NRG Energy (NYSE: NRG) swings to Q2 profit and reaffirms 2026 guidance
Rhea-AI Filing Summary
NRG Energy reported strong second-quarter 2026 results, with GAAP net income of $506 million (vs a $104 million loss a year earlier), GAAP basic EPS of $2.32, and GAAP cash from operations of $1,117 million. Revenue was $7,481 million, and non-GAAP metrics included Adjusted EBITDA of $1,217 million, Adjusted Net Income of $315 million, Adjusted EPS of $1.49, and Free Cash Flow before Growth Investments (FCFbG) of $1,025 million.
Management reaffirmed full-year 2026 guidance, including Adjusted EBITDA of $5,325–$5,825 million, Adjusted EPS of $7.90–$9.90, and FCFbG of $2,800–$3,300 million. The company plans to return $1.0 billion via share repurchases and about $407 million in dividends in 2026 and has already repurchased $932 million of stock and paid $202 million in dividends through July 31. NRG also advanced its Bring Your Own Power data-center strategy with a 1.2 GW CCGT project framework in Texas, achieved commercial operations at the 415 MW T.H. Wharton plant, and reported $5.3 billion of total liquidity as of June 30, 2026.
Positive
- GAAP net income swung to $506 million from a $104 million loss in Q2 2025, aided by LS Power assets, higher East capacity prices and favorable hedge marks.
- Adjusted EBITDA rose to $1,217 million and FCFbG to $1,025 million in Q2 2026, demonstrating strong cash generation from operations.
- Management reaffirmed 2026 guidance, including Adjusted EBITDA of $5,325–$5,825 million and FCFbG of $2,800–$3,300 million, supporting a robust forward outlook.
- NRG plans $1.0 billion of share repurchases and about $407 million in dividends in 2026, with $932 million of buybacks and $202 million of dividends already completed.
- Strategic growth advanced via a 1.2 GW BYOP data center CCGT project framework, commercial operation of the 415 MW T.H. Wharton plant, and a potential $54.72 million Texas Energy Fund completion bonus grant.
Negative
- Total liquidity declined to $5.3 billion at June 30, 2026, $4.3 billion lower than December 31, 2025, primarily after funding the LS Power and CPower acquisition.
- Despite higher EBITDA, Adjusted Net Income fell to $315 million and Adjusted EPS to $1.49 from $339 million and $1.73, reflecting higher interest expense and depreciation from the LS Power assets.
- The Texas segment’s Adjusted EBITDA dropped to $381 million in Q2 2026 from $512 million, pressured by higher supply costs, mild winter weather and added operating expenses for new generation.
Filing Explained
Completed acquisition-related share issuance increased NRG’s common share count, reducing existing holders’ percentage ownership absent offsetting changes.
This Form 8-K reports NRG’s second-quarter results and related material updates; the LS Power acquisition is completed, while the proposed data-center generation project remains earlier-stage.
The acquisition is reflected in common shares issued rising from 199,828,615 at
Total liquidity was down
Although the release says NRG advanced its 1.2 GW data-center strategy, the parties are aligned only on principal commercial terms and the project remains subject to final documentation and approvals. The T.H. Wharton project’s up-to-
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GAAP Net Income Q2 2026: $506 million
GAAP basic EPS Q2 2026: $2.32
Revenue Q2 2026: $7,481 million
+5 more
8 metrics
GAAP Net Income Q2 2026
$506 million
Quarter ended June 30, 2026; $610 million higher than Q2 2025
GAAP basic EPS Q2 2026
$2.32
Net income per weighted average common share — basic for Q2 2026
Revenue Q2 2026
$7,481 million
Consolidated revenue for the three months ended June 30, 2026
Adjusted EBITDA Q2 2026
$1,217 million
Non-GAAP Adjusted EBITDA for the three months ended June 30, 2026
FCFbG Q2 2026
$1,025 million
Free Cash Flow before Growth Investments for the second quarter of 2026
Total liquidity June 30, 2026
$5.3 billion
Total liquidity, excluding funds deposited by counterparties; $4.3 billion lower than December 31, 2025
2026 Adjusted EPS guidance range
$7.90 - $9.90
Reaffirmed full-year 2026 Adjusted EPS guidance
2026 planned capital returns
$1.0 billion share repurchases; ~$407 million dividends
Planned shareholder returns under the 2026 capital allocation plan
Key Terms
Adjusted EBITDA, Free Cash Flow before Growth Investments (FCFbG), Bring Your Own Power (BYOP) strategy, Texas Energy Fund (TEF), +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $1,217 million for the second quarter of 2026"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow before Growth Investments (FCFbG) financial
"Free Cash Flow before Growth Investments (FCFbG) of $1,025 million"
Bring Your Own Power (BYOP) strategy technical
"NRG advanced its Bring Your Own Power (BYOP) strategy with a leading global cloud and AI hyperscaler"
Texas Energy Fund (TEF) technical
"NRG's two additional TEF projects remain on time and on budget"
economic hedges financial
"Results also benefited from unrealized, non-cash gains on economic hedges, primarily in the East"
Adjusted ETR financial
"Income tax calculated using Adjusted ETR on Adjusted Income before income taxes"
Earnings Snapshot
GAAP Net Income: $506 million · Guidance included
quarter ended June 30, 2026
GAAP Net Income
$506 million
increase of $610 million from Q2 2025
GAAP basic EPS
$2.32
up from $(0.62) in Q2 2025
Revenue
$7,481 million
vs $6,740 million in Q2 2025
Adjusted EBITDA
$1,217 million
vs $909 million in Q2 2025
Adjusted EPS
$1.49
down from $1.73 in Q2 2025
FCFbG
$1,025 million
vs $914 million in Q2 2025
Guidance
Reaffirmed 2026 guidance: Adjusted EBITDA $5,325–$5,825 million, Adjusted EPS $7.90–$9.90, FCFbG $2,800–$3,300 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were NRG (NRG) Energy’s key earnings results for Q2 2026?
NRG reported GAAP net income of $506 million for Q2 2026, compared with a $104 million loss a year earlier. GAAP basic EPS was $2.32 and diluted EPS was $2.31, reflecting improved performance and favorable unrealized gains on economic hedges.
How did NRG (NRG) perform on an Adjusted EBITDA and FCFbG basis in Q2 2026?
For Q2 2026, NRG generated Adjusted EBITDA of $1,217 million and Free Cash Flow before Growth Investments of $1,025 million. These non-GAAP measures exclude derivative fair-value effects and certain non-recurring items, highlighting strong underlying cash generation for the quarter.
What 2026 financial guidance did NRG (NRG) reaffirm with this report?
NRG reaffirmed 2026 guidance for Adjusted EBITDA of $5,325–$5,825 million, Adjusted EPS of $7.90–$9.90, and FCFbG of $2,800–$3,300 million. The company does not guide to GAAP net income because of derivative fair-value adjustments.
What is NRG (NRG) doing with its Bring Your Own Power (BYOP) data center strategy?
NRG advanced its BYOP strategy with a leading cloud and AI hyperscaler, aligning on key terms for a 1.2 GW combined cycle gas facility in Texas. This customer-backed project is intended to support data center load, grid reliability and affordability, subject to final agreements and approvals.
What is NRG (NRG)’s liquidity and balance sheet position as of June 30, 2026?
As of June 30, 2026, NRG had $162 million of cash and cash equivalents and total liquidity of $5.3 billion. Liquidity was $4.3 billion lower than year-end 2025, mainly due to funding the acquisition of generation assets and CPower from LS Power.
How did NRG (NRG)’s business segments perform in Q2 2026?
Q2 2026 Adjusted EBITDA was $381 million in Texas, $469 million in East, $66 million in West/Other, and $301 million at Vivint Smart Home. East and Vivint grew year over year, while Texas declined on higher supply costs and mild weather.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
(713 ) 537-3000
Registrant's telephone number, including area code
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02 Results of Operations and Financial Condition
On August 4, 2026, NRG Energy, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report on Form 8-K and is hereby incorporated by reference.
Item 9.01 Financial Statements and Exhibits
Exhibits
| Exhibit Number | Document | |||||||
| 99.1 | Press Release, dated August 4, 2026. | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NRG Energy, Inc.
