Capital expenditure reached $1.1 billion in 2026Q1, representing 189.9% of operating cash flow and highlighting the company's ongoing dependency on external capital markets.
| 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 | 2.67B | 2.63B | 2.34B | 1.76B | 1.73B | 2.27B | 2.75B | 2.43B | 2.82B | 2.46B | 2.89B | 2.58B | 3.4B | 2.86B | 2.72B | 2.51B | 2.03B | 1.85B | 1.59B | 1.57B | 1.76B | 1.39B | 1.44B | 1.34B | 796M | 908M | 865M | 644M | 637M | 777M | 793M |
| Operating CF Growth % | 18.1% | 12.35% | 33.11% | 1.62% | -23.79% | -17.33% | 13.14% | -13.97% | 14.63% | -14.84% | 12.15% | -24.27% | 19.11% | 5.19% | 8.34% | 23.25% | 9.83% | 16.55% | 1.15% | -10.64% | 26.66% | -3.41% | 7.24% | 68.34% | -12.33% | 4.97% | 34.32% | 1.1% | -18.02% | -2.02% | 14.55% |
| Operating CF / Revenue % | 28.7% | 29.08% | 27.65% | 21.15% | 21.89% | 39.25% | 50.16% | 43.32% | 36.24% | 33.05% | 38.45% | 33.6% | 43.34% | 39.34% | 22.39% | 19.68% | 23.87% | 24.86% | 19.85% | 24.18% | 28.67% | 25.06% | 24.97% | 23.99% | 14.52% | 17.75% | 19.03% | 14.03% | 16.83% | 25.25% | 27.25% |
| Net Income | 1.22B | 1.18B | 888M | 740M | 714M | 18M | 640M | 736M | 1.83B | 1.13B | 1.9B | 1.6B | 1.44B | 1.37B | 1.53B | 1.51B | 959M | 426M | 950M | 1.29B | 865M | 678M | 698M | 734M | 208M | 179M | 513M | 504M | 404M | 320M | 357M |
| Depreciation & Amortization | 1.47B | 1.42B | 1.36B | 1.33B | 1.23B | 1.12B | 1.08B | 1.01B | 1.17B | 1.1B | 1.01B | 942M | 988M | 909M | 1.29B | 1.22B | 780M | 860M | 461M | 891M | 755M | 721M | 691M | 624M | 487M | 490M | 382M | 212M | 396M | 0 | 0 |
| Deferred Taxes | 248M | 192M | 196M | 322M | 179M | 87M | 169M | 169M | 355M | 707M | 560M | 428M | 666M | 387M | 424M | 582M | 241M | 104M | 43M | 42M | -25M | -66M | 155M | 96M | 85M | -47M | -59M | -43M | 12M | 18M | 0 |
| Other Non-Cash Items | -126M | -87M | -140M | -533M | -41M | 985M | 713M | 656M | -712M | -471M | -522M | -258M | 38M | 420M | -508M | -962M | 409M | 356M | 144M | -384M | -29M | 163M | 4M | -107M | 142M | 407M | -49M | 53M | -40M | 409M | 513M |
| Working Capital Changes | -136M | -79M | -7M | -139M | -392M | 22M | 115M | -177M | 153M | -46M | -84M | -131M | 210M | -228M | -18M | 160M | -356M | 106M | -9M | -266M | 192M | -108M | -51M | -7M | -120M | -138M | 78M | -82M | -135M | 30M | -77M |
| Capital Expenditures | -4.29B | -4.03B | -2.81B | -2.39B | -5.65B | 7.96B | -2.27B | -3.08B | -3.24B | -3.13B | -2.92B | -3.53B | -3.67B | -4.21B | -3.1B | -7.95B | -8.23B | -1.23B | -1.42B | -1.69B | -1.39B | -811M | -734M | -771M | -1.13B | -565M | -751M | -1.18B | -485M | -310M | -360M |
| CapEx / Revenue % | 46.12% | 44.57% | 33.15% | 28.75% | 71.55% | 137.59% | 59.35% | 55.03% | 41.59% | 42.58% | 39.34% | 46.06% | 53.3% | 59.3% | 25.2% | 62.43% | 96.57% | 17.41% | 21.86% | 25.93% | 22.74% | 14.64% | 12.76% | 13.8% | 20.6% | 11.05% | 16.52% | 25.69% | 12.81% | 10.07% | 12.37% |
| CapEx / D&A | 2.92x | 2.83x | 2.07x | 1.79x | 4.59x | 7.10x | 3.01x | 3.06x | 2.76x | 2.87x | 2.94x | 3.75x | 4.24x | 4.74x | 2.38x | 6.54x | 10.55x | 1.51x | 3.80x | 1.89x | 1.85x | 1.12x | 1.06x | 1.24x | 2.32x | 1.15x | 1.97x | 5.56x | 1.22x | - | - |
| CapEx Coverage (OCF/CapEx) | 0.62x | 0.65x | 0.83x | 0.74x | 0.31x | 0.29x | 0.85x | 0.79x | 0.87x | 0.78x | 0.98x | 0.73x | 0.81x | 0.66x | 0.89x | 0.32x | 0.25x | 1.43x | 0.91x | 0.93x | 1.26x | 1.71x | 1.96x | 1.74x | 0.71x | 1.61x | 1.15x | 0.55x | 1.31x | 2.51x | 2.20x |
| Cash from Investing | -4.27B | -4B | -2.82B | -2.38B | -5.65B | 7.96B | -3.26B | -3.08B | -3.36B | -3.16B | -2.93B | -3.59B | -3.33B | -4.29B | -3.12B | -7.95B | -8.23B | -880M | -1.63B | -614M | -1.62B | -779M | -778M | -729M | -1.13B | -702M | -751M | -1.18B | -485M | -291M | -432M |
