NRG Energy Reports Third Quarter 2026 Results, Reaffirms 2026 Financial
NRG Energy Reports Third Quarter 2026 Results, Reaffirms 2026 Financial Guidance, and Initiates 2027 Guidance
Delivered strong third quarter financial and operational results; reaffirming 2026 guidance ranges
Announcing $4 billion agreement to sell select generation assets; supports increased share repurchases and debt reduction
Previously announced 1.2 GW Bring Your Own Power (BYOP) data center project remains on track
Nationally recognized for responsible operations and community impact with the Good Neighbor and Top Water Plant awards
—NRG Energy, Inc. (NYSE: NRG) today announced financial results for the third quarter ending September 30, 2026, and reports GAAP Net Income of $561 million, GAAP Earnings per Share (EPS) — basic of $2.59, and GAAP Cash Provided by Operating Activities of $1,097 million. The Company's non-GAAP metrics are Adjusted Net Income of $983 million, Adjusted EPS of $4.68, Adjusted EBITDA of $2,013 million, and Free Cash Flow before Growth Investments (FCFbG) of $1,242 million for the third quarter of 2026.
“Our 17,000 employees delivered strong third quarter results that reflect the depth of NRG, with our eight million customers and a substantial generation business that produce steady earnings and cash flows,” said Robert Gaudette, President & CEO. “Today’s announcement is about returning more to our shareholders and supporting future growth investments. We remain focused on execution and deliberate about how we allocate capital in pursuit of long-term value.”
a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-1 through A-6 for GAAP reconciliations. Adjusted EPS, Adjusted Net Income, and Adjusted EBITDA exclude fair value adjustments related to derivatives
b Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see Appendix tables A-1 through A-4
d Adjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic 1 NRG reported GAAP Net Income of $561 million for the third quarter of 2026, an increase of $409 million from the prior year. The increase was primarily driven by contributions from the portfolio acquired from LS Power, higher realized capacity prices in the East, and higher margins in Texas, including favorable weather impacts. These benefits were partially offset by higher depreciation and amortization and interest expense associated with the acquired assets and related acquisition financing. The increase is also offset by unrealized, non- cash losses on economic hedges, primarily driven by a decrease in natural gas prices. These hedge positions are adjusted to market value each period, while the related customer contracts are not. As a result, the accounting treatment can result in temporary unrealized gains or losses that may differ from expected results when the contracts settle.
Adjusted Net Income for the third quarter 2026 is $983 million, $446 million higher than prior year, primarily driven by an $808 million increase in Adjusted EBITDA, the impacts of which are described in the segment results below. This is partially offset by higher interest expense and depreciation and amortization related to the portfolio acquired from LS Power. Adjusted EPS is $4.68 for the third quarter 2026, $1.90 higher than prior year. The third quarter 2026 Adjusted EPS results include the financial impacts from Adjusted Net Income and impacts of shares issued as part of the completed acquisition of generation assets and CPower from LS Power.
Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2026
2026 (In millions, except per share amounts) Guidance Adjusted Net Income $1,685 - $2,115 Adjusted EPS $7.90 - $9.90 Adjusted EBITDA $5,325 - $5,825 FCFbG $2,800 - $3,300
a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 and A-10 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year.
The Company plans to return $1.0 billion to shareholders through share repurchases and approximately $407 million through common stock dividends in 2026, as part of its previously announced 2026 capital allocation plan. Through October 31, 2026, the Company completed $977 mi llion in share repurchases and distributed $302 million in common stock dividends.
On October 19, 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 November 16, 2026, to common stockholders of record as of November 2, 2026.
Table 3: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2027
a 2027 Guidance does not reflect the expected impacts of the announced 4.9 GW asset sale 2 b Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-9 and A-11 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year
The Company is also announcing its 2027 base capital allocation plan, which includes $1 billion of debt reduction, $1 billion of share repurchases and an 8% increase in the annual common dividend to $2.05 per share, consistent with the Company’s 7–9% long-term dividend growth target.
Expected proceeds from the announced 4.9 GW asset sale will be used to support NRG's 2027 pro forma capital allocation plan of $3 billion of share repurchases across 2026 and 2027, including an incremental $1 billion expected to begin before the end of the fourth quarter of 2026. Upon closing of the asset sale, NRG plans an additional $2 billion of debt reduction to maintain the Company's current leverage profile, bringing total planned 2027 debt reduction to $3 billion. The remaining $1 billion of expected proceeds will provide flexibility for either contracted growth investments or additional debt reduction. The Company expects to provide updated 2027 financial guidance and an updated capital allocation plan following the closing of the asset sale.
NRG's share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of common stock repurchased under the share repurchase authorization will be determined by NRG’s management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company’s ability to maintain satisfactory credit ratings.
On November 9, NRG entered into a definitive agreement to sell six natural-gas fired generation assets totaling 4.9 GW to LS Power, for a purchase price of $4 billion in cash proceeds, subject to working capital and other closing adjustments. The sale retains the entire PJM portfolio and CPower acquired by the Company in January 2026.
The transaction is expected to close in the second quarter of 2027, subject to customary closing conditions and regulatory approvals including Hart-Scott- Rodino (HSR), Federal Energy Regulatory Commission (FERC), and the New York State Public Service Commission (NYSPSC).
The Company's previously disclosed 1.2 GW BYOP project remains on track. NRG's BYOP strategy brings new, dispatchable generation alongside load growth to support reliability and affordability consistent with the approach policymakers and communities have called for.
In September, NRG's WA Parish plant was awarded POWER Magazine's 2026 Top Plant Water Award for its wastewater treatment system that maintains plant reliability, reduces wastewater volume by nearly 93%, and allowed the plant to achieve zero liquid discharge from flue gas desulfurization wastewater.
In October, the Office of Surface Mining Reclamation and Enforcement (OSM) awarded NRG the 2026 Excellence in Surface Coal Mining Reclamation Good Neighbor award for its work establishing the Dewey Prairie Garden at the former Jewett Mine, providing lasting benefits to the local community.
These recognitions reflect NRG's commitment to responsible operations, environmental stewardship, and being a good neighbor in the communities where it operates. 3
a Adjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1 through A-4 for GAAP reconciliation of Adjusted EBITDA (by operating segment) to GAAP Net Income (by operating segment). Adjusted EBITDA excludes fair value adjustments related to derivatives
Texas: Third quarter 2026 Adjusted EBITDA was $1,018 million, $211 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $1,615 million, $3 million lower than prior year. Results were primarily driven by increased retail margins and favorable weather in the third quarter, largely offsetting the impact of mild winter weather earlier in the year, including a decrease of approximately 30% in heating degree days compared to prior year.
East: Third quarter 2026 Adjusted EBITDA was $614 million, $507 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $1,547 million, $867 million higher than prior year. Results were primarily driven by contribution of the new generation assets and CPower and higher capacity prices for owned generation, partially offset by higher power supply costs during Winter Storm Fern and lower natural gas margins.
West/Other: Third quarter 2026 Adjusted EBITDA was $64 million, $51 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $236 million, $111 million higher than prior year. The increase was primarily driven by lower operating expenses associated with a lease expiration in May 2025.
Vivint Smart Home: Third quarter 2026 Adjusted EBITDA was $317 million, $39 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $912 million, $95 million higher than prior year. The increase for both the quarter and the first nine months of 2026 is attributable to higher new customer adds and an increase in monthly recurring service margin per customer.
(In millions) 9/30/26 12/31/25 ───────────────────────────────────────────────────────────────────────── Cash and Cash Equivalents $ 148 $ 4,708 Restricted Cash 29 30 Total $ 177 $ 4,738 Total availability under revolving credit facility and collective 5,850 4,890 collateral facilitiesa Total liquidity, excluding funds $ 6,027 $ 9,628 deposited by counterparties
a Total capacity of the revolving credit facility and collective collateral facilities was $9.6 billion and $7.7 billion as of September 30, 2026 and December 31, 2025, respectively
As of September 30, 2026, NRG's unrestricted cash was approximately $0.1 billion, and $5.9 billion was available under the Company’s credit facilities. Total liquidity was $6.0 billion, which was $3.6 billion lower than December 31, 2025, primarily driven by funding of the acquisition of generation assets and CPower from LS Power.
On November 9, 2026, NRG will host a conference call at 8:00 a.m. Eastern (7:00 a.m. Central) to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation 4 materials through the investor relations website under “presentations and webcasts” on investors.nrg.com. The webcast will be archived on the site for those unable to listen in real-time.
NRG is a leading provider of electricity, natural gas, and smart home solutions to eight million customers across North America. The company operates a customer-first platform supported by a diversified supply strategy and the safe, reliable operation of approximately 25 GW of power generation. NRG plays a meaningful role in competitive energy markets and our innovative team is creating the flexible and affordable solutions that households and large businesses need today and in the future.
In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about NRG's future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.
Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, the imposition of tariffs, the escalation of international trade disputes, and the occurrence or re-escalation of geopolitical conflicts (including the hostilities with Iran and the conflicts in the Middle East) and inflationary impacts resulting therefrom, risks associated with the integration of the portfolio of assets acquired from LS Power, including potential disruption to ongoing operations and other transition difficulties, the inability of the combined company to realize expected synergies and benefits of integration (or that it takes longer than expected) which may result in the combined company not operating as effectively as expected, the emergence of hazards customary in the power industry, weather conditions and extreme weather events, competition in wholesale power, gas and smart home markets, the volatility of energy and fuel prices, the volatility in demand for power and gas, customer affordability concerns that may constrain the pricing of NRG's products and services and limit its ability to recover costs, the failure of customers or counterparties to perform under contracts, changes in the wholesale power and gas markets, the failure of NRG’s expectations regarding load growth to materialize, changes in government or market regulations, the condition of capital markets generally and NRG’s ability to access capital markets, NRG’s ability to execute its supply strategy, risks related to data privacy, cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated outages at NRG’s generation facilities, operational and reputational risks related to the use of artificial intelligence and the adherence to developing laws and regulations related to the use thereof, NRG’s ability to achieve its net debt targets, adverse results in current and future litigation, complaints, product liability claims and/or adverse publicity, the failure to identify, execute or successfully implement acquisitions or asset sales on the anticipated terms and timing (including obtaining any required approvals and consents) and realize the expected benefits of such transactions, risks of the smart home and security industry, including risks of and publicity surrounding the sales, customer origination and retention process, the impact of changes in consumer spending patterns, consumer preferences, geopolitical tensions, demographic trends, supply chain disruptions, NRG’s ability to implement value enhancing improvements to plant operations and company wide processes, NRG’s ability to achieve or maintain investment grade credit metrics, NRG’s ability to execute definitive agreements for, and proceed with or complete, proposed projects (including the data center project) on the contemplated terms, timeline and budget, the inability to maintain or create successful partnering relationships, NRG’s ability to operate its business efficiently, NRG’s ability to retain customers, the ability to successfully integrate businesses of acquired assets or companies (including the portfolio acquisition from LS Power), NRG’s ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, NRG’s ability to execute its capital allocation plan, and the other risks and uncertainties discussed in this release and in our Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC"). Achieving investment grade credit metrics is not an indication of or guarantee that NRG will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Adjusted EBITDA, adjusted cash provided by operating activities, Free Cash Flow before Growth Investments, Adjusted Net Income, and Adjusted EPS guidance are estimates as of November 9, 5 2026. These estimates are based on assumptions NRG believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the SEC at www.sec.gov . For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in NRG’s most recent Annual Report on Form 10-K, and in subsequent SEC filings. NRG’s forward-looking statements speak only as of the date of this communication or as of the date they are made.