(Registrant)
By: /s/ Christine A. Zoino
Christine A. Zoino
Corporate Secretary
Dated: August 4, 2026
Exhibit 99.1
NRG Energy Reports Second Quarter 2026 Results and Reaffirms 2026 Financial Guidance
•Reaffirming 2026 guidance ranges
•Advancing Bring Your Own Power strategy with hyperscaler for 1.2 GW CCGT in Texas
•Achieved commercial operations at 415 MW T.H. Wharton facility, NRG's first new build generation asset in nearly a decade; remaining two Texas Energy Fund projects on time and on budget
HOUSTON—August 4, 2026—NRG Energy, Inc. (NYSE: NRG) today announced financial results for the second quarter ended June 30, 2026, and reports GAAP Net Income of $506 million, GAAP Earnings per Share (EPS) — basic of $2.32, and GAAP Cash Provided by Operating Activities of $1,117 million. The Company's non-GAAP metrics are Adjusted Net Income of $315 million, Adjusted EPS of $1.49, Adjusted EBITDA of $1,217 million, and Free Cash Flow before Growth Investments (FCFbG) of $1,025 million for the second quarter of 2026.
"Today we provided a progress update on our Bring Your Own Power data center strategy," said Robert Gaudette, President & CEO. "This is the model for how large load growth should work. The customer supports the investment, with reliability and affordability protected for all. We also delivered a solid second quarter and are reaffirming our 2026 guidance. I am confident in the discipline and execution that continue to drive NRG forward."
Consolidated Financial Results
Table 1:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (In millions, except per share amounts) | 6/30/2026 | 6/30/2025 | 6/30/2026 | 6/30/2025 | ||||||||||||||||||||||
| GAAP Net Income/(Loss) | $ | 506 | $ | (104) | $ | 631 | $ | 646 | ||||||||||||||||||
Adjusted Net Incomea b | $ | 315 | $ | 339 | $ | 623 | $ | 870 | ||||||||||||||||||
GAAP EPS — basicc | $ | 2.32 | $ | (0.62) | $ | 2.86 | $ | 3.11 | ||||||||||||||||||
Adjusted EPSa d | $ | 1.49 | $ | 1.73 | $ | 2.98 | $ | 4.42 | ||||||||||||||||||
Adjusted EBITDAa | $ | 1,217 | $ | 909 | $ | 2,297 | $ | 2,035 | ||||||||||||||||||
| GAAP Cash Provided by Operating Activities | $ | 1,117 | $ | 451 | $ | 948 | $ | 1,306 | ||||||||||||||||||
Free Cash Flow Before Growth Investments (FCFbG)a | $ | 1,025 | $ | 914 | $ | 959 | $ | 1,207 | ||||||||||||||||||
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 Net Income/(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
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NRG reported GAAP Net Income of $506 million for the second quarter of 2026, an increase of $610 million from the prior year. The improvement was due to the addition of the portfolio of assets acquired from LS Power and higher realized capacity prices in the East, partially offset by milder weather and higher supply costs. Results also benefited from unrealized, non-cash gains on economic hedges, primarily in the East, compared to losses in the prior year. These hedge positions are adjusted to market value each period, while the related customer contracts are not. As a result, the accounting treatment can result in temporary unrealized gains or losses that may differ from expected results when the contracts settle.
Adjusted Net Income for the second quarter 2026 is $315 million, $24 million lower than prior year, primarily driven by higher interest expense and depreciation and amortization related to the acquisition of the portfolio of assets acquired from LS Power, partially offset by a $308 million increase in Adjusted EBITDA, the impacts of which are described in the segment results below. Adjusted EPS is $1.49 for the second quarter 2026, $0.24 lower than prior year. The second quarter 2026 Adjusted EPS results include the financial impacts from Adjusted Net Income and impacts of shares issued as part of the completed acquisition of generation assets and CPower from LS Power.
Reaffirming 2026 Guidance
NRG is reaffirming its guidance for 2026 as set forth below.
Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2026a
| 2026 | ||||||||
| (In millions, except per share amounts) | Guidance | |||||||
| Adjusted Net Income | $1,685 - $2,115 | |||||||
| Adjusted EPS | $7.90 - $9.90 | |||||||
| Adjusted EBITDA | $5,325 - $5,825 | |||||||
| FCFbG | $2,800 - $3,300 | |||||||
a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 and A-9 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.
2026 Capital Allocation
The Company plans to return $1.0 billion to shareholders through share repurchases and approximately $407 million through common stock dividends in 2026, as part of its previously announced 2026 capital allocation plan. Through July 31, 2026, the Company completed $932 million in share repurchases and distributed $202 million in common stock dividends.
On July 22, 2026, NRG declared a quarterly dividend of $0.475 per common share, or $1.90 per share on an annualized basis. The dividend is payable on August 17, 2026 to common stockholders of record as of August 3, 2026.
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.
NRG Strategic Developments
Advanced BYOP Data Center Strategy
NRG advanced its Bring Your Own Power (BYOP) strategy with a leading global cloud and AI hyperscaler. The parties are aligned on principal commercial terms for the development of a 1.2 GW combined cycle natural gas generation facility in Texas and remains subject to final documentation and approvals. This update highlights NRG's BYOP strategy of meeting large load growth through customer-backed generation investment to support grid reliability, energy affordability, and local communities.
Texas Energy Fund (TEF)
On May 26, 2026, NRG achieved commercial operations at its first project, the 415 MW T.H. Wharton facility. The project satisfied the eligibility requirements for the completion bonus grant program, and on June 17, 2026, the Company entered into a
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completion bonus grant agreement with the PUCT for T.H. Wharton for up to $54.72 million, to be paid in ten annual installments, subject to performance of the facility, beginning after the initial test period ends on May 31, 2027. NRG's two additional TEF projects remain on time and on budget. Through the program, NRG plans to bring online a total of 1.5 GW of new, reliable, affordable power generation by mid-2028 to support the increasing energy demands of Texas consumers.
Segment Results
Table 3: Adjusted EBITDAa
| (In millions) | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
| Segment | 6/30/2026 | 6/30/2025 | 6/30/2026 | 6/30/2025 | ||||||||||||||||||||||
| Texas | $ | 381 | $ | 512 | $ | 597 | $ | 811 | ||||||||||||||||||
| East | 469 | 99 | 933 | 573 | ||||||||||||||||||||||
West/Otherb | 66 | 39 | 172 | 112 | ||||||||||||||||||||||
| Vivint Smart Home | 301 | 259 | 595 | 539 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,217 | $ | 909 | $ | 2,297 | $ | 2,035 | ||||||||||||||||||
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: Second quarter 2026 Adjusted EBITDA was $381 million, $131 million lower than the prior year. For the first six months of 2026, Adjusted EBITDA was $597 million, $214 million lower than prior year. Results were primarily driven by higher supply costs, mild winter weather, including a ~30% decrease in heating degree days as compared to prior year leading to lower retail load, and additional operating expenses for the new generation assets.
East: Second quarter 2026 Adjusted EBITDA was $469 million, $370 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $933 million, $360 million higher than prior year. Results were primarily driven by contribution of the new generation assets and CPower and higher capacity prices for owned generation, partially offset by higher power supply costs during Winter Storm Fern and lower natural gas margins.
West/Other: Second quarter 2026 Adjusted EBITDA was $66 million, $27 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $172 million, $60 million higher than prior year. The increase was primarily driven by lower operating expenses associated with a lease expiration in May 2025.
Vivint Smart Home: Second quarter 2026 Adjusted EBITDA was $301 million, $42 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $595 million, $56 million higher than prior year. The increase for both the quarter and the first six months of 2026 is attributable to higher new customer adds and an increase in monthly recurring service margin per customer.
Liquidity and Capital Resources
Table 4: Corporate Liquidity
| (In millions) | 6/30/26 | 12/31/25 | ||||||||||||
| Cash and Cash Equivalents | $ | 162 | $ | 4,708 | ||||||||||
| Restricted Cash | 50 | 30 | ||||||||||||
| Total | $ | 212 | $ | 4,738 | ||||||||||
Total availability under revolving credit facility and collective collateral facilitiesa | 5,068 | 4,890 | ||||||||||||
| Total liquidity, excluding funds deposited by counterparties | $ | 5,280 | $ | 9,628 | ||||||||||
a Total capacity of the revolving credit facility and collective collateral facilities was $9.0 billion and $7.7 billion as of June 30, 2026 and December 31, 2025, respectively
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As of June 30, 2026, NRG's unrestricted cash was approximately $0.2 billion, and $5.1 billion was available under the Company’s credit facilities. Total liquidity was $5.3 billion, which was $4.3 billion lower than December 31, 2025, primarily driven by funding of the acquisition of generation assets and CPower from LS Power.
Earnings Conference Call
On August 4, 2026, 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 is a leading provider of electricity, natural gas, and smart home solutions to eight million customers across North America. The company operates a customer-first platform supported by a diversified supply strategy and the safe, reliable operation of approximately 25 GW of power generation. NRG plays a meaningful role in competitive energy markets and our innovative team is creating the flexible and affordable solutions that households and large businesses need today and in the future.
