NRG Energy Inc. reported its fourth‑quarter 2025 results on February 24, 2026, posting an adjusted earnings per share of $1.03, a beat of the consensus estimate of $1.01. The margin expansion and disciplined cost management in the Texas generation segment, coupled with robust demand from data‑center customers, drove the earnings lift.
Revenue for the quarter reached $7.75 billion, surpassing the consensus forecast of $6.41 billion. The strong revenue performance was largely driven by higher sales in the Texas generation segment and a surge in data‑center contracts, which offset any softness in legacy retail and commercial segments.
Adjusted EBITDA for Q4 2025 was $847 million, a decline from the $1.205 billion reported for Q3 2025. The lower figure reflects the impact of higher operating costs and a shift in the mix toward lower‑margin segments, but the company still maintained a healthy operating margin of 9.9% versus 10.2% in the prior year.
NRG reaffirmed its 2026 adjusted EPS guidance at $7.90 to $9.90, unchanged from the guidance issued after the LS Power acquisition. The company also confirmed a dividend increase to $1.90 per share for 2026, marking the sixth consecutive year of dividend growth.
The LS Power acquisition, closed on January 30, 2026, doubled NRG’s generation capacity to approximately 25 GW and was financed with $4.9 billion of new debt. CEO Larry Coben said, “NRG has doubled our generation footprint and enhanced our ability to provide solutions during this power demand supercycle.” CFO Bruce Chung added, “NRG delivered exceptional full‑year financial results in 2025. We achieved earnings at or above the high ends of our raised financial guidance ranges, including record‑level performance across several key metrics. Our 2025 Adjusted EPS was $8.24, and Adjusted EBITDA was $4.087 billion, representing an increase of 21% and 8%, respectively, over the prior year. We delivered $1.606 billion of adjusted net income and $2.21 billion of Free Cash Flow Before Growth.”
Investors responded positively to the earnings release, citing the earnings beat, strong revenue performance, and the reaffirmed 2026 outlook as key drivers of confidence in NRG’s continued growth trajectory.
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