NRG Energy Q2 profit misses on higher interest, depreciation costs
NRG Energy Q2 profit misses on higher interest, depreciation costs
Overview
US power producer's Q2 adjusted EPS missed analyst expectations
Q2 adjusted net income and EPS declined due to higher interest and depreciation from acquisitions
Company reaffirmed 2026 financial guidance and continued share repurchases
Outlook
NRG reaffirms 2026 Adjusted Net Income guidance of $1.685 bln to $2.115 bln
Company maintains 2026 Adjusted EPS guidance of $7.90 to $9.90
NRG continues to expect 2026 Adjusted EBITDA of $5.325 bln to $5.825 bln
Result Drivers
ASSET ACQUISITIONS AND CAPACITY PRICES - Co said higher GAAP net income was driven by the addition of assets from LS Power and higher realized capacity prices in the East
HIGHER INTEREST AND DEPRECIATION - Lower adjusted net income and EPS were primarily due to higher interest expense and depreciation and amortization related to the LS Power acquisition
REGIONAL PERFORMANCE VARIATION - Texas segment declined on higher supply costs and mild weather, while East segment improved due to new assets and higher capacity prices
Company press release: ID:nBw6FR35fa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Miss | $1.49 | $1.70 (10 Analysts) |
Q2 Net Income |
| $506 mln |
|
Q2 Adjusted EBITDA |
| $1.22 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy"
Wall Street's median 12-month price target for NRG Energy Inc is $195.00, about 40.8% above its August 3 closing price of $138.47
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)