Forward-Looking Statements
In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about NRG's future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.
Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, the imposition of tariffs, the escalation of international trade disputes, and the occurrence or re-escalation of geopolitical conflicts (including the hostilities with Iran and the conflicts in the Middle East) and inflationary impacts resulting therefrom, risks associated with the integration of the portfolio of assets acquired from LS Power, including potential disruption to ongoing operations and other transition difficulties, the inability of the combined company to realize expected synergies and benefits of integration (or that it takes longer than expected) which may result in the combined company not operating as effectively as expected, the emergence of hazards customary in the power industry, weather conditions and extreme weather events, competition in wholesale power, gas and smart home markets, the volatility of energy and fuel prices, the volatility in demand for power and gas, customer affordability concerns that may constrain the pricing of NRG's products and services and limit its ability to recover costs, the failure of customers or counterparties to perform under contracts, changes in the wholesale power and gas markets, the failure of NRG’s expectations regarding load growth to materialize, changes in government or market regulations, the condition of capital markets generally and NRG’s ability to access capital markets, NRG’s ability to execute its supply strategy, risks related to data privacy, cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated outages at NRG’s generation facilities, operational and reputational risks related to the use of artificial intelligence and the adherence to developing laws and regulations related to the use thereof, NRG’s ability to achieve its net debt targets, adverse results in current and future litigation, complaints, product liability claims and/or adverse publicity, failure to identify, execute or successfully implement acquisitions or asset sales, risks of the smart home and security industry, including risks of and publicity surrounding the sales, customer origination and retention process, the impact of changes in consumer spending patterns, consumer preferences, geopolitical tensions, demographic trends, supply chain disruptions, NRG’s ability to implement value enhancing improvements to plant operations and company wide processes, NRG’s ability to achieve or maintain investment grade credit metrics, NRG’s ability to execute definitive agreements for, and proceed with or complete, proposed projects (including the data center project) on the contemplated terms, timeline and budget, the inability to maintain or create successful partnering relationships, NRG’s ability to operate its business efficiently, NRG’s ability to retain customers, the ability to successfully integrate businesses of acquired assets or companies (including the portfolio acquisition from LS Power), NRG’s ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, NRG’s ability to execute its capital allocation plan, and the other risks and uncertainties discussed in this release and in our Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC"). Achieving investment grade credit metrics is not an indication of or guarantee that NRG
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will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Adjusted EBITDA, adjusted cash provided by operating activities, Free Cash Flow before Growth Investments, Adjusted Net Income, and Adjusted EPS guidance are estimates as of August 4, 2026. These estimates are based on assumptions NRG believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the SEC at www.sec.gov. For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in NRG’s most recent Annual Report on Form 10-K, and in subsequent SEC filings. NRG’s forward-looking statements speak only as of the date of this communication or as of the date they are made.
Contacts
Media | Investors | |||||||
Laura Avant | Brendan Mulhern | |||||||
Laura.Avant@nrg.com | 609.524.4767 | |||||||
5
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| (In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Revenue | $ | 7,481 | $ | 6,740 | $ | 17,737 | $ | 15,325 | |||||||||||||||
| Operating Costs and Expenses | |||||||||||||||||||||||
| Cost of operations (excluding depreciation and amortization shown below) | 5,470 | 5,629 | 14,328 | 12,190 | |||||||||||||||||||
| Depreciation and amortization | 494 | 344 | 926 | 670 | |||||||||||||||||||
| Selling, general and administrative costs (excluding amortization of customer acquisition costs of $93, $68, $180, and $133 respectively, which are included in depreciation and amortization shown separately above) | 562 | 724 | 1,155 | 1,273 | |||||||||||||||||||
| Acquisition-related transaction and integration costs | 16 | 43 | 61 | 51 | |||||||||||||||||||
| Total operating costs and expenses | 6,542 | 6,740 | 16,470 | 14,184 | |||||||||||||||||||
| Gain/(Loss) on sale of assets | 37 | — | 37 | (7) | |||||||||||||||||||
| Operating Income | 976 | — | 1,304 | 1,134 | |||||||||||||||||||
| Other Income/(Expense) | |||||||||||||||||||||||
| Other income, net | 6 | 5 | 46 | 19 | |||||||||||||||||||
| Loss on debt extinguishment | (9) | (10) | (9) | (10) | |||||||||||||||||||
| Interest expense | (310) | (148) | (595) | (311) | |||||||||||||||||||
| Total other expense | (313) | (153) | (558) | (302) | |||||||||||||||||||
| Income/(Loss) Before Income Taxes | 663 | (153) | 746 | 832 | |||||||||||||||||||
| Income tax expense/(benefit) | 157 | (49) | 115 | 186 | |||||||||||||||||||
| Net Income/(Loss) | $ | 506 | $ | (104) | $ | 631 | $ | 646 | |||||||||||||||
| Less: Cumulative dividends attributable to Series A Preferred Stock | 17 | 17 | 34 | 34 | |||||||||||||||||||
| Net Income/(Loss) Available for Common Stockholders | $ | 489 | $ | (121) | $ | 597 | $ | 612 | |||||||||||||||
| Income/(Loss) per Share | |||||||||||||||||||||||
| Weighted average number of common shares outstanding — basic | 211 | 196 | 209 | 197 | |||||||||||||||||||
| Income/(Loss) per Weighted Average Common Share — Basic | $ | 2.32 | $ | (0.62) | $ | 2.86 | $ | 3.11 | |||||||||||||||
| Weighted average number of common shares outstanding — diluted | 212 | 196 | 210 | 203 | |||||||||||||||||||
| Income/(Loss) per Weighted Average Common Share — Diluted | $ | 2.31 | $ | (0.62) | $ | 2.84 | $ | 3.01 | |||||||||||||||
6
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net Income/(Loss) | $ | 506 | $ | (104) | $ | 631 | $ | 646 | |||||||||||||||
| Other Comprehensive (Loss)/Income | |||||||||||||||||||||||
| Foreign currency translation adjustments | (3) | 13 | (4) | 15 | |||||||||||||||||||
| Defined benefit plans | — | 1 | (2) | 1 | |||||||||||||||||||
| Other comprehensive (loss)/income | (3) | 14 | (6) | 16 | |||||||||||||||||||
| Comprehensive Income/(Loss) | $ | 503 | $ | (90) | $ | 625 | $ | 662 | |||||||||||||||
7
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, 2026 | December 31, 2025 | ||||||||||
| (In millions, except share data) | (Unaudited) | (Audited) | |||||||||
| ASSETS | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 162 | $ | 4,708 | |||||||
| Funds deposited by counterparties | 167 | 260 | |||||||||
| Restricted cash | 50 | 30 | |||||||||
| Accounts receivable, net | 3,534 | 4,065 | |||||||||
| Inventory | 793 | 461 | |||||||||
| Derivative instruments | 3,188 | 2,189 | |||||||||
| Cash collateral paid in support of energy risk management activities | 441 | 365 | |||||||||
| Prepayments and other current assets | 1,318 | 1,069 | |||||||||
| Total current assets | 9,653 | 13,147 | |||||||||
| Property, plant and equipment, net | 14,076 | 3,632 | |||||||||
| Other Assets | |||||||||||
| Operating lease right-of-use assets, net | 142 | 130 | |||||||||
| Goodwill | 8,815 | 5,017 | |||||||||
| Customer relationships, net | 1,177 | 1,203 | |||||||||
| Other intangible assets, net | 963 | 1,106 | |||||||||
| Derivative instruments | 1,617 | 1,568 | |||||||||
| Deferred income taxes | 1,725 | 1,843 | |||||||||
| Other non-current assets | 1,772 | 1,494 | |||||||||
