The entity's profitability is severely strained, evidenced by a 2025Q4 net loss of $745 million and a negative interest margin that has persisted at -0.5% for most of the observed period.
| 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 |
|---|
| Net Interest Income | -1.2B | -1.02B | -1.02B | -15M | -12M | -1.12B | -25M | -1.24B | -1.35B | -1.37B | -1.35B | -1.34B | -1.2B | -1.44B | -1.43B | -1.35B | -1.27B | -1.38B | -1.18B | -1.22B | -1.26B |
| NII Growth % | -16.8% | -0.2% | -6713.33% | -25% | 98.93% | -4396% | 97.99% | 7.65% | 1.82% | -1.78% | -0.22% | -11.72% | 16.69% | -0.91% | -5.76% | -6.37% | 7.56% | -16.22% | 2.55% | 3.65% | - |
| Net Interest Margin % | - | -1.77% | -1.99% | -0.03% | -0.02% | -2.13% | -0.05% | -2.55% | -2.69% | -2.72% | -2.76% | -2.95% | -2.61% | -3.05% | -3.08% | -3.16% | -3.18% | -3.71% | -3.49% | -3.52% | -3.66% |
| Interest Income | 0 | 0 | 0 | 1.04B | 1.08B | 0 | 1.17B | 0 | 0 | 0 | 0 | 0 | 23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.2B | 1.07B | 1.06B | 1.05B | 1.09B | 1.12B | 1.2B | 1.24B | 1.35B | 1.37B | 1.35B | 1.34B | 1.23B | 1.44B | 1.43B | 1.35B | 1.27B | 1.38B | 1.18B | 1.22B | 1.26B |
| Loan Loss Provision | -1.2B | 6.31B | 6.48B | 6.4B | 4.52B | 4.05B | 4.63B | 4.63B | 5.18B | 4.56B | 4.88B | 5.82B | 2.62B | 2.42B | 2.92B | 5.1B | 3.47B | 2.8B | 2.2B | 2.12B | 1.34B |
| Non-Interest Income | 13.67B | 12.31B | 12.05B | 11.5B | 9.43B | 10.25B | 10.14B | 11.23B | 10.74B | 10.62B | 11B | 11.14B | 10.93B | 11.22B | 11.84B | 10.87B | 11.26B | 10.38B | 9.19B | 9.19B | 7.79B |
| Non-Interest Income % | 100% | 100% | 100% | 91.73% | 89.76% | 100% | 89.64% | 100% | 100% | 100% | 100% | 100% | 99.79% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Revenue | 13.67B | 12.31B | 12.05B | 12.54B | 10.5B | 10.25B | 11.32B | 11.23B | 10.74B | 10.62B | 11B | 11.14B | 10.96B | 11.22B | 11.84B | 10.87B | 11.26B | 10.38B | 9.19B | 9.19B | 7.79B |
| Revenue Growth % | 11.03% | 2.16% | -3.88% | 19.39% | 2.48% | -9.45% | 0.76% | 4.6% | 1.16% | -3.52% | -1.2% | 1.65% | -2.35% | -5.24% | 8.89% | -3.39% | 8.41% | 13.01% | 0.02% | 17.85% | - |
| Non-Interest Expense | 11.1B | 2.71B | 2.82B | 2.68B | 2.05B | 2.37B | 2.9B | 3.04B | 2.24B | 2.36B | 2.56B | 2.38B | 5.66B | 6.05B | 6.05B | 2.18B | 4.54B | 4.02B | 4.34B | 4.25B | 3.9B |
| Efficiency Ratio | 81.21% | 22.01% | 23.39% | 21.35% | 19.53% | 23.09% | 25.67% | 27.11% | 20.88% | 22.21% | 23.23% | 21.4% | 51.62% | 53.93% | 51.1% | 20.06% | 40.31% | 38.74% | 47.25% | 46.26% | 50.06% |
| Operating Income | 2.57B | 2.23B | 1.69B | 2.41B | 2.85B | 2.71B | 3.29B | 2.31B | 1.98B | 2.33B | 2.21B | 1.59B | 1.45B | 1.3B | 1.44B | 2.24B | 1.97B | 2.18B | 1.46B | 1.6B | 1.29B |
| Operating Margin % | 18.79% | 18.09% | 14.05% | 19.23% | 27.09% | 26.45% | 29.06% | 20.58% | 18.39% | 21.91% | 20.13% | 14.27% | 13.26% | 11.59% | 12.14% | 20.62% | 17.53% | 21.04% | 15.94% | 17.45% | 16.56% |
| Operating Income Growth % | 15.31% | 31.52% | -29.74% | -15.25% | 4.94% | -17.57% | 42.26% | 17.06% | -15.09% | 5.01% | 39.4% | 9.36% | 11.77% | -9.53% | -35.91% | 13.63% | -9.66% | 49.18% | -8.67% | 24.17% | - |
| Pretax Income | 1.36B | 1.14B | 500M | 1.11B | 1.51B | 1.35B | 1.42B | 1.12B | 685M | 1.23B | 1.11B | 469M | 1.45B | 1.3B | 1.44B | 2.24B | 1.97B | 2.18B | 1.46B | 1.6B | 1.29B |
| Pretax Margin % | 9.95% | 9.22% | 4.15% | 8.84% | 14.4% | 13.19% | 12.52% | 9.96% | 6.38% | 11.61% | 10.1% | 4.21% | 13.26% | 11.59% | 12.14% | 20.62% | 17.53% | 21.04% | 15.94% | 17.45% | 16.56% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | -196M | 0 | 0 | 0 | 0 | 0 | 1.18B | 1.24B | 1.27B | 1.27B | 1.25B | 1.37B | 1.08B | 1.27B | 1.21B |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | -13.83% | 0% | 0% | 0% | 0% | 0% | 81.35% | 95.38% | 88.73% | 56.65% | 63.2% | 62.59% | 73.84% | 79.48% | 93.42% |
| Net Income | 1.36B | 1.14B | 500M | 1.11B | 1.51B | 1.35B | 1.42B | 1.12B | 685M | 1.23B | 1.11B | 469M | 271M | 60M | 162M | 972M | 726M | 817M | 383M | 329M | 85M |
| Net Margin % | 9.95% | 9.22% | 4.15% | 8.84% | 14.4% | 13.19% | 12.52% | 9.96% | 6.38% | 11.61% | 10.1% | 4.21% | 2.47% | 0.53% | 1.37% | 8.94% | 6.45% | 7.87% | 4.17% | 3.58% | 1.09% |
