Direct Answer
42 SEC filers are classified under the Standard Industrial Classification codes that describe the electric utilities industry, and their latest annual reports show $472.3 billion of combined revenue and a median operating margin of 20.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Electric utilities generate, transmit and distribute power to retail customers under regulated rates that give them an allowed return on invested capital. Earnings grow with rate base, and load growth now comes from electrification and data centers. The first numbers to compare across companies here are rate base growth, allowed return on equity and earnings per share growth.
Key Industry Metrics
- Rate base growth: The increase in investment earning a regulated return. It is the main driver of utility earnings, so faster growth supports profit if rate decisions are fair.
- Allowed return on equity: The profit rate regulators permit on shareholder capital in the rate base. It sets a ceiling on earnings, and states differ, so comparison shows regulatory climate.
- Earnings per share growth: The change in profit for each share. For utilities it tracks rate base growth adjusted for financing costs, so it shows how investment turns into profit.
- Capital spending: Investment in generation, lines and grid upgrades. It builds the rate base, but also raises customer bills and the need to borrow or issue shares.
- Credit metrics such as funds from operations to debt: Measures such as cash flow relative to debt that rating agencies use. Stronger ratios support cheaper borrowing, and weak ones can limit spending plans.
Primary Macro Drivers
- Rate case decisions: Regulators set the return and which investments enter rates, so decisions drive rate base growth and earnings growth.
- Load growth from data centers and electrification: New data centers, factories and electric vehicles raise demand and justify new plants and lines, shown in capital spending and sales growth.
- Fuel and purchased power costs: Fuel and purchased power are usually passed through, but timing and disputes can shift earnings; watch cost recovery balances.
- Interest rates: Borrowing finances large plans, so rates affect interest cost and credit metrics such as funds from operations to debt.
Major Risks
- Wildfire and storm liability: Fires and storms can create large claims and costs and prompt new rules; watch wildfire mitigation spending, insurance and legislation.
- Regulatory lag: Costs incurred before they are in rates lower the earned return; watch earned versus allowed return and rate case filing timing.
- Higher financing cost: Higher interest expense and equity needs can pressure earnings and ratios; watch interest cost, equity issuance and ratings commentary.
- Customer affordability limits: Rising bills can lead regulators and politicians to limit increases; watch rate case outcomes, bill growth and disallowed costs.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Electric Utilities Filers in the SEC Record
42 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 4911, 4931. Their latest fiscal years end between 2025 and 2026, and together they reported $472.3 billion of revenue. Median revenue growth over the prior year was 9.8%. Median operating margin was 20.3% and median net margin 12.2%. Median total liabilities were 71% of total assets, and 38 of 42 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Duke Energy Corp | $31.7 billion | 5.6% | 27.2% | 15.7% | FY 2025 |
| Nrg Energy, Inc. | $30.7 billion | 9.2% | 6.0% | 2.8% | FY 2025 |
| Southern Co | $29.6 billion | 10.6% | 24.7% | 14.7% | FY 2025 |
| Nextera Energy Inc | $25.8 billion | 9.8% | 32.1% | 26.5% | FY 2025 |
| Constellation Energy Corp | $25.5 billion | 8.3% | 12.1% | 9.1% | FY 2025 |
| Pg&E Corp | $24.9 billion | 2.1% | 19.0% | 0.0% | FY 2025 |
| Exelon Corp | $24.3 billion | 5.3% | 21.2% | 11.4% | FY 2025 |
| American Electric Power Co Inc | $21.9 billion | 10.9% | 24.3% | 16.9% | FY 2025 |
The 8 largest of 42 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Electric Utilities guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Electric Utilities industry?
Key performance indicators for the Electric Utilities industry include: Rate base growth, Allowed return on equity, Earnings per share growth, Capital spending, Credit metrics such as funds from operations to debt. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Electric Utilities industry?
The Electric Utilities industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.
What are the biggest risks in the Electric Utilities industry?
The primary risks for Electric Utilities companies include: Wildfire and storm liability, Regulatory lag, Higher financing cost, Customer affordability limits. Investors should assess each company's exposure to these factors and its track record of navigating them.