Cash conversion efficiency is highly sensitive to working capital, which caused a $53.3M outflow in 2026Q1 following a $163.7M inflow in 2025Q4.
| Cash from Operations | 424.44M | 587.77M | 368.23M | 356.55M | 83.58M | 283.86M | 241.97M | 777.79M | -96.3M | 168.6M |
| Operating CF Margin % | - | 18.63% | 14.12% | 13.67% | 3.18% | 11.46% | 11.53% | 30.52% | -3.48% | 5.96% |
| Operating CF Growth % | 86.08% | 59.62% | 3.28% | 326.57% | -70.55% | 17.31% | -68.89% | 907.65% | -157.12% | - |
| Net Income | 277.01M | 227.45M | 245.8M | 230.99M | 245.49M | 195.42M | 67.92M | 96.65M | 263.07M | 116.19M |
| Depreciation & Amortization | 55.57M | 47.79M | 42.63M | 38.05M | 37.13M | 36.6M | 34.49M | 30.76M | 31.04M | 33.63M |
| Stock-Based Compensation | 16.27M | 39.08M | 26.59M | 16.73M | 21.89M | 38.52M | 15.95M | 23.84M | 14.89M | 13.02M |
| Deferred Taxes | 29.57M | 29.57M | -6.71M | -3.75M | 127K | 3.64M | 2.71M | -4.17M | 1.5M | 36.49M |
| Other Non-Cash Items | 46.43M | 111.92M | 415K | 4.55M | -636K | 9.42M | 123.61M | 98.47M | 10.27M | 5.48M |
| Working Capital Changes | -405K | 131.96M | 59.5M | 69.98M | -220.42M | 270K | -2.71M | 532.24M | -417.08M | -36.2M |
| Change in Receivables | -24.04M | 56.23M | -35.41M | 14.9M | 56.7M | -60.96M | -17.65M | 24.97M | -17.74M | -36.39M |
| Change in Inventory | 32.65M | 4.5M | 102.99M | 101.28M | -236.17M | -24.93M | 119.28M | 9.68M | -45.76M | 22.07M |
| Change in Payables | -59.39M | 11.81M | 1.87M | -19.92M | -4.12M | 47.66M | 17.38M | 31.92M | -37.6M | 4.15M |
| Cash from Investing | -890.1M | -898.76M | -22.26M | -39.14M | -30.12M | -39.37M | -49.07M | 483.95M | 11.33M | -57.62M |
| Capital Expenditures | -27.62M | -25.16M | 0 | -37.38M | -28.4M | -36.87M | -62.39M | -37.49M | -22.7M | -26.46M |
| CapEx % of Revenue | 0.88% | 0.8% | 0.85% | 1.43% | 1.08% | 1.49% | 2.97% | 1.47% | 0.82% | 0.94% |
| Acquisitions | -899.33M | -871.18M | 0 | 0 | 0 | 669K | 18.16M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 36.86M | -2.42M | -22.26M | -1.75M | -1.72M | -3.17M | -4.83M | 521.43M | 34.03M | -31.15M |
| Cash from Financing | 215.18M | 246.8M | -240.35M | -155.7M | -170.91M | -304.07M | -57.69M | -1.25B | 106.33M | -119.82M |
| Debt Issued (Net) | -590M | 397.57M | -45M | -10M | 0 | -123M | 0 | 653.89M | 0 | -256K |
| Equity Issued (Net) | -55.04M | -25M | -83.3M | -29.83M | -74.19M | -77.41M | 1.39M | 1.03M | 0 | 0 |
| Dividends Paid | -116.6M | -116.08M | -112.06M | -108.57M | -103.66M | -95.08M | -54.77M | -63.55M | 0 | 0 |
| Share Repurchases | -55.04M | -25M | -85.68M | -30.11M | -74.19M | -77.41M | 0 | 0 | 0 | 0 |
| Other Financing | 976.82M | -9.68M | 0 | -7.3M | 6.95M | -8.57M | -4.31M | -1.84B | 106.33M | -119.56M |
| Net Change in Cash | -269.6M | -225.62M | 119.02M | 155.87M | -126.14M | -62.82M | 141.33M | 10.03M | 15.96M | -6.04M |
| Free Cash Flow | 400.17M | 566.72M | 346.11M | 319.17M | 55.19M | 246.99M | 179.58M | 740.3M | -119M | 142.14M |
| FCF Margin % | 12.73% | 17.97% | 13.27% | 12.24% | 2.1% | 9.98% | 8.56% | 29.04% | -4.31% | 5.02% |
| FCF Growth % | 8.28% | 63.74% | 8.44% | 478.32% | -77.66% | 37.54% | -75.74% | 722.08% | -183.72% | - |
| FCF per Share | 7.15 | 10.10 | 6.15 | 5.61 | 0.97 | 4.18 | 3.10 | 12.94 | -2.10 | 2.51 |
| FCF Conversion (FCF/Net Income) | 1.44x | 2.58x | 1.50x | 1.54x | 0.34x | 1.45x | 3.56x | 8.05x | -0.37x | 1.45x |
