Dividend coverage remains structurally sound with an OCF-to-dividend ratio of 2.1x in 2026Q1, despite a high capital expenditure cycle that saw $621 million deployed in the same period.
| 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 | 2.95B | 2.37B | 2.13B | 3.81B | 1.5B | 1.74B | 3.1B | 3.38B | 2.91B | 3.26B | 3.31B | 3.92B | 3.16B | 3.16B | 2.79B | 3.56B | 2.16B | 1.85B | 2.35B | 1.92B | 1.93B | 970M | 1.61B | 1.49B | 1.29B | 1.23B | 1.14B | 1.23B | 1.5B | 1.09B | 1.47B |
| Operating CF Growth % | 131.09% | 11.02% | -43.96% | 153.23% | -13.42% | -44.04% | -8.2% | 16% | -10.64% | -1.6% | -15.46% | 24.02% | 0.06% | 13.31% | -21.65% | 64.37% | 16.66% | -20.9% | 22.26% | -0.67% | 99.07% | -39.6% | 7.57% | 16.01% | 4.72% | 8.19% | -7.79% | -17.81% | 36.9% | -25.51% | -4.23% |
| Operating CF / Revenue % | 23.07% | 19.46% | 20.73% | 33.87% | 15.34% | 17.86% | 32.3% | 33.54% | 30.04% | 35.89% | 36.56% | 37.63% | 29.03% | 31.68% | 28.49% | 32.11% | 18.35% | 14.95% | 17.6% | 14.92% | 15.87% | 7.8% | 14.61% | 13.43% | 15.34% | 12.52% | 16.59% | 18.96% | 25.27% | 17.19% | 24.33% |
| Net Income | 2.26B | 2.11B | 1.77B | 2.56B | 1.03B | -648M | 1.91B | 1.69B | 1.44B | 1.57B | 887M | 1.68B | 1.52B | 1.24B | 1.27B | 1.38B | 1.56B | 1.59B | 1.19B | 1.33B | 739M | 661M | 726M | 1.16B | 235M | 770M | 764M | 723M | 644M | 560M | 612M |
| Depreciation & Amortization | 1.06B | 1.1B | 1.37B | 1.32B | 1.28B | 1.4B | 1.47B | 1.43B | 1.34B | 2.19B | 1.68B | 1.43B | 1.43B | 1.37B | 1.23B | 1.14B | 1.11B | 838M | 793M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 160M | 38M | 263M | 355M | -261M | -845M | 139M | 180M | 568M | -167M | 474M | 685M | 515M | 270M | 721M | 811M | 1.11B | 326M | 71M | 119M | -89M | 224M | 167M | 365M | -139M | -118M | -11M | -215M | -55M | 47M | 65M |
| Other Non-Cash Items | -397M | -1.07B | -671M | -1.74B | 297M | 2.92B | -705M | -192M | -209M | -251M | 222M | -97M | -121M | -43M | -322M | -690M | -706M | -1.12B | 219M | 633M | 1.14B | 740M | 688M | 396M | 1.37B | 394M | 686M | 827M | 952M | 667M | 697M |
| Working Capital Changes | -133M | 190M | -604M | 1.31B | -847M | -1.1B | 294M | 272M | -229M | -81M | 51M | 225M | -179M | 318M | -114M | 920M | -910M | 221M | 74M | -169M | 146M | -655M | 25M | -428M | -177M | 183M | -303M | -103M | -42M | -179M | 96M |
| Capital Expenditures | -3.02B | -2.04B | -3.38B | -3.33B | -2.89B | -2.72B | -3.03B | -3.26B | -4.06B | -4.31B | -4.3B | -3.97B | -2.92B | -2.81B | -2.57B | -2.08B | -2.16B | -1.79B | -1.77B | -1.35B | -1.01B | -1.05B | -1.25B | -1.4B | -1.55B | -3.6B | -1.61B | -1.63B | -531M | -1.61B | -586M |
| CapEx / Revenue % | 15.91% | 16.79% | 32.85% | 29.59% | 29.47% | 27.97% | 30.44% | 31.42% | 40.35% | 46.13% | 46.34% | 37.09% | 25.9% | 28.2% | 26.32% | 18.8% | 18.32% | 14.46% | 13.29% | 10.49% | 8.34% | 8.47% | 11.34% | 12.61% | 18.46% | 36.7% | 23.53% | 25.12% | 8.95% | 25.34% | 9.7% |
| CapEx / D&A | 1.92x | 1.85x | 2.46x | 2.51x | 2.25x | 1.94x | 1.99x | 2.22x | 2.91x | 1.92x | 2.50x | 2.71x | 1.98x | 2.05x | 2.10x | 1.84x | 1.95x | 2.14x | 2.23x | - | - | - | - | - | - | - | - | - | - | - | - |
| CapEx Coverage (OCF/CapEx) | 1.45x | 1.16x | 0.63x | 1.14x | 0.52x | 0.64x | 1.06x | 1.07x | 0.74x | 0.78x | 0.79x | 1.01x | 1.12x | 1.12x | 1.08x | 1.71x | 1.00x | 1.03x | 1.32x | 1.42x | 1.90x | 0.92x | 1.29x | 1.06x | 0.83x | 0.34x | 0.71x | 0.75x | 2.82x | 0.68x | 2.51x |
| Cash from Investing | -3.35B | -2.85B | -3.31B | -2.96B | -1.1B | -2.24B | -2.68B | -3.15B | -3.92B | -4.26B | -4.25B | -3.94B | -2.89B | -2.8B | -2.63B | -1.27B | -1.67B | -792M | -775M | -1M | -243M | -405M | -754M | -1.5B | -1.72B | -3.6B | -1.61B | -1.63B | -748M | -1.61B | -9M |