Media Investors Laura Avant Brendan Mulhern Laura.Avant@nrg.com Brendan.Mulhern@nrg.com
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── (In millions, -Unaudited -Audited except share data) ASSETS Current Assets Cash and cash $ 148 $ 4,708 equivalents Funds deposited by 105 260 counterpart… Restricted 29 30 cash Accounts receivable, 3,931 4,065 net Inventory 723 461 Derivative 3,006 2,189 instruments Cash collateral paid in support of 501 365 energy risk management activities Prepayments and other 1,305 1,069 current assets Total current 9,748 13,147 assets Property, plant and 14,605 3,632 equipment, net Other Assets Operating lease 137 130 right-of-use assets, net Goodwill 8,815 5,017 Customer relationshi… 1,101 1,203 net Other intangible 975 1,106 assets, net Derivative 1,572 1,568 instruments Deferred 1,540 1,843 income taxes Other non-current 1,803 1,494 assets Total other 15,943 12,361 assets Total Assets $ 40,296 $ 29,140
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── (In millions, except share -Unaudited -Audited data) LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term $ 1,079 $ 31 debt and finance leases Current portion of operating 42 35 lease liabilities Accounts 2,774 2,834 payable Derivative 3,187 2,257 instruments Cash collateral received in support of 105 260 energy risk management activities Deferred revenue 823 748 current Accrued expenses and 1,806 1,864 other current liabilities Total current 9,816 8,029 liabilities Other Liabilities Long-term debt and 21,844 16,412 finance leases Non-current operating 165 144 lease liabilities Derivative 1,237 1,103 instruments Deferred 15 15 income taxes Deferred revenue 1,058 895 non-current Other non-current 889 861 liabilities Total other 25,208 19,430 liabilities Total 35,024 27,459 Liabilities Commitments and Contingencies Stockholders’ Equity Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at September 30, 650 650 2026 and December 31, 2025, aggregate liquidation preference of $650; at September 30, 2026 and December 31, 2025 Common stock; $0.01 par value; 500,000,000 shares authorized; 225,219,764 and 199,828,615 shares issued and 2 2 209,982,924 and 190,376,607 shares outstanding at September 30, 2026 and December 31, 2025, respectively Additional 3,916 215 paid-in-capi… Retained 2,800 1,982 earnings Treasury stock, at cost; 15,236,840 shares and 9,452,008 -2,006 -1,087 shares at September 30, 2026, and December 31, 2025, respectively Accumulated other -90 -81 comprehensive loss Total Stockholders’ 5,272 1,681 Equity Total Liabilities and $ 40,296 $ 29,140 Stockholders’ Equity
(In millions) Nine months ended Cash Flows from September 30, Operating Activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 1,192 $ 798 Adjustments to reconcile net income to cash provided by operating activities: Depreciation of property, plant and equipment and amortization of 925 667 customer relationships and other intangible assets Amortization of capitalized contract 511 363 costs Accretion of asset retirement 21 22 obligations Provision for credit 210 201 losses Amortization of financing costs and 19 24 debt discounts/premiums Loss on debt 9 10 extinguishment Amortization of in-the-money contracts 145 75 and emissions allowances Amortization of unearned equity 109 83 compensation Net (gain)/loss on sale of assets and -52 7 disposal of assets Gain on proceeds from insurance recoveries for — -100 Property, plant and equipment, net Changes in derivative 327 447 instruments Changes in current and deferred income taxes and liability for 293 209 uncertain tax benefits Changes in collateral deposits in -108 76 support of risk management activities Changes in other working capital: Accounts receivable, 407 -22 net Inventory -86 15 Prepayments and other -672 -488 current assets Accounts payable -772 -229 Accrued expenses and other current -257 -169 liabilities Other assets and -176 -199 liabilities Cash provided by $ 2,045 $ 1,790 operating activities Cash Flows from Investing Activities Payments for acquisitions of businesses $ -7,094 $ -591 and assets, net of cash acquired Capital expenditures -1,181 -849 Proceeds from sales of 45 6 assets Purchases of emissions -59 -11 allowances Proceeds from sales of emissions 98 5 allowances Proceeds from insurance recoveries for — 100 Property, plant and equipment, net Cash used in investing $ -8,191 $ -1,340 activities Cash Flows from Financing Activities Equivalent shares purchased in lieu of $ -101 $ -86 tax withholdings Payments for share repurchase activity -973 -958 and excise tax Payments of dividends to preferred and -369 -326 common stockholders Payment for settlement of capped call — -292 options(a) Proceeds from issuance 3,754 1,375 of long-term debt Repayments of long-term debt and finance -1,544 -249 leases Payments for debt -100 — extinguishment costs Payments of deferred -85 -55 financing costs Net (payments)/receipts from settlement of acquired derivatives -168 51 that include financing elements Proceeds from credit 13,248 1,575 facilities Repayments to credit -12,232 -1,575 facilities Cash provided by/(used in) financing $ 1,430 $ -540 activities Effect of exchange rate changes on cash — 2 and cash equivalents Net Decrease in Cash and Cash Equivalents, Funds -4,716 -88 Deposited by Counterparties and Restricted Cash Cash and Cash Equivalents, Funds Deposited by 4,998 1,173 Counterparties and Restricted Cash at Beginning of Period Cash and Cash Equivalents, Funds Deposited by $ 282 $ 1,085 Counterparties and Restricted Cash at End of Period
11 Appendix Table A-1: Third Quarter 2026 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
1 Stock-based compensation of $4 million is reflected in cost to achieve. Stock- based compensation includes employee stock purchase plan expense
3 Loss of $155 million was primarily driven by the reversal of previously recognized unrealized gains on contracts that settled during the period as well as a decrease in the value of open positions driven by decreases in natural gas prices, partially offset by the reversal of acquired loss positions related to economic hedges
5 Income tax calculated using Adjusted effective tax rate (ETR) on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Reduction in actual Adjusted ETR is due to optimized utilization of tax attributes reducing Federal and State taxes. Other adjustments are shown on pre-tax basis.
6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
8 Earnings per share amounts are based on weighted average number of common shares outstanding - basic and diluted of 210 million for the three months ended September 30, 2026 12 Third Quarter 2026 condensed financial information by Operating Segment:
3 Excludes ARO expense of $4 million, stock-based compensation of $4 million, deactivation costs of $3 million, and other and non-recurring charges of $1 million
4 Excludes stock-based compensation of $29 million, cost to achieve of $21 million, acquisition and divestiture integration and transaction costs of $1 million, and other and non-recurring charges of $(2) million
6 See previous table for details 13 Appendix Table A-2: Third Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
1 Loss of $376 million was primarily driven by unrealized non-cash mark-to- market losses on economic hedges in Texas due to reversal of previously recognized unrealized gains on contracts that settled during the period and in West due to decreases in CAISO power prices
3 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non- recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
4 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
6 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 193 million and on weighted average number of common shares outstanding - diluted of 195 million for the three months ended September 30, 2025 14 Third Quarter 2025 condensed financial information by Operating Segment:
3 Excludes deactivation costs of $8 million, ARO expense of $2 million, stock- based compensation of $2 million and other and non-recurring charges of $(2) million 4 Excludes stock-based compensation of $19 million, cost to achieve of $2 million and other and non-recurring charges of $1 million
5 See previous table for details 15 Appendix Table A-3: YTD Third Quarter 2026 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
1 Stock-based compensation of $5 million is reflected in cost to achieve. Stock- based compensation includes employee stock purchase plan expense
2 Includes $172 million related to termination of acquired hedges 3 Loss of $71 million was primarily driven by the reversal of previously recognized unrealized gains on contracts that settled during the period as well as a decrease in the value of open positions as a result of decreases in natural gas prices and Alberta power prices, largely offset by the reversal of acquired loss positions related to economic hedges
5 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non- recurring tax items, using CAMT rate to accrue tax. Reduction in actual Adjusted ETR is due to optimized utilization of tax attributes reducing Federal and State taxes. Other adjustments are shown on pre-tax basis.
