Free cash flow generation is highly unstable, with margins compressing from a peak of 20.7% in 2024Q2 to just 1.6% in 2026Q3, complicating the sustainability of the $69.1M quarterly dividend payment.
| Metric | TTM | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 | May'96 |
|---|
| Cash from Operations | 805.85M | 768.19M | 1.12B | 577.11M | 178.73M | 766.16M | 549.92M | 292.94M | 390.38M | 386.13M | 474.71M | 330.45M | 278.15M | 368.45M | 294.87M | 238.17M | 203.94M | 267M | 234.71M | 202.31M | 185.49M | 157.35M | 153M | 160.63M | 191.37M | 74.5M | 102.58M | 117.7M | 111M | 69M | 87M |
| Operating CF Margin % | - | 10.42% | 15.3% | 7.95% | 2.66% | 12.55% | 9.99% | 5.26% | 7.34% | 7.79% | 9.86% | 7.19% | 6.36% | 9.03% | 7.81% | 7.04% | 5.98% | 7.93% | 6.44% | 6.06% | 6.17% | 6.16% | 6.53% | 7.71% | 9.64% | 3.71% | 5.25% | 6.87% | 6.87% | 5.11% | 7.66% |
| Operating CF Growth % | -17.92% | -31.55% | 94.47% | 222.89% | -76.67% | 39.32% | 87.72% | -24.96% | 1.1% | -18.66% | 43.66% | 18.8% | -24.51% | 24.95% | 23.81% | 16.78% | -23.62% | 13.75% | 16.02% | 9.07% | 17.88% | 2.85% | -4.75% | -16.06% | 156.89% | -27.38% | -12.85% | 6.04% | 60.87% | -20.69% | 7.14% |
| Net Income | 665.93M | 690.33M | 589.44M | 479.73M | 492.47M | 503.5M | 305.08M | 267.69M | 339.26M | 184.67M | 357.46M | 228.33M | 305.98M | 109.85M | 233.76M | 203.17M | 181.13M | 119.62M | 47.71M | 208.29M | -76.2M | 105.03M | 141.89M | 35.33M | 101.55M | 62.96M | 40.99M | 94.6M | 87.8M | 78.3M | 68.9M |
| Depreciation & Amortization | 209.55M | 193.84M | 171.25M | 154.95M | 153.07M | 146.86M | 156.84M | 141.74M | 128.5M | 116.77M | 111.04M | 99.18M | 90.07M | 83.74M | 73.7M | 72.75M | 84.25M | 85.14M | 85.37M | 81.61M | 74.3M | 65.99M | 63.28M | 58.67M | 56.86M | 81.49M | 79.15M | 62.1M | 57M | 51.1M | 42.6M |
| Stock-Based Compensation | 30.01M | 27.04M | 25.93M | 28.67M | 40.11M | 40.93M | 19.79M | 31.15M | 25.44M | 32.54M | 31.29M | 31.74M | 23.57M | 17.14M | 13.9M | 12.28M | 10.03M | 8.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -34.84M | -104.51M | -5.64M | 6.24M | -25.07M | 20.19M | -12.15M | 5.43M | -10.69M | 24.05M | 9.4M | 97.5M | 6.57M | -40.99M | -7.09M | 7.71M | 32.48M | 1.14M | -73.89M | 32.74M | -116.62M | 0 | 21.42M | -46.73M | -3.93M | 0 | 0 | 0 | 0 | 0 | -5.7M |
| Other Non-Cash Items | -22.28M | 7.62M | -18.66M | 11.88M | -33.61M | -44.6M | 6.3M | 23.11M | 15.88M | 198.71M | -10.91M | -30.78M | -1.67M | 135.73M | -4.99M | -393K | 6.44M | 29.21M | 288.1M | -914K | 379.11M | 15.76M | -314K | 146.25M | 2.09M | -7.57M | -24.58M | -12.1M | -7.5M | -3.2M | -1.1M |
| Working Capital Changes | -43.52M | -46.14M | 359.98M | -104.37M | -448.25M | 99.29M | 74.05M | -176.18M | -108.01M | -170.62M | -23.57M | -95.52M | -146.37M | 62.97M | -14.42M | -57.35M | -110.4M | 23.88M | -110.93M | -119.42M | -75.1M | -29.43M | -73.27M | -32.89M | 35.19M | -62.39M | 7.01M | -26.9M | -26.3M | -57.2M | -15.6M |
