2025 G&T KPI Report Reflects Financial Strength, Resilience

CFC recently released its 2025 Generation and Transmission (G&T) Key Performance Indicators (KPI) Report, providing G&T members with comprehensive benchmarking information to evaluate financial and operating performance, identify trends and support long-term planning.

Drawing on data reported by CFC’s G&T members, the 2025 KPI results point to a generally stable financial position, with stronger debt-service coverage and improved returns offset by some moderation in earnings coverage and capitalization.

“The 2025 results reflect the solid financial and operational performance of G&T cooperatives and their ongoing commitment to serving their members,” CFC Senior Vice President and Chief Product Officer Amy Luongo said.

Times Interest Earned Ratio (TIER) declined to a more normal level of 1.59 in 2025 from 1.81 in 2024, indicating a more moderate level of earnings available to cover interest expense. Despite the decline, overall debt-service capacity strengthened. Modified Debt Service Coverage (MDSC) increased to 1.41, compared with 1.30 in 2024, reflecting improved cash flow available to meet scheduled debt-service requirements.

Capitalization remained relatively stable. Equity as a percentage of assets was 26.37%, compared with 27.13% in 2024. While the ratio declined modestly, equity continued to represent more than one-quarter of total assets. At the same time, Return on Equity increased to 6.17% from 5.94%, indicating stronger earnings generated on members’ equity investment.

Taken together, these measures suggest that G&T cooperatives maintained a resilient financial profile in 2025. The improvement in MDSC and Return on Equity points to stronger cash-flow coverage and margins.

Energy sales also remained strong, with total sales of 5.23 million MWh in 2025, compared with 5.38 million MWh in 2024. The results continue to demonstrate the scale of G&T operations and the important role these systems play in supplying power to their member distribution cooperatives.

The generation portfolio continued to evolve as G&T cooperatives balanced reliability, cost and changing resource requirements. Fossil steam remained a significant component of the generation mix as G&Ts managed a diversified portfolio of resources, including combined-cycle, nuclear, hydro, internal combustion and renewable resources.

“CFC’s KPI Report highlights positive trends in cash-flow coverage and returns, while also providing important benchmarks for future planning,” Luongo said. “We remain committed to providing members with the tools, insights and financial expertise needed to support informed strategic and operational decisions.”

Members can also use KPI Pro, CFC’s interactive dashboard available on the CFC Member Website, to explore more than 15 years of KPI data and compare their performance with relevant peer groups. Available under the Financial Analysis tab, KPI Pro complements the annual report by providing additional insight into historical trends and relative performance.