6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
8 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 209 million and on weighted average number of common shares outstanding - diluted of 210 million for the nine months ended September 30, 2026 16 YTD Third Quarter 2026 condensed financial information by Operating Segment:
3 Excludes ARO expense of $21 million, stock-based compensation of $11 million, deactivation costs of $7 million and other and non-recurring charges of $2 million
4 Excludes stock-based compensation of $93 million, cost to achieve of $50 million, acquisition and divestiture integration and transaction costs of $1 million and other and non-recurring charges of $(1) million
6 See previous table for details 17 Appendix Table A-4: YTD Third Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:
1 Stock-based compensation of $6 million is reflected in acquisition and divestiture integration and transaction costs and $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense
2 Includes $(100) million of property insurance proceeds and $181 million of reserves for legal matters 3 Loss of $328 million was primarily driven by unrealized non-cash mark-to- market losses on economic hedges in Texas due to reversal of previously recognized unrealized gains on contracts that settled during the period partially offset by increases in ERCOT power prices
5 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non- recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
8 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 196 million and on weighted average number of common shares outstanding - diluted of 201 million for the nine months ended September 30, 2025 18 YTD Third Quarter 2025 condensed financial information by Operating Segment:
3 Excludes deactivation costs of $23 million, ARO expense of $22 million, stock- based compensation of $6 million and other and non-recurring charges of $(101) million 4 Excludes other and non-recurring charges of $181 million, stock-based compensation of $70 million and cost to achieve of $9 million
5 See previous table for details 19 Appendix Table A-5: Three Months Ended September 30, 2026 and 2025 Free Cash Flow before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:
Three Months Ended (In millions) 9/30/2026 9/30/2025 ────────────────────────────────────────────────────────────────────────────── Adjusted EBITDA $ 2,013 $ 1,205 Interest payments, net -406 -181 Income tax payments -8 — Gross capitalized contract -338 -301 costs Collateral/working capital/other assets -164 -239 and liabilities Cash provided by operating 1,097 484 activities Net (payments)/receipts from settlement of acquired derivatives -184 13 that include financing elements Acquisition and divestiture integration 34 18 and transaction costs1 Adjustment for change in 122 121 collateral Other2 178 205 Adjusted cash provided by operating 1,247 841 activities Maintenance capital -75 -67 expenditures, net Environmental capital -3 -7 expenditures Cost of acquisition 73 61 Free Cash Flow before Growth Investments $ 1,242 $ 828 (FCFbG)
1 Three months ended 9/30/26 includes $17 million from acquisition and divestiture integration and transaction costs and $21 million cost to achieve payments (see Appendix table A-1), less $4 million non-cash acquisition costs and non-cash stock-based compensation ; three months ended 9/30/25 includes $8 million from acquisition and divestiture integration and transaction costs and $2 million cost to achieve payments (see Appendix table A-2), and an additional $8 million cash costs from prior quarters' accruals
2 Three months ended 9/30/26 includes $172 million related to the termination of acquired hedges; three months ended 9/30/25 includes payment of $224 million for the satisfaction of the CPI legal matter 20 Appendix Table A-6: Nine Months Ended September 30, 2026 and 2025 Free Cash Flow before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:
Nine Months Ended (In millions) 9/30/2026 9/30/2025 ────────────────────────────────────────────────────────────────────────────── Adjusted EBITDA $ 4,310 $ 3,240 Interest payments, net -809 -422 Income tax payments -81 -60 Gross capitalized contract -925 -787 costs Collateral/working capital/other assets -450 -181 and liabilities Cash provided by operating 2,045 1,790 activities Net (payments)/receipts from settlement of acquired derivatives that -168 51 include financing elements Acquisition and divestiture integration 124 59 and transaction costs1 Adjustment for change in 108 -76 collateral Other2 191 209 Adjusted cash provided by operating 2,300 2,033 activities Maintenance capital -248 -119 expenditures, net3 Environmental capital -16 -26 expenditures Cost of acquisition 165 147 Free Cash Flow before Growth Investments $ 2,201 $ 2,035 (FCFbG)
1 Nine months ended 9/30/26 includes from Table A-3 $78 million acquisition and divestiture integration and transaction costs, $50 million cost to achieve payments, less $4 million non-cash acquisition costs and non-cash stock-based compensation; Nine months ended 9/30/25 includes from Table A-4 $59 million acquisition and divestiture integration and transaction costs, $9 million cost to achieve payments, excludes $9 million non-cash acquisition costs and non-cash stock-based compensation
2 Nine months ended 9/30/26 includes $172 million related to the termination of acquired hedges and $15 million payment for a legal matter; nine months 9/30/25 includes $224 million payment for the satisfaction of the CPI legal matter
3 Nine months ended 9/30/25 is presented net of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment of $100 million 21 Appendix Table A-7: Nine Months Ended September 30, 2026 Sources and Uses of Liquidity
The following table summarizes the sources and uses of liquidity for the nine months ended September 30, 2026:
Nine months ended September 30, (In millions) 2026 ────────────────────────────────────────────────────────────────────────────── Sources: Adjusted cash provided by operating $ 2,300 activities Proceeds from credit facilities 13,248 Proceeds from issuance of 3,754 long-term debt Change in availability under revolving 960 credit facility and collective collateral facilities Proceeds from sales of emissions 98 allowances Return of cash collateral paid in support of energy risk 48 management activities Proceeds from sales of assets, 45 net Uses: Repayments to credit facilities -12,232 Payments for acquisitions of businesses -7,094 and assets, net of cash acquired Repayments of long-term debt and finance -1,544 leases Payments for share repurchase activity -973 and excise tax Investments and integration capital -917 expenditures Payments of dividends to preferred and -369 common stockholders Maintenance and environmental capital -264 expenditures Acquisition and divestiture integration -124 and transaction costs1 Equivalent shares purchased in lieu of -101 tax withholdings Payments for debt extinguishment -100 costs Payments of deferred financing -85 costs Purchases of emissions -59 allowances Other2 -192 Change in Total Liquidity -3,601
1 Nine months ended 9/30/26 includes from Table A-3 $78 million acquisition and divestiture integration and transaction costs, $50 million cost to achieve payments, less $4 million non-cash acquisition costs and non-cash stock-based compensation
2 Nine months ended 9/30/26 includes $172 million related to the termination of acquired hedges, and $15 million payment for a legal matter 22
The following table summarizes the 2026 Guidance calculations of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income:
2026 (In millions, except per share Guidance8,9 amounts) Net Income1 $1,325 - $1,755 Interest expense, net 1,195 Income tax expense2 490 - 560 Depreciation and amortization3 1,955 ARO expense 30 Stock-based compensation 120 Acquisition and divestiture integration 110 and transaction costs Other4 100 Adjusted EBITDA $5,325 - $5,825 Adjusted interest expense, net5 -1,195 Depreciation and amortization3 -1,955 Adjusted Income before income taxes $2,175 - $2,675 Adjusted income tax expense6 -423) - (493 Adjusted Net Income before Preferred $1,752 - $2,182 Stock dividends Cumulative dividends attributable to -67 Series A Preferred Stock Adjusted Net Income7 $1,685 - $2,115 Weighted average number of common shares 214 outstanding - basic Adjusted EPS $7.90 - $9.90
1 The Company does not guide to Net Income due to the impact of fair value adjustments related to derivatives in a given year. For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero
3 Estimates for the acquired LS Power assets are provisional and subject to revisions until evaluations are completed to assess the fair value of long-lived assets
4 Includes adjustments for sale of assets, deactivation costs, and other and non-recurring charges
6 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non- recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis
7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'
The following table summarizes the 2027 Guidance calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income:
2027 (In millions, except per share Guidance8,9 amounts) Net Income1 $1,355 - $1,765 Interest expense, net 1,300 Income tax expense2 485 - 575 Depreciation and amortization3 2,115 ARO expense 25 Stock-based compensation 105 Acquisition and divestiture integration 35 and transaction costs Other4 80 Adjusted EBITDA $5,500 - $6,000 Adjusted interest expense, net5 -1,300 Depreciation and amortization3 -2,115 Adjusted Income before income $2,085 - $2,585 taxes Adjusted income tax expense6 -353) - (443 Adjusted Net Income before Preferred $1,732 - $2,142 Stock dividends Cumulative dividends attributable to -67 Series A Preferred Stock Adjusted Net Income7 $1,665 - $2,075 Weighted average number of common shares 207 outstanding - basic Adjusted EPS $8.05 - $10.05
1 The Company does not guide to Net Income due to the impact of fair value adjustments related to derivatives in a given year. For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero
3 Estimates for the acquired LS Power assets are provisional and subject to revisions until evaluations are completed to assess the fair value of long-lived assets
4 Includes adjustments for sale of assets, deactivation costs, and other and non-recurring charges
6 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non- recurring tax items, using CAMT rate to accrue tax. Reduction in Adjusted ETR is due to optimized utilization of tax attributes reducing Federal and State taxes. Other adjustments are shown on pre-tax basis.
7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' 8 2027 Guidance does not reflect the expected impacts of the announced 4.9 GW asset sale 9 Items may not sum due to rounding 24
The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:
2026 (In millions) Guidance4,5 Adjusted EBITDA $5,325 - $5,825 Interest payments, net1 -1,100 Income tax payments -70) - (90 Gross capitalized contract costs -1,020 Working capital/other assets and -135 liabilities2 Cash provided by operating $3,000 - $3,480 activities3 Acquisition and other costs2 110 Adjusted cash provided by operating $3,110 - $3,590 activities Maintenance capital expenditures -450) - (480 Environmental capital expenditures -10) - (20 Cost of acquisition 180 Free Cash Flow before Growth Investments $2,800 - $3,300 (FCFbG)
1 Interest payments, net represents Interest expense, net of $(1,195) million on Appendix table A-8 plus $95 million accrued interest expense not yet paid
2 Working capital/other assets and liabilities includes payments for Acquisition and divestiture integration and transaction costs, which is adjusted in Acquisition and other costs, and includes net deferred revenues
3 Excludes fair value adjustments related to derivatives and changes in collateral deposits in support of risk management activities
The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:
2027 (In millions) Guidance4,5 Adjusted EBITDA $5,500 - $6,000 Interest payments, net1 -1,235 Income tax payments -60) - (80 Gross capitalized contract costs, net of -1,035 deferred revenues Working capital/other assets and 100 liabilities2 Cash provided by operating $3,270 - $3,750 activities3 Acquisition and other costs2 60 Adjusted cash provided by operating $3,330 - $3,810 activities Maintenance capital expenditures -570) - (600 Environmental capital expenditures -10) - (20 Cost of acquisition 180 Free Cash Flow before Growth Investments $2,900 - $3,400 (FCFbG)
1 Interest payments, net represents Interest expense, net of $(1,300) million on Appendix table A-9 plus $65 million accrued interest expense not yet paid
2 Working capital/other assets and liabilities includes payments for Acquisition and divestiture integration and transaction costs, which is adjusted in Acquisition and other costs, and excludes net deferred revenues
3 Excludes fair value adjustments related to derivatives and changes in collateral deposits in support of risk management activities
4 2027 Guidance does not reflect the expected impacts of the announced 4.9 GW asset sale
NRG reports its financial results in accordance with the accounting principles generally accepted in the United States (GAAP) and supplements with certain non- GAAP financial measures. These measures are not recognized in accordance with GAAP and should not be viewed in isolation or as an alternative to GAAP measures of performance. In addition, other companies may calculate non-GAAP financial measures differently than NRG does, limiting their usefulness as a comparative measure.
NRG uses the following non-GAAP measures to provide additional insight into financial performance:
: Defined as EBITDA (earnings before interest, taxes, depreciation, and amortization, impact of asset retirement obligation expenses and contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances) with further adjustments for stock-based compensation, impairment losses, deactivation costs, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from forward position of economic hedges, gains or losses on the repurchase, modification or extinguishment of debt, restructuring costs, and other non- recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments or non-controlling interests. Adjusted EBITDA is intended to facilitate period-to-period comparisons and is widely used by investors for performance assessment.
: Defined as net income available to common shareholders excluding the impact of asset retirement obligation expenses, contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances, stock-based compensation, impairment losses, deactivation costs, gains or losses on sales, dispositions or retirements of assets, any mark-to- market gains or losses from forward position of economic hedges, gains or losses on the repurchase, modification or extinguishment of debt, the impact of restructuring and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments and non-controlling interests.
: Defined as Adjusted Net Income, divided by the average basic common shares outstanding.
Adjusted Cash Provided/(Used) by Operating Activities : Defined as cash provided/(used) by operating activities with the reclassification of net payments of derivative contracts acquired in business combinations from financing to operating cash flow, as well as the add back of merger, integration, related restructuring costs, adjustment for change in collateral, and the impact of extraordinary, unusual or non-recurring items.
: Defined as Adjusted Cash provided/(used) by operating activities less maintenance and environmental capital expenditures, net of funding and insurance recoveries related to property, plant and equipment, and adjustments to exclude cost of acquisition related to growth.
Management believes these non-GAAP financial measures are useful to investors and other users of NRG's financial statements in evaluating the Company’s operating performance and growth, as well as the impact of the Company’s capital allocation program. They provide an additional tool to compare business performance across periods and adjust for items that management does not consider indicative of NRG’s future operating performance. Management uses these non-GAAP financial measures to assist in comparing financial performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations, and for evaluating actual results against such expectations, and in communications with NRG's Board of Directors, shareholders, creditors, analysts and investors concerning its financial performance. 27
Full text with the tables
Exhibit 99.1
NRG Energy Reports Third Quarter 2026 Results, Reaffirms 2026 Financial
Guidance, and Initiates 2027 Guidance
•
Delivered strong third quarter financial and operational results; reaffirming
2026 guidance ranges
•
Announcing $4 billion agreement to sell select generation assets; supports
increased share repurchases and debt reduction
•
Initiating 2027 guidance; reaffirming long-term targets
•
Previously announced 1.2 GW Bring Your Own Power (BYOP) data center project
remains on track
•
Nationally recognized for responsible operations and community impact with the
Good Neighbor and Top Water Plant awards
HOUSTON
—
November 9, 2026
—NRG Energy, Inc. (NYSE: NRG) today announced financial results for the third
quarter ending September 30, 2026, and reports GAAP Net Income of $561 million,
GAAP Earnings per Share (EPS) — basic of $2.59, and GAAP Cash Provided by
Operating Activities of $1,097 million. The Company's non-GAAP metrics are
Adjusted Net Income of $983 million, Adjusted EPS of $4.68, Adjusted EBITDA of
$2,013 million, and Free Cash Flow before Growth Investments (FCFbG) of $1,242
million for the third quarter of 2026.
