NRG Energy, Inc. Reports Third Quarter Results, Reaffirms 2025 Financial Guidance, and Initiates 2026 Standalone Guidance

Delivered solid third quarter financial and operational performance, including growth versus prior year across all key financial metrics; reaffirming recently raised 2025 guidance ranges Initiating 2026 NRG standalone (without LS Power portfolio) guidance in line with the Company's long-term growth targets Expanded long-term retail power agreements for data centers with existing customer to 445 MW Closed Texas Energy Fund (TEF) loan agreement for Cedar Bayou 689 MW CCGT facility and received initial disbursement; still aiming to bring 1.5 GW of new generation online through TEF program LS Power portfolio acquisition on track for first quarter 2026 closing Announcing new $3 billion share repurchase authorization through 2028; expect to complete $1 billion in 2026 HOUSTON--(BUSINESS WIRE)--NRG Energy, Inc. (NYSE: NRG) today announces financial results for the third quarter ended September 30, 2025, and reports GAAP Net Income of $152 million, GAAP Earnings per Share (EPS) — basic of $0.70, and GAAP Cash Provided by Operating Activities of $484 million. The Company's non-GAAP metrics are Adjusted Net Income of $537 million, Adjusted EPS of $2.78, Adjusted EBITDA of $1,205 million, and Free Cash Flow before Growth Investments (FCFbG) of $828 million for the third quarter of 2025. “NRG again delivered strong quarterly results demonstrating the strength of our platform,” said Larry Coben, Chair, President, and Chief Executive Officer. “Our customer-focused strategy drives robust results, as we continue to advance our growth initiatives and capitalize on emerging opportunities. As the demand supercycle accelerates, NRG is generating substantial long-term value for shareholders while providing affordable options for the customers and communities we serve.” Consolidated Financial Results Table 1: Three Months Ended Nine Months Ended (In millions, except per share amounts) 9/30/2025 9/30/2024 9/30/2025 9/30/2024 GAAP Net Income/(Loss) $ 152 $ (767 ) $ 798 $ 482 Adjusted Net Incomea b $ 537 $ 434 $ 1,406 $ 1,092 GAAP EPS — basicc $ 0.70 $ (3.79 ) $ 3.81 $ 2.08 Adjusted EPSa d $ 2.78 $ 2.10 $ 7.17 $ 5.28 Adjusted EBITDAa $ 1,205 $ 1,055 $ 3,240 $ 2,887 GAAP Cash Provided by Operating Activities $ 484 $ 31 $ 1,790 $ 1,354 Free Cash Flow Before Growth Investments (FCFbG)a $ 828 $ 815 $ 2,035 $ 1,438 a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-1 through A-6 for GAAP reconciliations. Adjusted EPS, Adjusted Net Income, and Adjusted EBITDA exclude fair value adjustments related to derivatives b Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see Appendix tables A-1 through A-4 c GAAP Earnings/(Loss) per Weighted Average Common Share - Basic d Adjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic NRG reported a GAAP Net Income of $152 million, an increase of $919 million for the third quarter of 2025 compared to the same period in 2024. This growth was primarily driven by strong operational performance in Texas, as reflected in the Adjusted EBITDA results below. Additionally, the current period benefited from lower unrealized non-cash losses from mark-to-market economic hedges compared to prior year, which was impacted by declining ERCOT power prices and heat rate contraction. Certain economic hedge positions are required to be marked-to-market each period, while the associated customer contracts are not. This accounting treatment can result in temporary unrealized gains or losses that do not reflect the expected economics at settlement. The increase in GAAP Net Income was partially offset by the sale of Airtron in 2024 and the termination of the Cottonwood lease in 2025, along with related impacts from income tax expense versus the prior year tax benefit. Adjusted Net Income for the third quarter 2025 is $537 million, $103 million higher than prior year, primarily driven by a $150 million increase in Adjusted EBITDA, which includes the financial impacts described in the segment results below. Adjusted EPS is $2.78 for the third quarter 2025, $0.68 higher than prior year. NRG’s Adjusted EPS and FCFbG results for the first nine months of 2025 compare favorably to last year, primarily due to strong financial and operational performance. Raised 2025 Guidance NRG is reaffirming its 2025 guidance, which was raised on September 17, 2025 as follows: Adjusted Net Income guidance to $1,470 - $1,590 million, Adjusted EPS guidance to $7.55 - $8.15, Adjusted EBITDA guidance to $3,875 - $4,025 million, and FCFbG guidance to $2,100 - $2,250 million. Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2025a 2025 2025 (In millions, except per share amounts) Original Guidance Raised Guidance Adjusted Net Income $1,330 - $1,530 $1,470 - $1,590 Adjusted EPS $6.75 - $7.75 $7.55 - $8.15 Adjusted EBITDA $3,725 - $3,975 $3,875 - $4,025 FCFbG $1,975 - $2,225 $2,100 - $2,250 a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 and A-10 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year. 2025 Capital Allocation The Company plans to return $1.3 billion to shareholders through share repurchases and approximately $345 million through common stock dividends in 2025, as part of its previously announced 2025 capital allocation plan. Through October 31, 2025, the Company completed $1.1 billion in share repurchases and distributed $258 million in common stock dividends. On October 8, 2025, NRG closed a $4.9 billion issuance of Senior Unsecured Notes and Senior Secured Notes, with the proceeds to be utilized to fund the cash portion of the anticipated LS Power portfolio acquisition and the repayment of the Senior Secured Notes due in December 2025. On October 20, 2025, NRG declared a quarterly dividend of $0.44 per common share, or $1.76 per share on an annualized basis. The dividend is payable on November 17, 2025, to common stockholders of record as of November 3, 2025. NRG's share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of common stock repurchased under the share repurchase authorization will be determined by NRG’s management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company’s ability to maintain satisfactory credit ratings. Initiating 2026 Standalone Guidance and Capital Allocation NRG is initiating 2026 standalone guidance and capital allocation updates as detailed below. This interim view reflects NRG on a standalone basis. The Company will provide a complete guidance and capital allocation update following the close of the LS Power portfolio acquisition. Table 3: Standalone Adjusted EBITDA and FCFbG Guidance for 2026a 2025 2025 2026 (In millions) Original Guidance Raised Guidance NRG Standalone Guidance Adjusted EBITDA $3,725 - $3,975 $3,875 - $4,025 $3,925 - $4,175 FCFbG $1,975 - $2,225 $2,100 - $2,250 $1,975 - $2,225 a Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 through A-10 for GAAP reconciliations. Adjusted EBITDA excludes fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year. On October 16, 2025, NRG’s Board of Directors approved a new $3 billion share repurchase authorization to be completed through 2028. The Company expects to complete $1 billion in share repurchases in 2026. The Board also approved an 8% increase of the annual common stock dividend to $1.90 per share, consistent with the Company’s 7-9% long-term growth target. NRG Strategic Developments Data Center Update NRG successfully expanded an existing data center relationship, adding two additional long-term retail power agreements totaling 150 MW in the third quarter. These grid-served data centers will be constructed on NRG-owned sites in PJM, with initial powering expected in 2028 and the facilities to be fully online by the second half of 2032. NRG’s data center retail power agreements with this counterparty now total 445 MW for sites across ERCOT and PJM. Texas Energy Fund (TEF) On September 26, 2025, NRG entered into a $562 million loan agreement with the Public Utility Commission of Texas (PUCT) under the TEF for a low-interest rate loan at 3% to support development of its 689 MW (721 MW nameplate) Cedar Bayou generation facility. Initial disbursement of funds occurred in September 2025 and is expected to continue through the projected mid-2028 commercial operations date. NRG previously executed a loan agreement through the TEF for its TH Wharton facility and has an additional project, Greens Bayou, in TEF due diligence review. Through the TEF program, NRG expects to bring approximately 1.5 GW of new generation to Texas between mid-2026 and mid-2028. Acquisition of Premier Power Portfolio from LS Power On Track to Close First Quarter 2026 On May 12, 2025, NRG entered into a definitive agreement with LS Power to acquire a power portfolio including 13 GW of natural gas-fired generation facilities and a Commercial & Industrial Virtual Power Plant platform with 6 GW of capacity. