Free cash flow remains under pressure with a $1.4 billion deficit in 2026Q1, as capital expenditures consistently outpace internal operating cash flow generation.
| 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 | 5.44B | 5.15B | 4.49B | 4.29B | 2.59B | 2.3B | 2.69B | 2.82B | 2.39B | 2.62B | 3B | 3.29B | 3.89B | 3.19B | 2.94B | 3.13B | 3.93B | 2.93B | 3.32B | 2.56B | 3.42B | 1.46B | 2.93B | 2.01B | 2.18B | 2.22B | 1.97B | 1.31B | 1.68B | 1.72B | 1.46B |
| Operating CF Growth % | 102.57% | 14.75% | 4.52% | 66.09% | 12.38% | -14.47% | -4.5% | 18.09% | -9.08% | -12.51% | -8.89% | -15.38% | 21.96% | 8.47% | -6.03% | -20.31% | 33.85% | -11.77% | 29.87% | -25.14% | 134.23% | -50.16% | 46.04% | -8.06% | -1.53% | 12.59% | 50.52% | -22.14% | -2.64% | 18.33% | 4.35% |
| Operating CF / Revenue % | 40.97% | 39.78% | 37.78% | 35.35% | 18.78% | 19.59% | 26.6% | 25.89% | 21.67% | 23.69% | 27.65% | 28.59% | 31.13% | 28% | 28.54% | 27.86% | 34.18% | 27.3% | 25.39% | 22.29% | 31.28% | 14.45% | 28.94% | 21.81% | 26.27% | 23.03% | 19.65% | 14.9% | 14.61% | 18.04% | 20.35% |
| Net Income | 1.8B | 1.76B | 1.06B | 2.36B | 1.1B | 1.12B | 1.41B | 1.26B | 862.55M | 425.35M | -564.5M | -156.73M | 960.26M | 730.57M | 868.36M | 1.37B | 1.27B | 1.25B | 1.22B | 1.13B | 1.13B | 923.76M | 933.05M | 950.47M | 623.07M | 750.51M | 710.91M | 595M | 785.6M | 300.9M | 420M |
| Depreciation & Amortization | 765.46M | 2.54B | 2.44B | 2.24B | 2.19B | 2.24B | 2.26B | 2.18B | 2.04B | 2.08B | 2.12B | 2.12B | 2.13B | 2.01B | 1.77B | 1.75B | 1.71B | 1.28B | 1.22B | 32.29M | 1.04B | 1B | 1.05B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 135.78M | 1.02B | 320.7M | -707.82M | -47.15M | 248.72M | -131.11M | 193.95M | -256.85M | 529.05M | -836.26M | -820.35M | 596.93M | 311.79M | -25.9M | -280.03M | 718.99M | 868.65M | 333.95M | 476.24M | 738.64M | 626.81M | 275.46M | 1.19B | -256.66M | 87.75M | 124.46M | -204.6M | -64.5M | -253M | 76.9M |
| Other Non-Cash Items | 3.9B | 27.85M | 426.81M | 42.68M | 1.04B | -1.01B | -15.22M | -803.07M | -357.2M | 3.13B | 2.37B | 1.97B | 75.43M | 405.67M | 522.4M | 0 | 375.88M | -363.73M | 537.34M | 1.34B | 410.13M | 12.85M | 472.59M | 742.76M | 1.15B | 415.43M | 982.37M | 893.6M | 1.05B | 1.51B | 1.25B |
| Working Capital Changes | 212.97M | -188.12M | 236.25M | 352.68M | -1.74B | -348.23M | -869.8M | -52.11M | 96.19M | -3.58B | -131.34M | 146.11M | 92.75M | -298.79M | -211.62M | 296.02M | -144.42M | -104.65M | 12.21M | -424.04M | 989.82M | -832.35M | 203.1M | -876.94M | 665.08M | 961.86M | 150.1M | 23.4M | -92.5M | 167M | -291.7M |
| Capital Expenditures | -8.44B | -7.94B | -5.97B | -4.71B | -5.29B | -6.42B | -5.16B | -4.63B | -4.27B | -4B | -4.04B | -2.99B | -2.66B | -2.82B | -3.69B | -3.33B | -2.38B | -2.46B | -2.48B | -2.32B | -2B | -1.62B | -1.41B | -1.57B | -1.53B | -2.22B | -1.49B | -1.2B | -1.25B | -2.78B | -1.77B |
| CapEx / Revenue % | 28.35% | 61.34% | 50.25% | 38.27% | 38.42% | 54.69% | 50.99% | 42.57% | 38.8% | 36.13% | 37.29% | 26.01% | 21.26% | 24.78% | 35.81% | 29.63% | 20.74% | 22.86% | 18.93% | 20.23% | 18.3% | 16.03% | 13.93% | 17.06% | 18.43% | 23.12% | 14.91% | 13.63% | 10.84% | 29.11% | 24.77% |
