NorthWestern Energy Group, Inc. (NWE) — payout ratio, three ways
Fiscal year ending 2025-12-31 · sector Utilities · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 89.8% | The basis that applies. A regulated utility earns an allowed return on its rate base, and the dividend is set against that. |
| Operating cash flow | 40.9% | Closer to meaningful than free cash flow, but still before the capital programme the regulator expects the company to run. |
| Free cash flow | negative | Operating cash flow was $130m short of capital spending, so no ratio exists. Normal for a regulated utility funding its rate base. |
Spread between highest and lowest: 49 percentage points. Same filings, different denominators.
Coverage rating 29 / 100 — Strained. ? Peer standing 5/50Direction 4/30Stability 19/20
GAAP earnings payout, last 5 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 89.8% |
| 2024-12-31 | 71.2% |
| 2023-12-31 | 79.5% |
| 2022-12-31 | 77.5% |
| 2021-12-31 | 68.9% |
Coverage worsened sharply this year, 71.2% to 89.8%, after no clear trend before it. One year is not a trend, but it is worth knowing which direction the last one moved.
Among the 57 utilities companies here, only 11% pay out a larger share on this basis — this is at the demanding end.
The arithmetic
- GAAP earnings — dividends declared per share $2.64 ÷ diluted EPS $2.94
- Operating cash flow — dividends paid $161.4m ÷ operating cash flow $394.5m
- Free cash flow — dividends paid $161.4m ÷ (operating cash flow $394.5m − capex $524.5m)
Where the figures came from
- 10-K filed 2026-02-12 · accession
0001993004-26-000006
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.