Southwest Airlines Co.
LUV Industrials Airlines
Southwest Airlines Co.’s revenue for fiscal 2025 (year ended December 2025) was $28.1 billion, up 2.11% from fiscal 2024. In the quarter to June 2026, revenue grew 16.4%, EPS grew 20.0%, free cash flow grew 86.8% and total debt rose 44.9%, each against the same quarter a year earlier. Member of the S&P 500; dividend growth for three consecutive years, revenue growth for five.
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Southwest Airlines Co. (LUV) Return on invested capital
Southwest Airlines Co.'s return on invested capital over the twelve months to 30 June 2026 was 7.04%, up 4.3 percentage points from fiscal 2025 (2.77%). Over the past ten years it has ranged from −38.6% (fiscal 2020) to 31.2% (fiscal 2015); the current reading is higher than 36% of that period. That is above the Airlines industry median of 3.19% and above the Industrials sector median of 2.30%.
Return on invested capital, annual
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Annual newest first
| Period | Return on invested capital | Change (points) |
|---|---|---|
| FY2025 | 2.77% | 0.36 |
| FY2024 | 2.41% | 0.42 |
| FY2023 | 1.99% | (7.81) |
| FY2022 | 9.80% | (9.28) |
| FY2021 | 19.1% | 57.66 |
| FY2020 | −38.6% | (60.10) |
| FY2019 | 21.5% | 3.70 |
| FY2018 | 17.8% | (0.82) |
| FY2017 | 18.6% | (4.29) |
| FY2016 | 22.9% | (8.28) |
Against its own ten years
Return on invested capital against peers
| Company | Return on invested capital |
|---|---|
| RYAAY Ryanair Holdings PLC compare | 22.2% |
| CPA Copa Holdings, S.A. compare | 12.4% |
| UAL United Airlines Holdings Inc compare | 11.5% |
| DAL Delta Air Lines, Inc. compare | 10.5% |
| LUV Southwest Airlines Co. | 7.04% |
| AAL American Airlines Group Inc. compare | 3.82% |
| ZNH China Southern Airlines Company Limited compare | 0.00% |
| LTM LATAM Airlines Group S.A. compare | 0.00% |
| ALK Alaska Air Group, Inc. compare | −1.94% |
| Airlines industry median | 3.19% |
| Industrials sector median | 2.30% |
| Market median | 0.00% |
What Return on invested capital is
Return on Invested Capital shows how much after-tax operating profit a company earns on the money its lenders and shareholders have put in.
TTM: (Operating Income × 0.625) ÷ (Shareholders Equity (Total) (latest quarter) + Long Term Debt (Total) (latest quarter) + Current Part of Debt (latest quarter) − Cash & Short Term Investments (latest quarter)); Annual: (Operating Income × 0.625) ÷ (Shareholders Equity (Total) + Long Term Debt (Total) + Current Part of Debt − Cash & Short Term Investments)
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- Revenue
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- EBITDA
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- Free cash flow margin
- P/E ratio
- P/S ratio
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- Price to free cash flow
- EV/EBITDA
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