11.43M | -2.7M |
| Free Cash Flow | 337.45M | 477.24M | 351.04M | 338.6M | 168.93M | 487.29M | 356.69M | 220.8M | 413.32M | 518.56M | 397.66M | -70.6M | -28.6M | 260.2M | 142.83M | 16.83M | 173.67M | 124.24M | 238.9M | -43.12M | 14.55M | 7.12M | 5.23M | 23.34M | 70.78M | -38.81M | -4.3M | -48.86M | -27.37M | -7.5M |
| FCF Margin % | 8.25% | 12.97% | 10.73% | 10.59% | 5.21% | 16.67% | 18% | 7.82% | 14.21% | 18.85% | 15.38% | -2.92% | -1.21% | 11.91% | 7.33% | 0.97% | 13.24% | 11.97% | 19.12% | -4.47% | 1.88% | 1.09% | 0.98% | 5.01% | 18.7% | -12.12% | -1.41% | -21.48% | -19.39% | -8.62% |
| FCF Growth % | 29.95% | 35.95% | 3.67% | 100.43% | -65.33% | 36.61% | 61.55% | -46.58% | -20.29% | 30.4% | 663.26% | -146.82% | -110.99% | 82.18% | 748.75% | -90.31% | 39.78% | -48% | 654.06% | -396.31% | 104.43% | 36.1% | -77.59% | -67.03% | 282.4% | -803.43% | 91.21% | -78.54% | -264.99% | - |
| FCF per Share | 1.82 | 3.12 | 2.15 | 1.92 | 0.92 | 2.47 | 1.80 | 1.08 | 1.96 | 2.30 | 1.69 | -0.29 | -0.12 | 1.06 | 0.59 | 0.07 | 0.71 | 0.51 | 0.98 | -0.18 | 0.06 | 0.03 | 0.02 | 0.10 | 0.30 | -0.18 | -0.02 | -0.25 | -0.21 | -0.06 |
| FCF Conversion (FCF/Net Income) | 1.35x | 1.44x | 1.25x | 1.02x | 0.76x | 1.02x | -1.84x | 1.39x | 1.54x | 1.69x | 1.55x | 0.93x | 0.73x | 1.33x | 1.48x | 0.76x | 1.52x | 1.77x | 1.65x | 0.70x | 0.89x | 1.08x | 0.98x | 1.17x | 2.68x | -15.13x | 0.74x | -1.92x | -1.30x | -0.88x |
| Interest Paid | 68.31M | 0 | 78.23M | 66.4M | 29.98M | 22.2M | 35.65M | 33.15M | 25.53M | 16.66M | 10.67M | 7.52M | 2.11M | 4.28M | 8.1M | 3.48M | 638K | 2.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 17.89M | 0 | 47.95M | 24.34M | 26.53M | 5.74M | 9.32M | 10.8M | 9.69M | 15.21M | 9.35M | 5.42M | 10.7M | 9.34M | 4.33M | 8.62M | 16.44M | 30.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Manufacturing capacity utilization volatility
According to recent financial disclosures, Gildan's operating cash flow to net income ratio reached a negative 4.25 in 2026Q1, highlighting a severe disconnect between accounting profitability and actual cash generation that warrants immediate investor scrutiny regarding the sustainability of the company's current working capital management practices.
The extreme divergence between net income and operating cash flow suggests that the company is struggling to convert its reported earnings into liquid assets. This pattern often indicates that accruals or inventory build-ups are masking underlying operational weaknesses, potentially signaling that the quality of earnings is deteriorating rapidly.
As reported in quarterly filings, Gildan's free cash flow margin plummeted to negative 26.6% in 2026Q1, a stark reversal from the 25.6% margin achieved in 2025Q4, which underscores the significant volatility in cash generation inherent in the company's current high-fixed-cost manufacturing and inventory-heavy business model.
The sharp decline in free cash flow trajectory suggests that the company's ability to self-fund operations is currently compromised. Investors should monitor whether this trend is a temporary byproduct of seasonal inventory cycles or a more permanent shift in the company's ability to generate cash from its core wholesale activities.
Based on the provided cash flow statements, working capital changes consumed $254.5 million in 2026Q1, representing a significant liquidity drain that appears to be the primary driver behind the company's negative operating cash flow and overall deterioration in short-term financial flexibility during the most recent reporting period.
The substantial cash outflow related to working capital suggests that the company may be experiencing difficulty in managing its inventory levels or collecting receivables efficiently. This trend implies that the firm's cash cycle is lengthening, which may necessitate increased reliance on external financing if these patterns persist.
Financial statements indicate that despite the negative cash flow environment in 2026Q1, Gildan continued to allocate $71.5 million toward share repurchases, a decision that appears aggressive given the simultaneous $309.9 million free cash flow deficit and the resulting pressure on the company's overall liquidity position.
The persistence of share buybacks during a period of negative free cash flow warrants investigation into management's capital allocation priorities. Such actions may suggest a desire to support equity valuation, but they also risk depleting the cash reserves necessary to navigate the current operational volatility.
Quick answers to the most common questions about buying GIL stock.
Gildan Activewear Inc. (GIL) generated $585.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Gildan Activewear Inc. (GIL) generated $477.2M 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.
Gildan Activewear Inc. (GIL) spent $115.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Gildan Activewear Inc. (GIL) returned $137.6M to shareholders via cash dividends and spent $216.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.