| Interest Paid | 35.2M | 0 | 40.72M | 36.41M | 31.95M | 27.07M | 47.07M | 29.41M | 6.62M | 0 |
| Taxes Paid | 0 | 0 | 53.37M | 74.18M | 67.8M | 32.61M | 15.63M | 28.89M | 180K | 0 |
Wholesale channel inventory volatility
According to recent financial filings, KTB exhibits significant volatility in cash conversion, with the OCF/NI ratio fluctuating from a low of 0.35 in 2025Q2 to a high of 3.91 in 2025Q4, indicating that reported net income is frequently decoupled from actual cash generation.
The wide variance in the OCF/NI ratio suggests that accrual-based accounting measures, particularly those related to inventory and trade payables, exert a disproportionate influence on quarterly earnings. Investors should interpret these swings as a signal that net income may not be a reliable proxy for the company's immediate liquidity position.
As reported in quarterly statements, working capital changes are the primary driver of cash flow variance, evidenced by a $163.7M inflow in 2025Q4 followed by a $53.3M outflow in 2026Q1, highlighting the sensitivity of KTB's cash position to wholesale inventory replenishment cycles.
The recurring pattern of large working capital outflows followed by significant inflows suggests that KTB's cash flow is heavily dictated by the timing of wholesale shipments and retail inventory management. This cyclicality implies that the company's cash position is vulnerable to sudden shifts in retail partner demand or destocking initiatives.
Based on historical data, KTB maintains a lean capital intensity, with CapEx/Revenue ratios consistently remaining between 0.5% and 1.4%, suggesting that the company's manufacturing and distribution infrastructure requires relatively low ongoing reinvestment to sustain its current operational footprint.
This low capital intensity provides a structural advantage, allowing a greater portion of operating cash flow to be directed toward dividends and share repurchases. However, analysts should monitor whether this level of spending is sufficient to maintain long-term asset efficiency or if it masks a potential under-investment in modernization.
As indicated by recent cash flow statements, KTB consistently prioritizes shareholder returns, with dividend payments totaling approximately $28M to $29M per quarter, even during periods of significant cash flow volatility, reflecting a commitment to maintaining a stable payout profile for investors.
The consistency of dividend payments, despite the lumpy nature of operating cash flow, suggests management's confidence in the long-term cash-generating capacity of the Wrangler and Lee brands. Nevertheless, the occasional use of cash for share repurchases warrants scrutiny to ensure that such capital is deployed when the stock is undervalued rather than as a reflexive policy.
Quick answers to the most common questions about buying KTB stock.
Kontoor Brands, Inc. (KTB) generated $587.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kontoor Brands, Inc. (KTB) generated $566.7M 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.
Kontoor Brands, Inc. (KTB) spent $25.2M 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, Kontoor Brands, Inc. (KTB) returned $116.1M to shareholders via cash dividends and spent $25.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.