| Acquisitions | 0 | 0 | 0 | 0 | -3.51B | 10.56B | 0 | 0 | 0 | 0 | 0 | 0 | 900M | -95M | -84M | -5.76B | 161M | 81M | 444M | 898M | 110M | 190M | 21M | 0 | -211M | 0 | 0 | 0 | 54M | 60M | 93M |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -55M | -65M | 0 | 0 | 0 | -290M | -159M | -154M | -169M | -128M | -36M | -514M | -601M | -923M | -355M | -130M | 0 | 0 | -312M | -11M | 0 | -15M | -72M | -600M |
| Sale of Investments | 0 | 0 | 0 | 0 | 146M | 0 | 9M | 69M | 0 | 0 | 2M | 136M | 154M | 144M | 159M | 319M | 114M | 154M | 392M | 860M | 611M | 341M | 74M | 0 | 0 | 0 | 0 | 0 | 70M | 187M | 631M |
| Other Investing | 28M | 26M | -13M | 7M | -131M | -630M | -18M | -11M | -64M | -28M | -8M | -191M | -435M | -651M | 81M | 148M | 32M | 136M | -114M | -86M | -21M | 46M | 33M | 42M | -270M | 175M | -280M | -861M | -236M | -96M | -103M |
| Cash from Financing | 2.5B | 2.12B | 435M | 650M | 709M | -7.39B | 386M | 836M | 690M | 824M | -439M | 68M | 583M | 1.63B | 48M | 5.77B | 6.31B | -1.27B | 721M | -1.33B | 95M | -676M | -578M | -387M | -357M | 267M | 233M | 473M | -7M | -537M | -280M |
| Dividends Paid | -806M | -794M | -747M | -704M | -787M | -1.28B | -1.27B | -1.19B | -1.13B | -1.07B | -1.03B | -1B | -967M | -878M | -833M | -746M | -566M | -517M | -491M | -459M | -409M | -347M | -299M | -287M | -261M | -201M | -177M | -180M | -278M | -298M | -296M |
| Dividend Payout Ratio % | - | 67.23% | 84.12% | 95.14% | 104.1% | - | 86.79% | 68.27% | 62.01% | 95.04% | 54.15% | 147.21% | 55.67% | 77.7% | 54.59% | 49.9% | 60.34% | 127.03% | 52.8% | 35.15% | 49.46% | 51.18% | 42.67% | 37.61% | 94.91% | 87.01% | 33.78% | 39.3% | - | 93.13% | 82.91% |
| Debt Issuance (Net) | 4M | 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 | 401M | 401M | 0 | 0 | 0 | 9M | 0 | 1.17B | 698M | 453M | 144M | 203M | 1.07B | 1.41B | 72M | 2.3B | 2.44B | 60M | 19M | 32M | 266M | 37M | 596M | 426M | 587M | 56M | 35M | 8M | 62M | 76M | 77M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -74M | -250M | 0 | -54M | 0 | -38M | -712M | 0 | 0 | 0 | -31M | -250M | 0 | 0 | -416M | -419M | -369M | 0 |
| Other Financing | -66M | -67M | -23M | -51M | -6M | -72M | 458M | -26M | -20M | -19M | 6M | -461M | 1.34B | 1.29B | -130M | -92M | -206M | -44M | -24M | -17M | -39M | -26M | -12M | -35M | -21M | 480M | -127M | -71M | -1M | -20M | -1M |
| Net Change in Cash | 911M | 747M | -43M | 25M | -3.21B | 3.13B | -375M | 193M | 132M | 144M | -495M | -563M | 649M | 201M | -301M | 277M | 124M | -299M | 670M | -364M | 239M | -61M | 150M | 231M | -688M | 470M | 347M | -62M | 145M | -51M | 81M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 292M | -249M | 10M | -18M | 15M | -28M | -10M | -8M | 8M | 10M | -45M | 13M | 0 | -13M | 5M | 3M | 6M | 9M | 7M | 2M | -3M | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 1.09B | 339M | 382M | 357M | 3.57B | 443M | 818M | 643M | 511M | 341M | 836M | 1.4B | 1.1B | 901M | 1.2B | 925M | 801M | 1.1B | 430M | 794M | 555M | 616M | 466M | 245M | 933M | 480M | 133M | 195M | 50M | 101M | 20M |
| Cash at End | 1.25B | 1.09B | 339M | 382M | 357M | 3.57B | 443M | 836M | 643M | 485M | 341M | 836M | 1.75B | 1.1B | 901M | 1.2B | 925M | 801M | 1.1B | 430M | 794M | 555M | 616M | 476M | 245M | 950M | 480M | 133M | 195M | 50M | 101M |
| Free Cash Flow | -1.62B | -1.4B | -465M | -632M | -3.92B | 10.23B | 476M | -656M | -417M | -710M | -67M | -955M | -782M | -1.45B | -341M | -5.45B | -6.2B | 555M | -161M | -114M | 364M | 577M | 703M | 569M | -333M | 343M | 114M | -535M | 152M | 467M | 433M |
| FCF Growth % | -276.33% | -201.29% | 26.42% | 83.89% | -138.37% | 2048.53% | 172.56% | -57.31% | 41.27% | -959.7% | 92.98% | -22.12% | 46.07% | -325.22% | 93.74% | 12.11% | -1216.22% | 444.72% | -41.23% | -131.32% | -36.92% | -17.92% | 23.55% | 270.87% | -197.08% | 200.88% | 121.31% | -451.97% | -67.45% | 7.85% | 49.57% |
