Despite top-line contraction, the company demonstrates resilient cash conversion with free cash flow margins peaking at 18.4% in 2025Q4, supporting a consistent quarterly dividend allocation of approximately $475 million.
| 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 |
|---|
| Cash from Operations | 4.75B | 4.46B | 4.18B | 3.98B | 2.47B | 5.36B | 4.93B | 3.55B | 2.57B | 527M | 5.24B | 2.47B | 2.02B | 2.04B | 3.04B | 2.66B |
| Operating CF Margin % | - | 17.89% | 16.19% | 14.92% | 9.32% | 20.6% | 18.82% | 14.22% | 9.8% | 2.02% | 19.92% | 13.45% | 11.1% | 11.21% | 16.61% | 14.34% |
| Operating CF Growth % | 74.03% | 6.64% | 5.23% | 61.04% | -53.97% | 8.83% | 38.77% | 38% | 388.43% | -89.94% | 112.32% | 22.13% | -1.13% | -32.69% | 13.93% | - |
| Net Income | -5.76B | -5.85B | 2.75B | 2.85B | 2.37B | 1.02B | 361M | 1.93B | -10.25B | 10.99B | 3.64B | 647M | 1.04B | 2.71B | 1.64B | 1.84B |
| Depreciation & Amortization | 982M | 968M | 948M | 961M | 933M | 910M | 969M | 994M | 983M | 1.04B | 1.34B | 740M | 385M | 393M | 428M | 364M |
| Stock-Based Compensation | 90M | 95M | 109M | 141M | 148M | 197M | 156M | 46M | 33M | 46M | 46M | 133M | 95M | 65M | 54M | 51M |
| Deferred Taxes | -517M | -495M | -2.86B | 17M | -278M | -1.04B | -343M | -293M | -1.97B | -6.47B | -29M | -317M | -361M | 708M | 470M | 69M |
| Other Non-Cash Items | 9.31B | 9.51B | 3.83B | 808M | 781M | 3.87B | 3.34B | 1.1B | 15.84B | -1.68B | -787M | 597M | 1.41B | -1.4B | 187M | 58M |
| Working Capital Changes | 649M | 230M | -589M | -806M | -1.48B | 406M | 447M | -233M | -2.06B | -3.4B | 1.03B | 667M | -550M | -443M | 254M | 283M |
| Change in Receivables | -39M | -55M | -139M | 18M | -228M | 87M | -26M | 140M | -2.28B | -2.63B | 534M | 416M | -22M | 35M | 220M | 172M |
| Change in Inventory | 155M | 133M | -6M | -106M | -1.12B | -144M | -266M | -277M | -251M | -251M | -130M | 25M | -53M | 235M | 21M | -169M |
| Change in Payables | 170M | -97M | -308M | -295M | 152M | 408M | 207M | -58M | -23M | 464M | 943M | -119M | 45M | 45M | -241M | 226M |
| Cash from Investing | -770M | -1.83B | -1.02B | -916M | -1.09B | 4.04B | -522M | 1.51B | 288M | 1.16B | -1.11B | -9.7B | -535M | -426M | -422M | -401M |
| Capital Expenditures | -803M | -801M | -1.16B | -1.01B | -916M | -905M | -596M | -768M | -826M | -1.22B | -1.25B | -648M | -535M | -557M | -440M | -401M |
| CapEx % of Revenue | 3.21% | 3.21% | 4.5% | 3.8% | 3.46% | 3.48% | 2.28% | 3.07% | 3.14% | 4.67% | 4.74% | 3.53% | 2.94% | 3.06% | 2.41% | 2.16% |
| Acquisitions | 146M | 0 | 0 | 0 | -393M | 4.94B | 0 | 1.68B | -248M | 0 | 0 | -9.47B | 0 | -32.24B | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -30M | 6M | 141M | 97M | 10M | -874M | 49M | -755M | 1.36B | 2.37B | 43M | -724M | -2M | 131M | 18M | 18M |
| Cash from Financing | -2.66B | -1.25B | -3.01B | -2.68B | -3.71B | -9.34B | -3.33B | -3.91B | -3.36B | -4.23B | -4.62B | 10.18B | -1.87B | -1.17B | -1.36B | -2.27B |
| Debt Issued (Net) | -678M | 0 | -24M | -191M | -1.46B | -7.13B | -1.31B | -1.93B | -152M | -1.35B | 7.53B | 2.42B | 0 | -4M | 5.96B | -9M |
| Equity Issued (Net) | 201M | -436M | -988M | -455M | -280M | -271M | 0 | 0 | 0 | 0 | -8.32B | 10B | -740M | 0 | 0 | 0 |
| Dividends Paid | -1.9B | -1.9B | -1.93B | -1.97B | -1.96B | -1.96B | -1.96B | -1.95B | -3.18B | -2.89B | -3.76B | -2.2B | -1.27B | -1.21B | 0 | -619M |
| Share Repurchases | 201M | -436M | -988M | -455M | -280M | -271M | 0 | 0 | 0 | 0 | -8.32B | 0 | -740M | 0 | 0 | -202M |
| Other Financing | -291M | 1.08B | -65M | -67M | -19M | 12M | -60M | -33M | -28M | 18M | -69M | -166M | -406M | 40M | -7.32B | -2.26B |
| Net Change in Cash | 1.39B | 1.46B | 82M | 363M | -2.4B | 28M | 1.14B | 1.14B | -633M | -2.49B | -633M | 2.54B | -393M | 431M | 1.25B | 1.33B |
| Free Cash Flow | 3.94B | 3.66B | 3.16B | 2.96B | 1.55B | 4.46B | 4.33B | 2.78B | 1.75B | -690M | 3.99B | 1.82B | 1.49B | 1.49B | 2.6B | 2.26B |
| FCF Margin % | 15.79% | 14.68% | 12.23% | 11.12% | 5.86% | 17.12% | 16.55% | 11.15% | 6.65% | -2.65% | 15.17% | 9.92% | 8.16% | 8.16% | 14.2% | 12.18% |
| FCF Growth % | 30.41% | 15.85% | 6.65% | 90.79% | -65.17% | 2.91% | 55.64% | 59.27% | 353.33% | -117.29% | 119.41% | 22.49% | -0.07% | -42.74% | 14.67% | - |
