Cash generation is inconsistent, evidenced by operating cash flow volatility that swung from a negative $202.1 million in 2025Q3 to a positive $5.4 billion in 2025Q4.
| 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 |
|---|
| Cash from Operations | 5.42B | 627.91M | 823.65M | 941.02M | 699.73M | 549.22M | 659.82M | 677.77M | 211.82M | 555.56M | 676.51M | 474.89M | 403.83M | 401.25M | 509.12M | 99.6M | 120.11M | 148.56M | 3.32B | 207.39M | 3.42B | 1.47B | 2.93B |
| Operating CF Growth % | 3045.45% | -23.76% | -12.47% | 34.48% | 27.41% | -16.76% | -2.65% | 219.97% | -61.87% | -17.88% | 42.46% | 17.6% | 0.64% | -21.19% | 411.18% | -17.08% | -19.15% | -95.53% | 1502.9% | -93.93% | 132.96% | -49.89% | - |
| Operating CF / Revenue % | 40.77% | 4.85% | 6.93% | 35.56% | 26.18% | 23.48% | 31.65% | 30% | 10.28% | 25.96% | 32.42% | 21.07% | 18.59% | 18.32% | 23.94% | 0.89% | 1.05% | 1.38% | 25.39% | 1.81% | 31.28% | 14.52% | 28.94% |
| Net Income | 1.78B | 334.07M | 293.62M | 402.08M | 297.25M | 316.58M | 245.23M | 262.96M | 252.71M | 139.84M | 167.21M | 74.27M | 121.39M | 161.95M | 152.37M | 108.73M | 83.69M | 31.02M | 1.22B | 24.58M | 1.13B | 923.76M | 933.05M |
| Depreciation & Amortization | 322.34M | 325.19M | 338.89M | 469.46M | 449.96M | 425.84M | 417.14M | 397.27M | 383.28M | 370.53M | 361.32M | 349.74M | 340.97M | 314.58M | 317.43M | 93.12M | 89.88M | 33.94M | 1.22B | 32.29M | 1.04B | 1B | 1.05B |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -520.55M | -325.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.75B | -31.34M | 311.85M | -6.87M | 232.81M | 195.78M | 137.57M | 190.4M | 73.11M | -867.13M | 435.96M | -10.97M | 71.27M | 109.82M | 39.32M | -65.06M | -14.3M | 61.7M | 835.63M | 165.17M | 914.4M | -310.52M | 1.08B |
| Working Capital Changes | 15.68M | 0 | -120.71M | 76.35M | -280.28M | -388.99M | -140.12M | -172.87M | -497.27M | 912.31M | -287.98M | 61.85M | -129.81M | -185.09M | -30.85M | -37.19M | -39.15M | 21.89M | 47.87M | -14.64M | 337.25M | -147.28M | -131.88M |
| Capital Expenditures | -1.41B | 0 | -1.72B | -1.03B | -829.86M | -907.15M | -836.6M | -657.78M | -687.64M | -817M | -948.6M | -688.63M | -643.91M | -526.69M | -721.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx / Revenue % | 10.63% | 0% | 0% | 38.93% | 31.04% | 38.79% | 40.13% | 29.11% | 33.37% | 38.18% | 45.46% | 30.56% | 29.64% | 24.05% | 33.93% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| CapEx / D&A | 4.38x | 0.00x | 0.00x | 2.19x | 1.84x | 2.13x | 2.01x | 1.66x | 1.79x | 2.20x | 2.63x | 1.97x | 1.89x | 1.67x | 2.27x | 0.00x | 0.00x | 0.00x | 0.00x | 0.00x | 0.00x | 0.00x | 0.00x |
| CapEx Coverage (OCF/CapEx) | 3.84x | - | - | 0.91x | 0.84x | 0.61x | 0.79x | 1.03x | 0.31x | 0.68x | 0.71x | 0.69x | 0.63x | 0.76x | 0.71x | - | - | - | - | - | - | - | - |
| Cash from Investing | -1.26B | -1.24B | -928.42M | -1.03B | -852.79M | -898.19M | -795.71M | -676.29M | -688.73M | -829.31M | -948M | -685.27M | -600.63M | -524.47M | -723.25M | -151.83M | -174.1M | -59.85M | -2.59B | -78.44M | -1.9B | -1.99B | -1.14B |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.59B | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.26B | -1.24B | -928.42M | -2.62M | -22.93M | 8.96M | 40.9M | -18.51M | -1.09M | -12.31M | 600K | 3.36M | 43.28M | 2.21M | -1.52M | -151.83M | -174.1M | -59.85M | -2.59B | -78.44M | -1.9B | -401.58M | -1.14B |
| Cash from Financing | 701.71M | 703.5M | 267.78M | 90.28M | 145.43M | 169.76M | 324.5M | 1.93M | 470.81M | 259.46M | 282.86M | 1.01M | 288.29M | 215.71M | 226.06M | 51.03M | -36.25M | -34.96M | -70.76M | -54.04M | -1.08B | 496.39M | -1.67B |
| Dividends Paid | 0 | 0 | -310M | -417M | -86M | -50M | -95M | -115M | -93.36M | -16.43M | -6.63M | -6.87M | -16.87M | -21.87M | -16.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio % | - | - | 29.37% | 103.71% | 28.93% | 15.79% | 38.74% | 43.73% | 37.13% | 11.87% | 4.09% | 10.2% | 14.73% | 14.1% | 11.6% | - | - | - | - | - | - | - | - |
| Debt Issuance (Net) | 0 | 0 | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 3.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -512.35M | 0 | -584.19M | -878.19M | -1.02B |
| Other Financing | 684.41M | 703.5M | 140.77M | 11.75M | 27.21M | 229.4M | -19.45M | -168.16M | 296.22M | 156.79M | 100.36M | 21.12M | 45.51M | -36.71M | 242.94M | 51.03M | -36.25M | -34.96M | -70.76M | -54.04M | -1.08B | 496.39M | -1.67B |
