AI Takeaway
VST reported FY2025 revenue of $17.7B (+3.0% YoY), but net income fell sharply to $944M (-64.5%) and operating income dropped 53.3% to $1.9B, reflecting significant cost pressures and margin compression despite modest top-line growth.
Revenue
$17.74B
++2.98% YoY
EPS (Basic)
$2.22
-68.99% YoY
Operating Income
$1.91B
-53.30% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
VST grew total revenue to $17.74B in FY2025, up 3.0% from $17.22B in the prior year. However, operating income collapsed 53.3% to $1.91B, suggesting that cost increases far outpaced revenue gains and significantly eroded profitability.
Source: Source: 10-K Income Statement
Operating margin fell dramatically from 23.7% to 10.7% YoY, a contraction of approximately 13 percentage points. Net margin also compressed to 5.3%, down from approximately 15.4% in the prior year, indicating substantial increases in operating costs and/or non-recurring charges.
Source: Source: 10-K Income Statement & Key Ratios
Selling, General & Administrative expenses rose 7.1% to $1.71B in FY2025 from $1.60B in the prior year, contributing to the overall cost pressure and margin deterioration observed across the income statement.
Source: Source: 10-K Income Statement
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Upgrade to unlockVST carries a debt-to-equity ratio of approximately 7.15x with $17.04B in long-term debt. Current liabilities surged 40.1% to $11.81B, exceeding current assets of $9.18B, resulting in a current ratio of only 0.78x, which signals potential near-term liquidity stress.
Source: Source: 10-K Balance Sheet & Key Ratios
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Upgrade to unlockReported EPS of $0.54 versus the $2.37 analyst consensus — a -77.2% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $17.74B | $17.22B | +2.98% |
Operating Income | $1.91B | $4.08B | -53.30% |
Net Income | $944M | $2.66B | -64.50% |
EPS (Basic) | $2.22 | $7.16 | -68.99% |
EPS (Diluted) | $2.18 | $7.00 | -68.86% |
SG&A Expense | $1.71B | $1.6B | +7.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $41.55B | $37.77B | +10.01% |
Current Assets | $9.18B | $8.12B | +13.06% |
Total Liabilities | $36.44B | $32.19B | +13.21% |
Current Liabilities | $11.81B | $8.43B | +40.11% |
Stockholders' Equity | $5.1B | $5.57B | -8.49% |
Cash & Equivalents | $785M | $1.19B | -33.92% |
Long-Term Debt | $17.04B | $16.3B | +4.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.07B | $4.56B | -10.80% |
Investing Cash Flow | $-4.4B | $-5.28B | +16.68% |
Financing Cash Flow | $-74M | $-1.6B | +95.39% |
Share Buybacks | $1.03B | $1.27B | -18.80% |
D&A | $1.99B | $1.84B | +7.76% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 10.7% | 23.7% | -12.95% |
Net Margin | 5.3% | — | — |
ROE | 18.5% | — | — |
ROA | 2.3% | — | — |
Current Ratio | $0.777 | — | — |
Debt to Equity | $7.149 | — | — |
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VST's net income fell sharply by 64.5% to $944M in FY2025, down from $2.66B in the prior year, despite revenue growing modestly by 3.0% to $17.74B. The decline was driven by significant cost pressures that compressed operating margin from 23.7% to 10.7%.
VST's operating income fell 53.3% to $1.91B in FY2025, primarily because costs grew much faster than the 3.0% revenue increase. SG&A expenses alone rose 7.1% to $1.71B, and the overall cost structure appears to have been significantly impacted by higher operational or fuel-related expenses.
VST's financial health shows some stress in FY2025: the current ratio is 0.78x (below 1.0x), cash fell 33.9% to $785M, and the debt-to-equity ratio stands at a high 7.15x with $17.04B in long-term debt. On the positive side, the company still generated $4.07B in operating cash flow, providing a meaningful liquidity buffer.
Yes, VST repurchased approximately $1.03B in shares during FY2025, though this was down 18.8% from $1.27B in the prior year. The buybacks reduced the share count and partially offset the impact of lower net income on per-share metrics.
VST's diluted EPS fell 68.9% to $2.18 in FY2025, compared to $7.00 in the prior year, reflecting the steep decline in net income. Basic EPS similarly dropped 69.0% to $2.22, marking a significant reduction in per-share earnings power for shareholders.