| Total other assets | 16,211 | 12,361 | |||||||||
| Total Assets | $ | 39,940 | $ | 29,140 | |||||||
8
| June 30, 2026 | December 31, 2025 | ||||||||||
| (In millions, except share data) | (Unaudited) | (Audited) | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current Liabilities | |||||||||||
| Current portion of long-term debt and finance leases | $ | 1,512 | $ | 31 | |||||||
| Current portion of operating lease liabilities | 41 | 35 | |||||||||
| Accounts payable | 2,579 | 2,834 | |||||||||
| Derivative instruments | 3,120 | 2,257 | |||||||||
| Cash collateral received in support of energy risk management activities | 167 | 260 | |||||||||
| Deferred revenue current | 837 | 748 | |||||||||
| Accrued expenses and other current liabilities | 1,719 | 1,864 | |||||||||
| Total current liabilities | 9,975 | 8,029 | |||||||||
| Other Liabilities | |||||||||||
| Long-term debt and finance leases | 21,744 | 16,412 | |||||||||
| Non-current operating lease liabilities | 170 | 144 | |||||||||
| Derivative instruments | 1,327 | 1,103 | |||||||||
| Deferred income taxes | 15 | 15 | |||||||||
| Deferred revenue non-current | 984 | 895 | |||||||||
| Other non-current liabilities | 870 | 861 | |||||||||
| Total other liabilities | 25,110 | 19,430 | |||||||||
| Total Liabilities | 35,085 | 27,459 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders’ Equity | |||||||||||
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at June 30, 2026 and December 31, 2025, aggregate liquidation preference of $650; at June 30, 2026 and December 31, 2025 | 650 | 650 | |||||||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 225,198,900 and 199,828,615 shares issued and 210,307,902 and 190,376,607 shares outstanding at June 30, 2026 and December 31, 2025, respectively | 2 | 2 | |||||||||
| Additional paid-in-capital | 3,880 | 215 | |||||||||
| Retained earnings | 2,374 | 1,982 | |||||||||
Treasury stock, at cost; 14,890,998 shares and 9,452,008 shares at June 30, 2026, and December 31, 2025, respectively | (1,964) | (1,087) | |||||||||
| Accumulated other comprehensive loss | (87) | (81) | |||||||||
| Total Stockholders’ Equity | 4,855 | 1,681 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 39,940 | $ | 29,140 | |||||||
9
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six months ended June 30, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income | $ | 631 | $ | 646 | |||||||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
| Depreciation of property, plant and equipment and amortization of customer relationships and other intangible assets | 602 | 444 | |||||||||
| Amortization of capitalized contract costs | 324 | 226 | |||||||||
| Accretion of asset retirement obligations | 17 | 20 | |||||||||
| Provision for credit losses | 104 | 113 | |||||||||
| Amortization of financing costs and debt discounts/premiums | 10 | 13 | |||||||||
| Loss on debt extinguishment | 9 | 10 | |||||||||
| Amortization of in-the-money contracts and emissions allowances | 47 | 51 | |||||||||
| Amortization of unearned equity compensation | 72 | 62 | |||||||||
| Net (gain)/loss on sale of assets and disposal of assets | (38) | 10 | |||||||||
| Gain on proceeds from insurance recoveries for Property, plant and equipment, net | — | (100) | |||||||||
| Changes in derivative instruments | (61) | 18 | |||||||||
| Changes in current and deferred income taxes and liability for uncertain tax benefits | (33) | 126 | |||||||||
| Changes in collateral deposits in support of risk management activities | 14 | 197 | |||||||||
| Changes in other working capital: | |||||||||||
| Accounts receivable, net | 910 | (17) | |||||||||
| Inventory | (156) | 16 | |||||||||
| Prepayments and other current assets | (441) | (368) | |||||||||
| Accounts payable | (780) | (39) | |||||||||
| Accrued expenses and other current liabilities | (164) | (120) | |||||||||
| Other assets and liabilities | (119) | (2) | |||||||||
| Cash provided by operating activities | $ | 948 | $ | 1,306 | |||||||
| Cash Flows from Investing Activities | |||||||||||
| Payments for acquisitions of businesses and assets, net of cash acquired | $ | (7,101) | $ | (586) | |||||||
| Capital expenditures | (655) | (595) | |||||||||
| Proceeds from sales of assets, net | 44 | 6 | |||||||||
| Purchases of emissions allowances | (41) | (10) | |||||||||
| Sales of emissions allowances | 44 | 3 | |||||||||
| Proceeds from insurance recoveries for Property, plant and equipment, net | — | 100 | |||||||||
| Cash used in investing activities | $ | (7,709) | $ | (1,082) | |||||||
| Cash Flows from Financing Activities | |||||||||||
| Equivalent shares purchased in lieu of tax withholdings | $ | (99) | $ | (77) | |||||||
Payments for share repurchase activity and excise tax | (931) | (603) | |||||||||
| Payments of dividends to preferred and common stockholders | (235) | (207) | |||||||||
| Proceeds from issuance of long-term debt | 3,652 | — | |||||||||
| Repayments of long-term debt and finance leases | (1,619) | (10) | |||||||||
| Payments for debt extinguishment costs | (9) | — | |||||||||
| Payments of deferred financing costs | (84) | (31) | |||||||||
| Net receipts from settlement of acquired derivatives that include financing elements | 16 | 38 | |||||||||
| Proceeds from credit facilities | 8,675 | 865 | |||||||||
| Repayments to credit facilities | (7,226) | (730) | |||||||||
| Cash provided by/(used in) financing activities | $ | 2,140 | $ | (755) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 2 | 1 | |||||||||
| Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | (4,619) | (530) | |||||||||
| Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 4,998 | 1,173 | |||||||||
| Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ | 379 | $ | 643 | |||||||
10
Appendix Table A-1: Second Quarter 2026 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
| (In millions, except per share amounts) | Texas | East | West/ Other | Vivint Smart Home | Corp/Elim | Total | Earnings Per Share, Basic 6, 7 | Earnings Per Share, Diluted 6, 7 | |||||||||||||||||||||
| Net Income/(Loss) Available for Common Stockholders | $ | 289 | $ | 506 | $ | 155 | $ | 71 | $ | (532) | $ | 489 | $ | 2.32 | $ | 2.31 | |||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | 17 | 17 | 0.08 | 0.08 | |||||||||||||||||||||
| Net Income/(Loss) | $ | 289 | $ | 506 | $ | 155 | $ | 71 | $ | (515) | $ | 506 | $ | 2.40 | $ | 2.39 | |||||||||||||
| Plus: | |||||||||||||||||||||||||||||
| Interest expense, net | — | — | — | — | 305 | 305 | 1.45 | 1.44 | |||||||||||||||||||||
| Income tax expense | — | — | — | — | 157 | 157 | 0.74 | 0.74 | |||||||||||||||||||||
| Loss on debt extinguishment | — | — | — | — | 9 | 9 | 0.04 | 0.04 | |||||||||||||||||||||
| Depreciation and amortization | 123 | 134 | 7 | 216 | 14 | 494 | 2.34 | 2.33 | |||||||||||||||||||||
| ARO expense | 6 | 4 | — | — | — | 10 | 0.05 | 0.05 | |||||||||||||||||||||
| Contract and emission credit amortization, net | 1 | (10) | 1 | — | — | (8) | (0.04) | (0.04) | |||||||||||||||||||||
Stock-based compensation1 | 12 | 7 | 1 | 8 | — | 28 | 0.13 | 0.13 | |||||||||||||||||||||
| Acquisition and divestiture integration and transaction costs | — | — | — | — | 16 | 16 | 0.08 | 0.08 | |||||||||||||||||||||
Cost to achieve1 | 3 | — | — | 5 | 12 | 20 | 0.09 | 0.09 | |||||||||||||||||||||
| Deactivation costs | 1 | 2 | — | — | — | 3 | 0.01 | 0.01 | |||||||||||||||||||||
| Loss/(gain) on sale of assets | — | 6 | (43) | — | — | (37) | (0.18) | (0.17) | |||||||||||||||||||||
| Other and non-recurring charges | 2 | — | 1 | 1 | (1) | 3 | 0.01 | 0.01 | |||||||||||||||||||||
Mark to market (MtM) (gain) on economic hedges2 | (56) | (180) | (53) | — | — | (289) | (1.37) | (1.36) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 381 | $ | 469 | $ | 69 | $ | 301 | $ | (3) | $ | 1,217 | $ | 5.77 | $ | 5.74 | |||||||||||||
Adjusted interest expense, net3 | — | — | — | — | (313) | (313) | (1.48) | (1.48) | |||||||||||||||||||||
| Depreciation and amortization | (123) | (134) | (7) | (216) | (14) | (494) | (2.34) | (2.33) | |||||||||||||||||||||
| Adjusted Income before income taxes | 258 | 335 | 62 | 85 | (330) | 410 | 1.94 | 1.93 | |||||||||||||||||||||
