Best Free-Cash-Flow Margins: Utilities
The Utilities cash machines of the S&P 500
Updated October 11, 2026
Cash conversion is structural before it’s managerial — an asset-light business model throws off more of each sales dollar than a capital-hungry one, whoever runs it. So the fair question isn’t whether a Utilities company clears a market-wide bar; it’s who converts best inside the sector, where everyone faces roughly the same capital demands. The Utilities median free-cash-flow margin is 10%; these are the names furthest above it.
| # | Stock | FCF margin | Free cash flow (TTM) | Revenue (TTM) |
|---|---|---|---|---|
| 1 | AEPAmerican Electric Power Company, Inc.Regulated Electric | 40% | $9.0B | $22.5B |
| Regulated Electric — converts 40% of revenue to free cash ($9.0B on $22.5B in sales), against a Utilities median of 10%. | ||||
| 2 | GEVGE Vernova Inc.Renewable Utilities | 30% | $12.4B | $41.4B |
| Renewable Utilities — converts 30% of revenue to free cash ($12.4B on $41.4B in sales), against a Utilities median of 10%. | ||||
| 3 | EDConsolidated Edison, Inc.Regulated Electric | 29% | $5.1B | $17.7B |
| Regulated Electric — converts 29% of revenue to free cash ($5.1B on $17.7B in sales), against a Utilities median of 10%. | ||||
| 4 | NEENextEra Energy, Inc.Regulated Electric | 20% | $5.9B | $29.0B |
| Regulated Electric — converts 20% of revenue to free cash ($5.9B on $29.0B in sales), against a Utilities median of 10%. | ||||
| 5 | PEGPublic Service Enterprise Group IncorporatedRegulated Electric | 16% | $2.0B | $12.5B |
| Regulated Electric — converts 16% of revenue to free cash ($2.0B on $12.5B in sales), against a Utilities median of 10%. | ||||
| 6 | FEFirstEnergy Corp.Regulated Electric | 10% | $1.6B | $15.8B |
| Regulated Electric — converts 10% of revenue to free cash ($1.6B on $15.8B in sales), against a Utilities median of 10%. | ||||
| 7 | VSTVistra Corp.Independent Power Producers | 9% | $1.4B | $16.0B |
| Independent Power Producers — converts 9% of revenue to free cash ($1.4B on $16.0B in sales), against a Utilities median of 10%. | ||||
| 8 | SOThe Southern CompanyRegulated Electric | 9% | $2.6B | $30.2B |
| Regulated Electric — converts 9% of revenue to free cash ($2.6B on $30.2B in sales), against a Utilities median of 10%. | ||||
| 9 | PPLPPL CorporationRegulated Electric | 4% | $347M | $9.4B |
| Regulated Electric — converts 4% of revenue to free cash ($347M on $9.4B in sales), against a Utilities median of 10%. | ||||
| 10 | ESEversource EnergyRegulated Electric | 2% | $237M | $13.9B |
| Regulated Electric — converts 2% of revenue to free cash ($237M on $13.9B in sales), against a Utilities median of 10%. | ||||
| 11 | CEGConstellation Energy CorporationRenewable Utilities | 1% | $309M | $30.8B |
| Renewable Utilities — converts 1% of revenue to free cash ($309M on $30.8B in sales), against a Utilities median of 10%. | ||||
| 12 | NRGNRG Energy, Inc.Independent Power Producers | 1% | $348M | $36.8B |
| Independent Power Producers — converts 1% of revenue to free cash ($348M on $36.8B in sales), against a Utilities median of 10%. | ||||