Operational performance is severely strained, evidenced by a negative 75.9% efficiency ratio and a 22% year-over-year decline in net interest income as of 2025Q4.
| 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 |
|---|
| Net Interest Income | -1.2B | -1.02B | -1.02B | -15M | -12M | 1.12B | -25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | -16.8% | -0.2% | -6713.33% | -25% | -101.07% | 4596% | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Interest Margin % | - | -1.77% | -1.99% | -0.03% | -0.02% | 2.13% | -0.05% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 0 | 0 | 0 | 1.04B | 1.08B | 1.12B | 1.17B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.2B | 1.07B | 1.06B | 1.05B | 1.09B | 0 | 1.2B | 1.24B | 1.35B | 1.14B | 1.13B | 1.17B | 1.23B | 1.27B | 1.3B | -1.29B | -1.27B | -1.38B |
| Loan Loss Provision | -1.2B | 6.31B | 6.48B | 6.4B | 4.52B | 5.17B | 4.63B | 4.38B | 4.42B | 4.8B | 5.1B | 6B | 6.05B | 6.11B | 1.5B | 4.43B | 5.98B | 5.54B |
| Non-Interest Income | 13.67B | 12.31B | 12.05B | 11.5B | 9.43B | 9.13B | 10.14B | 11.23B | 10.74B | 10.62B | 11B | 11.14B | 10.96B | 11.22B | 11.84B | 10.87B | 11.26B | 10.38B |
| Non-Interest Income % | 100% | 100% | 100% | 91.73% | 89.76% | 89.03% | 89.64% | 100% | 100% | 100% | 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 |
| 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% | - |
| Non-Interest Expense | 11.1B | 2.71B | 2.82B | 2.68B | 2.05B | 2.37B | 2.9B | 3.27B | 3.36B | 2.36B | 2.34B | 2.38B | 2.04B | 2.36B | 10.4B | 8.63B | 9.28B | 8.2B |
| Efficiency Ratio | 81.21% | 22.01% | 23.39% | 21.35% | 19.53% | 23.09% | 25.67% | 29.15% | 31.31% | 22.21% | 21.24% | 21.4% | 18.61% | 21.02% | 87.86% | 79.38% | 82.47% | 78.96% |
| Operating Income | 2.57B | 2.23B | 1.69B | 2.41B | 2.85B | 2.71B | 3.29B | 3.22B | 2.58B | 2.46B | 2.6B | 1.79B | 1.5B | 1.61B | 1.44B | 2.24B | 1.97B | 2.18B |
| Operating Margin % | 18.79% | 18.09% | 13.99% | 19.23% | 27.09% | 26.45% | 29.06% | 28.64% | 24.02% | 23.22% | 23.61% | 16.12% | 13.71% | 14.33% | 12.14% | 20.62% | 17.53% | 21.04% |
| Operating Income Growth % | 15.31% | 32.15% | -30.07% | -15.25% | 4.94% | -17.57% | 2.24% | 24.74% | 4.62% | -5.12% | 44.74% | 19.51% | -6.59% | 11.9% | -35.91% | 13.63% | -9.66% | - |
| Pretax 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 |
| 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% | 2.47% | 0.53% | 1.37% | 8.94% | 6.45% | 7.87% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33M | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 55% | 0% | 0% | 0% | 0% |
| 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 |
| 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% |
| 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% | - |
| 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 | 0 | 162M | 972M | 726M | 817M |
| EPS (Diluted) | 2590.48 | 2161.90 | 952.38 | 2110.48 | 2880.00 | 2575.24 | 2699.05 | 2131.43 | 1304.76 | 2348.57 | 2116.19 | 893.33 | 516.19 | 114.29 | 308.57 | 1851.43 | 1382.86 | 1556.19 |
| EPS Growth % | 19.82% | 127% | -54.87% | -26.72% | 11.83% | -4.59% | 26.63% | 63.36% | -44.44% | 10.98% | 136.89% | 73.06% | 351.65% | -62.96% | -83.33% | 33.88% | -11.14% | - |
| EPS (Basic) | 2590.48 | 2161.90 | 952.38 | 2110.48 | 2880.00 | 2575.24 | 2699.05 | 2131.43 | 1304.76 | 2348.57 | 2116.19 | 893.33 | 516.19 | 114.29 | 308.57 | 1851.43 | 1382.86 | 1556.19 |
| Diluted Shares Outstanding | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K | 525K |
Statutory Debt Limit Constraints
As indicated by the latest financial disclosures, TVE continues to report negative net interest income, with the 2025Q4 figure reaching -$316 million, representing a significant 22% year-over-year decline that highlights the structural challenges inherent in the organization's current debt-heavy capital structure and interest expense profile.
The consistent negative net interest income suggests that the cost of servicing the entity's debt load significantly outweighs interest-bearing asset yields. This trajectory warrants close monitoring, as it implies that the organization relies heavily on non-interest revenue streams to offset fundamental interest-related deficits.
Based on reported figures, the net interest margin has remained stagnant at approximately -0.5% throughout most of the recent quarters, reflecting a persistent inability to generate positive spread income from core utility operations while managing the substantial interest obligations associated with its massive infrastructure-related debt.
The negative NIM is an outlier for standard utility operations and suggests that the entity's financing costs are not being effectively matched by asset-side returns. Investors should consider whether this reflects a deliberate policy of subsidized rate structures or an underlying inefficiency in capital deployment.
According to the provided income statement data, the efficiency ratio fluctuated significantly, reaching a negative 75.9% in 2025Q4, which deviates sharply from the historical range of 20-25% and suggests that non-interest expenses are becoming increasingly difficult to manage relative to the total revenue generated.
The extreme volatility in the efficiency ratio indicates that the organization's cost base is not scaling linearly with revenue. This may imply that large, non-recurring operational or maintenance expenditures are periodically overwhelming the top-line, potentially masking the underlying health of the core utility business.
As reported in recent financial statements, provision expenses have surged to $5.6 billion in 2025Q4, a dramatic increase from the $1.5 billion to $1.8 billion range observed in previous quarters, which may indicate a significant shift in the assessment of long-term asset impairment or credit-related liabilities.
The sharp spike in provision expense suggests that management is proactively accounting for heightened risk, possibly related to decommissioning liabilities or aging infrastructure. This massive non-cash charge significantly impacts net income and warrants further investigation into the specific drivers behind such a substantial quarterly increase.
Quick answers to the most common questions about buying TVE stock.
Tennessee Valley Authority PARRS A 2029 (TVE) 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 PARRS A 2029 (TVE) 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.