NRG Energy (NRG) Q2 2026 earnings summary

Executive summary

• Announced and advanced a 1.2 GW Texas data center BYOP project with a leading hyperscaler, structured for 15 years of contracted earnings and potential expansion to 2.4 GW, supporting grid reliability.

• Completed the LS Power (LSP) portfolio acquisition, doubling generation capacity to 25.8 GW, expanding demand response, and enhancing East segment results.

• Q2 2026 GAAP Net Income was $506 million, up $610 million year-over-year, and Adjusted EBITDA was $1,217 million, up from $909 million, driven by acquisitions and higher East capacity prices.

• Achieved commercial operations at the 415 MW T.H. Wharton facility, with two additional Texas Energy Fund projects on track.

• Strategy focuses on integrated energy and smart home solutions, recurring cash flow, and disciplined capital allocation.

Financial highlights

• Q2 2026 revenue was $7.48 billion, up from $6.74 billion; Adjusted Net Income was $315 million (vs. $339 million prior year); Adjusted EPS was $1.49 (vs. $1.73 prior year).

• Free cash flow before growth reached $1.025 billion, up from $914 million year-over-year.

• Texas segment EBITDA declined $131 million due to lower load and power prices; East segment EBITDA increased $370 million, mainly from LS Power assets.

• Smart Home segment saw 16% customer growth and a 10% increase in monthly recurring service margin per customer.

• Interest expense increased $162 million in Q2, mainly due to LSP acquisition financing.

Outlook and guidance

• 2026 guidance reaffirmed: Adjusted Net Income $1,685–$2,115 million; Adjusted EPS $7.90–$9.90; Adjusted EBITDA $5,325–$5,825 million; FCFbG $2,800–$3,300 million.

• Targets 7–9% annual dividend growth, with 2026 dividend per share at $1.90.

• Focus on integrating LSP assets, delivering $750 million organic growth (2025–2029), and contracting at least 1 GW of data center opportunities.