Adjusted income tax expense4 | — | — | — | — | (78) | (78) | (0.37) | (0.37) | |||||||||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 258 | 335 | 62 | 85 | (408) | 332 | 1.57 | 1.57 | |||||||||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (17) | (17) | (0.08) | (0.08) | |||||||||||||||||||||
Adjusted Net Income5 | $ | 258 | $ | 335 | $ | 62 | $ | 85 | $ | (425) | $ | 315 | $ | 1.49 | $ | 1.49 | |||||||||||||
1 Stock-based compensation of $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense
2 Gain of $(289) million was primarily driven by the reversal of previously recognized unrealized losses on contracts that settled during the period as well as an increase in the value of open positions in East as a result of increases in RGGI prices
3 Excludes mark-to-market gain on interest hedges of $8 million
4 Income tax calculated using Adjusted effective tax rate (ETR) on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
5 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
6 Items may not sum due to rounding
7 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 211 million and on weighted average number of common shares outstanding - diluted of 212 million for the three months ended June 30, 2026
11
Second Quarter 2026 condensed financial information by Operating Segment:
| (In millions, except per share amounts) | Texas | East | West/Other | Vivint Smart Home | Corp/Elim | Total | ||||||||||||||
Revenue1 | $ | 2,747 | $ | 3,484 | $ | 644 | $ | 587 | $ | (13) | $ | 7,449 | ||||||||
Cost of fuel, purchased power and other cost of sales2 | 1,886 | 2,682 | 538 | 60 | (6) | 5,160 | ||||||||||||||
Economic gross margin | 861 | 802 | 106 | 527 | (7) | 2,289 | ||||||||||||||
Operations & maintenance and other cost of operations3 | 294 | 180 | 11 | 75 | (1) | 559 | ||||||||||||||
Selling, marketing, general and administrative4 | 187 | 152 | 27 | 151 | (2) | 515 | ||||||||||||||
Other | (1) | 1 | (1) | — | (1) | (2) | ||||||||||||||
| Adjusted EBITDA | $ | 381 | $ | 469 | $ | 69 | $ | 301 | $ | (3) | $ | 1,217 | ||||||||
Adjusted interest expense, net5 | — | — | — | — | (313) | (313) | ||||||||||||||
| Depreciation and amortization | (123) | (134) | (7) | (216) | (14) | (494) | ||||||||||||||
| Adjusted Income before income taxes | 258 | 335 | 62 | 85 | (330) | 410 | ||||||||||||||
Adjusted income tax expense5 | — | — | — | — | (78) | (78) | ||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 258 | 335 | 62 | 85 | (408) | 332 | ||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (17) | (17) | ||||||||||||||
Adjusted Net Income5 | $ | 258 | $ | 335 | $ | 62 | $ | 85 | $ | (425) | $ | 315 | ||||||||
| Weighted average number of common shares outstanding - basic | 211 | |||||||||||||||||||
| Adjusted EPS | $ | 1.49 | ||||||||||||||||||
1 Excludes MtM gain of $(18) million and contract amortization of $(14) million
2 Includes TDSP expense, capacity and emission credits
3 Excludes ARO expense of $10 million, deactivation costs of $3 million, stock-based compensation of $2 million and other and non-recurring charges of $1 million
4 Excludes stock-based compensation of $26 million, cost to achieve of $20 million and other and non-recurring charges of $1 million
5 See previous table for details
12
Appendix Table A-2: Second Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
| (In millions, except per share amounts) | Texas | East | West/ Other | Vivint Smart Home | Corp/Elim | Total | Earnings Per Share, Basic 8, 9 | Earnings Per Share, Diluted 8, 9 | |||||||||||||||||||||
| Net Income/(Loss) Available for Common Stockholders | $ | 381 | $ | (346) | $ | 142 | $ | (115) | $ | (183) | $ | (121) | $ | (0.62) | $ | (0.62) | |||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | 17 | 17 | 0.09 | 0.09 | |||||||||||||||||||||
| Net Income/(Loss) | $ | 381 | $ | (346) | $ | 142 | $ | (115) | $ | (166) | $ | (104) | $ | (0.53) | $ | (0.53) | |||||||||||||
| Plus: | |||||||||||||||||||||||||||||
| Interest expense, net | — | — | — | — | 141 | 141 | 0.72 | 0.70 | |||||||||||||||||||||
| Income tax (benefit) | — | — | — | — | (49) | (49) | (0.25) | (0.24) | |||||||||||||||||||||
| Loss on debt extinguishment | — | — | — | — | 10 | 10 | 0.05 | 0.05 | |||||||||||||||||||||
| Depreciation and amortization | 93 | 36 | 9 | 195 | 11 | 344 | 1.76 | 1.70 | |||||||||||||||||||||
| ARO expense | 14 | 16 | — | — | — | 30 | 0.15 | 0.15 | |||||||||||||||||||||
| Contract and emission credit amortization, net | 3 | (2) | 2 | — | — | 3 | 0.02 | 0.01 | |||||||||||||||||||||
Stock-based compensation1 | 9 | 3 | 1 | 15 | — | 28 | 0.14 | 0.14 | |||||||||||||||||||||
Acquisition and divestiture integration and transaction costs1 | — | — | — | — | 40 | 40 | 0.20 | 0.20 | |||||||||||||||||||||
| Cost to achieve | — | — | — | — | 4 | 4 | 0.02 | 0.02 | |||||||||||||||||||||
| Deactivation costs | 5 | 5 | — | — | — | 10 | 0.05 | 0.05 | |||||||||||||||||||||
Other and non-recurring charges2 | 1 | (1) | 3 | 164 | 2 | 169 | 0.86 | 0.84 | |||||||||||||||||||||
Mark to market (MtM) loss/(gain) on economic hedges3 | 6 | 388 | (111) | — | — | 283 | 1.44 | 1.40 | |||||||||||||||||||||
Dilutive impact adjustment on Net (Loss) Available for Common Stockholders4 | 0.02 | ||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 512 | $ | 99 | $ | 46 | $ | 259 | $ | (7) | $ | 909 | $ | 4.64 | $ | 4.50 | |||||||||||||
Adjusted interest expense, net5 | — | — | — | — | (136) | (136) | (0.69) | (0.67) | |||||||||||||||||||||
| Depreciation and amortization | (93) | (36) | (9) | (195) | (11) | (344) | (1.76) | (1.70) | |||||||||||||||||||||
| Adjusted Income before income taxes | 419 | 63 | 37 | 64 | (154) | 429 | 2.19 | 2.12 | |||||||||||||||||||||
Adjusted income tax expense6 | — | — | — | — | (73) | (73) | (0.37) | (0.36) | |||||||||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 419 | 63 | 37 | 64 | (227) | 356 | 1.82 | 1.76 | |||||||||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (17) | (17) | (0.09) | (0.08) | |||||||||||||||||||||
Adjusted Net Income7 | $ | 419 | $ | 63 | $ | 37 | $ | 64 | $ | (244) | $ | 339 | $ | 1.73 | $ | 1.68 | |||||||||||||
1 Stock-based compensation of $5 million is reflected in acquisition and divestiture integration and transaction costs. Stock-based compensation includes employee stock purchase plan expense
2 Includes $163 million of reserves for legal matters
3 Loss of $283 million was primarily driven by unrealized non-cash mark-to-market loss on economic hedges due to declines in forward natural gas and northeast power prices
4 Includes the potential dilutive impacts of the Convertible Senior Notes of 4 million shares and equity compensation of 2 million shares for the three months
ended June 30, 2025. Under GAAP when there is a net loss, dilutive securities are not included in the diluted share count as they are anti-dilutive. As
Adjusted Net Income is in an income position and not a loss position, this line item reflects the impact of the anti-dilutive securities as if they were dilutive
5 Excludes mark-to-market loss on interest hedges of $5 million
6 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
8 Items may not sum due to rounding
9 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 196 million and on weighted average number of common shares outstanding - diluted of 202 million as if they were dilutive for the three months ended June 30, 2025
13
Second Quarter 2025 condensed financial information by Operating Segment:
| (In millions, except per share amounts) | Texas | East | West/Other | Vivint Smart Home | Corp/Elim | Total | ||||||||||||||
Revenue1 | $ | 2,846 | $ | 2,735 | $ | 646 | $ | 522 | $ | (8) | $ | 6,741 | ||||||||
Cost of fuel, purchased power and other cost of sales2 | 1,846 | 2,367 | 526 | 55 | (2) | 4,792 | ||||||||||||||
Economic gross margin | 1,000 | 368 | 120 | 467 | (6) | 1,949 | ||||||||||||||
Operations & maintenance and other cost of operations3 | 284 | 121 | 42 | 61 | 2 | 510 | ||||||||||||||
Selling, marketing, general & administrative4 | 204 | 149 | 34 | 147 | (1) | 533 | ||||||||||||||
Other | — | (1) | (2) | — | — | (3) | ||||||||||||||
| Adjusted EBITDA | $ | 512 | $ | 99 | $ | 46 | $ | 259 | $ | (7) | $ | 909 | ||||||||
Adjusted interest expense, net5 | — | — | — | — | (136) | (136) | ||||||||||||||