| CapEx / D&A | 4.92x | 3.13x | 2.44x | 2.07x | 2.41x | 2.86x | 2.28x | 2.12x | 2.09x | 1.93x | 1.90x | 1.41x | 1.25x | 1.40x | 2.08x | 1.91x | 1.40x | 1.92x | 2.03x | 71.95x | 1.93x | 1.62x | 1.35x | - | - | - | - | - | - | - | - |
| CapEx Coverage (OCF/CapEx) | 1.45x | 0.65x | 0.75x | 0.92x | 0.49x | 0.36x | 0.52x | 0.61x | 0.56x | 0.66x | 0.74x | 1.10x | 1.46x | 1.13x | 0.80x | 0.94x | 1.65x | 1.19x | 1.34x | 1.10x | 1.71x | 0.90x | 2.08x | 1.28x | 1.43x | 1.00x | 1.32x | 1.09x | 1.35x | 0.62x | 0.82x |
| Cash from Investing | -7.82B | -7.11B | -5.85B | -4.63B | -5.71B | -6.18B | -4.77B | -4.51B | -4.11B | -3.84B | -3.85B | -2.61B | -2.95B | -2.6B | -3.64B | -3.45B | -2.57B | -2.09B | -2.59B | -2.1B | -1.9B | -1.99B | -1.14B | -1.78B | -1.39B | -2.22B | -1.81B | -366.2M | 136.9M | -2.78B | -1.77B |
| Acquisitions | 351.81M | 858.59M | 0 | 0 | 0 | -6.09B | -4.69B | -4.2B | 24.9M | -3.61B | -2.78B | 487.41M | 10.1M | 147.92M | -2.67B | 6.53M | 228.17M | 39.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.04B | -1.16B |
| Purchase of Investments | -1.78B | -1.76B | -2.91B | -1.22B | -1.71B | -5.55B | -3.22B | -4.21B | -6.54B | -3.26B | -2.48B | -2.55B | -1.94B | -2.23B | -2.18B | -1.49B | -3.1B | -2.67B | 0 | 0 | 0 | -1.59B | 0 | 0 | 0 | -150M | 0 | -321.4M | 0 | 0 | 0 |
| Sale of Investments | 391M | 1.51B | 2.81B | 1.08B | 1.64B | 5.56B | 3.11B | 4.15B | 6.48B | 3.16B | 2.41B | 2.49B | 1.87B | 2.03B | 2.07B | 1.36B | 34.88M | 2.66B | 0 | 0 | 0 | 1.79B | 50M | 0 | 150M | 0 | 321.35M | 0 | 0 | 0 | 0 |
| Other Investing | -3.01B | 218.78M | 226.67M | 158.17M | -345.62M | 6.32B | 5.19B | 4.38B | 195.71M | 3.86B | 3.04B | -43.51M | -237.5M | 271.7M | 2.83B | 6.99M | 2.64B | 325.27M | -111.02M | 224.51M | 101.31M | -570.3M | 220.53M | -214.19M | -8.16M | -694.3M | -641.65M | 1.15B | 1.38B | 192.7M | 77.5M |
| Cash from Financing | 4.44B | 3.03B | 2.09B | 243.03M | 2.91B | 2.56B | 3.42B | 1.64B | 1.42B | 810.98M | 688.23M | -753.47M | -252.17M | -380.82M | 538.15M | -282.29M | -1.77B | -1.05B | -70.76M | -221.59M | -1.08B | 496.39M | -1.67B | -869.13M | -212.61M | -622M | 20.82M | -911M | -1.46B | 1.51B | 171.9M |
| Dividends Paid | -1.13B | -1.09B | -999.98M | -936.51M | -860M | -793.44M | -766.84M | -728.01M | -647.7M | -628.88M | -632.62M | -618.65M | -615.63M | -611.84M | -611.54M | -610.54M | -623.92M | -596.91M | -593.07M | -533.2M | -477.8M | -478.98M | -451.43M | -386.34M | -322.7M | -293.17M | -303.42M | -335.1M | -420.2M | -489.5M | -475.8M |
| Dividend Payout Ratio % | - | 60.57% | 92.51% | 38.87% | 76.72% | 69.29% | 53.2% | 56.55% | 75.09% | 147.85% | - | - | 62.08% | 81.17% | 67.85% | 43.12% | 47.54% | 46.12% | 46.19% | 44.7% | 39.64% | 49.09% | 45.86% | 40.65% | 51.79% | 39.06% | 42.68% | 56.32% | 53.49% | 162.68% | 113.29% |
| Debt Issuance (Net) | 2M | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K |
| Stock Issued | 1.5B | 1.17B | 136.79M | 140.47M | 884.6M | 206.75M | 42.6M | 734.7M | 602.59M | 80.73M | 33.11M | 131.79M | 194.87M | 24.53M | 62.89M | 46.19M | 51.16M | 28.2M | 34.77M | 88.83M | 143.81M | 106.07M | 170.24M | 217.52M | 130.06M | 64.34M | 41.91M | 15.3M | 19.3M | 687.7M | 244.1M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -50M | -53.87M | -20.6M | -115.28M | -194.09M | -183.27M | 0 | 0 | -264.94M | -878.58M | -614.97M | -512.35M | -1.27B | -768.07M | -911.91M | -1.02B | -11.59M | -120.36M | -76.47M | -707.86M | -343.6M | -20.4M | -124.4M | -157.5M |
