second quarter 2026
Filed Aug 4, 2026NRG Energy Reports Second Quarter 2026 Results and Reaffirms 2026 Financial Guidance
GAAP Net Income and Adjusted EBITDA increased from the prior year, supported by acquired assets and East capacity prices, while Adjusted Net Income and Adjusted EPS declined and Texas Adjusted EBITDA fell.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP Net Income/(Loss), three months endedGAAP | $506 million | – | an increase of $610 million |
| Adjusted Net Income, three months endednon-GAAP | $315 million | – | $24 million lower than prior year |
| GAAP EPS — basic, three months endedGAAP | $2.32 | – | – |
| Adjusted EPS, three months endednon-GAAP | $1.49 | – | $0.24 lower than prior year |
| Adjusted EBITDA, three months endednon-GAAP | $1,217 million | – | a $308 million increase |
| GAAP Cash Provided by Operating Activities, three months endedGAAP | $1,117 million | – | – |
| Free Cash Flow Before Growth Investments (FCFbG), three months endednon-GAAP | $1,025 million | – | – |
| GAAP Net Income/(Loss), six months endedGAAP | $631 million | – | – |
| Adjusted Net Income, six months endednon-GAAP | $623 million | – | – |
| GAAP EPS — basic, six months endedGAAP | $2.86 | – | – |
| Adjusted EPS, six months endednon-GAAP | $2.98 | – | – |
| Adjusted EBITDA, six months endednon-GAAP | $2,297 million | – | – |
| GAAP Cash Provided by Operating Activities, six months endedGAAP | $948 million | – | – |
| Free Cash Flow Before Growth Investments (FCFbG), six months endednon-GAAP | $959 million | – | – |
| Texas Adjusted EBITDA, three months endednon-GAAP | $381 million | – | $131 million lower than the prior year |
| East Adjusted EBITDA, three months endednon-GAAP | $469 million | – | $370 million higher than the prior year |
| West/Other Adjusted EBITDA, three months endednon-GAAP | $66 million | – | $27 million higher than the prior year |
| Vivint Smart Home Adjusted EBITDA, three months endednon-GAAP | $301 million | – | $42 million higher than the prior year |
| Texas Adjusted EBITDA, six months endednon-GAAP | $597 million | – | $214 million lower than prior year |
| East Adjusted EBITDA, six months endednon-GAAP | $933 million | – | $360 million higher than prior year |
| West/Other Adjusted EBITDA, six months endednon-GAAP | $172 million | – | $60 million higher than prior year |
| Vivint Smart Home Adjusted EBITDA, six months endednon-GAAP | $595 million | – | $56 million higher than prior year |
2026 outlook
- NoteAdjusted Net Income: $1,685 - $2,115 million
- NoteAdjusted EPS: $7.90 - $9.90
- NoteAdjusted EBITDA: $5,325 - $5,825 million
- NoteFCFbG: $2,800 - $3,300 million
Capital returns
- The Company plans to return $1.0 billion to shareholders through share repurchases and approximately $407 million through common stock dividends in 2026.
- 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.
What drove it
- GAAP Net Income improved due to the addition of the portfolio of assets acquired from LS Power, higher realized capacity prices in the East, and unrealized, non-cash gains on economic hedges, primarily in the East.
- The increase in Adjusted EBITDA was partially offset in Adjusted Net Income by higher interest expense and depreciation and amortization related to the acquisition of the portfolio of assets acquired from LS Power.
- East results benefited from new generation assets and CPower and higher capacity prices for owned generation.
- Vivint Smart Home benefited from higher new customer adds and an increase in monthly recurring service margin per customer.
- NRG achieved commercial operations at the 415 MW T.H. Wharton facility on May 26, 2026.
- NRG advanced its BYOP strategy with a leading global cloud and AI hyperscaler, with parties aligned on principal commercial terms for a 1.2 GW combined cycle natural gas generation facility in Texas, subject to final documentation and approvals.
Concerns
- Texas Adjusted EBITDA was $131 million lower than the prior year, primarily reflecting higher supply costs, mild winter weather, including a ~30% decrease in heating degree days, lower retail load, and additional operating expenses for new generation assets.
- Adjusted Net Income was $24 million lower than prior year, and Adjusted EPS was $0.24 lower than prior year.
- East results were partially offset by higher power supply costs during Winter Storm Fern and lower natural gas margins.