| Change in Receivables | -50.57M | -55.04M | 82.89M | -94.58M | -187.3M | -88.62M | 76.5M | -131.2M | -119.83M | -108.14M | -28.67M | -37.44M | -76.81M | 27.88M | 62.49M | -53.48M | 31.06M | 306.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 8.1M | -34.46M | 179.84M | 66.81M | -304.2M | -68.8M | 21.31M | -16.83M | -34.1M | -70.73M | -17.73M | -31.35M | -59M | -40.04M | 7.12M | -71.52M | -15.06M | 75.01M | -28.36M | -23.86M | -42.26M | -44.43M | -31.95M | 1.26M | 25.93M | -37.58M | 4.72M | 11.1M | -19.7M | -11.7M | -4.4M |
| Change in Payables | -6.24M | 84.07M | -24.44M | -116.05M | 101.22M | 151.39M | -27.11M | -29.63M | 51.64M | 16.25M | -5.96M | -16.25M | 42.22M | 72.07M | 13.63M | 55.9M | 19.64M | -119.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -833.52M | -825.53M | -206.44M | -249.7M | -259.55M | -326.39M | -209.61M | -248.25M | -261.19M | -339.67M | -165.87M | -559.45M | -149.71M | -477.4M | -267.32M | -105.94M | -126.95M | -81.55M | -169.21M | -208.25M | -234.38M | -75.97M | -101.26M | -110.4M | -37.7M | -18.05M | -338.1M | -98.1M | 11.2M | -341.2M | -73.5M |
| Capital Expenditures | -230.65M | -229.93M | -213.97M | -254.44M | -222.4M | -157.2M | -147.76M | -136.76M | -114.62M | -126.11M | -117.18M | -85.36M | -93.79M | -91.37M | -71.61M | -39.83M | -23.24M | -54.99M | -71.84M | -70.39M | -61.16M | -55.61M | -51.25M | -41.81M | -39.93M | -54.12M | -63.19M | -98M | -108.1M | -35.8M | -33.2M |
| CapEx % of Revenue | 2.99% | 3.12% | 2.92% | 3.51% | 3.32% | 2.57% | 2.68% | 2.46% | 2.15% | 2.54% | 2.43% | 1.86% | 2.14% | 2.24% | 1.9% | 1.18% | 0.68% | 1.63% | 1.97% | 2.11% | 2.03% | 2.18% | 2.19% | 2.01% | 2.01% | 2.7% | 3.23% | 5.72% | 6.69% | 2.65% | 2.92% |
| Acquisitions | -630M | -595.77M | -15.55M | -47.54M | -127.46M | -165.22M | -65.1M | -168.21M | -112.44M | -254.2M | -51.99M | -467.57M | -39.25M | -397.43M | -195.26M | -46.3M | -92.55M | -16.67M | -123.13M | -124.15M | -174.63M | -20.1M | -37.7M | -65.99M | -3.14M | -2.65M | -323.03M | 600K | 131.2M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 18.29M | -1.13M | 9.37M | 58.22M | 83.81M | 5.41M | 799K | 6.76M | 9.02M | 2.12M | 2.96M | 14.71M | 3.97M | 14.19M | 17.96M | -4.78M | 233K | -344K | 43.57M | 4.46M | 11.61M | 4.9M | 3.24M | 1.18M | 1.57M | 32.34M | 54.79M | 1.1M | -2.1M | -307M | -33.8M |
| Cash from Financing | 50.1M | 121.94M | -890.03M | -301.16M | 57.39M | -459.62M | -316.87M | -53.84M | -239.38M | 35.97M | -206.1M | 110.19M | -137.24M | 138.15M | -117.44M | 57.72M | -98.63M | -138.6M | -11.52M | 45.23M | -29.88M | 64.1M | -64.13M | -45.92M | -135.95M | -62.83M | 247.97M | -40.2M | -118.9M | 289.9M | -13.5M |
| Debt Issued (Net) | 396.95M | 469.1M | -575.41M | -13.74M | 336.06M | -188.28M | 14.27M | 354.97M | 74.68M | 443.29M | -5.03M | 298.24M | -6.48M | 251.53M | -8.23M | 176M | -5.58M | 5.4M | 70.69M | 99.96M | 33.91M | 120.49M | -6.28M | 11.1M | -248.98M | -1.54M | 370.47M | 25.11M | -77.6M | 328.6M | 13.5M |
| Equity Issued (Net) | -74.88M | -88.69M | -79.53M | -67.05M | -64.05M | -72.78M | -143.07M | -221.98M | -17.15M | -21.95M | -71.35M | -39.53M | -12.91M | -3.01M | -6.99M | -21.81M | -2.28M | -42.3M | -6.06M | 25.83M | 10.64M | 12.54M | 5.8M | 2.12M | 165.44M | -10.69M | -70.6M | -14.82M | 2.2M | 1.3M | 1.1M |