| Acquisitions | 0 | 0 | 0 | 291M | -124M | -111M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 687M | 0 | 0 | 925M | 0 | 0 | 0 | 0 | 0 | -288M | -832M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -411M | -410M | 0 | 0 | 0 | -2.09B | -2.25B | -1.81B | -1.47B | -2.34B | -856M | -1.55B | -1.93B | -1.17B | -1.7B | -1.39B | -1.14B | -1.8B | -3.09B | 0 | 0 | 0 | 0 | 0 | 0 | -709M | -603M | -980M | -92M | 0 | 0 |
| Sale of Investments | 404M | 394M | 0 | 0 | 0 | 2.1B | 2.23B | 1.79B | 1.5B | 2.32B | 824M | 1.5B | 1.92B | 1.16B | 1.67B | 1.35B | 1.12B | 2.77B | 3.13B | 0 | 0 | 315M | 438M | 30M | 398M | 132M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.31B | -786M | 74M | 76M | 1.91B | 578M | 263M | 48M | -32M | -45M | -17M | -28M | -53M | 21M | -17M | 158M | 515M | 35M | 38M | 1.35B | 772M | 333M | 55M | -123M | -276M | -82M | -49M | -70M | -125M | -1.07B | 577M |
| Cash from Financing | -197M | 490M | 1.23B | -1.26B | -754M | 799M | -30M | -257M | 887M | 885M | 966M | 15M | -359M | -243M | -617M | -1.73B | -565M | -1.03B | -1.63B | -1.64B | -1.83B | -542M | -1.03B | 302M | 445M | 2.44B | 318M | 520M | -695M | 323M | -1.24B |
| Dividends Paid | -1.28B | -1.26B | -1.2B | -1.14B | -1.08B | -1.03B | -991M | -950M | -910M | -870M | -830M | -789M | -748M | -728M | -718M | -693M | -693M | -673M | -655M | -594M | -574M | -541M | -522M | -541M | -456M | -448M | -464M | -474M | -499M | -501M | -523M |
| Dividend Payout Ratio % | - | 59.59% | 67.49% | 44.36% | 104.66% | - | 52.02% | 56.11% | 63.28% | 55.27% | 93.57% | 46.99% | 49.28% | 58.57% | 56.31% | 46.11% | 44.31% | 42.27% | 54.95% | - | - | - | - | - | - | - | - | - | - | - | - |
| Debt Issuance (Net) | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 83M | 83M | 533M | 83M | 441M | 967M | 0 | 0 | 0 | 525M | 95M | 208M |
| Share Repurchases | 0 | 0 | 0 | 0 | -500M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -80M | 0 | -92M | 0 | 0 | 0 | 0 | -155M | 0 | -91M | -298M | -400M | -207M | -137M | -519M |
| Other Financing | 356M | 1.24B | -70M | -98M | -6M | -369M | -72M | -56M | -77M | -74M | -79M | -51M | -64M | -61M | -58M | -50M | 30M | -2M | -15M | 27M | -229M | -434M | -50M | -36M | 172M | -723M | 0 | 11M | -51M | -18M | -7M |
| Net Change in Cash | -461M | 13M | 55M | -412M | -352M | 291M | 396M | -23M | -116M | -111M | 31M | -8M | -91M | 114M | -455M | 554M | -70M | 29M | -59M | 275M | -147M | 25M | -179M | 302M | 4M | 71M | -157M | 120M | 56M | -196M | 217M |
| Exchange Rate Effect | 139M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1M | 2M | 1M | 2M | -13M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 176M | 108M | 99M | 511M | 863M | 572M | 176M | 199M | 315M | 426M | 395M | 402M | 493M | 379M | 834M | 280M | 350M | 321M | 380M | 106M | 288M | 263M | 442M | 150M | 167M | 96M | 259M | 139M | 83M | 279M | 62M |
| Cash at End | 428M | 121M | 154M | 99M | 511M | 863M | 572M | 176M | 199M | 315M | 426M | 394M | 402M | 493M | 379M | 834M | 280M | 350M | 321M | 381M | 141M | 288M | 263M | 452M | 171M | 167M | 102M | 259M | 139M | 83M | 279M |
| Free Cash Flow | -64M | 325M | -1.25B | 481M | -1.39B | -983M | 68M | 115M | -1.15B | -1.05B | -985M | -50M | 239M | 347M | 213M | 1.47B | 4M | 61M | 574M | 570M | 916M | -83M | 359M | 91M | -262M | -2.37B | -475M | -400M | 968M | -519M | 884M |
| FCF Growth % | 90.72% | 126.06% | -359.25% | 134.73% | -40.9% | -1545.59% | -40.87% | 110.04% | -9.36% | -6.29% | -1870% | -120.92% | -31.12% | 62.91% | -85.55% | 36750% | -93.44% | -89.37% | 0.7% | -37.77% | 1203.61% | -123.12% | 294.51% | 134.73% | 88.96% | -399.58% | -18.75% | -141.32% | 286.51% | -158.71% | -0.11% |