“Our 17,000 employees delivered strong third quarter results that reflect the
depth of NRG, with our eight million customers and a substantial generation
business that produce steady earnings and cash flows,” said Robert Gaudette,
President & CEO. “Today’s announcement is about returning more to our
shareholders and supporting future growth investments. We remain focused on
execution and deliberate about how we allocate capital in pursuit of long-term
value.”
Consolidated Financial Results
Table 1:
(In
milli…
except Three Nine
per Months Months
share Ended Ended
amoun… 9/30/2… 9/30/… 9/30/2… 9/30/…
──────────────────────────────────────────────────────────────────────────────
GAAP
Net $ 561 $ 152 $ 1,192 $ 798
Income
Adjus…
Net $ 983 $ 537 $ 1,605 $ 1,406
Incom…
b
GAAP
EPS — $ 2.59 $ 0.70 $ 5.46 $ 3.81
basicc
Adjus… $ 4.68 $ 2.78 $ 7.68 $ 7.17
EPSa d
Adjus… $ 2,013 $ 1,205 $ 4,310 $ 3,240
EBITD…
GAAP
Cash
Provi… $ 1,097 $ 484 $ 2,045 $ 1,790
by
Opera…
Activ…
Free
Cash
Flow
Before $ 1,242 $ 828 $ 2,201 $ 2,035
Growth
Inves…
(FCFb…
a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP
financial measures; see Appendix tables A-1 through A-6 for GAAP
reconciliations. Adjusted EPS, Adjusted Net Income, and Adjusted EBITDA exclude
fair value adjustments related to derivatives
b Adjusted Net Income as shown here is 'Adjusted Net Income available for common
stockholders'; see Appendix tables A-1 through A-4
c GAAP Net Income per Weighted Average Common Share - Basic
d Adjusted EPS calculated based on Adjusted Net Income divided by weighted
average number of common shares outstanding - basic
1
NRG reported GAAP Net Income of $561 million for the third quarter of 2026, an
increase of $409 million from the prior year. The increase was primarily driven
by contributions from the portfolio acquired from LS Power, higher realized
capacity prices in the East, and higher margins in Texas, including favorable
weather impacts. These benefits were partially offset by higher depreciation and
amortization and interest expense associated with the acquired assets and
related acquisition financing. The increase is also offset by unrealized, non-
cash losses on economic hedges, primarily driven by a decrease in natural gas
prices. These hedge positions are adjusted to market value each period, while
the related customer contracts are not. As a result, the accounting treatment
can result in temporary unrealized gains or losses that may differ from expected
results when the contracts settle.
Adjusted Net Income for the third quarter 2026 is $983 million, $446 million
higher than prior year, primarily driven by an $808 million increase in Adjusted
EBITDA, the impacts of which are described in the segment results below. This is
partially offset by higher interest expense and depreciation and amortization
related to the portfolio acquired from LS Power. Adjusted EPS is $4.68 for the
third quarter 2026, $1.90 higher than prior year. The third quarter 2026
Adjusted EPS results include the financial impacts from Adjusted Net Income and
impacts of shares issued as part of the completed acquisition of generation
assets and CPower from LS Power.
Reaffirming 2026 Guidance
NRG is reaffirming its guidance for 2026 as set forth below.
Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance
for 2026
a
2026
(In millions, except per share amounts) Guidance
Adjusted Net Income $1,685 - $2,115
Adjusted EPS $7.90 - $9.90
Adjusted EBITDA $5,325 - $5,825
FCFbG $2,800 - $3,300
a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP
financial measures; see Appendix tables A-8 and A-10 for GAAP reconciliations.
Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value
adjustments related to derivatives. The Company does not guide to GAAP Net
Income due to the impact of such fair value adjustments related to derivatives
in a given year.
2026 Capital Allocation
The Company plans to return $1.0 billion to shareholders through share
repurchases and approximately $407 million through common stock dividends in
2026, as part of its previously announced 2026 capital allocation plan. Through
October 31, 2026, the Company completed $977 mi llion in share repurchases and
distributed $302 million in common stock dividends.
On October 19, 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
November 16, 2026, to common stockholders of record as of November 2, 2026.
Initiating 2027 Guidance and Pro Forma Capital Allocation Plan
NRG initiates 2027 guidance as follows:
Table 3: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance
for 2027
a,b
2027 2027
(In millions, except per share Guidance Guidance Midpoint
amounts)
Adjusted Net Income $1,665 - $2,075 $1,870
Adjusted EPS $8.05 - $10.05 $9.05
Adjusted EBITDA $5,500 - $6,000 $5,750
FCFbG $2,900 - $3,400 $3,150
a 2027 Guidance does not reflect the expected impacts of the announced 4.9 GW
asset sale
2
b Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP
financial measures; see Appendix tables A-9 and A-11 for GAAP reconciliations.
Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value
adjustments related to derivatives. The Company does not guide to GAAP Net
Income due to the impact of such fair value adjustments related to derivatives
in a given year
The Company is also announcing its 2027 base capital allocation plan, which
includes $1 billion of debt reduction, $1 billion of share repurchases and an 8%
increase in the annual common dividend to $2.05 per share, consistent with the
Company’s 7–9% long-term dividend growth target.
Expected proceeds from the announced 4.9 GW asset sale will be used to support
NRG's 2027 pro forma capital allocation plan of $3 billion of share repurchases
across 2026 and 2027, including an incremental $1 billion expected to begin
before the end of the fourth quarter of 2026. Upon closing of the asset sale,
NRG plans an additional $2 billion of debt reduction to maintain the Company's
current leverage profile, bringing total planned 2027 debt reduction to $3
billion. The remaining $1 billion of expected proceeds will provide flexibility
for either contracted growth investments or additional debt reduction. The
Company expects to provide updated 2027 financial guidance and an updated
capital allocation plan following the closing of the asset sale.
NRG's share repurchase program and common stock dividend are subject to
maintaining satisfactory credit metrics, available capital, market conditions,
and compliance with associated laws and regulations. The timing and amount of
any shares of common stock repurchased under the share repurchase authorization
will be determined by NRG’s management based on market conditions and other
factors. NRG will only repurchase shares when management believes it would not
jeopardize the Company’s ability to maintain satisfactory credit ratings.
NRG Strategic Developments
4.9 GW Strategic Asset Sale
On November 9, NRG entered into a definitive agreement to sell six natural-gas
fired generation assets totaling 4.9 GW to LS Power, for a purchase price of $4
billion in cash proceeds, subject to working capital and other closing
adjustments. The sale retains the entire PJM portfolio and CPower acquired by
the Company in January 2026.
The transaction is expected to close in the second quarter of 2027, subject to
customary closing conditions and regulatory approvals including Hart-Scott-
Rodino (HSR), Federal Energy Regulatory Commission (FERC), and the New York
State Public Service Commission (NYSPSC).
BYOP Data Center Strategy
The Company's previously disclosed 1.2 GW BYOP project remains on track. NRG's
BYOP strategy brings new, dispatchable generation alongside load growth to
support reliability and affordability consistent with the approach policymakers
and communities have called for.
Operational and Community Recognition
In September, NRG's WA Parish plant was awarded POWER Magazine's 2026 Top Plant
Water Award for its wastewater treatment system that maintains plant
reliability, reduces wastewater volume by nearly 93%, and allowed the plant to
achieve zero liquid discharge from flue gas desulfurization wastewater.
In October, the Office of Surface Mining Reclamation and Enforcement (OSM)
awarded NRG the 2026 Excellence in Surface Coal Mining Reclamation Good Neighbor
award for its work establishing the Dewey Prairie Garden at the former Jewett
Mine, providing lasting benefits to the local community.
These recognitions reflect NRG's commitment to responsible operations,
environmental stewardship, and being a good neighbor in the communities where it
operates.
3
Segment Results
Table 4: Adjusted EBITDA
a
Three Nine
(In Months Months
milli… Ended Ended
Segme… 9/30/2… 9/30/… 9/30/2… 9/30/…
──────────────────────────────────────────────────────────────────────────────
Texas $ 1,018 $ 807 $ 1,615 $ 1,618
East 614 107 1,547 680
West/… 64 13 236 125
Vivint
Smart 317 278 912 817
Home
Adjus… $ 2,013 $ 1,205 $ 4,310 $ 3,240
EBITDA
a Adjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1
through A-4 for GAAP reconciliation of Adjusted EBITDA (by operating segment) to
GAAP Net Income (by operating segment). Adjusted EBITDA excludes fair value
adjustments related to derivatives
b Includes Corporate activities
Texas: Third quarter 2026 Adjusted EBITDA was $1,018 million, $211 million
higher than the prior year. For the first nine months of 2026, Adjusted EBITDA
was $1,615 million, $3 million lower than prior year. Results were primarily
driven by increased retail margins and favorable weather in the third quarter,
largely offsetting the impact of mild winter weather earlier in the year,
including a decrease of approximately 30% in heating degree days compared to
prior year.
East: Third quarter 2026 Adjusted EBITDA was $614 million, $507 million higher
than the prior year. For the first nine months of 2026, Adjusted EBITDA was
$1,547 million, $867 million higher than prior year. Results were primarily
driven by contribution of the new generation assets and CPower and higher
capacity prices for owned generation, partially offset by higher power supply
costs during Winter Storm Fern and lower natural gas margins.
West/Other: Third quarter 2026 Adjusted EBITDA was $64 million, $51 million
higher than the prior year. For the first nine months of 2026, Adjusted EBITDA
was $236 million, $111 million higher than prior year. The increase was
primarily driven by lower operating expenses associated with a lease expiration
in May 2025.
Vivint Smart Home: Third quarter 2026 Adjusted EBITDA was $317 million, $39
million higher than the prior year. For the first nine months of 2026, Adjusted
EBITDA was $912 million, $95 million higher than prior year. The increase for
both the quarter and the first nine months of 2026 is attributable to higher new
customer adds and an increase in monthly recurring service margin per customer.
Liquidity and Capital Resources
Table 5: Corporate Liquidity
(In millions) 9/30/26 12/31/25
─────────────────────────────────────────────────────────────────────────
Cash and Cash Equivalents $ 148 $ 4,708
Restricted Cash 29 30
Total $ 177 $ 4,738
Total availability under revolving
credit facility and collective 5,850 4,890
collateral facilitiesa
Total liquidity, excluding funds $ 6,027 $ 9,628
deposited by counterparties
a Total capacity of the revolving credit facility and collective collateral
facilities was $9.6 billion and $7.7 billion as of September 30, 2026 and
December 31, 2025, respectively
As of September 30, 2026, NRG's unrestricted cash was approximately $0.1
billion, and $5.9 billion was available under the Company’s credit facilities.
