CFC’s 2025 Key Ratio Trend Analysis Results Highlight Growth, Financial Stability Across Electric Cooperatives

National Rural Utilities Cooperative Finance Corporation (NRUC) released 2025 Key Ratio Trend Analysis results for 814 electric distribution cooperatives.

Rhea-AI Summary

National Rural Utilities Cooperative Finance Corporation (NRUC) released 2025 Key Ratio Trend Analysis results for 814 electric distribution cooperatives. Findings show maintained financial health amid higher costs, supported by rebounding electricity sales, consumer growth and sustained infrastructure investment.

Median equity-to-asset ratio was 44%, long-term debt was 43% of assets, with coverage ratios of 2.64 (times interest earned) and 1.90 (modified debt service).

Positive

• Electricity sales rebounded in 2025, outpacing consumer growth
• Nearly 87% of electric cooperatives reported consumer growth in 2025
• Median equity-to-asset ratio held near 44% in 2025
• Long-term debt at 43% of total assets, largely unchanged from 2024
• Median times interest earned ratio at 2.64 in 2025
• Median modified debt service coverage at 1.90, indicating solid debt coverage

Negative

• Electric cooperatives operated during a period of elevated interest rates and inflation
• Operating expenses increased in 2025, requiring stronger sales and revenue to support margins

Argus Jun 29 session

-0.71% close to close Open Argus

Details

News Market Reaction – NRUC

On Jun 29, the day this news came out, NRUC closed 0.71% below the previous close.

Data tracked by StockTitan Argus for the Jun 29 session.

Key Figures

Co-ops with consumer growth: 87% Equity-to-asset ratio: 44% Long-term debt to assets: 43% +5 more

Co-ops with consumer growth

87%

Share of cooperatives reporting consumer growth in 2025

Equity-to-asset ratio

44%

Median 2025 equity-to-asset ratio across cooperatives

Long-term debt to assets

43%

Long-term debt share of total assets in 2025

Times interest earned

2.64

Median 2025 times interest earned ratio

Debt service coverage

1.90

Median 2025 modified debt service coverage ratio

Participating cooperatives

814

Number of electric distribution cooperatives in 2025 KRTA

Ratios per cooperative

145

Financial and operational ratios calculated for each cooperative

KRTA history

51 years

KRTA report duration as of the 2025 analysis

Historical Context

2 past events · Latest: Apr 16

2 events

1. Apr 16

   Earnings call notice

   24h Move

   -0.4%

   Announcement of FY 2026 Q3 results call and related webcast logistics.

2. Jan 27

   Earnings call notice

   24h Move

   +0.2%

   Scheduling FY 2026 Q2 results call and disclosure of recent 10-Q filing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

equity-to-asset ratio, long-term debt, times interest earned ratio, debt service coverage

4 terms

equity-to-asset ratio financial

"The median equity-to-asset ratio held nearly steady at 44%..."

Equity-to-asset ratio measures how much of a company’s total resources are funded by owners’ equity rather than borrowed money, calculated as shareholders’ equity divided by total assets. It matters to investors because a higher ratio signals a stronger cushion against losses and less reliance on debt—like owning more of a house outright instead of carrying a big mortgage—while a lower ratio can mean higher financial risk if earnings fall.

long-term debt financial

"long-term debt accounted for 43% of total assets, which was largely unchanged..."

Long-term debt is money a company has borrowed that it does not have to repay for more than one year, such as bank loans or bonds. It matters to investors because these obligations require future interest and principal payments that can reduce cash available for growth or dividends; like a household mortgage, manageable long-term debt can finance expansion, but too much increases the risk that the company will struggle to meet payments.

times interest earned ratio financial

"the median times interest earned ratio at 2.64 and modified debt service..."

A times interest earned ratio shows how many times a company’s profit (before interest and taxes) can cover its interest payments, like counting how many paychecks it would take to cover a monthly loan bill. Investors use it to judge whether a business can comfortably meet borrowing costs; a higher number means lower risk of missed interest payments and generally better creditworthiness, while a low number signals potential trouble when cash flow falls.

debt service coverage financial

"times interest earned ratio at 2.64 and modified debt service coverage at 1.90..."

Debt service coverage is a measure of how easily a company can pay its debt obligations from the cash it generates; it compares the cash available for debt payments to the actual scheduled principal and interest due. Investors watch it because it shows the margin of safety for lenders and shareholders—like comparing your monthly take-home pay to your mortgage payments—to judge default risk and financial flexibility.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DULLES, Va., June 29, 2026 (GLOBE NEWSWIRE) -- The National Rural Utilities Cooperative Finance Corporation (CFC) has completed its analysis of the 2025 Key Ratio Trend Analysis (KRTA), an annual report of financial trends among electric distribution cooperatives nationwide.