| Depreciation and amortization | (93) | (36) | (9) | (195) | (11) | (344) | ||||||||||||||
| Adjusted Income before income taxes | 419 | 63 | 37 | 64 | (154) | 429 | ||||||||||||||
Adjusted income tax expense5 | — | — | — | — | (73) | (73) | ||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 419 | 63 | 37 | 64 | (227) | 356 | ||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (17) | (17) | ||||||||||||||
Adjusted Net Income5 | $ | 419 | $ | 63 | $ | 37 | $ | 64 | $ | (244) | $ | 339 | ||||||||
| Weighted average number of common shares outstanding - basic | 196 | |||||||||||||||||||
| Adjusted EPS | $ | 1.73 | ||||||||||||||||||
1 Excludes MtM loss of $1 million
2 Includes TDSP expense, capacity and emission credits
3 Excludes ARO expense of $30 million, deactivation costs of $10 million and stock-based compensation of $2 million
4 Excludes other and non-recurring charges of $164 million, stock-based compensation of $26 million, cost to achieve of $4 million and acquisition and divestiture integration and transaction costs of $(3) million
5 See previous table for details
14
Appendix Table A-3: YTD Second Quarter 2026 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
| (In millions, except per share amounts) | Texas | East | West/ Other | Vivint Smart Home | Corp/Elim | Total | Earnings Per Share, Basic 6,7 | Earnings Per Share, Diluted 6,7 | |||||||||||||||||||||
| Net Income/(Loss) Available for common stockholders | $ | 318 | $ | 744 | $ | 200 | $ | 146 | $ | (811) | $ | 597 | $ | 2.86 | $ | 2.84 | |||||||||||||
| Cumulative Dividends attributable to Series A Preferred Stock | — | — | — | — | 34 | 34 | 0.16 | 0.16 | |||||||||||||||||||||
| Net Income/(Loss) | $ | 318 | $ | 744 | $ | 200 | $ | 146 | $ | (777) | $ | 631 | $ | 3.02 | $ | 3.00 | |||||||||||||
| Plus: | |||||||||||||||||||||||||||||
| Interest expense, net | — | — | — | — | 546 | 546 | 2.61 | 2.60 | |||||||||||||||||||||
| Income tax expense | — | — | — | — | 115 | 115 | 0.55 | 0.55 | |||||||||||||||||||||
| Loss on debt extinguishment | — | — | — | — | 9 | 9 | 0.04 | 0.04 | |||||||||||||||||||||
| Depreciation and amortization | 231 | 236 | 15 | 416 | 28 | 926 | 4.43 | 4.41 | |||||||||||||||||||||
| ARO expense | 9 | 8 | — | — | — | 17 | 0.08 | 0.08 | |||||||||||||||||||||
| Contract and emission credit amortization, net | 3 | (2) | 2 | — | — | 3 | 0.01 | 0.01 | |||||||||||||||||||||
Stock-based compensation1 | 33 | 18 | 2 | 18 | — | 71 | 0.34 | 0.34 | |||||||||||||||||||||
| Acquisition and divestiture integration and transaction costs | — | — | — | — | 61 | 61 | 0.29 | 0.29 | |||||||||||||||||||||
Cost to achieve1 | 5 | — | — | 11 | 13 | 29 | 0.14 | 0.14 | |||||||||||||||||||||
| Deactivation costs | 1 | 3 | — | — | — | 4 | 0.02 | 0.02 | |||||||||||||||||||||
| Loss/(gain) on sale of assets | — | 6 | (43) | — | — | (37) | (0.18) | (0.18) | |||||||||||||||||||||
| Other and non-recurring charges | 2 | — | — | 4 | — | 6 | 0.03 | 0.03 | |||||||||||||||||||||
Mark to market (MtM) (gain)/loss on economic hedges2 | (5) | (80) | 1 | — | — | (84) | (0.40) | (0.40) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 597 | $ | 933 | $ | 177 | $ | 595 | $ | (5) | $ | 2,297 | $ | 10.99 | $ | 10.94 | |||||||||||||
Adjusted Interest expense, net3 | — | — | — | — | (560) | (560) | (2.68) | (2.67) | |||||||||||||||||||||
| Depreciation and amortization | (231) | (236) | (15) | (416) | (28) | (926) | (4.43) | (4.41) | |||||||||||||||||||||
| Adjusted Income before income taxes | 366 | 697 | 162 | 179 | (593) | 811 | 3.88 | 3.86 | |||||||||||||||||||||
Adjusted income tax expense4 | — | — | — | — | (154) | (154) | (0.74) | (0.73) | |||||||||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 366 | 697 | 162 | 179 | (747) | 657 | 3.14 | 3.13 | |||||||||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (34) | (34) | (0.16) | (0.16) | |||||||||||||||||||||
Adjusted Net Income5 | $ | 366 | $ | 697 | $ | 162 | $ | 179 | $ | (781) | $ | 623 | $ | 2.98 | $ | 2.97 | |||||||||||||
1 Stock-based compensation of $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense
2 Gain of $(84) million was primarily driven by the reversal of previously recognized unrealized losses on contracts that settled during the period as well as an increase in the value of open positions in East as a result of increases in RGGI prices, partially offset by a decrease in the value of open positions in West/Other as a result of decreases in natural gas price and CAISO and Alberta power prices
3 Excludes mark-to-market gain on interest hedges of $14 million
4 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
5Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
6 Items may not sum due to rounding
7 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 209 million and on weighted average number of common shares outstanding - diluted of 210 million for the six months ended June 30, 2026
15
YTD Second Quarter 2026 condensed financial information by Operating Segment:
| (In millions, except per share amounts) | Texas | East | West/Other | Vivint Smart Home | Corp/Elim | Total | ||||||||||||||
Revenue1 | $ | 5,140 | $ | 9,954 | $ | 1,508 | $ | 1,165 | $ | (26) | $ | 17,741 | ||||||||
Cost of fuel, purchased power and other cost of sales2 | 3,594 | 8,353 | 1,249 | 112 | (7) | 13,301 | ||||||||||||||
Economic gross margin | 1,546 | 1,601 | 259 | 1,053 | (19) | 4,440 | ||||||||||||||
Operations & maintenance and other cost of operations3 | 564 | 349 | 25 | 146 | (1) | 1,083 | ||||||||||||||
Selling, general and administrative costs4 | 385 | 319 | 56 | 312 | (11) | 1,061 | ||||||||||||||
Other | — | — | 1 | — | (2) | (1) | ||||||||||||||
| Adjusted EBITDA | $ | 597 | $ | 933 | $ | 177 | $ | 595 | $ | (5) | $ | 2,297 | ||||||||
Adjusted interest expense, net5 | — | — | — | — | (560) | (560) | ||||||||||||||
| Depreciation and amortization | (231) | (236) | (15) | (416) | (28) | (926) | ||||||||||||||
| Adjusted Income before income taxes | 366 | 697 | 162 | 179 | (593) | 811 | ||||||||||||||
Adjusted income tax expense5 | — | — | — | — | (154) | (154) | ||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 366 | 697 | 162 | 179 | (747) | 657 | ||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (34) | (34) | ||||||||||||||
Adjusted Net Income5 | $ | 366 | $ | 697 | $ | 162 | $ | 179 | $ | (781) | $ | 623 | ||||||||
| Weighted average number of common shares outstanding - basic | 209 | |||||||||||||||||||
| Adjusted EPS | $ | 2.98 | ||||||||||||||||||
1 Excludes MtM loss of $24 million and contract amortization of $(20) million
2 Includes TDSP expense, capacity and emission credits
3 Excludes ARO expense of $17 million, stock-based compensation of $7 million, deactivation costs of $4 million and other and non-recurring charges of $1 million
4 Excludes stock-based compensation of $64 million, cost to achieve of $29 million and other and non-recurring charges of $1 million
5 See previous table for details
16
Appendix Table A-4: YTD Second Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
| (In millions, except per share amounts) | Texas | East | West/Other | Vivint Smart Home | Corp/Elim | Total | Earnings Per Share, Basic 7, 8 | Earnings Per Share, Diluted 7, 8 | |||||||||||||||||||||
| Net Income/(Loss) Available for Common Stockholders | $ | 718 | $ | 359 | $ | 208 | $ | (61) | $ | (612) | $ | 612 | $ | 3.11 | $ | 3.01 | |||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | 34 | 34 | 0.17 | 0.17 | |||||||||||||||||||||
| Net Income/(Loss) | $ | 718 | $ | 359 | $ | 208 | $ | (61) | $ | (578) | $ | 646 | $ | 3.28 | $ | 3.18 | |||||||||||||
| Plus: | |||||||||||||||||||||||||||||
| Interest expense, net | — | — | — | — | 290 | 290 | 1.47 | 1.43 | |||||||||||||||||||||
| Income tax expense | — | — | — | — | 186 | 186 | 0.94 | 0.92 | |||||||||||||||||||||
| Loss on debt extinguishment | — | — | — | — | 10 | 10 | 0.05 | 0.05 | |||||||||||||||||||||
| Depreciation and amortization | 176 | 73 | 18 | 381 | 22 | 670 | 3.40 | 3.30 | |||||||||||||||||||||
| ARO expense | 18 | 2 | — | — | — | 20 | 0.10 | 0.10 | |||||||||||||||||||||
| Contract and emission credit amortization, net | 4 | 27 | 2 | — | — | 33 | 0.17 | 0.16 | |||||||||||||||||||||
Stock-based compensation1 | 18 | 7 | 2 | 28 | — | 55 | 0.28 | 0.27 | |||||||||||||||||||||