| Dividends Paid | -268.29M | -255.56M | -231.88M | -213.91M | -204.39M | -194.72M | -185.1M | -181.41M | -167.48M | -156.75M | -144.35M | -136.18M | -125.74M | -117.65M | -112.15M | -108.58M | -105.43M | -101.84M | -90.64M | -82.11M | -74.43M | -68.93M | -63.65M | -59.14M | -52.41M | -50.6M | -51.9M | -50.4M | -43.5M | -39.7M | -36.7M |
| Share Repurchases | -74.88M | -88.69M | -79.53M | -67.05M | -64.05M | -72.78M | -143.07M | -221.98M | -17.15M | -21.95M | -71.35M | -39.53M | -12.91M | -3.01M | -6.99M | -21.81M | -2.28M | -45.36M | -6.06M | 0 | 0 | 0 | 0 | -1.17M | 0 | -11.1M | -71.47M | -17.04M | 0 | 0 | 0 |
| Other Financing | -3.67M | -2.92M | -3.22M | -6.45M | -10.23M | -3.84M | -2.96M | -5.43M | -129.42M | -228.61M | 14.62M | -12.34M | 7.88M | 7.29M | 9.93M | 12.12M | 14.67M | 131K | 14.48M | 1.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | -100K |
| Net Change in Cash | 52.31M | 64.76M | 21.59M | 14.12M | -45.03M | 13.29M | 10.25M | -21.25M | -106.08M | 85.34M | 90.44M | -158.16M | -10.69M | 27.59M | -119.04M | 219.66M | -38.03M | 22.14M | 72.23M | 50.4M | -75.52M | 149.58M | -12.16M | 8.55M | 18.25M | -7.41M | 11.61M | -21.1M | 3.3M | 17.7M | 0 |
| Free Cash Flow | 575.21M | 538.26M | 908.34M | 322.67M | -43.67M | 608.96M | 402.16M | 156.18M | 275.76M | 260.02M | 357.52M | 245.09M | 184.36M | 277.09M | 223.26M | 198.34M | 180.69M | 212.01M | 162.87M | 131.91M | 124.33M | 101.74M | 101.74M | 118.81M | 151.44M | 20.38M | 39.39M | 19.7M | 2.9M | 33.2M | 53.8M |
| FCF Margin % | 7.46% | 7.3% | 12.38% | 4.45% | -0.65% | 9.97% | 7.3% | 2.81% | 5.18% | 5.24% | 7.43% | 5.33% | 4.21% | 6.79% | 5.91% | 5.86% | 5.29% | 6.29% | 4.47% | 3.95% | 4.13% | 3.98% | 4.35% | 5.7% | 7.62% | 1.01% | 2.02% | 1.15% | 0.18% | 2.46% | 4.73% |
| FCF Growth % | 1.74% | -40.74% | 181.51% | 838.85% | -107.17% | 51.42% | 157.49% | -43.36% | 6.06% | -27.27% | 45.88% | 32.94% | -33.47% | 24.11% | 12.56% | 9.77% | -14.77% | 30.17% | 23.47% | 6.09% | 22.2% | -0% | -14.37% | -21.54% | 643.19% | -48.27% | 99.96% | 579.31% | -91.27% | -38.29% | 1.51% |
| FCF per Share | 4.50 | 4.20 | 7.08 | 2.50 | -0.34 | 4.72 | 3.09 | 1.16 | 2.01 | 1.92 | 2.62 | 1.82 | 1.39 | 2.13 | 1.73 | 1.55 | 1.41 | 1.65 | 1.25 | 1.02 | 1.06 | 0.81 | 0.83 | 1.01 | 1.45 | 0.20 | 0.37 | 0.18 | 0.03 | 0.32 | 0.54 |
| FCF Conversion (FCF/Net Income) | 0.86x | 1.12x | 1.91x | 1.21x | 0.36x | 1.52x | 1.81x | 1.10x | 1.16x | 2.12x | 1.34x | 1.38x | 0.95x | 3.74x | 1.37x | 1.26x | 1.13x | 2.23x | 4.92x | 0.97x | -2.43x | 1.50x | 1.08x | 4.55x | 1.88x | 1.18x | 2.50x | 1.24x | 1.26x | 0.88x | 1.26x |
| Interest Paid | 105.82M | 93.46M | 116.65M | 113.95M | 81.84M | 82.44M | 103.14M | 101.42M | 97.3M | 78.69M | 73.09M | 79.37M | 81.5M | 77.87M | 70.52M | 62.89M | 53.9M | 51.32M | 58.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -5.96M | 204.25M | 203.61M | 134.44M | 172.25M | 147.44M | 102.89M | 68.36M | 83.46M | 71.24M | 63.21M | 27.49M | 103.34M | 106.04M | 96.07M | 65.94M | 45.09M | 62.93M | 59.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Working Capital Volatility
