The Asset Base Inflation
14 of 15 filers across 7 sectors are flagging higher cost pressure. Visible since 2025Q2, now plateauing. Primarily a cost story (71%), with a capital overlay (22%). Recent filings describe "$21 million increase in depreciation and amortization due to higher depreciable base and higher rates due to the 2024 North Carolina rate case."
Companies across utilities, energy, entertainment, and industrial sectors are simultaneously expanding their capital asset bases—deploying new plant, technology infrastructure, facilities, and projects—which mechanically accelerates depreciation and amortization expenses across earnings statements.
DISTINCT NEW FILERS PER QUARTER
✦ WHAT THE DIFF CAUGHT
Language shifts from forward-looking capital plans to present-tense expense realization: companies are no longer announcing intended investments, but reporting the accounting consequences now flowing through P&L.
REPRESENTATIVE SIGNAL FROM FILINGS
“$21 million increase in depreciation and amortization due to higher depreciable base and higher rates due to the 2024 North Carolina rate case”
Depreciation and amortization increased by $21 million due to a higher depreciable base and elevated rates from the 2024 North Carolina rate case.
“underlying depreciation and amortization increase was driven largely by new project start-ups”
Depreciation and amortization increased driven largely by new project start-ups in the quarter and year-to-date periods.
DRIVERS