Acquisition and divestiture integration and transaction costs1 | — | — | — | 1 | 50 | 51 | 0.26 | 0.25 | |||||||||||||||||||||
Cost to achieve1 | — | — | — | — | 7 | 7 | 0.04 | 0.03 | |||||||||||||||||||||
| Deactivation costs | 8 | 7 | — | — | — | 15 | 0.08 | 0.07 | |||||||||||||||||||||
| Loss on sale of assets | — | — | 7 | — | — | 7 | 0.04 | 0.03 | |||||||||||||||||||||
Other and non-recurring charges2 | (99) | (1) | 4 | 190 | (1) | 93 | 0.47 | 0.46 | |||||||||||||||||||||
Mark to market (MtM) (gain)/loss on economic hedges3 | (32) | 99 | (115) | — | — | (48) | (0.24) | (0.24) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 811 | $ | 573 | $ | 126 | $ | 539 | $ | (14) | $ | 2,035 | $ | 10.33 | $ | 10.02 | |||||||||||||
Adjusted interest expense, net4 | — | — | — | — | (276) | (276) | (1.40) | (1.36) | |||||||||||||||||||||
| Depreciation and amortization | (176) | (73) | (18) | (381) | (22) | (670) | (3.40) | (3.30) | |||||||||||||||||||||
| Adjusted Income before income taxes | 635 | 500 | 108 | 158 | (312) | 1,089 | 5.53 | 5.36 | |||||||||||||||||||||
Adjusted income tax expense5 | — | — | — | — | (185) | (185) | (0.94) | (0.91) | |||||||||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 635 | 500 | 108 | 158 | (497) | 904 | 4.59 | 4.45 | |||||||||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (34) | (34) | (0.17) | (0.17) | |||||||||||||||||||||
Adjusted Net Income6 | $ | 635 | $ | 500 | $ | 108 | $ | 158 | $ | (531) | $ | 870 | $ | 4.42 | $ | 4.29 | |||||||||||||
1 Stock-based compensation of $6 million is reflected in acquisition and divestiture integration and transaction costs and $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense
2 Includes $(100) million of property insurance proceeds and $180 million of reserves for legal matters
3 Gain of $(48) million was primarily driven by unrealized non-cash mark-to-market gains on economic hedges in Texas due to increases in ERCOT power prices
4 Excludes mark-to-market loss on interest hedges of $14 million
5 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
7 Items may not sum due to rounding
8 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 197 million and on weighted average number of common shares outstanding - diluted of 203 million for the six months ended June 30, 2025
17
YTD Second Quarter 2025 condensed financial information by Operating Segment:
| (In millions, except per share amounts) | Texas | East | West/Other | Vivint Smart Home | Corp/Elim | Total | ||||||||||||||
Revenue1 | $ | 5,281 | $ | 7,336 | $ | 1,714 | $ | 1,033 | $ | (18) | $ | 15,346 | ||||||||
Cost of fuel, purchased power and other cost of sales2 | 3,544 | 6,227 | 1,451 | 91 | (5) | 11,308 | ||||||||||||||
Economic gross margin | 1,737 | 1,109 | 263 | 942 | (13) | 4,038 | ||||||||||||||
Operations & maintenance and other cost of operations3 | 526 | 252 | 76 | 123 | 1 | 978 | ||||||||||||||
Selling, marketing, general & administrative4 | 400 | 288 | 67 | 280 | — | 1,035 | ||||||||||||||
Other | — | (4) | (6) | — | — | (10) | ||||||||||||||
| Adjusted EBITDA | $ | 811 | $ | 573 | $ | 126 | $ | 539 | $ | (14) | $ | 2,035 | ||||||||
Adjusted interest expense, net5 | — | — | — | — | (276) | (276) | ||||||||||||||
| Depreciation and amortization | (176) | (73) | (18) | (381) | (22) | (670) | ||||||||||||||
| Adjusted Income before income taxes | 635 | 500 | 108 | 158 | (312) | 1,089 | ||||||||||||||
Adjusted income tax expense5 | — | — | — | — | (185) | (185) | ||||||||||||||
| Adjusted Net Income before Preferred Stock dividends | 635 | 500 | 108 | 158 | (497) | 904 | ||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | — | (34) | (34) | ||||||||||||||
Adjusted Net Income5 | $ | 635 | $ | 500 | $ | 108 | $ | 158 | $ | (531) | $ | 870 | ||||||||
| Weighted average number of common shares outstanding - basic | 197 | |||||||||||||||||||
| Adjusted EPS | $ | 4.42 | ||||||||||||||||||
1 Excludes MtM loss of $16 million and contract amortization of $5 million
2 Includes TDSP expense, capacity and emission credits
3 Excludes ARO expense of $20 million, deactivation costs of $15 million, stock-based compensation of $4 million and other and non-recurring charges of $(99) million
4 Excludes other and non-recurring charges of $180 million, stock-based compensation of $51 million and cost to achieve of $7 million
5 See previous table for details
18
Appendix Table A-5: Three Months Ended June 30, 2026 and 2025 Free Cash Flow before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:
| Three Months Ended | ||||||||||||||
| (In millions) | 6/30/2026 | 6/30/2025 | ||||||||||||
| Adjusted EBITDA | $ | 1,217 | $ | 909 | ||||||||||
| Interest payments, net | (221) | (103) | ||||||||||||
| Income tax payments | (44) | (53) | ||||||||||||
| Gross capitalized contract costs | (387) | (311) | ||||||||||||
| Collateral/working capital/other assets and liabilities | 552 | 9 | ||||||||||||
| Cash provided by operating activities | 1,117 | 451 | ||||||||||||
| Net (payments)/receipts from settlement of acquired derivatives that include financing elements | (3) | 13 | ||||||||||||
Acquisition and divestiture integration and transaction costs1 | 38 | 29 | ||||||||||||
| Adjustment for change in collateral | (156) | 426 | ||||||||||||
Other2 | 34 | 1 | ||||||||||||
| Adjusted cash provided by operating activities | 1,030 | 920 | ||||||||||||
| Maintenance capital expenditures, net | (79) | (67) | ||||||||||||
| Environmental capital expenditures | (8) | (14) | ||||||||||||
| Cost of acquisition | 82 | 75 | ||||||||||||
| Free Cash Flow before Growth Investments (FCFbG) | $ | 1,025 | $ | 914 | ||||||||||
1 Three months ended 6/30/26 includes $16 million from acquisition and divestiture integration and transaction costs and $20 million cost to achieve payments (see Appendix table A-1), plus $2 million cash payments accrued in prior quarter; three months ended 6/30/25 includes $40 million from acquisition and divestiture integration and transaction costs and $4 million cost to achieve payments (see Appendix table A-2), less $15 million non-cash acquisition costs and non-cash stock-based compensation
2 Three months ended 6/30/26 includes a $15 million payment for a legal matter
19
Appendix Table A-6: Six Months Ended June 30, 2026 and 2025 Free Cash Flow before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:
| Six Months Ended | ||||||||||||||
| (In millions) | 6/30/2026 | 6/30/2025 | ||||||||||||
| Adjusted EBITDA | $ | 2,297 | $ | 2,035 | ||||||||||
| Interest payments, net | (403) | (241) | ||||||||||||
| Income tax payments | (73) | (60) | ||||||||||||
| Gross capitalized contract costs | (587) | (486) | ||||||||||||
| Collateral/working capital/other assets and liabilities | (286) | 58 | ||||||||||||
| Cash provided by operating activities | 948 | 1,306 | ||||||||||||
| Net receipts from settlement of acquired derivatives that include financing elements | 16 | 38 | ||||||||||||
Acquisition and divestiture integration and transaction costs1 | 90 | 41 | ||||||||||||
| Adjustment for change in collateral | (14) | (197) | ||||||||||||
Other2 | 13 | 4 | ||||||||||||
| Adjusted cash provided by operating activities | 1,053 | 1,192 | ||||||||||||
Maintenance capital expenditures, net3 | (173) | (52) | ||||||||||||
| Environmental capital expenditures | (13) | (19) | ||||||||||||
| Cost of acquisition | 92 | 86 | ||||||||||||
| Free Cash Flow before Growth Investments (FCFbG) | $ | 959 | $ | 1,207 | ||||||||||
1 Six months ended 6/30/26 includes from Table A-3 $61 million acquisition and divestiture integration and transaction costs, $29 million cost to achieve payments; Six months ended 6/30/25 includes from Table A-4 $51 million acquisition and divestiture integration and transaction costs, $7 million cost to achieve payments, excludes $17 million non-cash acquisition costs and non-cash stock-based compensation
2 Six months ended 6/30/26 includes a $15 million payment for a legal matter
3 Six months ended 6/30/25 is presented net of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment of $100 million
20
Appendix Table A-7: Six Months Ended June 30, 2026 Sources and Uses of Liquidity
The following table summarizes the sources and uses of liquidity for the six months ended June 30, 2026:
