Cash flow generation remains highly erratic, highlighted by a sharp reversal to negative $2.1 billion in operating cash flow during 2025Q4, largely driven by massive $5.6 billion provision spikes.
| Metric | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 |
|---|
| Cash from Operations | 0 | 3B | 2.87B | 2.95B | 3.26B | 3.64B | 3.72B | 3.96B | 2.74B | 3.04B | 3.31B | 2.98B | 2.6B | 2.57B | 2.44B | 1.9B | 2.14B | 1.96B | 1.76B | 2.01B | 1.46B |
| Operating CF Growth % | -100% | 4.56% | -2.58% | -9.46% | -10.45% | -2.26% | -5.94% | 44.55% | -10.06% | -8.24% | 11.24% | 14.75% | 0.89% | 5.62% | 28.2% | -11.21% | 9.4% | 11% | -12.46% | 37.76% | - |
| Net Income | 0 | 1.14B | 500M | 1.11B | 1.51B | 1.35B | 1.42B | 1.12B | 685M | 1.23B | 1.11B | 469M | 271M | 60M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation & Amortization | 0 | 2.52B | 2.64B | 2.42B | 1.94B | 2.24B | 1.75B | 2.55B | 1.76B | 1.88B | 2.08B | 1.89B | 1.72B | 1.95B | 1.79B | 238M | 338M | 296M | 223M | 217M | 236M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -16M | -18M | 6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 0 | -578M | -482M | -1M | -200M | -200M | 690M | 187M | 193M | -17M | 198M | 513M | 757M | 575M | 761M | 1.88B | 1.86B | 1.91B | 1.63B | 1.98B | 1.29B |
| Working Capital Changes | 0 | -78M | 217M | -582M | 6M | 248M | -135M | 95M | 95M | -40M | -53M | 104M | -154M | -8M | -116M | -218M | -60M | -250M | -86M | -186M | -69M |
| Cash from Investing | 13M | -3.59B | -2.99B | -2.66B | -2.34B | -2.02B | -2.24B | -2.27B | -2.54B | -3.11B | -3.58B | -2.76B | -2.38B | -2.51B | -3.14B | -2.46B | -2.27B | -2.3B | -1.66B | -1.73B | -1.19B |
| Purchase of Investments | 0 | 0 | 0 | -51M | -50M | -49M | -48M | -49M | -49M | 0 | -52M | 0 | -6M | -2M | -21M | -42M | -42M | -39M | -44M | 0 | 0 |
| Sale/Maturity of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4M | 8M | 0 | 0 | 0 | 9M | 10M | 11M | 0 | 0 | 0 | 0 | 0 | 335M |
| Net Investment Activity | 0 | 0 | 0 | -51M | -50M | -49M | -48M | -45M | -41M | 0 | -52M | 0 | 3M | 8M | -10M | -42M | -42M | -39M | -44M | 0 | 335M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11M | 13M | 18M | 59M | 74M |
| Other Investing | 0 | -16M | -40M | 32M | 29M | 19M | -21M | -8M | -37M | -103M | 9M | -46M | -50M | -2.16B | -499M | 0 | -31M | 23M | 33M | -110M | -117M |
| Cash from Financing | 0 | 590M | 123M | -283M | -921M | -1.42B | -1.48B | -1.69B | -200M | 71M | 70M | -1.33B | 522M | 300M | 884M | 684M | 112M | 390M | -473M | -289M | -255M |
| Dividends Paid | 0 | 0 | 0 | 0 | 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 | -5M | -5M | -6M | -5M | -14M | -27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5M | -5M | -6M | -5M | -14M | -27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 0 | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K |
| Other Financing | 0 | 732M | -745M | 389M | 730M | -875M | -315M | -7M | -21M | -25M | -43M | 4M | -40M | -16M | -4M | 1.61B | -67M | 218M | -51M | -53M | -48M |
| Net Change in Cash | 0 | 2M | 1M | 2M | -3M | 199M | 0 | -1M | 0 | 0 | -200M | -1.1B | 734M | 361M | 179M | 127M | -12M | 48M | -371M | -2M | 19M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 0 | 521M | 520M | 518M | 521M | 322M | 322M | 300M | 300M | 300M | 500M | 1.6B | 868M | 507M | 328M | 201M | 213M | 165M | 536M | 538M | 519M |
| Cash at End | 0 | 523M | 521M | 520M | 518M | 521M | 322M | 299M | 300M | 300M | 300M | 500M | 1.6B | 868M | 507M | 328M | 201M | 213M | 165M | 536M | 538M |
| Interest Paid | 0 | 1.1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 13M | -572M | -82M | 304M | 939M | 1.65B | 1.55B | 1.74B | 278M | 32M | -227M | 270M | 259M | 94M | -196M | -515M | -62M | -339M | 95M | 338M | -18M |
| FCF Growth % | 102.27% | -597.56% | -126.97% | -67.63% | -43.13% | 6.79% | -11.1% | 525.54% | 768.75% | 114.1% | -184.07% | 4.25% | 175.53% | 147.96% | 61.94% | -730.65% | 81.71% | -456.84% | -71.89% | 1977.78% | - |
Regulatory cost recovery lag
As reported in recent financial statements, TVC's net income volatility, including a $745 million loss in 2025Q4, suggests that the entity's ability to generate organic capital is currently constrained by significant non-recurring charges and the ongoing burden of maintaining a massive, aging generation infrastructure fleet.
The erratic nature of net income, which swung from a $408 million profit in 2025Q2 to a substantial loss by year-end, indicates that internal capital generation is highly sensitive to accounting adjustments and operational contingencies. Investors should monitor whether this volatility impairs the entity's long-term capacity to fund necessary infrastructure upgrades without further reliance on external debt markets.
Based on the provided quarterly data, provision expenses surged to $5.6 billion in 2025Q4, a dramatic increase from the $1.5 billion to $1.8 billion range observed in prior periods, which may indicate an aggressive shift in how the entity accounts for future operational or credit-related contingencies.
This sharp escalation in provisions appears to be a primary driver of the negative cash flow observed in the most recent quarter. Such a significant increase warrants further investigation into whether this reflects a fundamental change in risk assessment or a one-time recognition of deferred liabilities that were previously obscured by regulatory accounting.
According to recent SEC filings, TVC's operating cash flow reached -$2.1 billion in 2025Q4, a stark reversal from the $1.1 billion generated in 2024Q4, highlighting the extreme sensitivity of the entity's cash position to the timing of fuel cost recoveries and large-scale maintenance expenditures.
The disconnect between net income and operating cash flow suggests that the entity's cash position is heavily influenced by working capital swings rather than core operational profitability. This volatility may indicate that the fuel cost adjustment mechanism is not providing the immediate liquidity buffer that stakeholders might expect during periods of high commodity price volatility.
As indicated by the data, the reliance on regulatory accounting under ASC 980 appears to mask the underlying cash-generating volatility, as evidenced by the erratic OCF/NI ratios that reached -10.72 in 2023Q3 and 2.79 in 2025Q4, complicating traditional cash flow analysis for this federal entity.
The use of regulatory assets and liabilities effectively smooths reported earnings but creates a divergence from actual cash flows that can mislead investors regarding the entity's true financial health. Analysts should treat reported net income with caution, as it likely fails to capture the full impact of the capital-intensive nature of the business on available liquidity.
Quick answers to the most common questions about buying TVC stock.
Tennessee Valley Authority (TVC) generated $0.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tennessee Valley Authority (TVC) generated $13.0M 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.
Tennessee Valley Authority (TVC) spent $13.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.