NRG Energy announces $4 bln asset sale; Q3 adj EPS beats on higher capacity prices, favorable weather 

Overview

• US power producer's Q3 adjusted EPS beat analyst expectations

• Q3 results driven by LS Power assets, higher capacity prices, and favorable Texas weather

• Company announced $4 bln sale of generation assets to support buybacks and debt reduction

Outlook

• NRG reaffirms 2026 guidance: adj net income $1.685-$2.115 bln, adj EPS $7.90-$9.90

• Company sees 2027 adj net income $1.665-$2.075 bln, adj EPS $8.05-$10.05

• NRG expects to update 2027 guidance after closing $4 bln asset sale in 2027

Result Drivers

• LS POWER ACQUISITION - Co said higher net income was primarily driven by contributions from the portfolio acquired from LS Power

• CAPACITY PRICES & WEATHER - Higher realized capacity prices in the East and favorable weather in Texas contributed to results

• COSTS & HEDGES - Higher depreciation, amortization, and interest expense from acquisitions, and unrealized losses on economic hedges, partially offset gains

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for NRG Energy Inc is $163.00, about 84.6% above its November 6 closing price of $88.29

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 6 - Vistra Q3 revenue and adjusted EBITDA beat estimates on higher energy, capacity prices

• Nov 6 - Power producer Vistra says it has not seen demand shift from Texas to PJM after US midterms

• Nov 6 - PPL Corp Q3 revenue rises on higher utility rates, demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)