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals including Hart-Scott-Rodino (HSR), Federal Energy Regulatory Commission (FERC), and the New York State Public Service Commission (NYSPSC). All required filings have been submitted. Segment Results Table 4: Adjusted EBITDAa (In millions) Three Months Ended Nine Months Ended Segment 9/30/2025 9/30/2024 9/30/2025 9/30/2024 Texas $ 807 $ 584 $ 1,618 $ 1,255 East 107 164 680 724 West/Services/Otherb 19 50 139 179 Vivint Smart Home 272 257 803 729 Adjusted EBITDA $ 1,205 $ 1,055 $ 3,240 $ 2,887 a Adjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1 through A-4 for GAAP reconciliation of Adjusted EBITDA (by operating segment) to GAAP Net Income (by operating segment). Adjusted EBITDA excludes fair value adjustments related to derivatives b Includes Corporate activities Texas: Third quarter 2025 Adjusted EBITDA is $807 million, $223 million higher than the prior year. For the first nine months of 2025, Adjusted EBITDA is $1,618 million, $363 million higher than prior year. The increase for both the quarter and the first nine months is primarily driven by improved margins and supply cost optimization. East: Third quarter 2025 Adjusted EBITDA is $107 million, $57 million lower than the prior year. For the first nine months of 2025, Adjusted EBITDA is $680 million, $44 million lower than prior year. The decrease for both the quarter and the first nine months is primarily driven by increased supply costs to serve retail load and the retirement of the Indian River facility, partially offset by higher capacity prices for owned generation, and favorable first quarter impact from higher natural gas wholesale margins. West/Services/Other: Third quarter 2025 Adjusted EBITDA is $19 million, $31 million lower than the prior year. For the first nine months of 2025, Adjusted EBITDA is $139 million, $40 million lower than prior year. These decreases are primarily driven by the sale of Airtron in September 2024 and termination of the Cottonwood lease in May 2025. Vivint Smart Home: Third quarter 2025 Adjusted EBITDA is $272 million, $15 million higher than the prior year. For the first nine months of 2025, Adjusted EBITDA is $803 million, $74 million higher than prior year. The increase for both the quarter and the first nine months of 2025 is attributable to growth in customer count, driven by record new customer adds and continued strong customer retention, and an increase in monthly recurring service margin per customer. Liquidity and Capital Resources Table 5: Corporate Liquidity (In millions) 9/30/25 12/31/24 Cash and Cash Equivalents $ 732 $ 966 Restricted Cash 30 8 Total $ 762 $ 974 Total availability under revolving credit facility and collective collateral facilitiesa 5,730 4,469 Total liquidity, excluding funds deposited by counterparties $ 6,492 $ 5,443 a Total capacity of Revolving Credit Facility and collective collateral facilities was $8.0 billion and $7.3 billion as of September 30, 2025 and December 31, 2024, respectively As of September 30, 2025, NRG's unrestricted cash was approximately $0.7 billion, and $5.7 billion was available under the Company’s credit facilities. Total liquidity was $6.5 billion. In October 2025, proceeds from the $4.9 billion debt issuance were held as cash in advance of the anticipated first quarter 2026 closing of the LS Power portfolio acquisition and repayment of the Senior Secured Notes due in December 2025. Earnings Conference Call On November 6, 2025, NRG will host a conference call at 9:00 a.m. Eastern (8:00 a.m. Central) to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials through the investor relations website under “presentations and webcasts” on investors.nrg.com. The webcast will be archived on the site for those unable to listen in real-time. About NRG NRG Energy, Inc. is leading the future of energy—now. Our solutions power a smarter, brighter future by helping customers achieve today's goals while solving for the challenges of tomorrow. Every day, we deliver innovative natural gas, electricity, and smart home solutions to customers large and small across North America. Forward-Looking StatementsRead the full story here

NRG Energy, Inc. Reports Third Quarter Results, Reaffirms 2025 Financial Guidance, and Initiates 2026 Standalone Guidance

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