Total liquidity was $6.0 billion, which was $3.6 billion lower than December 31,
2025, primarily driven by funding of the acquisition of generation assets and
CPower from LS Power.
Earnings Conference Call
On November 9, 2026, NRG will host a conference call at 8:00 a.m. Eastern (7:00
a.m. Central) to discuss these results. Investors, the news media and others may
access the live webcast of the conference call and accompanying presentation
4
materials through the investor relations website under “presentations and
webcasts” on investors.nrg.com. The webcast will be archived on the site for
those unable to listen in real-time.
About NRG
NRG is a leading provider of electricity, natural gas, and smart home solutions
to eight million customers across North America. The company operates a
customer-first platform supported by a diversified supply strategy and the safe,
reliable operation of approximately 25 GW of power generation. NRG plays a
meaningful role in competitive energy markets and our innovative team is
creating the flexible and affordable solutions that households and large
businesses need today and in the future.
Forward-Looking Statements
In addition to historical information, the information presented in this press
release includes forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements involve estimates,
expectations, projections, goals, assumptions, known and unknown risks and
uncertainties and can typically be identified by terminology such as “may,”
“should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,”
“outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,”
“estimate,” “predict,” “target,” “potential” or “continue” or the negative of
these terms or other comparable terminology. Such forward-looking statements
include, but are not limited to, statements about NRG's future revenues, income,
indebtedness, capital structure, plans, expectations, objectives, projected
financial performance and/or business results and other future events, and views
of economic and market conditions.
Although NRG believes that its expectations are reasonable, it can give no
assurance that these expectations will prove to be correct, and actual results
may vary materially. Factors that could cause actual results to differ
materially from those contemplated herein include, among others, general
economic conditions, the imposition of tariffs, the escalation of international
trade disputes, and the occurrence or re-escalation of geopolitical conflicts
(including the hostilities with Iran and the conflicts in the Middle East) and
inflationary impacts resulting therefrom, risks associated with the integration
of the portfolio of assets acquired from LS Power, including potential
disruption to ongoing operations and other transition difficulties, the
inability of the combined company to realize expected synergies and benefits of
integration (or that it takes longer than expected) which may result in the
combined company not operating as effectively as expected, the emergence of
hazards customary in the power industry, weather conditions and extreme weather
events, competition in wholesale power, gas and smart home markets, the
volatility of energy and fuel prices, the volatility in demand for power and
gas, customer affordability concerns that may constrain the pricing of NRG's
products and services and limit its ability to recover costs, the failure of
customers or counterparties to perform under contracts, changes in the wholesale
power and gas markets, the failure of NRG’s expectations regarding load growth
to materialize, changes in government or market regulations, the condition of
capital markets generally and NRG’s ability to access capital markets, NRG’s
ability to execute its supply strategy, risks related to data privacy,
cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated
outages at NRG’s generation facilities, operational and reputational risks
related to the use of artificial intelligence and the adherence to developing
laws and regulations related to the use thereof, NRG’s ability to achieve its
net debt targets, adverse results in current and future litigation, complaints,
product liability claims and/or adverse publicity, the failure to identify,
execute or successfully implement acquisitions or asset sales on the anticipated
terms and timing (including obtaining any required approvals and consents) and
realize the expected benefits of such transactions, risks of the smart home and
security industry, including risks of and publicity surrounding the sales,
customer origination and retention process, the impact of changes in consumer
spending patterns, consumer preferences, geopolitical tensions, demographic
trends, supply chain disruptions, NRG’s ability to implement value enhancing
improvements to plant operations and company wide processes, NRG’s ability to
achieve or maintain investment grade credit metrics, NRG’s ability to execute
definitive agreements for, and proceed with or complete, proposed projects
(including the data center project) on the contemplated terms, timeline and
budget, the inability to maintain or create successful partnering relationships,
NRG’s ability to operate its business efficiently, NRG’s ability to retain
customers, the ability to successfully integrate businesses of acquired assets
or companies (including the portfolio acquisition from LS Power), NRG’s ability
to realize anticipated benefits of transactions (including expected cost savings
and other synergies) or the risk that anticipated benefits may take longer to
realize than expected, NRG’s ability to execute its capital allocation plan, and
the other risks and uncertainties discussed in this release and in our Forms
10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange
Commission (the "SEC"). Achieving investment grade credit metrics is not an
indication of or guarantee that NRG will receive investment grade credit
ratings. Debt and share repurchases may be made from time to time subject to
market conditions and other factors, including as permitted by United States
securities laws. Furthermore, any common stock dividend is subject to available
capital and market conditions.
NRG undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by law. The Adjusted EBITDA, adjusted cash provided by operating
activities, Free Cash Flow before Growth Investments, Adjusted Net Income, and
Adjusted EPS guidance are estimates as of November 9,
5
2026. These estimates are based on assumptions NRG believed to be reasonable as
of that date. NRG disclaims any current intention to update such guidance,
except as required by law. The foregoing review of factors that could cause
NRG’s actual results to differ materially from those contemplated in the
forward-looking statements included in this press release should be considered
in connection with information regarding risks and uncertainties that may affect
NRG's future results included in NRG's filings with the SEC at www.sec.gov . For
a more detailed discussion of these factors, see the information under the
captions “Risk Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in NRG’s most recent Annual Report on Form
10-K, and in subsequent SEC filings. NRG’s forward-looking statements speak only
as of the date of this communication or as of the date they are made.
Contacts
Media Investors
Laura Avant Brendan Mulhern
Laura.Avant@nrg.com Brendan.Mulhern@nrg.com
6
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In
millio… Three Nine
except months months
per ended ended
share Septem… Septemb…
amount… 30, 30,
Revenue 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 9,466 $ 7,635 $ 27,203 $ 22,960
Operat…
Costs
and
Expens…
Cost of
operat…
(exclu…
deprec… 7,238 6,241 21,566 18,431
and
amorti…
shown
below)
Deprec…
and 510 360 1,436 1,030
amorti…
Sellin…
general
and
admini…
costs
(exclu…
amorti…
of
custom…
acquis…
costs
of
$101,
$78, 619 612 1,774 1,885
$281,
and
$211
respec…
which
are
includ…
in
deprec…
and
amorti…
shown
separa…
above)
Acquis…
transa…
and 16 8 77 59
integr…
costs
Total
operat…
costs 8,383 7,221 24,853 21,405
and
expens…
Gain/(…
on sale 1 — 38 -7
of
assets
Operat… 1,084 414 2,388 1,548
Income
Other
(Expen…
Other
(expen… -3 11 43 30
net
Loss on
debt — — -9 -10
exting…
Intere… -302 -187 -897 -498
expense
Total
other -305 -176 -863 -478
expense
Income
Before 779 238 1,525 1,070
Income
Taxes
Income
tax 218 86 333 272
expense
Net $ 561 $ 152 $ 1,192 $ 798
Income
Less:
Cumula…
divide…
attrib…
to 17 17 51 51
Series
A
Prefer…
Stock
Net
Income
Availa… $ 544 $ 135 $ 1,141 $ 747
for
Common
Stockh…
Income
per
Share
Weight…
average
number
of 210 193 209 196
common
shares
outsta…
— basic
Income
per
Weight…
Average $ 2.59 $ 0.70 $ 5.46 $ 3.81
Common
Share
— Basic
Weight…
average
number
of
common 210 195 210 201
shares
outsta…
—
diluted
Income
per
Weight…
Average $ 2.59 $ 0.69 $ 5.43 $ 3.72
Common
Share
—
Diluted
7
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
Three Nine
months months
ended ended
(In September September
millions) 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 561 $ 152 $ 1,192 $ 798
Income
Other
Comprehe…
(Loss)/I…
Foreign
currency -2 -4 -6 11
translat…
adjustme…
Defined
benefit -1 — -3 1
plans
Other
comprehe… -3 -4 -9 12
(loss)/i…
Comprehe… $ 558 $ 148 $ 1,183 $ 810
Income
8
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
(In
millions, -Unaudited -Audited
except share
data)
ASSETS
Current
Assets
Cash and
cash $ 148 $ 4,708
equivalents
Funds
deposited by 105 260
counterpart…
Restricted 29 30
cash
Accounts
receivable, 3,931 4,065
net
Inventory 723 461
Derivative 3,006 2,189
instruments
Cash
collateral
paid in
support of 501 365
energy risk
management
activities
Prepayments
and other 1,305 1,069
current
assets
Total
current 9,748 13,147
assets
Property,
plant and 14,605 3,632
equipment,
net
Other Assets
Operating
lease 137 130
right-of-use
assets, net
Goodwill 8,815 5,017
Customer
relationshi… 1,101 1,203
net
Other
intangible 975 1,106
assets, net
Derivative 1,572 1,568
instruments
Deferred 1,540 1,843
income taxes
Other
non-current 1,803 1,494
assets
Total other 15,943 12,361
assets
Total Assets $ 40,296 $ 29,140
9
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
(In millions,
except share -Unaudited -Audited
data)
LIABILITIES
AND
STOCKHOLDERS’
EQUITY
Current
Liabilities
Current
portion of
long-term $ 1,079 $ 31
debt and
finance
leases
Current
portion of
operating 42 35
lease
liabilities
Accounts 2,774 2,834
payable
Derivative 3,187 2,257