| FCF Margin % | -0.5% | 2.67% | -12.12% | 4.28% | -14.13% | -10.11% | 0.71% | 1.14% | -11.81% | -11.53% | -10.87% | -0.48% | 2.2% | 3.48% | 2.18% | 13.3% | 0.03% | 0.49% | 4.31% | 4.43% | 7.53% | -0.67% | 3.26% | 0.82% | -3.12% | -24.18% | -6.94% | -6.16% | 16.32% | -8.15% | 14.63% |
| FCF / Net Income % | -2.83% | 15.4% | -70.37% | 18.77% | -134.34% | 151.7% | 3.57% | 6.79% | -79.62% | -66.52% | -111.05% | -2.98% | 15.74% | 27.92% | 16.71% | 98.07% | 0.26% | 3.83% | 48.15% | 42.7% | 123.95% | -12.56% | 49.45% | 7.84% | -106.94% | -308.18% | -62.17% | 493.83% | 150.31% | -92.68% | 144.54% |
Regulatory Rate Case Lag
As reported in recent financial statements, PEG consistently maintains a high CapEx-to-OCF ratio, which peaked at 173.7% in 2024Q2, reflecting the company's aggressive commitment to grid modernization and infrastructure investment necessary to support long-term rate base expansion within the New Jersey regulatory framework.
The persistent negative free cash flow is a structural feature of PEG's growth strategy rather than an operational failure. By prioritizing heavy capital deployment, the company is effectively expanding the asset base upon which it earns a regulated return, provided the NJBPU continues to approve timely cost recovery.
According to the provided cash flow data, PEG frequently utilizes external debt markets to bridge the gap between operating cash flow and capital requirements, with periodic issuance of long-term debt suggesting that the company maintains sufficient access to capital to fund its ongoing multi-year infrastructure investment programs.
The company's ability to tap debt markets appears to be a critical component of its liquidity management, especially given the cyclical nature of its large-scale project spending. Investors should monitor whether interest rate environments or shifts in credit ratings might increase the cost of this essential external financing.
Based on the reported quarterly figures, PEG maintains a consistent OCF-to-dividend coverage ratio, which reached a high of 3.3x in 2025Q3, indicating that the core regulated utility operations generate sufficient cash to support the current dividend payout despite the company's significant ongoing capital expenditure requirements.
The dividend appears well-supported by the predictable cash flows inherent in the regulated utility model. While the company faces substantial cash outflows for growth, the stability of the dividend suggests management prioritizes shareholder returns alongside its regulatory obligations to maintain the grid.
As evidenced by the variance between net income and operating cash flow, PEG's financial statements may obscure the impact of regulatory lag, where significant capital investments are made well in advance of the NJBPU's approval for full cost recovery through customer rate increases.
The gap between accounting earnings and actual cash generation warrants further investigation into the timing of rate case settlements. If the regulatory environment becomes more adversarial, the delay in recovering these massive capital outlays could create temporary liquidity pressure that is not immediately apparent in the headline net income figures.
Quick answers to the most common questions about buying PEG stock.
Public Service Enterprise Group Incorporated (PEG) generated $2.37B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Public Service Enterprise Group Incorporated (PEG) generated $325.0M 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.
Public Service Enterprise Group Incorporated (PEG) spent $2.04B 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, Public Service Enterprise Group Incorporated (PEG) returned $1.26B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.