| (In millions) | Six months ended June 30, 2026 | ||||
| Sources: | |||||
| Adjusted cash provided by operating activities | $ | 1,053 | |||
| Proceeds from credit facilities | 8,675 | ||||
| Proceeds from issuance of long-term debt | 3,652 | ||||
| Change in availability under revolving credit facility and collective collateral facilities | 178 | ||||
| Cash collateral paid in support of energy risk management activities | 108 | ||||
| Proceeds from sales of assets, net | 44 | ||||
| Sales of emissions allowances | 44 | ||||
| Uses: | |||||
| Repayments to credit facilities | (7,226) | ||||
| Payments for acquisitions of businesses and assets, net of cash acquired | (7,101) | ||||
| Repayments of long-term debt and finance leases | (1,619) | ||||
| Payments for share repurchase activity and excise tax | (931) | ||||
| Investments and integration capital expenditures | (469) | ||||
| Payments of dividends to preferred and common stockholders | (235) | ||||
| Maintenance and environmental capital expenditures | (186) | ||||
| Equivalent shares purchased in lieu of tax withholdings | (99) | ||||
Acquisition and divestiture integration and transaction costs1 | (90) | ||||
| Payments of deferred financing costs | (84) | ||||
| Purchases of emissions allowances | (41) | ||||
| Payments for debt extinguishment costs | (9) | ||||
| Other | (12) | ||||
| Change in Total Liquidity | (4,348) | ||||
1 Six months ended 6/30/26 includes from Table A-3 $61 million acquisition and divestiture integration and transaction costs, $29 million cost to achieve payments
21
Appendix Table A-8: 2026 Guidance Reconciliation
The following table summarizes the 2026 Guidance calculations of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income:
| 2026 | ||||||||
| (In millions, except per share amounts) | Guidance8,9 | |||||||
Net Income1 | $1,325 - $1,755 | |||||||
| Interest expense, net | 1,195 | |||||||
Income tax expense2 | 490 - 560 | |||||||
Depreciation and amortization3 | 1,955 | |||||||
| ARO expense | 30 | |||||||
| Stock-based compensation | 120 | |||||||
| Acquisition and divestiture integration and transaction costs | 110 | |||||||
Other4 | 100 | |||||||
| Adjusted EBITDA | $5,325 - $5,825 | |||||||
Adjusted interest expense, net5 | (1,195) | |||||||
Depreciation and amortization3 | (1,955) | |||||||
| Adjusted Income before income taxes | $2,175 - $2,675 | |||||||
Adjusted income tax expense6 | (423) - (493) | |||||||
| Adjusted Net Income before Preferred Stock dividends | $1,752 - $2,182 | |||||||
| Cumulative dividends attributable to Series A Preferred Stock | (67) | |||||||
Adjusted Net Income7 | $1,685 - $2,115 | |||||||
| Weighted average number of common shares outstanding - basic | 214 | |||||||
| Adjusted EPS | $7.90 - $9.90 | |||||||
2 Represents anticipated GAAP income tax
3 Estimates for the acquired LS Power assets are provisional and subject to revisions until evaluations are completed to assess the fair value of long-lived assets
4 Includes adjustments for sale of assets, deactivation costs, and other and non-recurring charges
5 Excludes mark-to-market gains/losses on interest hedges
6 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
8 Items may not sum due to rounding
9 Includes 11 months of ownership of the portfolio acquired from LS Power
22
Appendix Table A-9: 2026 Guidance Reconciliation
The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:
| 2026 | |||||
| (In millions) | Guidance4,5 | ||||
| Adjusted EBITDA | $5,325 - $5,825 | ||||
Interest payments, net1 | (1,100) | ||||
| Income tax payments | (70) - (90) | ||||
| Gross capitalized contract costs | (1,020) | ||||
Working capital/other assets and liabilities2 | (135) | ||||
Cash provided by operating activities3 | $3,000 - $3,480 | ||||
Acquisition and other costs2 | 110 | ||||
| Adjusted cash provided by operating activities | $3,110 - $3,590 | ||||
| Maintenance capital expenditures | (450) - (480) | ||||
| Environmental capital expenditures | (10) - (20) | ||||
| Cost of acquisition | 180 | ||||
| Free Cash Flow before Growth Investments (FCFbG) | $2,800 - $3,300 | ||||
1 Interest payments, net represents Interest expense, net of $(1,195) million on Appendix table A-8 plus $95 million accrued interest expense not yet paid
2 Working capital/other assets and liabilities includes payments for Acquisition and divestiture integration and transaction costs, which is adjusted in Acquisition and other costs, and includes net deferred revenues
3 Excludes fair value adjustments related to derivatives and changes in collateral deposits in support of risk management activities
4 Items may not sum due to rounding
5 Includes 11 months of ownership of the portfolio acquired from LS Power
23
Non-GAAP Financial Measures
NRG reports its financial results in accordance with the accounting principles generally accepted in the United States (GAAP) and supplements with certain non-GAAP financial measures. These measures are not recognized in accordance with GAAP and should not be viewed in isolation or as an alternative to GAAP measures of performance. In addition, other companies may calculate non-GAAP financial measures differently than NRG does, limiting their usefulness as a comparative measure.
NRG uses the following non-GAAP measures to provide additional insight into financial performance:
•Adjusted EBITDA: Defined as EBITDA (earnings before interest, taxes, depreciation, and amortization, impact of asset retirement obligation expenses and contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances) with further adjustments for stock-based compensation, impairment losses, deactivation costs, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from forward position of economic hedges, gains or losses on the repurchase, modification or extinguishment of debt, restructuring costs, and other non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments or non-controlling interests. Adjusted EBITDA is intended to facilitate period-to-period comparisons and is widely used by investors for performance assessment.
•Adjusted Net Income: Defined as net income available to common shareholders excluding the impact of asset retirement obligation expenses, contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances, stock-based compensation, impairment losses, deactivation costs, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from forward position of economic hedges, gains or losses on the repurchase, modification or extinguishment of debt, the impact of restructuring and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments and non-controlling interests.
•Adjusted Earnings per Share (EPS): Defined as Adjusted Net Income, divided by the average basic common shares outstanding.
•Adjusted Cash Provided/(Used) by Operating Activities: Defined as cash provided/(used) by operating activities with the reclassification of net payments of derivative contracts acquired in business combinations from financing to operating cash flow, as well as the add back of merger, integration, related restructuring costs, adjustment for change in collateral, and the impact of extraordinary, unusual or non-recurring items.
•Free Cash Flow before Growth Investments: Defined as Adjusted Cash provided/(used) by operating activities less maintenance and environmental capital expenditures, net of funding and insurance recoveries related to property, plant and equipment, and adjustments to exclude cost of acquisition related to growth.
Management believes these non-GAAP financial measures are useful to investors and other users of NRG's financial statements in evaluating the Company’s operating performance and growth, as well as the impact of the Company’s capital allocation program. They provide an additional tool to compare business performance across periods and adjust for items that management does not consider indicative of NRG’s future operating performance. Management uses these non-GAAP financial measures to assist in comparing financial performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations, and for evaluating actual results against such expectations, and in communications with NRG's Board of Directors, shareholders, creditors, analysts and investors concerning its financial performance.
24