TVA Reports Fiscal Year 2026 Financial Results

(TSX:TVAB) The Tennessee Valley Authority (TVA) reported $14.2 billion in total operating revenues for fiscal year 2026, ending September 30, 2026. TVA achieved electricity sales of 171,705 million kilowatt-hours in 2026, up from 167,612 million kilowatt-hours in 2025, representing an approximate 2% increase year over year. Total operating revenues increased approximately 4% over last year, primarily due to higher sales volume and higher fuel cost recovery rates. The increase in electricity sales was mainly driven by higher sales within the data processing, web hosting, and related services sector, higher sales within the residential and small commercial sector, and a 10 percent increase in cooling degree days. Fuel and purchased power expense rose by $329 million compared to the prior year, mainly due to higher purchased power market prices and higher effective fuel rates from increased natural gas prices, partially offset by higher TVA generation. Operating and maintenance expense decreased by $264 million compared to the prior year, primarily due to IRA tax credits recorded in fiscal year 2026. Depreciation and amortization expense decreased by $288 million compared to the prior year, mainly due to depreciable life assumption changes for the Kingston and Cumberland coal-fired plants and the subsequent license renewal for the Browns Ferry Nuclear Plant. Interest expense increased by $65 million compared to the prior year, reflecting higher average balances and rates on long-term debt and the lease financing arrangement for Cumberland Combined Cycle Plant. TVA's net income for fiscal year 2026 was $2.1 billion, which was $761 million higher than the prior year, mainly due to higher operating revenues and lower overall operating expenses. Net cash provided by operating activities was $3,543 million in 2026, compared to $3,324 million in 2025. Net cash used in investing activities was $(3,861) million in 2026, compared to $(4,661) million in 2025. Net cash provided by financing activities was $463 million in 2026, compared to $2,411 million in 2025. TVA reliably served record power demand across the Tennessee Valley, achieving multiple all-time monthly peak records through strong system performance and operational excellence. TVA continued to demonstrate operational strength, top-decile safety results, record nuclear generation, and top-quartile fleet performance, while supporting continued investment across the region. TVA is advancing generation expansion, transmission modernization, and continued nuclear leadership, guided by its 2026 Integrated Resource Plan. TVA maintains some of the lowest energy costs and highest reliability in the nation, with residential rates lower than 80% of the nation. TVA is a corporate agency of the United States, receiving no taxpayer funding and deriving virtually all of its revenues from sales of electricity. TVA also provides flood control, navigation, and land management for the Tennessee River system, and assists local power companies and state and local governments with economic development and job creation. TVA's Chief Executive Officer is Mike Skaggs, and its Chief Financial Officer is Tom Rice.