| Other Financing | 963.26M | 968.61M | 316.85M | 1.59B | 3.23B | 94.42M | -7.52M | -7.73M | 85.6M | -7.27M | -6.87M | -9.14M | 23.58M | 0 | 51M | 0 | 0 | 0 | 0 | 0 | 0 | 128M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 70.5M |
| Net Change in Cash | -2.27B | -813.81M | 727.15M | -91.62M | -218.4M | -1.32B | 1.33B | -55.25M | -300.3M | -406.57M | -163.12M | -71.06M | 682.9M | 206.56M | -161.87M | -600.03M | -415.08M | -210.94M | 666.76M | 239.76M | 433.33M | -36.97M | 115.5M | -643.1M | 583.75M | -630.85M | 168.71M | 29.2M | 354M | 441.8M | -144.9M |
| Exchange Rate Effect | -4.33B | -1.88B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -245K | -508K | 287K | 338K | -1.32M | 3.29M | 30K | -3.21M | -602K | -1.88M | 3.35M | 3.13M | 325K | -5.95M | -900K | 1.6M | -11.2M | 100K |
| Cash at Beginning | 1.93B | 859.7M | 132.55M | 224.16M | 442.56M | 1.76B | 425.72M | 480.98M | 781.27M | 1.19B | 1.35B | 1.42B | 739.13M | 532.57M | 694.44M | 1.29B | 1.71B | 1.92B | 1.25B | 1.03B | 582.82M | 619.79M | 692.23M | 1.34B | 751.57M | 1.38B | 1.21B | 1.18B | 830.5M | 388.7M | 533.6M |
| Cash at End | 3.57B | 45.9M | 859.7M | 132.55M | 224.16M | 442.56M | 1.76B | 425.72M | 480.98M | 781.27M | 1.19B | 1.35B | 1.42B | 739.13M | 532.57M | 694.44M | 1.29B | 1.71B | 1.92B | 1.27B | 1.02B | 582.82M | 807.74M | 692.23M | 1.34B | 751.57M | 1.38B | 1.21B | 1.18B | 830.5M | 388.7M |
| Free Cash Flow | -3B | -2.79B | -1.48B | -417.3M | -2.7B | -4.12B | -2.47B | -1.81B | -1.89B | -1.38B | -1.05B | 296.72M | 1.23B | 366.5M | -748.68M | -198.84M | 1.54B | 476.44M | 845.25M | 236.8M | 1.42B | -160.31M | 1.52B | 436.88M | 651.4M | -9.17M | 474.13M | 111.6M | 432.8M | -1.06B | -316.9M |
| FCF Growth % | -57.49% | -88.41% | -254.95% | 84.56% | 34.41% | -67.06% | -35.93% | 3.77% | -36.85% | -31.81% | -452.37% | -75.93% | 236.38% | 148.95% | -276.52% | -112.88% | 224.09% | -43.63% | 256.95% | -83.31% | 985.15% | -110.56% | 247.63% | -32.93% | 7202.07% | -101.93% | 324.85% | -74.21% | 140.89% | -234.02% | -155.52% |
| FCF Margin % | -22.58% | -21.56% | -12.47% | -3.44% | -19.64% | -35.1% | -24.39% | -16.68% | -17.13% | -12.44% | -9.64% | 2.58% | 9.87% | 3.22% | -7.27% | -1.77% | 13.44% | 4.43% | 6.46% | 2.06% | 12.98% | -1.59% | 15% | 4.75% | 7.84% | -0.1% | 4.73% | 1.27% | 3.77% | -11.07% | -4.42% |
| FCF / Net Income % | -166.52% | -157.37% | -139.58% | -17.66% | -246.39% | -368.4% | -175.38% | -144.24% | -218.65% | -323.99% | 185.22% | -189.31% | 128.38% | 50.17% | -86.22% | -14.54% | 121.55% | 38.08% | 68.14% | 20.87% | 125.28% | -17.35% | 162.77% | 45.96% | 104.55% | -1.22% | 66.69% | 18.76% | 55.09% | -351.78% | -75.45% |
Storm recovery and liquidity
According to the provided quarterly data, Entergy’s capital expenditure intensity remains elevated, with quarterly outflows frequently exceeding $2 billion, which represents a significant commitment to grid-hardening and infrastructure expansion that consistently outpaces the company's internal operating cash flow generation across most of the observed ten-quarter period.
