Entergy raises profit forecast for coming years on power demand boost (updated)

Entergy

30/07/2025 12:38

Adds details about data center projects and new power generation, share move, paragraphs 1, 7-9 and 11

Entergy boosts infrastructure spending to $40 billion for AI-driven demand

U.S. power consumption to hit record highs by 2025-2026, EIA reports

Entergy's Q2 adjusted profit per share of $1.05 beats Wall St expectations

Shares rise 3.2%

July 30 (Reuters) - Entergy ETR.N raised its profit forecast for the later part of the decade and boosted its plan to spend on infrastructure, as rising electricity demand from AI-driven data centers and electrification trends reshape the U.S. power landscape.

According to the U.S. Energy Information Administration, power consumption in the country is expected to reach record highs in 2025 and 2026, driven by rapid expansion of data centers dedicated to artificial intelligence and cryptocurrency, and as homes and businesses use more electricity for heat and transportation.

The U.S. electric utility raised its adjusted profit forecast for 2027 to a range of $4.70 to $5.00 per share from $4.65 to $4.95 per share previously.

For 2028, it expects profit between $5.20 and $5.50 per share from its prior forecast of $5.10 to $5.40 per share.

"We remain well positioned to capture significant opportunity ahead and drive value for our stakeholders," CEO Drew Marsh said in a statement.

Entergy shares were up 3.2% at $91.04 on Wednesday afternoon.

Entergy's pipeline of data center projects is between 5 and 10 gigawatts, the company said. One gigawatt is enough to power as many as 1 million U.S. homes.

Louisiana utility regulators are considering whether to approve Entergy's deal to provide energy to a $10 billion Meta Platforms META.O data center campus under construction, with a decision expected in October, the company said.

Entergy also increased its four-year capital expenditure plan to $40 billion, from $37 billion previously, to cater to anticipated demand from AI data centers and to harden its energy infrastructure against hurricanes and other extreme weather.

The company's investments include adding 3 gigawatts of solar, 1.4 gigawatts of battery storage and 8 gigawatts of natural gas-fired power plants.

Utilities have been adding billions of dollars to their capital expenditure budgets as they field massive requests for new power capacity from Big Tech firms scouring the country for viable locations for data centers, which could support complex AI-related tasks.

The S&P index tracking utilities .SPLRCU rose 3.5% in the quarter ended June 30.

For the reported quarter, Entergy's total retail sales rose to 35,534 gigawatt hours (GWh), including nearly 12% industrial growth, from 34,444 GWh a year ago.

It posted an adjusted profit of $1.05 per share for the three months ended June 30, compared with analysts' average estimate of 92 cents, according to data compiled by LSEG.

New-Orleans-based Entergy provides electricity to nearly 3 million customers across Arkansas, Louisiana, Mississippi and Texas.

(Reporting by Katha Kalia in Bengaluru and Laila Kearney in New York; Editing by Shailesh Kuber and Matthew Lewis)

((Katha.Kalia@thomsonreuters.com;))