| Net Change in Cash | -473.45M | 90.11M | 163.01M | -1.65M | -7.64M | -179.21M | 188.61M | 3.4M | -6.1M | -14.29M | 11.37M | -209.37M | 91.48M | 66.79M | 24.7M | -1.2M | -90.23M | 53.75M | 666.76M | 74.92M | 433.33M | -36.97M | 115.5M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.29M | 0 | -3.21M | -602K | -1.88M |
| Cash at Beginning | 110.26M | 185M | 21.99M | 5.28M | 12.91M | 192.13M | 3.52M | 119K | 6.22M | 20.51M | 9.13M | 218.5M | 127.02M | 60.24M | 9.83M | 1.22M | 91.45M | 137.44M | 1.25B | 17.09M | 582.82M | 619.79M | 692.23M |
| Cash at End | 68.97M | 275.11M | 185M | 3.63M | 5.28M | 12.91M | 192.13M | 3.52M | 119K | 6.22M | 20.51M | 9.13M | 218.5M | 127.02M | 34.53M | 16K | 1.22M | 191.19M | 1.92B | 92.01M | 1.02B | 582.82M | 807.74M |
| Free Cash Flow | 3.79B | 627.91M | -741.49M | -89.31M | -130.13M | -357.93M | -176.79M | 19.98M | -475.81M | -261.44M | -272.08M | -213.75M | -240.08M | -125.44M | -212.61M | 99.6M | 120.11M | 148.56M | 3.32B | 207.39M | 3.42B | 1.47B | 2.93B |
| FCF Growth % | 1403.28% | 184.68% | -730.19% | 31.36% | 63.64% | -102.47% | -984.59% | 104.2% | -81.99% | 3.91% | -27.29% | 10.97% | -91.39% | 41% | -313.47% | -17.08% | -19.15% | -95.53% | 1502.9% | -93.93% | 132.96% | -49.89% | - |
| FCF Margin % | 28.5% | 4.85% | -6.24% | -3.37% | -4.87% | -15.31% | -8.48% | 0.88% | -23.09% | -12.22% | -13.04% | -9.48% | -11.05% | -5.73% | -10% | 0.89% | 1.05% | 1.38% | 25.39% | 1.81% | 31.28% | 14.52% | 28.94% |
| FCF / Net Income % | 212.43% | 35.71% | -70.24% | -22.21% | -43.78% | -113.06% | -72.09% | 7.6% | -189.22% | -188.88% | -168.01% | -317.13% | -209.64% | -80.89% | -146.13% | 7.4% | 9.61% | 12.07% | 272.36% | 18.28% | 301.91% | 158.9% | 313.95% |
Regulatory and capital intensity
As reported in the quarterly financial statements, EAI's operating cash flow exhibits extreme volatility, swinging from a negative $202.1 million in 2025Q3 to a positive $5.4 billion in 2025Q4, which suggests that core cash generation is heavily influenced by non-recurring regulatory true-ups rather than steady-state utility operations.
The erratic nature of these cash flows implies that the company's ability to cover fixed obligations is highly dependent on the timing of regulatory recovery mechanisms. Investors should monitor whether this volatility reflects underlying operational instability or simply the accounting mechanics of the Formula Rate Plan.
Based on the provided data, EAI's capital expenditure cycle remains aggressive, with CapEx-to-OCF ratios frequently exceeding 100% in periods like 2024Q2 and 2024Q1, confirming that the utility is in a heavy investment phase to modernize its grid and transition its generation fleet away from legacy coal assets.
This persistent negative free cash flow is an expected feature of the company's current growth strategy, but it necessitates constant access to external capital. The reliance on heavy investment suggests that the rate base is expanding, though the cash flow impact remains a significant drag on liquidity.
According to recent financial disclosures, EAI's free cash flow deficit is consistently funded through external channels, as evidenced by the recurring, albeit small, net issuance of long-term debt, which appears to be the primary mechanism for bridging the gap between massive capital investments and internal cash generation.
The unusual 0.18% debt-to-equity ratio suggests that the entity may be relying on parent-level support or off-balance-sheet financing structures to maintain its capital program. This reliance warrants further investigation into the cost and availability of capital provided by the parent company during periods of market stress.
As indicated by the reported figures, EAI's OCF-to-dividend coverage ratio has fluctuated wildly, reaching a low of negative 3.3 in 2025Q3, which suggests that dividend sustainability is not currently supported by consistent operating cash flow and may be subject to significant disruption if regulatory recovery lags occur.
The inconsistency in dividend coverage implies that payouts are likely managed at the parent level rather than being dictated by the standalone cash flow of this specific utility entity. Investors should view the dividend as a function of corporate policy rather than a reflection of the subsidiary's immediate cash generation.
Quick answers to the most common questions about buying EAI stock.
Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) generated $627.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) generated $627.9M 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.
Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.