| Net Income Growth % | 19.82% | 127% | -54.87% | -26.72% | 11.83% | -4.59% | 26.63% | 63.36% | -44.44% | 10.98% | 136.89% | 73.06% | 351.67% | -62.96% | -83.33% | 33.88% | -11.14% | 113.32% | 16.41% | 287.06% | - |
| Net Income (Continuing) | 1.36B | 1.14B | 500M | 1.11B | 1.51B | 1.35B | 1.42B | 1.12B | 685M | 1.23B | 1.11B | 469M | 271M | 60M | 162M | 972M | 726M | 817M | 383M | 329M | 85M |
| EPS (Diluted) | 2590.48 | 2161.90 | 952.38 | 2110.48 | 2880.00 | 2575.24 | 2699.05 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 114.29 | 308.57 | 1851.43 | 1382.86 | 1556.19 | 729.52 | 626.67 | 161.90 |
| EPS Growth % | 19.82% | 127% | -54.87% | -26.72% | 11.83% | -4.59% | - | - | - | - | - | - | -100% | -62.96% | -83.33% | 33.88% | -11.14% | 113.32% | 16.41% | 287.06% | - |
| EPS (Basic) | 2590.48 | 2161.90 | 952.38 | 2110.48 | 2880.00 | 2575.24 | 2699.05 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 114.29 | 308.57 | 1851.43 | 1382.86 | 1556.19 | 729.52 | 626.67 | 161.90 |
| Diluted Shares Outstanding | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 0 | 0 | 0 | 0 | 0 | 0 | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K |
Regulatory cost recovery lag
As reported in recent financial statements, TVC's net interest income has remained consistently negative, reaching -$316 million in 2025Q4, which highlights the structural burden of debt servicing costs that significantly outweigh interest-bearing asset yields within the entity's unique federal corporate financial framework.
The persistent negative net interest income suggests that the cost of capital required to maintain massive generation infrastructure is currently outpacing the interest income generated from its financial holdings. Investors should monitor whether this trend reflects a deliberate strategy to prioritize capital investment over interest-bearing asset accumulation or if it indicates an underlying strain on liquidity.
Based on the provided quarterly data, provision expenses surged to $5.6 billion in 2025Q4, a substantial increase from the $1.5 billion to $1.8 billion range observed in previous periods, suggesting a potential shift in how the entity accounts for future credit or operational contingencies.
This sharp spike in provisioning warrants further investigation, as it appears to be the primary driver behind the net loss reported in the final quarter of 2025. Such volatility may indicate an adjustment in risk assessment models or the recognition of significant environmental or regulatory liabilities that were previously deferred.
According to the latest filings, the efficiency ratio reached -75.9% in 2025Q4, a stark departure from the 20% to 24% range maintained throughout the prior two years, reflecting the impact of non-recurring charges on the entity's ability to manage operating expenses relative to revenue.
The extreme fluctuation in the efficiency ratio suggests that standard operating leverage metrics are currently unreliable due to the lumpy nature of provision expenses and regulatory accounting adjustments. Analysts should look past these headline figures to assess the underlying cost-to-serve trends for the wholesale power distribution business.
As indicated by the data, the entity's net income swung from a $408 million profit in 2025Q2 to a $745 million loss by 2025Q4, demonstrating that the reliance on regulatory accounting under ASC 980 may be masking the true volatility of the underlying cash-generating operations.
The disconnect between revenue stability and bottom-line volatility suggests that investors should be cautious when interpreting net income as a proxy for operational health. The potential for future regulatory asset impairments remains a significant risk that could further pressure the entity's ability to self-finance its capital-intensive generation fleet.
Quick answers to the most common questions about buying TVC stock.
Tennessee Valley Authority (TVC) is profitable, generating $1.36B in net income for the fiscal year ending 2025 with a net profit margin of 9.9%.
Tennessee Valley Authority (TVC) reported an operating income of $2.57B, resulting in an operating profit margin of 18.8%. This margin reflects the operational efficiency of the business before interest and taxes.