Cash generation is highly inconsistent, as demonstrated by a 2025Q1 operating cash flow to net income ratio of -71.18, reflecting the impact of working capital swings and non-recurring legal provisions.
| 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 | 7.53M | -36.4M | 25.57M | 37M | 26.93M | 17.61M | 19.02M | 27.43M | 17.08M | 18.64M | 27.7M | 28.11M | 23.55M | 14.9M | 18M | 48.23M | 5.42M | 1.39M | 760K | -2.77M | 29M | -5.3M | 4.3M | 90.53M | 98.25M | 129.73M | 139.75M | 108.3M | 45.1M | 89.2M | 16.5M |
| Operating CF Margin % | - | -23% | 17.52% | 22.94% | 16.17% | 12.51% | 16.61% | 22.08% | 14.45% | 16.64% | 25.44% | 25.79% | 22.69% | 16.2% | 21.64% | 34.74% | 4% | 1.2% | 0.46% | -1.56% | 15.25% | -2.84% | 0.58% | 8.98% | 10.95% | 15.53% | 15.15% | 11.92% | 5.04% | 10.65% | 1.67% |
| Operating CF Growth % | 132.82% | -242.34% | -30.89% | 37.4% | 52.94% | -7.43% | -30.66% | 60.66% | -8.38% | -32.71% | -1.47% | 19.36% | 58.01% | -17.19% | -62.68% | 790.25% | 289.5% | 83.03% | 127.43% | -109.55% | 647.4% | -223.3% | -95.25% | -7.86% | -24.27% | -7.17% | 29.04% | 140.13% | -49.44% | 440.61% | -76.96% |
| Net Income | -34.15M | -35.37M | 69.26M | -2.31M | 36.46M | 53.36M | 16.1M | 28.04M | -39.01M | 117.83M | 16.69M | -22.72M | 29.63M | -54.54M | 79.08M | 82.66M | 70.78M | -12.01M | 33.18M | -1.73M | 26.11M | 32.89M | 210.38M | 63.66M | 36.81M | 121.41M | 155.34M | 159.8M | 377.3M | -9.5M | 10.8M |
| Depreciation & Amortization | 3.58M | 3.65M | 3.69M | 3.97M | 3.98M | 3.84M | 3.83M | 3.69M | 3.48M | 3.73M | 3.77M | 3.61M | 3.6M | 3.33M | 5.83M | 6.83M | 7.73M | 8.27M | 9.42M | 11.38M | 12.22M | 11.33M | 36.4M | 40.09M | 33.22M | 29.6M | 29.73M | 33.7M | 34.5M | 34.9M | 39.7M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -14.22M | -16.22M | 13.72M | -7.31M | 2.29M | 7.45M | -2.53M | 430K | -15.18M | -603K | -4.33M | -24.03M | 4.17M | -41.89M | 27.43M | 21M | 38.42M | -4.7M | -4.35M | -12.6M | 8.41M | -10.79M | -287.81M | 33.74M | 1.51M | 3.26M | 40.19M | -86.8M | 5M | -5.6M | 2.8M |
| Other Non-Cash Items | 72.2M | 74.88M | -19.02M | 55.54M | 3.73M | -24.33M | 15.21M | -8.32M | -2K | 283K | 201K | 191K | 210K | 81K | -18.84M | 38.78M | 15.53M | 3.48M | -41.2M | -1.83M | -3.08M | -21.53M | -88.43M | -16.09M | 4.25M | -18.92M | -72.13M | 100K | -310.4M | 54.6M | 20.8M |
| Working Capital Changes | -20.48M | -63.34M | -42.08M | -12.89M | -19.52M | -22.71M | -13.59M | 3.61M | 47.09M | -15.35M | 3.52M | -1.73M | -2.48M | 56.79M | 2.46M | -3.46M | -6.91M | 5.2M | -10.82M | -20.68M | -7.38M | -17.2M | -27.33M | -30.88M | 22.46M | -5.61M | -13.37M | -7.4M | -61.3M | 19.6M | -41.8M |
| Change in Receivables | -867K | 9.92M | -6.68M | 754K | -2.27M | -4.49M | 1.12M | 15.49M | -16.95M | -117K | -1.6M | 246K | 1.22M | -1.46M | -476K | 0 | 0 | 0 | 0 | 1.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -1.2M | -2.33M | 2.13M | 333K | -5.83M | -7.48M | -193K | -1.44M | -1.85M | -473K | -37K | 1.53M | -3.65M | -2.24M | 174K | -439K | -2.48M | 5.88M | 889K | -1.81M | 2.26M | -936K | 50.06M | -26.04M | 42.25M | -32.7M | -23.39M | 20.7M | -49.8M | 22.9M | 8.4M |
| Change in Payables | -19.73M | -15.85M | -13.26M | -12.05M | -10.39M | 0 | -13.16M | -26.36M | 61.77M | -1.7M | -172K | -1.25M | 2.85M | -3.35M | 1.55M | 0 | 0 | 0 | 0 | -918K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.43M | -2.44M | 58.87M | 22.1M | -67.87M | 6.71M | -3.14M | 9.92M | 1.31M | -13.61M | -30.61M | -3.88M | -3.27M | 2.98M | 92.25M | 9.81M | 2.81M | 32.39M | 7.08M | 17.49M | -25.23M | 18.48M | 34.55M | -19.21M | -26.99M | -57.23M | -56.23M | -38.4M | 417.3M | -12.2M | -67.6M |
| Capital Expenditures | -3.33M | -3.75M | -1.43M | -1.13M | -3.69M | -4.09M | -1.74M | -3.17M | -3.12M | -2.81M | -3.21M | -4.3M | -2.86M | -3.54M | -4.56M | -3.28M | -2.13M | -2.32M | -6.9M | -14M | -12.15M | -10.68M | -16.21M | -35.35M | -32.6M | -53.67M | -31.09M | -35.6M | -22.4M | -28.2M | -66.9M |
