Pacific Gas & Electric (PCG) Financials

Pacific Gas & Electric (NYSE: PCG) shows a mixed but generally stable financial performance over the last several years, combining solid earnings with increased investments. Below are the key takeaways analyzed from the income statements, cash flow statements, and balance sheets spanning from Q3 2022 through Q2 2025.

• Consistent Net Income Growth: PCG's consolidated net income has shown growth from $410 million in Q2 2022 to $549 million in Q2 2025, with generally positive quarterly earnings across the years.
• Substantial Operating Revenue: Operating revenue trends upwards, from around $5.3 billion in 2022 to nearly $6.0 billion in 2025's recent quarters, indicating strong revenue generation capability.
• Increasing Net Cash from Operating Activities: Net cash generated from operating activities rose notably from $711 million in Q2 2024 to $1.057 billion in Q2 2025, demonstrating improved operational cash flow.
• Significant Plant, Property & Equipment (PP&E) Investments: The company continues to invest heavily in property, plant, and equipment, with net PP&E increasing from about $75 billion in Q3 2022 to over $91 billion in Q2 2025, indicating ongoing infrastructure development and maintenance.
• Dividend Payment Stability: PCG has consistently paid dividends each quarter (around $0.025 per share recently), showing commitment to returning value to shareholders.

• Stable Earnings Per Share (EPS): Diluted EPS ranges around $0.24 in recent quarters, with slight fluctuations but no major volatility.
• Debt Management with Mixed Signals: While long-term debt has increased moderately from about $47.8 billion in Q3 2022 to roughly $54 billion in Q2 2025, the company is actively managing repayments and issuance, balancing financing needs.
• Cash and Restricted Cash Fluctuations: Cash and equivalents fluctuate each quarter but remain in the range of $0.5 billion to $2 billion, reflecting typical working capital management and investing activities.
• Interest Expenses Remain High: Interest expense has been rising over the years, from around $562 million in Q4 2022 to $792 million in Q2 2025, which could pressure net profits but is aligned with the company's debt levels.

• High Capital Expenditures Impacting Free Cash Flow: Ongoing substantial purchases of PP&E and investments (e.g., $3.06 billion in Q2 2025) drive negative net cash flows from investing activities, which could constrain liquidity in the short term.
• Increase in Other Operating Expenses: 'Other Operating Expenses' have risen significantly in recent quarters, hitting about $2.91 billion in Q2 2025, which weighs on operating income despite strong revenues.
• Large Asset Retirement & Litigation Obligations: The balance sheet shows sizeable liabilities related to asset retirement and litigation (~$25 billion), which reflects ongoing risks and potential future cash outflows.
• Declining Retained Earnings: Retained earnings remain negative across the years, indicating accumulated losses or dividend payments exceeding earnings in the past, possibly restricting financial flexibility.
• Decreasing Net Cash Position Recently: The net change in cash and equivalents was negative $1.69 billion in Q2 2025, reflecting cash used, mainly due to investing activities and debt repayments, which could signal near-term liquidity tightening.

Summary: PG&E continues to show solid operational earnings and invests heavily in infrastructure, which is necessary for utility companies. However, high expenses, elevated debt, and significant liabilities from retirements and litigation represent risks to watch. Investors may be encouraged by the steady revenue growth and stable dividends but should remain aware of capital intensity and long-term obligations that pressure cash flow and balance sheet health.