Item 8- Staff Briefing: First Quarter Financial Report — original pdf

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Austin Energy Quarterly Financial Report 1st Quarter FY 2026 Stephanie Koudelka Interim Senior Vice President and Chief Financial Officer February 2026 © Austin Energy Item 8Agenda Quarterly Financial Report Executive Summary Financial Health Budget to Actuals Financial Statements 2 Executive Summary Operating Results Operating income was below budget by $6m, or 9%, as of December. Bond Rating AA- bond rating was affirmed in October 2025, remaining below AA target. Financial Policies Substantial compliance with financial policies. Power Supply Adjustment The PSA was $119M over recovered as of December. 3 Financial Health S&P Bond Rating Target: AA | Actual: AA- Days Cash on Hand Debt Service Coverage Operating Margin Debt to Capitalization Target > 200 Days Target > 2.5x Target > 10% Target < 50% Actual 194 Days Actual 2.4x Actual 22% Actual 57% Includes ~32 Days of Power Supply Adjustment over recovery Includes 10% increase for a one-time adjustment for other post-employment benefit costs 4 Austin Energy Quarterly Financial Report Budget to Actuals 5 Austin Energy Fund Summary 6 ActualBudgetFavorable (Unfavorable)Base Revenue $ 181 $ 174 $ 7 Power Supply Revenue130 139 (9)Other Operating Revenues 125 134 (9)Total Operating Revenues 436 447 (11)Power Supply Expense114 123 9 Other Operating Expenses 263 259 (4)Total Operating Expenses377 382 5 Operating Income (Loss)59 65 (6)Transfers In5 5 0 Interest Revenue9 11 (2)Debt Service(46)(45)(1)Income (Loss) Before Transfers27 36 (9)Administrative Support Transfer(11)(11)0 General Fund Transfer(35)(35)0 Economic Development Transfer(3)(3)0 Other Transfers(4)(4)0 CIP Transfer(31)(31)0 Excess (Deficiency) of Revenues $ (57) $ (48) $ (9)Millions of $3 Months Ended December 202580 60 40 20 0 s n o i l l i M $ Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 7 Actual Cost Budget Cost PSA Revenue Power Supply Adjustment Capital Improvement Plan (CIP) $ 4 2 2 M C I P B U D G E T C I P F I N A N C I N G Power Generation Joint Projects Transmission Distribution Substations District Cooling General 15% 31% 54% $ Millions $0 $50 $100 $150 $200 FY26 Spend Plan FY26 Actuals Debt Cash Contributions in Aid of Construction 8 Austin Energy Quarterly Financial Report Financial Statements Income Statement Average Number of Customers 579,745 568,533 2% increase FYTD 2026 FYTD 2025 Residential Commercial/Industrial Sales in Gigawatt-hours 3,508 3,423 2% increase FYTD 2026 Residential FYTD 2025 Commercial/Industrial 10 12/31/202512/31/2024Operating Revenue$304 $283 Power Supply Operating Revenue130 115 Power Supply Operating Expense114 100 Operating Expenses 209 202 Depreciation Expense50 48 Operating Income (Loss)$61 $48 Other Revenues (Expenses)(11)(8)General Fund Transfer(35)(31)Net Income (Loss)$15 $9 Millions of $3 Months Ended©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.