| CapEx % of Revenue | 2.1% | 2.37% | 0.98% | 0.7% | 2.22% | 2.91% | 1.52% | 2.55% | 2.64% | 2.51% | 2.94% | 3.95% | 2.75% | 3.85% | 5.49% | 2.36% | 1.58% | 2% | 4.17% | 7.88% | 6.39% | 5.73% | 2.19% | 3.51% | 3.63% | 6.43% | 3.37% | 3.92% | 2.5% | 3.37% | 6.78% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.92M | 0 | 0 | 0 | 0 | 0 | 5K | 52.6M | -4.75M | -2.13M | -2.32M | 377K | 383K | -9.83M | -7.34M | 0 | 0 | -8.95M | 0 | 139K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.9M | 1.31M | 60.3M | 2.6M | 5.78M | 10.8M | -1.4M | 10.16M | 4.42M | -10.8M | -27.4M | 420K | -432K | 4.95M | 16.73M | 17.71M | 7.1M | 37.04M | 13.21M | 73K | -2.6M | 37.7M | 48.01M | 16.15M | 14.65M | -3.57M | 597K | -2.8M | 432.8M | 9.1M | -700K |
| Cash from Financing | -31.79M | -31.3M | -41.63M | -15.23M | -36.8M | -14.35M | -8.48M | -470K | -335K | -333K | 168K | -330K | -328K | -43.27M | -44.09M | -61.55M | -17.77M | -25.91M | -32.15M | -27.34M | -27.68M | -35.85M | -28.71M | -66.36M | -132.54M | -75.54M | -95.73M | -88M | -396.2M | -82.6M | 26.6M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 500K | 0 | 0 | -18.48M | -18.93M | -36.8M | 14.3M | -750K | -7M | -2.6M | -1.56M | -75K | -25.87M | -34.91M | 38.9M | -20.99M | -34.24M | -73.8M | -285.4M | -182.2M | 42.1M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | -1.74M | -1.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 400K | -6.92M | 84K | 6K | 1.4M | 435K | 3.15M | 9.82M | 1.74M | -20.68M | -14.78M | -28.8M | -7.2M | 0 | 0 | 0 |
| Dividends Paid | -28.34M | -27.85M | -36.63M | -13.67M | -30.75M | -11.71M | -7.8M | 0 | -23.95M | -21.13M | -21.13M | -21.13M | -21.13M | -24.34M | -24.33M | -24.33M | -25.12M | -25.11M | -24.3M | -24.3M | -24.28M | -36.42M | 0 | -38.18M | -157.98M | -39.76M | -32.69M | -7.2M | -4.6M | 0 | -15.3M |
| Share Repurchases | 0 | 0 | 0 | 0 | -1.74M | -1.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -21.25M | -15.5M | -30.89M | -7.2M | 0 | 0 | 0 |
| Other Financing | -3.45M | -3.45M | -5M | -1.55M | -4.3M | -1.32M | -676K | -470K | -335K | -333K | -332K | -330K | -328K | -451K | -818K | -810K | -837K | -133K | -860K | -1.84M | -2.27M | -2.5M | -12.66M | -2.24M | 7.21M | -5K | 0 | 200K | -106.2M | 99.6M | -200K |
| Net Change in Cash | -25.51M | -69.96M | 42.81M | 43.88M | -77.74M | 9.97M | 7.4M | 36.88M | 18.05M | 4.7M | -2.74M | 23.9M | 19.95M | -25.38M | 66.33M | -3.81M | -9.09M | 8.11M | -24.66M | -11.63M | -24.17M | -22.27M | 9.66M | 9.71M | -57.95M | -4.34M | -13.85M | -20.8M | -396.2M | -7.9M | -27.2M |
| Free Cash Flow | 4.2M | -40.15M | 24.14M | 35.87M | 23.24M | 13.52M | 17.28M | 24.27M | 13.96M | 15.83M | 24.49M | 23.81M | 20.69M | 11.36M | 13.44M | 44.96M | 3.29M | -933K | -6.14M | -16.77M | 16.85M | -15.97M | -11.91M | 55.17M | 65.65M | 76.06M | 108.67M | 72.7M | 22.7M | 61M | -50.4M |
| FCF Margin % | 2.65% | -25.37% | 16.54% | 22.24% | 13.95% | 9.6% | 15.09% | 19.53% | 11.81% | 14.13% | 22.49% | 21.84% | 19.94% | 12.35% | 16.15% | 32.38% | 2.43% | -0.8% | -3.71% | -9.44% | 8.86% | -8.57% | -1.61% | 5.47% | 7.32% | 9.11% | 11.78% | 8% | 2.54% | 7.29% | -5.11% |
| FCF Growth % | 113.73% | -266.31% | -32.7% | 54.39% | 71.93% | -21.8% | -28.79% | 73.87% | -11.81% | -35.38% | 2.88% | 15.05% | 82.1% | -15.42% | -70.11% | 1268.17% | 452.2% | 84.8% | 63.4% | -199.5% | 205.5% | -34.1% | -121.59% | -15.96% | -13.69% | -30% | 49.47% | 220.26% | -62.79% | 221.03% | -781.08% |
| FCF per Share | 0.09 | -0.82 | 0.49 | 0.73 | 0.48 | 0.28 | 0.35 | 0.50 | 0.29 | 0.32 | 0.50 | 0.49 | 0.43 | 0.23 | 0.28 | 0.92 | 0.07 | -0.02 | -0.13 | -0.35 | 0.35 | -0.33 | -0.25 | 1.15 | 1.35 | 1.53 | 2.14 | 1.40 | 0.44 | 1.22 | -0.97 |