The persistent gap between CAPEX and operating cash flow suggests that the company is in a heavy investment phase, likely driven by the need to modernize infrastructure against Gulf Coast weather risks. Investors should monitor whether this capital intensity translates into a commensurate expansion of the rate base, as the current burn rate necessitates continuous external funding to maintain operational momentum.
As reported in financial statements, Entergy frequently experiences a free cash flow deficit, with quarterly outflows reaching as high as $1.4 billion in 2026Q1, forcing the company to rely on consistent external debt and equity issuance to bridge the gap between massive infrastructure investment and internal cash generation.
The reliance on external capital markets appears to be a structural feature of the company's current growth strategy rather than a temporary liquidity issue. Given the high capital requirements, any tightening in credit markets or a decline in investor appetite for utility equity could potentially constrain the company's ability to execute its planned grid-hardening projects.
Based on the provided figures, Entergy maintains dividend coverage ratios that have fluctuated between 2.0x and 7.8x over the last ten quarters, suggesting that while operating cash flow is sufficient to cover distributions, the dividend remains secondary to the massive capital requirements of the regulated utility business.
The variability in dividend coverage appears to be driven more by the volatility of operating cash flow than by changes in the dividend policy itself. While the current payout appears sustainable, investors should remain cautious, as any prolonged regulatory lag in recovering storm-related costs could pressure the cash available for dividends in future periods.
Data from the last ten quarters indicates that Entergy’s cash flow profile is heavily influenced by the timing of regulatory recovery, as evidenced by the significant swings in net income versus operating cash flow, which may obscure the true underlying cash generation capacity of the regulated utility operations.
The accumulation of regulatory assets suggests that the company is effectively financing storm restoration and other operational costs on behalf of customers, with recovery occurring only after lengthy regulatory proceedings. This creates a disconnect between reported earnings and actual cash inflows, warranting further investigation into the duration and certainty of these recovery mechanisms.
Quick answers to the most common questions about buying ETR stock.
Entergy Corporation (ETR) generated $5.15B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Entergy Corporation (ETR) reported negative free cash flow of $2.79B in 2025, indicating capital requirements exceeded cash from operations.
Entergy Corporation (ETR) spent $7.94B 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, Entergy Corporation (ETR) returned $1.09B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.