instruments
Cash
collateral
received in
support of 105 260
energy risk
management
activities
Deferred
revenue 823 748
current
Accrued
expenses and 1,806 1,864
other current
liabilities
Total current 9,816 8,029
liabilities
Other
Liabilities
Long-term
debt and 21,844 16,412
finance
leases
Non-current
operating 165 144
lease
liabilities
Derivative 1,237 1,103
instruments
Deferred 15 15
income taxes
Deferred
revenue 1,058 895
non-current
Other
non-current 889 861
liabilities
Total other 25,208 19,430
liabilities
Total 35,024 27,459
Liabilities
Commitments
and
Contingencies
Stockholders’
Equity
Preferred
stock;
10,000,000
shares
authorized;
650,000
Series A
shares
issued and
outstanding
at September
30, 650 650
2026 and
December 31,
2025,
aggregate
liquidation
preference of
$650; at
September 30,
2026 and
December 31,
2025
Common stock;
$0.01 par
value;
500,000,000
shares
authorized;
225,219,764
and
199,828,615
shares
issued and 2 2
209,982,924
and
190,376,607
shares
outstanding
at September
30, 2026
and December
31, 2025,
respectively
Additional 3,916 215
paid-in-capi…
Retained 2,800 1,982
earnings
Treasury
stock, at
cost;
15,236,840
shares and
9,452,008 -2,006 -1,087
shares at
September
30, 2026, and
December 31,
2025,
respectively
Accumulated
other -90 -81
comprehensive
loss
Total
Stockholders’ 5,272 1,681
Equity
Total
Liabilities
and $ 40,296 $ 29,140
Stockholders’
Equity
10
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions) Nine months ended
Cash Flows from September 30,
Operating Activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 1,192 $ 798
Adjustments to
reconcile net income to
cash provided by
operating activities:
Depreciation of
property, plant and
equipment and
amortization of 925 667
customer
relationships and other
intangible
assets
Amortization of
capitalized contract 511 363
costs
Accretion of asset
retirement 21 22
obligations
Provision for credit 210 201
losses
Amortization of
financing costs and 19 24
debt
discounts/premiums
Loss on debt 9 10
extinguishment
Amortization of
in-the-money contracts 145 75
and emissions
allowances
Amortization of
unearned equity 109 83
compensation
Net (gain)/loss on sale
of assets and -52 7
disposal of assets
Gain on proceeds from
insurance
recoveries for — -100
Property, plant and
equipment, net
Changes in derivative 327 447
instruments
Changes in current and
deferred income
taxes and liability for 293 209
uncertain tax
benefits
Changes in collateral
deposits in -108 76
support of risk
management activities
Changes in other
working capital:
Accounts receivable, 407 -22
net
Inventory -86 15
Prepayments and other -672 -488
current assets
Accounts payable -772 -229
Accrued expenses and
other current -257 -169
liabilities
Other assets and -176 -199
liabilities
Cash provided by $ 2,045 $ 1,790
operating activities
Cash Flows from
Investing Activities
Payments for
acquisitions of
businesses $ -7,094 $ -591
and assets, net of cash
acquired
Capital expenditures -1,181 -849
Proceeds from sales of 45 6
assets
Purchases of emissions -59 -11
allowances
Proceeds from sales of
emissions 98 5
allowances
Proceeds from insurance
recoveries for — 100
Property, plant and
equipment, net
Cash used in investing $ -8,191 $ -1,340
activities
Cash Flows from
Financing Activities
Equivalent shares
purchased in lieu of $ -101 $ -86
tax withholdings
Payments for share
repurchase activity -973 -958
and excise tax
Payments of dividends
to preferred and -369 -326
common stockholders
Payment for settlement
of capped call — -292
options(a)
Proceeds from issuance 3,754 1,375
of long-term debt
Repayments of long-term
debt and finance -1,544 -249
leases
Payments for debt -100 —
extinguishment costs
Payments of deferred -85 -55
financing costs
Net (payments)/receipts
from settlement
of acquired derivatives -168 51
that include
financing elements
Proceeds from credit 13,248 1,575
facilities
Repayments to credit -12,232 -1,575
facilities
Cash provided by/(used
in) financing $ 1,430 $ -540
activities
Effect of exchange rate
changes on cash — 2
and cash equivalents
Net Decrease in Cash
and Cash
Equivalents, Funds -4,716 -88
Deposited by
Counterparties and
Restricted Cash
Cash and Cash
Equivalents, Funds
Deposited by 4,998 1,173
Counterparties and
Restricted Cash at
Beginning of Period
Cash and Cash
Equivalents, Funds
Deposited by $ 282 $ 1,085
Counterparties and
Restricted Cash at End
of Period
11
Appendix Table A-1: Third Quarter 2026 Adjusted EBITDA and Adjusted Net Income
Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net
Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)
Available for Common Stockholders:
… E…
… P…
… … S…
… … … D…
… … … … … … 8 8
──────────────────────────────────────────────────────────────────────────────
$ … $ 3… $ 1… $ 65 $ -… $ 5… $ 2… $ …
— — — — 17 17 0… …
$ … $ 3… $ 1… $ 65 $ -… $ 5… $ 2… $ …
— — — — 2… 2… 1… …
— — — — 2… 2… 1… …
… 1… 7 2… 14 5… 2… …
2 1 1 — — 4 0… …
6 1 3 — — 10 0… …
… 8 1 10 — 33 0… …
— — — 1 16 17 0… …
7 3 1 2 8 21 0… …
1 2 — — — 3 0… …
— — -1 — — -1 — —
… 1… -2 8 1 1… 0… …
— — — — 6 6 … 0…
… -… -… — — 1… 0… …
$ … $ 6… $ 68 $ 3… $ -4 $ 2… $ 9… $ …
— — — — -… -… -… …
… -… -7 -… -… -… -… …
… 4… 61 86 -… 1… 5… …
— — — — -… -… -… …
… 4… 61 86 -… 1… 4… …
— — — — -… -… -… …
$ … $ 4… $ 61 $ 86 $ -… $ 9… $ 4… $ …
1 Stock-based compensation of $4 million is reflected in cost to achieve. Stock-
based compensation includes employee stock purchase plan expense
2 Includes $172 million related to termination of acquired hedges
3 Loss of $155 million was primarily driven by the reversal of previously
recognized unrealized gains on contracts that settled during the period as well
as a decrease in the value of open positions driven by decreases in natural gas
prices, partially offset by the reversal of acquired loss positions related to
economic hedges
4 Excludes mark-to-market gain on interest hedges of $13 million
5 Income tax calculated using Adjusted effective tax rate (ETR) on Adjusted
Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as
well as non-recurring tax items, using CAMT rate to accrue tax. Reduction in
actual Adjusted ETR is due to optimized utilization of tax attributes reducing
Federal and State taxes. Other adjustments are shown on pre-tax basis.
6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common
stockholders'
7 Items may not sum due to rounding
8 Earnings per share amounts are based on weighted average number of common
shares outstanding - basic and diluted of 210 million for the three months ended
September 30, 2026
12
Third Quarter 2026 condensed financial information by Operating Segment:
(…
m…
e…
p… Vi…
s… Sm…
a… Te… Ea… We… Ho… Cor… Tot…
──────────────────────────────────────────────────────────────────────────────
R… $ 3,… $ 4,… $ 692 $ 609 $ -27 $ 9,…
C…
of
f…
p…
p… 2,… 3,… 593 60 -20 6,…
a…
o…
c…
of
s…
E…
g… 1,… 800 99 549 -7 2,…
m…
O…
&
m…
a… 278 211 11 77 — 577
o…
c…
of
o…
S…
g…
a… 244 147 27 155 -3 570
a…
c…
O… 1 -1… -7 — — -1…
A… $ 1,… $ 614 $ 68 $ 317 $ -4 $ 2,…
E…
A…
i… — — — — -3… -3…
e…
n…
D…
a… -1… -1… -7 -2… -14 -5…
a…
A…
I…
b… 885 489 61 86 -3… 1,…
i…
t…
A…
i… — — — — -1… -1…
t…
e…
A…
N…
I…
b… 885 489 61 86 -5… 1,…
P…
S…
d…
C…
d…
a…
to — — — — -17 -17
S…
A
P…
S…
A…
N… $ 885 $ 489 $ 61 $ 86 $ -5… $ 983
I…
W…
a…
n…
of
c… 210
s…
o…
-
b…
A… $ 4.…
E…
1 Excludes MtM loss of $2 million and contract amortization of $(10) million
2 Includes TDSP expense, capacity and emission credits
3 Excludes ARO expense of $4 million, stock-based compensation of $4 million,
deactivation costs of $3 million, and other and non-recurring charges of $1
million
4 Excludes stock-based compensation of $29 million, cost to achieve of $21
million, acquisition and divestiture integration and transaction costs of $1
million, and other and non-recurring charges of $(2) million
5 Includes adjustment of $172 million related to termination of acquired hedges
6 See previous table for details
13
Appendix Table A-2: Third Quarter 2025 Adjusted EBITDA and Adjusted Net Income
Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net
Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)
Available for Common Stockholders:
…
… … …
… … …
… … … …
… W… … … …
… T… E… O… … … … 6 6
──────────────────────────────────────────────────────────────────────────────
…
…
… $ 2… $ 1… $ -… $ 60 $ -… $ 1… $ 0… $ 0…
…
…
…
…
…
…
… — — — — 17 17 0… 0…
…
A
…
…
… $ 2… $ 1… $ -… $ 60 $ -… $ 1… $ 0… $ 0…
…
…
…
… — — — — 1… 1… 0… 0…
…
…
… — — — — 86 86 0… 0…
…
…
… 95 37 6 2… 11 3… 1… 1…
…
… 3 -1 — — — 2 0… 0…
…
…
…
… 7 4 3 — — 14 0… 0…
…
…
…
… 6 4 1 10 — 21 0… 0…
…
…
…
…
… — — — 1 7 8 0… 0…
…
…
…
…
… — — — — 2 2 0… 0…
…
… 2 6 — — — 8 0… 0…
…
…
… -1 -1 3 -4 2 -1 -… -…
…
…
…
…
…
… 4… -… 34 — — 3… 1… 1…
…
…
…
…
… $ 8… $ 1… $ 28 $ 2… $ -… $ 1… $ 6… $ 6…
…
…
… — — — — -… -… -… -…
…
…
…
… -… -… -6 -… -… -… -… -…
…
…
…
… 7… 70 22 67 -… 6… 3… 3…
…
…
…
… — — — — -… -… -… -…
…
…
…
…
…
… 7… 70 22 67 -… 5… 2… 2…
…
…
…
…
…
…
… — — — — -… -… -… -…
…
A
…
…
…
… $ 7… $ 70 $ 22 $ 67 $ -… $ 5… $ 2… $ 2…
…
1 Loss of $376 million was primarily driven by unrealized non-cash mark-to-
market losses on economic hedges in Texas due to reversal of previously
recognized unrealized gains on contracts that settled during the period and in
West due to decreases in CAISO power prices
2 Excludes mark-to-market gain on interest hedges of $1 million
3 Income tax calculated using Adjusted ETR on Adjusted Income before income
taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-
recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown
on pre-tax basis
4 Adjusted Net Income as shown here is 'Adjusted Net Income available for common
stockholders'
5 Items may not sum due to rounding
6 Earnings per share amounts are based on weighted average number of common
shares outstanding - basic of 193 million and on weighted average number of
common shares outstanding - diluted of 195 million for the three months ended
September 30, 2025
14
Third Quarter 2025 condensed financial information by Operating Segment:
(…
m…
e…
p… Vi…
s… Sm…
a… Te… Ea… We… Ho… Cor… Tot…
──────────────────────────────────────────────────────────────────────────────
R… $ 3,… $ 3,… $ 674 $ 552 $ -6 $ 7,…
C…
of
f…
p…
p… 2,… 2,… 600 58 -1 5,…
a…
o…
c…
of
s…
E…
g… 1,… 389 74 494 -5 2,…
m…
O…
&
m…
a… 266 135 16 67 4 488
o…
c…
of
o…
S…
g…
a… 256 148 33 149 4 590
a…
c…
O… 1 -1 -3 — 2 -1
A… $ 807 $ 107 $ 28 $ 278 $ -15 $ 1,…
E…
A…
i… — — — — -1… -1…
e…
n…
D…
a… -95 -37 -6 -2… -11 -3…
a…
A…
I…
b… 712 70 22 67 -2… 667
i…
t…
A…
i… — — — — -1… -1…
