Exelon Corporation (EXC) Cash Flow Statement

The consistent gap between capital spending and operating cash flow is the expected signature of a utility in a heavy T&D investment cycle, not in itself a distress signal. The more relevant question is whether the regulatory construct recovers this spend on a timely basis, since the reported figures show CapEx/OCF peaking near 196% in 2025Q4 when operating cash flow dipped to $1.2B. Investors should monitor whether that quarter reflects timing of rate recovery or a structural lag between investment and cash return.

Negative free cash flow is normal for an entity deploying capital at this pace, so the analytical focus shifts to whether external financing remains available on reasonable terms. The reported long-term debt issuance line is small relative to the deficit, and the supplied data does not disclose the full financing mix, so the funding bridge cannot be fully reconstructed from these figures alone. Investors should monitor the balance between debt and equity issuance and any evidence that refinancing costs are rising.

Operating cash flow coverage of the dividend remains well above one in every reported quarter, which suggests the payout is not reliant on external funding even when free cash flow is negative. This indicates the dividend is sustainable from operations under the reported figures. The quarterly coverage variability tracks the timing of regulatory recovery and working capital swings rather than any deterioration in the underlying dividend base.