Constellation Energy (CEG) Q4 2025 earnings summary

Executive summary

• Projected base EPS growth of over 20% from 2026 to 2029, with a long-term rolling three-year base EPS growth target of 10%+ driven by premium nuclear generation, new contracts, and capital allocation.

• Reported GAAP Net Income of $1.38 per share and Adjusted Operating Earnings of $2.30 per share for Q4 2025; full-year GAAP Net Income was $7.40 per share and Adjusted Operating Earnings $9.39 per share.

• Coast-to-coast generation fleet includes nuclear, natural gas, geothermal, and renewables, supporting economic growth and grid reliability.

• Completed the acquisition of Calpine Corporation, expanding the generation portfolio and commercial platform.

• Increased annual dividend per share by 10% and plan another 10% increase in 2026.

Financial highlights

• Initiated 2026 adjusted operating earnings guidance of $11.00–$12.00 per share, based on 361 million average diluted shares.

• $3.9B of growth CapEx planned with double-digit returns; $5.0B share buyback authorization increased.

• Free cash flow for 2026–2027 supported by $4.0B+ Calpine contribution; total available cash of $13.6B projected.

• Operating revenues for 2025 were $25.53 billion, up from $23.57 billion in 2024.

• Net cash flows from operating activities were $4.24 billion in 2025, compared to negative $2.46 billion in 2024.

Outlook and guidance

• 2026 adjusted operating earnings guidance set at $11.00–$12.00 per share; 2029 base EPS projected at $11.40–$11.90, excluding incremental long-term deals and higher utilization.

• Enhanced earnings opportunities include new nuclear/gas PPAs, higher gas utilization, commercial margin expansion, and PTC inflation adjustments.

• Capital allocation priorities: maintain investment grade metrics, 10% annual dividend growth, invest for long-term growth, and return excess cash to shareholders.

• 2026 guidance and strategy will be discussed in the upcoming March 31, 2026, conference call.