t…
e…
A…
N…
I…
b… 712 70 22 67 -3… 554
P…
S…
d…
C…
d…
a…
to — — — — -17 -17
S…
A
P…
S…
A…
N… $ 712 $ 70 $ 22 $ 67 $ -3… $ 537
I…
W…
a…
n…
of
c… 193
s…
o…
-
b…
A… $ 2.…
E…
1 Excludes MtM gain of $(34) million and contract amortization of $(1) million
2 Includes TDSP expense, capacity and emission credits
3 Excludes deactivation costs of $8 million, ARO expense of $2 million, stock-
based compensation of $2 million and other and non-recurring charges of $(2)
million
4 Excludes stock-based compensation of $19 million, cost to achieve of $2
million and other and non-recurring charges of $1 million
5 See previous table for details
15
Appendix Table A-3: YTD Third Quarter 2026 Adjusted EBITDA and Adjusted Net
Income Reconciliation by Operating Segment and Consolidated Adjusted EPS
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net
Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)
Available for Common Stockholders:
…
…
… … …
… … … …
… W… … … …
… T… E… O… … … … … …
──────────────────────────────────────────────────────────────────────────────
…
…
… $ 8… $ 1… $ 3… $ 2… $ -… $ 1… $ 5… $ 5…
…
…
…
…
…
…
… — — — — 51 51 0… 0…
…
A
…
…
… $ 8… $ 1… $ 3… $ 2… $ -… $ 1… $ 5… $ 5…
…
…
…
… — — — — 8… 8… 4… 4…
…
…
… — — — — 3… 3… 1… 1…
…
…
… — — — — 9 9 0… 0…
…
…
…
… 3… 3… 22 6… 42 1… 6… 6…
…
… 11 9 1 — — 21 0… 0…
…
…
…
… 9 -1 5 — — 13 0… 0…
…
…
…
… 47 26 3 28 — 1… 0… 0…
…
…
…
…
… — — — 1 77 78 0… 0…
…
…
…
…
… 12 3 1 13 21 50 0… 0…
…
… 2 5 — — — 7 0… 0…
…
…
…
… — 6 -… — — -… -… -…
…
…
…
… 1 1… -2 12 1 1… 0… 0…
…
…
… — — — — 6 6 0… 0…
…
…
…
… 2… -… -… — — 71 0… 0…
…
…
…
…
… $ 1… $ 1… $ 2… $ 9… $ -9 $ 4… $ 2… $ 2…
…
…
… — — — — -… -… -… -…
…
…
…
… -… -… -… -… -… -… -… -…
…
…
…
… 1… 1… 2… 2… -… 2… 9… 9…
…
…
…
… — — — — -… -… -… -…
…
…
…
…
…
… 1… 1… 2… 2… -… 1… 7… 7…
…
…
…
…
…
…
… — — — — -… -… -… -…
…
A
…
…
…
… $ 1… $ 1… $ 2… $ 2… $ -… $ 1… $ 7… $ 7…
…
1 Stock-based compensation of $5 million is reflected in cost to achieve. Stock-
based compensation includes employee stock purchase plan expense
2 Includes $172 million related to termination of acquired hedges
3 Loss of $71 million was primarily driven by the reversal of previously
recognized unrealized gains on contracts that settled during the period as well
as a decrease in the value of open positions as a result of decreases in natural
gas prices and Alberta power prices, largely offset by the reversal of acquired
loss positions related to economic hedges
4 Excludes mark-to-market gain on interest hedges of $27 million
5 Income tax calculated using Adjusted ETR on Adjusted Income before income
taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-
recurring tax items, using CAMT rate to accrue tax. Reduction in actual Adjusted
ETR is due to optimized utilization of tax attributes reducing Federal and State
taxes. Other adjustments are shown on pre-tax basis.
6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common
stockholders'
7 Items may not sum due to rounding
8 Earnings per share amounts are based on weighted average number of common
shares outstanding - basic of 209 million and on weighted average number of
common shares outstanding - diluted of 210 million for the nine months ended
September 30, 2026
16
YTD Third Quarter 2026 condensed financial information by Operating Segment:
(…
m…
e…
p… Vi…
s… Sm…
a… Te… Ea… We… Ho… Cor… Tot…
──────────────────────────────────────────────────────────────────────────────
R… $ 8,… $ 14… $ 2,… $ 1,… $ -53 $ 27…
C…
of
f…
p…
p… 5,… 12… 1,… 172 -27 19…
a…
o…
c…
of
s…
E…
g… 3,… 2,… 358 1,… -26 7,…
m…
O…
&
m…
a… 842 560 36 223 -1 1,…
o…
c…
of
o…
S…
g…
a… 629 466 83 467 -14 1,…
a…
c…
O… 1 -1… -6 — -2 -1…
A… $ 1,… $ 1,… $ 245 $ 912 $ -9 $ 4,…
E…
A…
i… — — — — -8… -8…
e…
n…
D…
a… -3… -3… -22 -6… -42 -1…
a…
A…
I…
b… 1,… 1,… 223 265 -9… 2,…
i…
t…
A…
i… — — — — -3… -3…
t…
e…
A…
N…
I…
b… 1,… 1,… 223 265 -1… 1,…
P…
S…
d…
C…
d…
a…
to — — — — -51 -51
S…
A
P…
S…
A…
N… $ 1,… $ 1,… $ 223 $ 265 $ -1… $ 1,…
I…
W…
a…
n…
of
c… 209
s…
o…
-
b…
A… $ 7.…
E…
1 Excludes MtM loss of $26 million and contract amortization of $(30) million
2 Includes TDSP expense, capacity and emission credits
3 Excludes ARO expense of $21 million, stock-based compensation of $11 million,
deactivation costs of $7 million and other and non-recurring charges of $2
million
4 Excludes stock-based compensation of $93 million, cost to achieve of $50
million, acquisition and divestiture integration and transaction costs of $1
million and other and non-recurring charges of $(1) million
5 Includes adjustment of $172 million related to termination of acquired hedges
6 See previous table for details
17
Appendix Table A-4: YTD Third Quarter 2025 Adjusted EBITDA and Adjusted Net
Income Reconciliation by Operating Segment and Consolidated Adjusted EPS
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net
Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)
Available for Common Stockholders:
…
… … …
… … …
… … … …
… … … …
… T… E… W… … … … 8 8
──────────────────────────────────────────────────────────────────────────────
…
…
… $ 1… $ 4… $ 1… $ -1 $ -… $ 7… $ 3… $ 3…
…
…
…
…
…
…
… — — — — 51 51 0… 0…
…
A
…
…
… $ 1… $ 4… $ 1… $ -1 $ -… $ 7… $ 4… $ 3…
…
…
…
… — — — — 4… 4… 2… 2…
…
…
… — — — — 2… 2… 1… 1…
…
…
… — — — — 10 10 0… 0…
…
…
…
… 2… 1… 24 5… 33 1… 5… 5…
…
… 21 1 — — — 22 0… 0…
…
…
…
… 11 31 5 — — 47 0… 0…
…
…
…
… 24 11 3 38 — 76 0… 0…
…
…
…
…
… — — — 2 57 59 0… 0…
…
…
…
…
… — — — — 9 9 0… 0…
…
… 10 13 — — — 23 0… 0…
…
…
…
… — — 7 — — 7 0… 0…
…
…
…
… -… -2 7 1… 1 92 0… 0…
…
…
…
…
…
… 3… 34 -… — — 3… 1… 1…
…
…
…
…
… $ 1… $ 6… $ 1… $ 8… $ -… $ 3… $ 1… $ 1…
…
…
… — — — — -… -… -… -…
…
…
…
… -… -… -… -… -… -… -… -…
…
…
…
… 1… 5… 1… 2… -… 1… 8… 8…
…
…
…
… — — — — -… -… -… -…
…
…
…
…
…
… 1… 5… 1… 2… -… 1… 7… 7…
…
…
…
…
…
…
… — — — — -… -… -… -…
…
A
…
…
…
… $ 1… $ 5… $ 1… $ 2… $ -… $ 1… $ 7… $ 7…
…
1 Stock-based compensation of $6 million is reflected in acquisition and
divestiture integration and transaction costs and $1 million is reflected in
cost to achieve. Stock-based compensation includes employee stock purchase plan
expense
2 Includes $(100) million of property insurance proceeds and $181 million of
reserves for legal matters
3 Loss of $328 million was primarily driven by unrealized non-cash mark-to-
market losses on economic hedges in Texas due to reversal of previously
recognized unrealized gains on contracts that settled during the period
partially offset by increases in ERCOT power prices
4 Excludes mark-to-market loss on interest hedges of $13 million
5 Income tax calculated using Adjusted ETR on Adjusted Income before income
taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-
recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown
on pre-tax basis
6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common
stockholders'
7 Items may not sum due to rounding
8 Earnings per share amounts are based on weighted average number of common
shares outstanding - basic of 196 million and on weighted average number of
common shares outstanding - diluted of 201 million for the nine months ended
September 30, 2025
18
YTD Third Quarter 2025 condensed financial information by Operating Segment:
(…
m…
e…
p… Vi…
s… Sm…
a… Te… Ea… We… Ho… Cor… Tot…
──────────────────────────────────────────────────────────────────────────────
R… $ 8,… $ 10… $ 2,… $ 1,… $ -24 $ 22…
C…
of
f…
p…
p… 5,… 8,… 2,… 149 -6 16…
a…
o…
c…
of
s…
E…
g… 3,… 1,… 337 1,… -18 6,…
m…
O…
&
m…
a… 792 387 92 190 5 1,…
o…
c…
of
o…
S…
g…
a… 656 436 100 429 4 1,…
a…
c…
O… 1 -5 -9 — 2 -11
A… $ 1,… $ 680 $ 154 $ 817 $ -29 $ 3,…
E…
A…
i… — — — — -4… -4…
e…
n…
D…
a… -2… -1… -24 -5… -33 -1…
a…
A…
I…
b… 1,… 570 130 225 -5… 1,…
i…
t…
A…
i… — — — — -2… -2…
t…
e…
A…
N…
I…
b… 1,… 570 130 225 -8… 1,…
P…
S…
d…
C…
d…
a…
to — — — — -51 -51
S…
A
P…
S…
A…
N… $ 1,… $ 570 $ 130 $ 225 $ -8… $ 1,…
I…
W…
a…
n…
of
c… 196
s…
o…
-
b…
A… $ 7.…
E…
1 Excludes MtM gain of $(18) million and contract amortization of $4 million
2 Includes TDSP expense, capacity and emission credits
3 Excludes deactivation costs of $23 million, ARO expense of $22 million, stock-
based compensation of $6 million and other and non-recurring charges of $(101)
million
4 Excludes other and non-recurring charges of $181 million, stock-based
compensation of $70 million and cost to achieve of $9 million
5 See previous table for details
19
Appendix Table A-5: Three Months Ended September 30, 2026 and 2025 Free Cash
Flow before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG providing a
reconciliation from Adjusted EBITDA and Cash provided by operating activities:
Three Months Ended
(In millions) 9/30/2026 9/30/2025
──────────────────────────────────────────────────────────────────────────────
Adjusted EBITDA $ 2,013 $ 1,205
Interest payments, net -406 -181
Income tax payments -8 —
Gross capitalized contract -338 -301
costs
Collateral/working
capital/other assets -164 -239
and liabilities
Cash provided by operating 1,097 484
activities
Net (payments)/receipts
from settlement
of acquired derivatives -184 13
that include
financing elements
Acquisition and divestiture
integration 34 18
and transaction costs1
Adjustment for change in 122 121
collateral
Other2 178 205
Adjusted cash provided by
operating 1,247 841
activities
Maintenance capital -75 -67
expenditures, net
Environmental capital -3 -7
expenditures
Cost of acquisition 73 61
Free Cash Flow before
Growth Investments $ 1,242 $ 828
(FCFbG)
1 Three months ended 9/30/26 includes $17 million from acquisition and
divestiture integration and transaction costs and $21 million cost to achieve
payments (see Appendix table A-1), less $4 million non-cash acquisition costs
and non-cash stock-based compensation ; three months ended 9/30/25 includes $8
million from acquisition and divestiture integration and transaction costs and
$2 million cost to achieve payments (see Appendix table A-2), and an additional
$8 million cash costs from prior quarters' accruals
2 Three months ended 9/30/26 includes $172 million related to the termination of
acquired hedges; three months ended 9/30/25 includes payment of $224 million for
the satisfaction of the CPI legal matter
20
Appendix Table A-6: Nine Months Ended September 30, 2026 and 2025 Free Cash Flow
before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG providing a
reconciliation from Adjusted EBITDA and Cash provided by operating activities:
Nine Months Ended
(In millions) 9/30/2026 9/30/2025
──────────────────────────────────────────────────────────────────────────────
Adjusted EBITDA $ 4,310 $ 3,240