| FCF per Share | 3.32 | 3.08 | 2.60 | 2.40 | 1.26 | 3.61 | 3.53 | 2.27 | 1.43 | -0.56 | 3.26 | 2.31 | 2.48 | 2.48 | 4.34 | 3.83 |
| FCF Conversion (FCF/Net Income) | -0.68x | -0.76x | 1.52x | 1.39x | 1.04x | 5.30x | 13.85x | 1.84x | -0.25x | 0.05x | 1.46x | 3.89x | 1.94x | 0.75x | 1.85x | 1.50x |
| Interest Paid | 0 | 0 | 906M | 896M | 937M | 1.2B | 1.29B | 1.31B | 1.32B | 1.27B | 1.18B | 704M | 487M | 481M | 152M | 10M |
| Taxes Paid | 0 | 0 | 967M | 932M | 1.26B | 1.29B | 1.03B | 974M | 543M | 1.21B | 1.62B | 577M | 745M | 799M | 236M | 959M |
Persistent volume and pricing headwinds
According to the provided financial data, KHC's operating cash flow frequently decouples from net income, as evidenced by the 2025Q2 period where the company generated $1.2 billion in operating cash despite reporting a massive $7.8 billion net loss due to non-cash impairment charges.
The wide variance between net income and operating cash flow suggests that reported earnings are currently an unreliable proxy for the company's actual cash-generating capacity. Investors should focus on the consistent ability to generate positive operating cash flow, which appears to remain intact despite the volatility introduced by periodic brand write-downs.
As reported in recent quarterly filings, KHC maintains a relatively stable free cash flow trajectory, with margins peaking at 18.4% in 2025Q4, demonstrating that the core business remains capable of converting revenue into cash even during periods of significant top-line contraction.
While revenue growth is decelerating, the company's ability to sustain FCF margins in the mid-teens suggests that cost-management initiatives are effectively protecting cash flow. However, the sustainability of these margins warrants further investigation, as they may be partially dependent on aggressive working capital management rather than organic operational efficiency.
Based on the provided figures, KHC's capital expenditure as a percentage of revenue has remained disciplined, averaging between 2.7% and 6.0% over the last ten quarters, which indicates a low-intensity asset base that does not require massive reinvestment to maintain its current market position.
The relatively low capital intensity suggests that the company is not currently in a heavy growth-capex phase, but rather focusing on maintenance and efficiency. This capital-light profile is a key contributor to the company's ability to fund dividends, though it may also signal a lack of significant innovation-led growth projects.
Data from the last ten quarters reveals significant fluctuations in working capital, with a notable $286 million outflow in 2025Q1 followed by a $281 million inflow in 2025Q4, highlighting the company's sensitivity to inventory and payables management in a challenging inflationary environment.
These swings suggest that management is actively utilizing working capital levers to smooth out cash flow, which may obscure underlying operational trends. Investors should monitor whether these fluctuations represent temporary timing differences or a more permanent struggle to manage inventory levels against shifting consumer demand.
Based on reported figures, KHC consistently allocates approximately $475 million per quarter to dividends, a commitment that appears to be a primary use of free cash flow despite the company's ongoing challenges with revenue growth and non-cash impairment charges.
The consistency of dividend payments suggests a management priority on returning capital to shareholders, even when net income is negative. However, the reliance on cash flow to fund these distributions while simultaneously managing debt levels may limit the company's flexibility to pursue strategic acquisitions or significant brand reinvestment.
Quick answers to the most common questions about buying KHC stock.
The Kraft Heinz Company (KHC) generated $4.46B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Kraft Heinz Company (KHC) generated $3.66B 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.
The Kraft Heinz Company (KHC) spent $801.0M 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, The Kraft Heinz Company (KHC) returned $1.90B to shareholders via cash dividends and spent $436.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.