| FCF Conversion (FCF/Net Income) | -0.12x | 0.96x | 0.38x | -16.03x | 0.80x | 0.34x | 1.30x | 1.06x | -0.42x | 0.16x | 1.81x | -1.18x | 0.83x | -0.27x | 0.24x | 0.59x | 0.08x | -0.12x | 0.02x | 1.60x | 1.11x | -0.16x | 0.02x | 1.42x | 2.67x | 1.07x | 0.90x | 0.68x | 0.12x | -9.39x | 1.53x |
| Interest Paid | 11K | 0 | 51K | 0 | 34K | 26K | 27K | 36K | 0 | 30K | 4K | 0 | 0 | 222K | 982K | 2.43M | 0 | 1.25M | 2.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 127K | 0 | 1.14M | 32K | 46K | 0 | 0 | 3.11M | 70K | 611K | 193K | 302K | 2.52M | 1.74M | 0 | 2.55M | 19.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Legacy legal liability overhang
According to recent quarterly filings, the relationship between net income and operating cash flow is highly erratic, evidenced by a 2025Q1 OCF/NI ratio of -71.18, which suggests that reported earnings are frequently decoupled from the actual cash-generating capacity of the underlying manufacturing operations.
The extreme variance in the OCF/NI ratio indicates that non-operating items, such as equity in affiliate earnings and lumpy legal provisions, dominate the bottom line. Investors should interpret these figures as a sign that net income is an unreliable proxy for the company's ability to generate cash from its core security and marine segments.
As reported in financial statements, NL's free cash flow trajectory is characterized by significant swings, ranging from a 48.6% margin in 2023Q4 to a -119.9% margin in 2025Q1, highlighting the company's vulnerability to working capital fluctuations and non-recurring cash outflows that disrupt consistent cash generation.
The lack of a stable FCF trend suggests that the business model is susceptible to sudden liquidity drains, likely tied to the timing of legal settlements or inventory cycles. This volatility warrants caution, as it complicates the assessment of the company's long-term ability to fund dividends and operations without relying on its existing cash reserves.
Based on NL's reported figures, working capital changes have been a primary driver of cash flow volatility, including a massive $54.9M outflow in 2025Q1, which suggests that the company's cash position is highly sensitive to the timing of receivables and inventory management within its OEM supply chains.
These sharp reversals in working capital indicate that the company may be struggling to maintain a predictable cash conversion cycle. The erratic nature of these movements suggests that operational efficiency is frequently undermined by external supply chain pressures or the lumpy nature of large-scale OEM contract fulfillment.
As indicated by historical cash flow data, the company consistently prioritizes dividend payments, such as the $14.7M outflow in 2025Q3, despite periods of negative free cash flow, which suggests a management strategy focused on shareholder returns over the reinvestment of capital into the core business.
The commitment to dividends in the face of operational volatility may indicate that the company is utilizing its cash reserves to maintain a specific payout profile rather than funding growth initiatives. This approach appears to limit the company's flexibility to pursue strategic acquisitions or internal investments that could potentially mitigate its reliance on legacy-linked income.
Quick answers to the most common questions about buying NL stock.
NL Industries, Inc. (NL) generated $-36.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NL Industries, Inc. (NL) reported negative free cash flow of $40.1M in 2025, indicating capital requirements exceeded cash from operations.
NL Industries, Inc. (NL) spent $3.7M 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, NL Industries, Inc. (NL) returned $27.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.