Now in its 51st year, the KRTA continues to provide valuable insights into the financial health of the cooperative network. The latest results show electric cooperatives maintained and enhanced their financial performance through strong electric sales and consumer growth while continuing significant investment in utility plant.

“In 2025, rural electric cooperatives continued to grow and invest in their systems while maintaining financial health and stability,” CFC Senior Vice President and Chief Corporate Affairs Officer Brad Captain said. “Despite elevated interest rates and inflation, they demonstrated strong fiscal stewardship and commitment to provide essential services to their communities.”

Electricity sales continued to rebound from 2023, outpacing consumer growth.

Consumer growth continued in 2025, with nearly 87% of cooperatives reporting increases. Utah, Florida, Idaho and Texas were among those states with the highest growth rates. This steady expansion was accompanied by strategic, long-term investments in utility plant, continuing the momentum of sustained infrastructure growth.

“While expenses have increased, strong electric sales and consumer growth have strengthened margins,” CFC Senior Vice President of Strategic Services Amy Luongo said. “Revenue growth helped support ongoing operations, infrastructure investment and financial stability during a period of elevated costs.”

Financial ratios in 2025 continued to reflect strong financial management across the cooperative network. The median equity-to-asset ratio held nearly steady at 44% and long-term debt accounted for 43% of total assets, which was largely unchanged from 2024. Coverage ratios were also healthy, with the median times interest earned ratio at 2.64 and modified debt service coverage at 1.90, continuing solid earnings relative to debt obligations.

“The network’s financial indicators remain healthy, with improving margins and coverage ratios supporting resilience, stability and long-term commitment to reliable service,” Luongo said.

Final KRTA results are based on data submitted by 814 electric distribution cooperatives for the year ending Dec. 31, 2025. CFC calculates 145 financial and operational ratios for each cooperative and provides a report showing the cooperative’s ratios compared with U.S., state and other key consumer group median values. Median reporting minimizes the effect of outliers and offers a more representative picture of overall performance.

About CFC
Created and owned by America’s electric cooperative network, the National Rural Utilities Cooperative Finance Corporation (CFC)—a nonprofit finance cooperative with approximately $40 billion in assets—provides unparalleled industry expertise, flexibility and responsiveness to serve the needs of our member-owners. CFC is an equal opportunity provider. Visit us online at www.nrucfc.coop.

About KRTA
CFC has published KRTA—an annual report that tracks the median value of 145 financial and operational ratios for participating electric distribution cooperatives over the previous five years—since 1975. Based on data reported by electric distribution cooperatives, KRTA provides electric cooperative CEOs and directors/trustees with a complete picture of their system’s financial performance. In 2023, CFC introduced KRTA Pro, a new online platform that offers a 20-plus year view of KRTA ratios, enabling deeper trend analysis and enhanced access to historical benchmarking.

Contact
Brad Captain
Corporate Relations Group
800-424-2954, Option 5

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the 2025 Key Ratio Trend Analysis released by CFC for NRUC?

The 2025 Key Ratio Trend Analysis is CFC’s annual financial benchmarking of 814 electric distribution cooperatives. According to CFC, it tracks 145 financial and operational ratios, comparing each cooperative to U.S., state and consumer group medians using median-based reporting.

How did electric cooperative consumer growth trend in 2025 according to CFC (NRUC)?

Electric cooperatives saw broad consumer growth in 2025. According to CFC, nearly 87% of cooperatives reported higher consumer counts, with states like Utah, Florida, Idaho and Texas among those showing some of the strongest reported growth rates.

What were the key 2025 leverage ratios for electric cooperatives in CFC’s NRUC study?

Electric cooperatives reported stable leverage metrics in 2025. According to CFC, the median equity-to-asset ratio was about 44%, while long-term debt represented 43% of total assets, levels that were largely unchanged compared with 2024.

How strong were coverage ratios for electric cooperatives in the 2025 CFC (NRUC) analysis?

Coverage ratios appeared healthy in 2025. According to CFC, the median times interest earned ratio was 2.64 and the median modified debt service coverage ratio was 1.90, reflecting earnings that covered interest and debt service obligations multiple times.

What factors supported electric cooperative margins in 2025 in the NRUC Key Ratio Trend Analysis?

Margins were supported by revenue and consumer gains. According to CFC, strong electricity sales and continued consumer growth strengthened margins and helped fund operations, infrastructure investment and financial stability, even as expenses and overall cost pressures increased.

How many electric distribution cooperatives contributed data to CFC’s 2025 NRUC analysis?

A large national sample was included in the 2025 analysis. According to CFC, final Key Ratio Trend Analysis results were based on data submitted by 814 electric distribution cooperatives for the year ending December 31, 2025.