Best Free-Cash-Flow Margins: Industrials
The Industrials cash machines of the S&P 500
Updated August 30, 2026
Cash conversion is structural before it’s managerial — an asset-light business model throws off more of each sales dollar than a capital-hungry one, whoever runs it. So the fair question isn’t whether a Industrials company clears a market-wide bar; it’s who converts best inside the sector, where everyone faces roughly the same capital demands. The Industrials median free-cash-flow margin is 14%; these are the names furthest above it.
| # | Stock | FCF margin | Free cash flow (TTM) | Revenue (TTM) |
|---|---|---|---|---|
| 1 | PAYXPaychex, Inc.Staffing & Employment Services | 36% | $2.3B | $6.5B |
| Staffing & Employment Services — converts 36% of revenue to free cash ($2.3B on $6.5B in sales), against a Industrials median of 14%. | ||||
| 2 | CSXCSX CorporationRailroads | 35% | $5.0B | $14.5B |
| Railroads — converts 35% of revenue to free cash ($5.0B on $14.5B in sales), against a Industrials median of 14%. | ||||
| 3 | NSCNorfolk Southern CorporationRailroads | 31% | $3.8B | $12.5B |
| Railroads — converts 31% of revenue to free cash ($3.8B on $12.5B in sales), against a Industrials median of 14%. | ||||
| 4 | CPRTCopart, Inc.Specialty Business Services | 29% | $1.3B | $4.6B |
| Specialty Business Services — converts 29% of revenue to free cash ($1.3B on $4.6B in sales), against a Industrials median of 14%. | ||||
| 5 | VRTVertiv Holdings CoElectrical Equipment & Parts | 25% | $2.9B | $11.5B |
| Electrical Equipment & Parts — converts 25% of revenue to free cash ($2.9B on $11.5B in sales), against a Industrials median of 14%. | ||||
| 6 | NDSNNordson CorporationIndustrial - Machinery | 24% | $728M | $3.0B |
| Industrial - Machinery — converts 24% of revenue to free cash ($728M on $3.0B in sales), against a Industrials median of 14%. | ||||
| 7 | ADPAutomatic Data Processing, Inc.Staffing & Employment Services | 23% | $5.0B | $21.9B |
| Staffing & Employment Services — converts 23% of revenue to free cash ($5.0B on $21.9B in sales), against a Industrials median of 14%. | ||||
| 8 | AMEAMETEK, Inc.Electrical Equipment & Parts | 22% | $1.7B | $7.6B |
| Electrical Equipment & Parts — converts 22% of revenue to free cash ($1.7B on $7.6B in sales), against a Industrials median of 14%. | ||||
| 9 | FTVFortive CorporationIndustrial - Machinery | 22% | $955M | $4.3B |
| Industrial - Machinery — converts 22% of revenue to free cash ($955M on $4.3B in sales), against a Industrials median of 14%. | ||||
| 10 | SNASnap-on IncorporatedManufacturing - Tools & Accessories | 21% | $1.0B | $5.1B |
| Manufacturing - Tools & Accessories — converts 21% of revenue to free cash ($1.0B on $5.1B in sales), against a Industrials median of 14%. | ||||
| 11 | TDGTransDigm Group IncorporatedAerospace & Defense | 19% | $1.9B | $9.5B |
| Aerospace & Defense — converts 19% of revenue to free cash ($1.9B on $9.5B in sales), against a Industrials median of 14%. | ||||
| 12 | ITGartner, Inc.Consulting Services | 19% | $1.3B | $6.5B |
| Consulting Services — converts 19% of revenue to free cash ($1.3B on $6.5B in sales), against a Industrials median of 14%. | ||||
| 13 | FIXComfort Systems USA, Inc.Engineering & Construction | 19% | $2.2B | $11.2B |
| Engineering & Construction — converts 19% of revenue to free cash ($2.2B on $11.2B in sales), against a Industrials median of 14%. | ||||
| 14 | VLTOVeralto CorporationIndustrial - Pollution & Treatment Controls | 18% | $1.0B | $5.7B |
| Industrial - Pollution & Treatment Controls — converts 18% of revenue to free cash ($1.0B on $5.7B in sales), against a Industrials median of 14%. | ||||
| 15 | IEXIDEX CorporationIndustrial - Machinery | 18% | $642M | $3.6B |
| Industrial - Machinery — converts 18% of revenue to free cash ($642M on $3.6B in sales), against a Industrials median of 14%. | ||||
| 16 | PHParker-Hannifin CorporationIndustrial - Machinery | 18% | $3.7B | $21.0B |
| Industrial - Machinery — converts 18% of revenue to free cash ($3.7B on $21.0B in sales), against a Industrials median of 14%. | ||||
| 17 | EFXEquifax Inc.Consulting Services | 17% | $1.1B | $6.4B |
| Consulting Services — converts 17% of revenue to free cash ($1.1B on $6.4B in sales), against a Industrials median of 14%. | ||||
| 18 | EMREmerson Electric Co.Industrial - Machinery | 17% | $3.1B | $18.3B |
| Industrial - Machinery — converts 17% of revenue to free cash ($3.1B on $18.3B in sales), against a Industrials median of 14%. | ||||
| 19 | TTTrane Technologies plcConstruction | 17% | $3.8B | $22.2B |
| Construction — converts 17% of revenue to free cash ($3.8B on $22.2B in sales), against a Industrials median of 14%. | ||||
| 20 | AOSA. O. Smith CorporationIndustrial - Machinery | 17% | $639M | $3.8B |
| Industrial - Machinery — converts 17% of revenue to free cash ($639M on $3.8B in sales), against a Industrials median of 14%. | ||||
| 21 | PNRPentair plcIndustrial - Machinery | 17% | $673M | $4.0B |
| Industrial - Machinery — converts 17% of revenue to free cash ($673M on $4.0B in sales), against a Industrials median of 14%. | ||||
| 22 | CTASCintas CorporationSpecialty Business Services | 17% | $1.9B | $11.3B |
| Specialty Business Services — converts 17% of revenue to free cash ($1.9B on $11.3B in sales), against a Industrials median of 14%. | ||||
| 23 | HWMHowmet Aerospace Inc.Aerospace & Defense | 17% | $1.4B | $8.6B |
| Aerospace & Defense — converts 17% of revenue to free cash ($1.4B on $8.6B in sales), against a Industrials median of 14%. | ||||
| 24 | ETNEaton Corporation plcIndustrial - Machinery | 16% | $5.0B | $30.0B |
| Industrial - Machinery — converts 16% of revenue to free cash ($5.0B on $30.0B in sales), against a Industrials median of 14%. | ||||
| 25 | ODFLOld Dominion Freight Line, Inc.Trucking | 16% | $919M | $5.6B |
| Trucking — converts 16% of revenue to free cash ($919M on $5.6B in sales), against a Industrials median of 14%. | ||||