Constellation Energy (CEG) Q3 2024 earnings summary

Executive summary

• Q3 2024 GAAP earnings were $3.82 per share and adjusted operating earnings were $2.74 per share, both up significantly year-over-year, driven by strong commercial and nuclear performance, portfolio optimization, and favorable nuclear PTCs.

• Full-year 2024 adjusted operating earnings guidance was raised to $8.00–$8.40 per share, with a midpoint of $8.20, reflecting outperformance and a narrowed range.

• Net income attributable to common shareholders rose to $1.2 billion for Q3 2024, up $469 million year-over-year.

• Announced a 20-year PPA with Microsoft to restart the Crane Clean Energy Center (Three Mile Island Unit 1), with an estimated $1.6 billion capital investment and in-service date of 2028.

• Strategic focus remains on leveraging a large, reliable, carbon-free nuclear fleet and innovative commercial offerings to meet rising demand from the data economy, electrification, and onshoring.

Financial highlights

• Q3 2024 net income attributable to common shareholders: $1.2 billion ($3.82/share), up from $731 million ($2.26/share) in Q3 2023.

• Adjusted operating earnings for Q3 2024 were $860 million ($2.74/share), up from $688 million ($2.13/share) in Q3 2023.

• Operating revenues for Q3 2024 were $6.55 billion, a 7.2% increase from Q3 2023.

• Enhanced gross margin increased by $275 million due to strong commercial performance and lower purchased power and fuel costs.

• Cash flows from operating activities for the nine months ended September 30, 2024, were $(1,448) million, an improvement from $(2,119) million in 2023.

Outlook and guidance

• Full-year 2024 adjusted operating earnings guidance raised to $8.00–$8.40 per share, with a midpoint of $8.20.

• At least 13% compound EPS growth is forecast through 2030, supported by the nuclear production tax credit.

• Crane Clean Energy Center restart expected to require $1.6 billion in capital, with in-service targeted for 2028, subject to regulatory approvals.

• Guidance for 2025 and 2026 will be updated in the next earnings call.

• PTC provides revenue support for nuclear units when market revenues fall below $43.75/MWh, with inflation adjustments starting in 2025.