Earnings rose at Tennessee Valley Authority (TVA), Knoxville, Tenn., in the third quarter of fiscal 2026 which the federal utility attributed to “higher fuel cost recovery rates and higher sales volume,” according to a Tuesday press release.
The net income for the third quarter of fiscal 2026 ended June 30 was $307 million, up from $212 million in the third quarter of fiscal 2025. Quarterly revenue was $3.44 billion, up year-over-year from $3.30 billion, according to TVA’s Securities and Exchange Commission fiscal 2026 third quarter earnings filings.
Additionally, TVA’s net earnings increased over the first nine months of fiscal 2026, making $965 million, which is an increase of $220 million from fiscal 2025’s 745 million. TVA attributed this increase to higher operating revenues.
TVA follows through the government’s fiscal year which ends on Sept. 30.
During TVA’s Tuesday earnings webcast, Mike Skaggs, interim CEO of TVA, said nuclear generation would continue to be a big piece of the utility’s energy mix going forward.
“TVA is a leader in helping advance the U.S. nuclear industry in terms of both overall direction and technological expertise,” Skaggs said. “One of my top priorities for TVA is clarifying our nuclear strategy to continue investments in TVA’s existing fleet, which is one of the largest in the nation.”
Tom Rice, TVA’s chief financial officer, also said TVA’s reliance on nuclear power has grown over the first nine months in a year-to-year comparison. In the power supply summary slide of the earnings presentation, nuclear energy made up 41% of TVA’s power supply through the first nine months of fiscal 2026. This is a 10% jump from fiscal 2025, in which nuclear energy contributed 31%.
TVA has been in discussions with the Nuclear Regulatory Commission (NRC) regarding the Clinch River small modular reactor (SMR) project in Oak Ridge, Tenn., Skaggs said. TVA’s Clinch River SMR project received a $400 million award from the Department of Energy.
In April, NRC staff recommended that the commission issue a construction permit to TVA to build its BWRX-300 SMR at the Clinch River site.