Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Pentair's free cash flow improved markedly in the second quarter, driven by a strong swing in operating cash flow from a negative position in the prior quarter. The free cash flow margin rose to more than half of revenue, reflecting efficient cash conversion.
- Operating cash flow far exceeded capital spending, yielding a high free cash flow. The conversion from revenue to free cash flow improved substantially compared with the prior quarter and the same quarter last year.
- Compared with the immediately preceding quarter, operating cash flow swung from a negative to a positive figure, and free cash flow turned from a deficit to a surplus. Versus the same quarter last year, both operating cash flow and free cash flow increased, while revenue remained similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$837.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$595.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$606.6M
Cash generated by operations before capital spending.
CapEx
$10.9M
Capital spending and related asset purchases.
FCF margin
53.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-09-30 | $993.4M | $248.6M | $15.4M | $233.2M | 23.5% |
| 2024-12-31 | $972.9M | $86.5M | $22.7M | $63.8M | 6.6% |
| 2025-03-31 | $1.0B | -$38.9M | $16.8M | -$55.7M | -5.5% |
| 2025-06-30 | $1.1B | $606.6M | $10.9M | $595.7M | 53.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 401.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow turned strongly positive after a negative prior quarter and increased relative to the year-ago quarter. This was the primary factor behind the improvement in free cash flow and margin.
The company generated substantial free cash flow, reversing the seasonal cash usage seen in the first quarter as described in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow far exceeded capital spending, yielding a high free cash flow. The conversion from revenue to free cash flow improved substantially compared with the prior quarter and the same quarter last year.
Compared with the immediately preceding quarter, operating cash flow swung from a negative to a positive figure, and free cash flow turned from a deficit to a surplus. Versus the same quarter last year, both operating cash flow and free cash flow increased, while revenue remained similar.
Monitor whether the seasonal cash generation pattern, which the filing attributes to seasonal demand peaking in the second quarter, continues as expected.