As reported in the quarterly cash flow statements, RPM's OCF/NI ratio has fluctuated wildly, ranging from a low of 0.66 in 2025Q4 to a high of 2.83 in 2024Q3, indicating that net income is an unreliable proxy for the company's actual cash-generating capacity.
The significant divergence between net income and operating cash flow suggests that non-cash charges and accrual accounting play a substantial role in reported earnings. Investors should monitor whether these swings are merely seasonal timing differences or indicative of underlying challenges in converting accounting profits into tangible liquidity.
Based on the provided financial data, RPM's FCF margins have demonstrated extreme variance, peaking at 20.7% in 2024Q2 before compressing to 1.6% in 2026Q3, which highlights the difficulty in maintaining consistent cash flow generation amidst shifting operational and seasonal demand cycles.
The sharp contraction in FCF margins over the most recent periods suggests that the company's cash flow trajectory is highly sensitive to revenue fluctuations and working capital requirements. This volatility may complicate the firm's ability to sustain its dividend growth streak without relying on external financing.
According to recent SEC filings, RPM's working capital changes have been highly erratic, swinging from a $222.5M inflow in 2024Q2 to a $92.0M outflow in 2025Q4, which suggests that inventory and receivables management remains a primary driver of short-term cash flow variability.
The frequent shifts between cash inflows and outflows from working capital indicate that the company's decentralized brand structure may struggle with centralized inventory optimization. This lack of consistency in cash conversion cycles warrants further investigation into the effectiveness of the ongoing MAP 2025 procurement initiatives.
Based on reported figures, RPM consistently allocates significant cash to dividends, with payments reaching $69.1M in 2026Q3, even as free cash flow has tightened, suggesting a management priority on shareholder returns that may limit flexibility for aggressive inorganic growth or debt reduction.
While the dividend remains a core pillar of the company's capital allocation strategy, the simultaneous use of cash for share repurchases and acquisitions appears to be straining liquidity during periods of low FCF. Investors should monitor whether this payout policy remains sustainable if the current cash flow volatility persists.
Quick answers to the most common questions about buying RPM stock.
RPM International Inc. (RPM) generated $768.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
RPM International Inc. (RPM) generated $538.3M 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.
RPM International Inc. (RPM) spent $229.9M 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, RPM International Inc. (RPM) returned $255.6M to shareholders via cash dividends and spent $88.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.