| FCF Margin % | -17.42% | -15.49% | -5.5% | -7.6% | -49.66% | 176.85% | 8.7% | -11.71% | -5.36% | -9.53% | -0.89% | -12.45% | -9.96% | -19.96% | -2.81% | -42.75% | -72.7% | 7.45% | -2.01% | -1.75% | 5.94% | 10.42% | 12.22% | 10.19% | -6.08% | 6.71% | 2.51% | -11.66% | 4.01% | 15.18% | 14.88% |
| FCF / Net Income % | -133.06% | -118.63% | -52.36% | -85.41% | -519.05% | -691.01% | 32.4% | -37.57% | -22.82% | -62.94% | -3.52% | -140.03% | -45.02% | -128.32% | -22.35% | -364.21% | -660.45% | 136.36% | -17.31% | -8.73% | 44.01% | 85.1% | 101.01% | 74.57% | -121.09% | 148.48% | 21.76% | -116.81% | -27.94% | 145.94% | 121.29% |
Regulatory recovery lag risk
According to the provided quarterly data, PPL's capital expenditure reached $1.1 billion in 2026Q1, representing a significant 189.9% of operating cash flow, which underscores the company's commitment to expanding its regulated rate base through intensive grid modernization and generation fleet transition projects.
The elevated CapEx-to-OCF ratio is a hallmark of PPL's current growth phase, indicating that the company is prioritizing long-term asset base expansion over immediate cash generation. Investors should interpret this as a deliberate strategy to secure future earnings growth, provided that the regulatory commissions continue to authorize timely recovery of these massive capital outlays.
As reported in financial statements, PPL consistently maintains a free cash flow deficit, with a $501 million shortfall in 2026Q1, necessitating ongoing reliance on external capital markets to bridge the gap between heavy infrastructure investment requirements and internal cash generation capabilities.
The persistent negative free cash flow is expected for a utility of this scale, but it highlights the critical importance of PPL's access to debt markets at favorable rates. Any tightening in credit conditions or a potential increase in the cost of capital could compress the net spread between the allowed ROE and the cost of financing these projects.
Based on the reported figures, PPL maintained an OCF-to-dividend coverage ratio of 2.8x in 2026Q1, suggesting that despite the significant cash burn associated with its capital expenditure program, the company continues to prioritize shareholder distributions supported by its core regulated operating cash flows.
While the coverage ratio appears healthy, the sustainability of the dividend is intrinsically linked to the company's ability to successfully navigate rate cases across its three jurisdictions. Analysts should monitor whether the regulatory environment remains supportive enough to allow for both the aggressive capital investment plan and the current dividend payout trajectory.
Analysis of the cash flow statement reveals that PPL's operating cash flow is subject to significant quarterly volatility, with figures ranging from $110 million to $966 million over the last ten quarters, which may reflect the timing of fuel cost recovery and regulatory settlement lags.
The wide variance in operating cash flow suggests that PPL's cash position is sensitive to the timing of regulatory adjustments and seasonal demand fluctuations. This volatility warrants caution, as it may mask underlying operational efficiency trends and could lead to temporary liquidity pressures if rate recovery mechanisms do not align with the timing of capital expenditures.
Quick answers to the most common questions about buying PPL stock.
PPL Corporation (PPL) generated $2.63B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PPL Corporation (PPL) reported negative free cash flow of $1.40B in 2025, indicating capital requirements exceeded cash from operations.
PPL Corporation (PPL) spent $4.03B 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, PPL Corporation (PPL) returned $794.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.