Liquidity is under extreme pressure, highlighted by a reversal to negative $2.1 billion in operating cash flow during 2025Q4, significantly diverging from historical norms.
| 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 |
|---|
| Cash from Operations | 0 | 3B | 2.87B | 2.95B | 3.26B | 3.64B | 3.72B | 3.94B | 2.73B | 3.04B | 3.31B | 2.98B | 2.6B | 2.57B | 2.44B | 1.9B | 2.14B | 1.96B |
| Operating CF Growth % | -100% | 4.56% | -2.58% | -9.46% | -10.45% | -2.26% | -5.54% | 44.35% | -10.32% | -8.24% | 11.24% | 14.75% | 0.89% | 5.62% | 28.2% | -11.21% | 9.4% | - |
| Net Income | 0 | 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 |
| Depreciation & Amortization | 0 | 2.52B | 2.61B | 2.42B | 1.94B | 2.24B | 1.75B | 1.97B | 1.93B | 1.94B | 1.89B | 1.89B | 1.87B | 1.84B | 2.06B | 1.74B | 1.62B | 1.24B |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 0 | -578M | -451M | -1M | -200M | -200M | 690M | 886M | -99M | -96M | 249M | 669M | 316M | 670M | 1.33B | -2.87B | -140M | 653M |
| Working Capital Changes | 0 | -78M | 217M | -582M | 6M | 248M | -135M | -39M | 214M | -36M | 68M | -43M | 142M | -42M | -1.11B | 2.06B | -63M | -757M |
| 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 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -49M | -50M | 0 | -48M | -48M | -48M | -56M | -42M | -42M | -39M |
| Sale/Maturity of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -49M | -50M | 0 | -48M | -48M | -48M | -56M | -42M | -42M | -39M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | -16M | -40M | -19M | -21M | -30M | -69M | -53M | -78M | -103M | -43M | -46M | -47M | -33M | -669M | -2.42B | -2.22B | -2.26B |
| Cash from Financing | 0 | 590M | 123M | -283M | -921M | -1.42B | -1.48B | -1.66B | -191M | 71M | 70M | -1.33B | 522M | 300M | 884M | 684M | 112M | 390M |
| Dividends Paid | 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 | -299M | -300M | 0 | -300M | -500M | -1.6B | -868M | -507M | 0 | 0 | 0 |
| Stock Issued | 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 | -299M | -300M | 0 | -300M | -500M | -1.6B | -868M | -507M | 0 | 0 | 0 |
| Debt Issuance (Net) | 0 | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 732M | -745M | 389M | 730M | -875M | -315M | -1.66B | -191M | 71M | 70M | -1.33B | 522M | 300M | 884M | 684M | 112M | 390M |
| Net Change in Cash | 0 | 2M | 1M | 2M | -3M | 199M | 0 | 11M | 11M | 0 | -200M | -1.1B | 734M | 361M | 179M | 127M | -12M | 48M |
| Exchange Rate Effect | 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 | 311M | 300M | 300M | 500M | 1.6B | 868M | 507M | 328M | 201M | 213M | 165M |
| Cash at End | 0 | 523M | 521M | 520M | 518M | 521M | 322M | 322M | 311M | 300M | 300M | 500M | 1.6B | 868M | 507M | 328M | 201M | 213M |
| Interest Paid | 0 | 1.1B | 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 |
| Free Cash Flow | 13M | -572M | -82M | 304M | 939M | 1.65B | 1.55B | 1.72B | 270M | 32M | -227M | 270M | 259M | 94M | 20M | 1.9B | 2.14B | 1.96B |
| FCF Growth % | 102.27% | -597.56% | -126.97% | -67.63% | -43.13% | 6.79% | -10.22% | 537.78% | 743.75% | 114.1% | -184.07% | 4.25% | 175.53% | 370% | -98.95% | -11.21% | 9.4% | - |
Statutory Debt Limit Constraints
As reported in recent financial filings, TVE's net income experienced a sharp contraction to negative $745 million in 2025Q4, which significantly undermines the organization's ability to internally fund infrastructure requirements and maintain the necessary capital buffers required to support its extensive regional power generation and distribution network.
The erratic nature of net income, punctuated by the 2025Q4 loss, suggests that the utility's internal capital generation is highly susceptible to non-operating charges and operational cost spikes. Investors should monitor whether this earnings volatility forces a greater reliance on external debt markets, potentially accelerating the approach to the $30 billion statutory debt ceiling.
Based on the provided cash flow data, provision expenses surged to $5.6 billion in 2025Q4, a dramatic departure from the historical quarterly average of approximately $1.6 billion, which may indicate a fundamental reassessment of long-term asset recoverability or an increase in anticipated credit-related liabilities within the utility's portfolio.
This massive spike in provisions appears to be the primary driver behind the negative cash flow performance observed in the most recent quarter. Such a significant adjustment warrants further investigation into whether this reflects a one-time accounting event or a structural shift in the risk profile of the underlying generation assets.
According to the latest financial statements, TVE's operating cash flow plummeted to negative $2.1 billion in 2025Q4, a stark reversal from the consistent positive inflows observed in previous periods, suggesting that the utility's core operational activities are currently failing to generate sufficient liquidity to cover ongoing obligations.
The disconnect between historical operating cash flow stability and the recent negative print implies that the company's cost structure is becoming increasingly rigid. This trend suggests that the utility may face significant liquidity constraints if the current operational cash burn persists, particularly given the lack of equity-based capital buffers.
As indicated by the divergence between net income and operating cash flow, TVE's reliance on regulatory accounting, such as the deferral of costs into regulatory assets, may obscure the true cash-generating capacity of the utility's generation fleet, as evidenced by the extreme OCF/NI ratio of 2.79 in 2025Q4.
The high OCF/NI ratio suggests that non-cash charges, likely related to depreciation and regulatory deferrals, are significantly distorting the reported earnings. Analysts should focus on FFO metrics rather than net income to better understand the actual cash available for debt service and essential infrastructure maintenance.
Quick answers to the most common questions about buying TVE stock.
Tennessee Valley Authority PARRS A 2029 (TVE) generated $0.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tennessee Valley Authority PARRS A 2029 (TVE) 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 PARRS A 2029 (TVE) 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.