- The Company does not guide to GAAP Net Income due to the impact of fair value adjustments related to derivatives in a given year.
- The planned 1.2 GW Texas facility remains subject to final documentation and approvals.
- The T.H. Wharton completion bonus grant agreement provides for up to $54.72 million, subject to performance of the facility.
What to watch
- Execution and final documentation and approvals for the 1.2 GW combined cycle natural gas generation facility in Texas.
- Performance of the 415 MW T.H. Wharton facility following commercial operations and the initial test period ending on May 31, 2027.
- Delivery of the two additional Texas Energy Fund projects, which remain on time and on budget.
- Texas retail load, supply costs, weather conditions, and operating expenses for new generation assets.
- Contribution from acquired generation assets and CPower, East capacity prices, power supply costs, and natural gas margins.
- Progress toward the reaffirmed 2026 Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG guidance ranges.
Balance sheet and cash flow
- Cash and Cash Equivalents as of 6/30/26: $162 million; as of 12/31/25: $4,708 million.
- Restricted Cash as of 6/30/26: $50 million; as of 12/31/25: $30 million.
- Total cash and restricted cash as of 6/30/26: $212 million; as of 12/31/25: $4,738 million.
- Total availability under revolving credit facility and collective collateral facilities as of 6/30/26: $5,068 million; as of 12/31/25: $4,890 million.
- Total liquidity, excluding funds deposited by counterparties, as of 6/30/26: $5,280 million; as of 12/31/25: $9,628 million.
- Total capacity of the revolving credit facility and collective collateral facilities was $9.0 billion as of June 30, 2026 and $7.7 billion as of December 31, 2025.
- 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.
Analysis
NRG reported a mixed second quarter. GAAP Net Income was $506 million, compared with $(104) million in the prior year, while GAAP Cash Provided by Operating Activities was $1,117 million compared with $451 million. Adjusted EBITDA increased to $1,217 million from $909 million. The GAAP improvement reflected acquired LS Power assets, higher realized East capacity prices, and unrealized non-cash gains on economic hedges, partially offset by milder weather and higher supply costs.
Underlying per-share and adjusted earnings measures moved lower. Adjusted Net Income was $315 million compared with $339 million, and Adjusted EPS was $1.49 compared with $1.73. NRG attributed the decline primarily to higher interest expense and depreciation and amortization related to the LS Power asset acquisition, partially offset by the increase in Adjusted EBITDA. The release also states that shares issued for the acquisition of generation assets and CPower from LS Power affected second-quarter Adjusted EPS.
Segment performance was sharply divergent. East Adjusted EBITDA increased to $469 million from $99 million, driven by new generation assets and CPower as well as higher capacity prices for owned generation. Vivint Smart Home Adjusted EBITDA increased to $301 million from $259 million on higher new customer adds and higher monthly recurring service margin per customer. Texas Adjusted EBITDA fell to $381 million from $512 million, reflecting higher supply costs, mild winter weather, a ~30% decrease in heating degree days, lower retail load, and additional operating expenses for new generation assets.
Capital allocation remains centered on shareholder returns while the company funds acquired assets and generation development. NRG plans $1.0 billion of share repurchases and approximately $407 million of common stock dividends during 2026. Through July 31, 2026, it had completed $932 million of repurchases and distributed $202 million in dividends. Liquidity excluding funds deposited by counterparties was $5,280 million as of June 30, 2026, compared with $9,628 million as of December 31, 2025, with the decrease primarily attributed to funding the LS Power acquisition.
NRG reaffirmed 2026 guidance for Adjusted Net Income of $1,685 - $2,115 million, Adjusted EPS of $7.90 - $9.90, Adjusted EBITDA of $5,325 - $5,825 million, and FCFbG of $2,800 - $3,300 million. Strategically, the company achieved commercial operations at the 415 MW T.H. Wharton facility and stated that its remaining two Texas Energy Fund projects are on time and on budget. It also advanced commercial terms with a hyperscaler for a 1.2 GW Texas combined cycle facility, although final documentation and approvals remain outstanding.
Management, verbatim
Today we provided a progress update on our Bring Your Own Power data center strategy. 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.
Robert Gaudette, President & CEO
Not in the filing
stated, not guessed- Total revenue
- Revenue by segment
- Gross profit and gross margin
- Operating income and operating margin
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- Prior-quarter comparisons for reported metrics
- Prior outlook section or prior guidance figures for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.