Constellation Energy Exceeds Q2 Earnings Estimates, Stock Rises 46.5% YTD

Constellation Energy Corporation reported Q2 earnings of $1.91 per share, surpassing the Zacks Consensus Estimate of $1.83 by 4.4%. The bottom line improved 13.7% YoY. Revenues totaled $6.1 billion, beating the Zacks Consensus Estimate of $5.06 billion by 20.5%. The company signed a 20-year power purchase agreement with Meta and received regulatory approval for its acquisition of Calpine.

Constellation Energy Corp (CEG) reported its financial results for the second quarter of 2025, showcasing robust earnings and significant strategic advancements. The company achieved GAAP net income of $1.91 per share, an increase from $1.68 per share in the same period last year [1]. This performance was driven by higher IL banked ZEC revenues and favorable market conditions, partially offset by lower nuclear PTCs [1].

Key highlights of the quarter include a 20-year power purchase agreement with Meta, which will support the relicensing and continued operations of the Clinton nuclear facility for another two decades. The agreement will also expand Clinton’s clean energy output by 30 megawatts through plant uprates, further enhancing grid reliability and low-cost power provision [1].

The company also received regulatory approvals for its acquisition of Calpine, a significant move that will combine two leading generation fleets and two exceptional teams to enhance its ability to serve customers and communities coast-to-coast. This acquisition is expected to close in the fourth quarter of 2025 [1].

Constellation Energy Corp executed $400 million in accelerated share repurchases and continued to deliver on its commitment to increase dividends by 10% in 2025. The company was also certified as a Great Place to Work for the third consecutive year, reflecting positive employee satisfaction [1].

However, the company faces challenges with interconnection timelines for data center deals and uncertainty regarding the timing and cost of interconnection processes. Additionally, regulatory and market risks associated with the integration of Calpine remain a concern [1].

Constellation Energy Corp's strong Q2 performance underscores its commitment to reliability and affordability in the energy sector. The company's strategic moves, including the acquisition of Calpine and the agreement with Meta, position it well for future growth and market leadership.

References:
[1] https://www.constellationenergy.com/newsroom/2025/08/constellation-reports-second-quarter-2025-results.html