What does NRG Energy do and what are its main business segments?

What guidance did NRG Energy's management provide for the next earnings period?

What were the key takeaways from NRG Energy's earnings call?

What were the key takeaways from NRG Energy’s earnings call?

What is NRG Energy's gross profit margin?

Did NRG Energy beat or miss consensus estimates last quarter?

What is NRG Energy's latest dividend and current dividend yield?

What factors drove the changes in NRG Energy's revenue and profit?

- **2025 Guidance Upped**: $100M increase, reaffirmed with Q3 EPS +32% to $2.78 and record EBITDA.
- **2026 Vision**: Stand-alone EBITDA $3.9B-$4.2B, free cash flow $2.1B, driven by data center expansion and LS Power accretion.
- **Data Center Momentum**: 5.4 GW pipeline, pricing >$80/MWh, 445 MW contracted with hyperscalers.
- **Smart Home Surge**: 9% customer growth vs. 5%-6% target, $272M EBITDA, VPP adoption doubling expectations.
- **LS Power Deal**: $4.9B financing done, Q1 2026 close; 14% EPS CAGR (stand-alone) + pro forma upside post-merger.

**【CEO Opening Remarks】**
- Raised 2025 financial guidance by $100 million, reaffirming the higher range.
- Introduced 2026 stand-alone guidance with adjusted EBITDA of $3.925B-$4.175B and free cash flow of $1.975B-$2.225B.
- Expanded data center power agreements to 445 MW, with a pipeline of 5.4 GW under joint development and LOIs.
- Q3 2025 adjusted EPS up 32% YoY to $2.78, and record quarterly EBITDA of $1.205B.
- LS Power acquisition on track for Q1 2026 close, with $4.9B debt financing completed.

**【CFO Financial Commentary】**
- Q3 2025: Adjusted EPS $2.78 (32% YoY), EBITDA $1.205B (1% YoY), free cash flow $828M.
- Year-to-date: Adjusted EPS $7.17 (36% YoY), EBITDA $3.2B (12% YoY), free cash flow $2.035B (42% YoY).
- Segment performance: Texas (+38% EBITDA), East (+modest decline), West/Services/Other (+$19M), Smart Home $272M EBITDA.
- 2025 free cash flow guidance: $2.1B-$2.25B, with $1.3B share buybacks completed (85% of target).
- 2026 capital allocation: $1B share buybacks, 7%-9% dividend growth, and $3B buyback authorization through 2028.

**【Q&A Highlights】**
- **Data Center Strategy**: 5.4 GW pipeline with GE Vernova/Kiewit partnership; pricing above $80/MWh reflects demand and execution strength.
- **LS Power Impact**: Post-close, pro forma guidance will include LS assets; 14% EPS CAGR (stand-alone) driven by Texas growth and LS accretion.
- **Smart Home Growth**: 9% YoY customer adds vs. 5%-6% plan; expanding net service margins with VPP and home automation pilots.
- **Market Trends**: ERCOT demand up 30% YoY; policymakers focusing on affordability and reliability (e.g., Texas SB 6).

NRG Energy, Inc.(NRG)-20251106-2025 Q3 Earnings call transcript

Retail Mass

Energy

Capacity

Mark-to-Market for Economic Hedging Activities

Other

Contract Amortization

Texas

East

West/Other

Eliminations

Vivint Smart Home

NRG

NRG fundamentals

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