Interest payments, net -809 -422
Income tax payments -81 -60
Gross capitalized contract -925 -787
costs
Collateral/working
capital/other assets -450 -181
and liabilities
Cash provided by operating 2,045 1,790
activities
Net (payments)/receipts from
settlement
of acquired derivatives that -168 51
include
financing elements
Acquisition and divestiture
integration 124 59
and transaction costs1
Adjustment for change in 108 -76
collateral
Other2 191 209
Adjusted cash provided by
operating 2,300 2,033
activities
Maintenance capital -248 -119
expenditures, net3
Environmental capital -16 -26
expenditures
Cost of acquisition 165 147
Free Cash Flow before Growth
Investments $ 2,201 $ 2,035
(FCFbG)
1 Nine months ended 9/30/26 includes from Table A-3 $78 million acquisition and
divestiture integration and transaction costs, $50 million cost to achieve
payments, less $4 million non-cash acquisition costs and non-cash stock-based
compensation; Nine months ended 9/30/25 includes from Table A-4 $59 million
acquisition and divestiture integration and transaction costs, $9 million cost
to achieve payments, excludes $9 million non-cash acquisition costs and non-cash
stock-based compensation
2 Nine months ended 9/30/26 includes $172 million related to the termination of
acquired hedges and $15 million payment for a legal matter; nine months 9/30/25
includes $224 million payment for the satisfaction of the CPI legal matter
3 Nine months ended 9/30/25 is presented net of W.A. Parish Unit 8 insurance
recoveries related to property, plant and equipment of $100 million
21
Appendix Table A-7: Nine Months Ended September 30, 2026 Sources and Uses of
Liquidity
The following table summarizes the sources and uses of liquidity for the nine
months ended September 30, 2026:
Nine months ended September 30,
(In millions) 2026
──────────────────────────────────────────────────────────────────────────────
Sources:
Adjusted cash provided by
operating $ 2,300
activities
Proceeds from credit facilities 13,248
Proceeds from issuance of 3,754
long-term debt
Change in availability under
revolving 960
credit facility and collective
collateral facilities
Proceeds from sales of emissions 98
allowances
Return of cash collateral paid
in
support of energy risk 48
management
activities
Proceeds from sales of assets, 45
net
Uses:
Repayments to credit facilities -12,232
Payments for acquisitions of
businesses -7,094
and assets, net of cash acquired
Repayments of long-term debt and
finance -1,544
leases
Payments for share repurchase
activity -973
and excise tax
Investments and integration
capital -917
expenditures
Payments of dividends to
preferred and -369
common stockholders
Maintenance and environmental
capital -264
expenditures
Acquisition and divestiture
integration -124
and transaction costs1
Equivalent shares purchased in
lieu of -101
tax withholdings
Payments for debt extinguishment -100
costs
Payments of deferred financing -85
costs
Purchases of emissions -59
allowances
Other2 -192
Change in Total Liquidity -3,601
1 Nine months ended 9/30/26 includes from Table A-3 $78 million acquisition and
divestiture integration and transaction costs, $50 million cost to achieve
payments, less $4 million non-cash acquisition costs and non-cash stock-based
compensation
2 Nine months ended 9/30/26 includes $172 million related to the termination of
acquired hedges, and $15 million payment for a legal matter
22
Appendix Table A-8: 2026 Guidance Reconciliation
The following table summarizes the 2026 Guidance calculations of Adjusted
EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from
Net Income:
2026
(In millions, except per share Guidance8,9
amounts)
Net Income1 $1,325 - $1,755
Interest expense, net 1,195
Income tax expense2 490 - 560
Depreciation and amortization3 1,955
ARO expense 30
Stock-based compensation 120
Acquisition and divestiture
integration 110
and transaction costs
Other4 100
Adjusted EBITDA $5,325 - $5,825
Adjusted interest expense, net5 -1,195
Depreciation and amortization3 -1,955
Adjusted Income before income taxes $2,175 - $2,675
Adjusted income tax expense6 -423) - (493
Adjusted Net Income before Preferred $1,752 - $2,182
Stock dividends
Cumulative dividends attributable to -67
Series A Preferred Stock
Adjusted Net Income7 $1,685 - $2,115
Weighted average number of common
shares 214
outstanding - basic
Adjusted EPS $7.90 - $9.90
1 The Company does not guide to Net Income due to the impact of fair value
adjustments related to derivatives in a given year. For purposes of guidance,
fair value adjustments related to derivatives are assumed to be zero
2 Represents anticipated GAAP income tax
3 Estimates for the acquired LS Power assets are provisional and subject to
revisions until evaluations are completed to assess the fair value of long-lived
assets
4 Includes adjustments for sale of assets, deactivation costs, and other and
non-recurring charges
5 Excludes mark-to-market gains/losses on interest hedges
6 Income tax calculated using Adjusted ETR on Adjusted Income before income
taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-
recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown
on pre-tax basis
7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common
stockholders'
8 Items may not sum due to rounding
9 Includes 11 months of ownership of the portfolio acquired from LS Power
23
Appendix Table A-9: 2027 Guidance Reconciliation
The following table summarizes the 2027 Guidance calculation of Adjusted EBITDA,
Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net
Income:
2027
(In millions, except per share Guidance8,9
amounts)
Net Income1 $1,355 - $1,765
Interest expense, net 1,300
Income tax expense2 485 - 575
Depreciation and amortization3 2,115
ARO expense 25
Stock-based compensation 105
Acquisition and divestiture
integration 35
and transaction costs
Other4 80
Adjusted EBITDA $5,500 - $6,000
Adjusted interest expense, net5 -1,300
Depreciation and amortization3 -2,115
Adjusted Income before income $2,085 - $2,585
taxes
Adjusted income tax expense6 -353) - (443
Adjusted Net Income before
Preferred $1,732 - $2,142
Stock dividends
Cumulative dividends attributable
to -67
Series A Preferred Stock
Adjusted Net Income7 $1,665 - $2,075
Weighted average number of common
shares 207
outstanding - basic
Adjusted EPS $8.05 - $10.05
1 The Company does not guide to Net Income due to the impact of fair value
adjustments related to derivatives in a given year. For purposes of guidance,
fair value adjustments related to derivatives are assumed to be zero
2 Represents anticipated GAAP income tax
3 Estimates for the acquired LS Power assets are provisional and subject to
revisions until evaluations are completed to assess the fair value of long-lived
assets
4 Includes adjustments for sale of assets, deactivation costs, and other and
non-recurring charges
5 Excludes mark-to-market gains/losses on interest hedges
6 Income tax calculated using Adjusted ETR on Adjusted Income before income
taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-
recurring tax items, using CAMT rate to accrue tax. Reduction in Adjusted ETR is
due to optimized utilization of tax attributes reducing Federal and State taxes.
Other adjustments are shown on pre-tax basis.
7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common
stockholders'
8 2027 Guidance does not reflect the expected impacts of the announced 4.9 GW
asset sale
9 Items may not sum due to rounding
24
Appendix Table A-10: 2026 Guidance Reconciliation
The following table summarizes the calculation of FCFbG providing a
reconciliation from Adjusted EBITDA and Cash provided by operating activities:
2026
(In millions) Guidance4,5
Adjusted EBITDA $5,325 - $5,825
Interest payments, net1 -1,100
Income tax payments -70) - (90
Gross capitalized contract costs -1,020
Working capital/other assets and -135
liabilities2
Cash provided by operating $3,000 - $3,480
activities3
Acquisition and other costs2 110
Adjusted cash provided by operating $3,110 - $3,590
activities
Maintenance capital expenditures -450) - (480
Environmental capital expenditures -10) - (20
Cost of acquisition 180
Free Cash Flow before Growth
Investments $2,800 - $3,300
(FCFbG)
1 Interest payments, net represents Interest expense, net of $(1,195) million on
Appendix table A-8 plus $95 million accrued interest expense not yet paid
2 Working capital/other assets and liabilities includes payments for Acquisition
and divestiture integration and transaction costs, which is adjusted in
Acquisition and other costs, and includes net deferred revenues
3 Excludes fair value adjustments related to derivatives and changes in
collateral deposits in support of risk management activities
4 Items may not sum due to rounding
5 Includes 11 months of ownership of the portfolio acquired from LS Power
25
Appendix Table A-11: 2027 Guidance Reconciliation
The following table summarizes the calculation of FCFbG providing a
reconciliation from Adjusted EBITDA and Cash provided by operating activities:
2027
(In millions) Guidance4,5
Adjusted EBITDA $5,500 - $6,000
Interest payments, net1 -1,235
Income tax payments -60) - (80
Gross capitalized contract costs,
net of -1,035
deferred revenues
Working capital/other assets and 100
liabilities2
Cash provided by operating $3,270 - $3,750
activities3
Acquisition and other costs2 60
Adjusted cash provided by operating $3,330 - $3,810
activities
Maintenance capital expenditures -570) - (600
Environmental capital expenditures -10) - (20
Cost of acquisition 180
Free Cash Flow before Growth
Investments $2,900 - $3,400
(FCFbG)
1 Interest payments, net represents Interest expense, net of $(1,300) million on
Appendix table A-9 plus $65 million accrued interest expense not yet paid
2 Working capital/other assets and liabilities includes payments for Acquisition
and divestiture integration and transaction costs, which is adjusted in
Acquisition and other costs, and excludes net deferred revenues
3 Excludes fair value adjustments related to derivatives and changes in
collateral deposits in support of risk management activities
4 2027 Guidance does not reflect the expected impacts of the announced 4.9 GW
asset sale
5 Items may not sum due to rounding
26
Non-GAAP Financial Measures
NRG reports its financial results in accordance with the accounting principles
generally accepted in the United States (GAAP) and supplements with certain non-
GAAP financial measures. These measures are not recognized in accordance with
GAAP and should not be viewed in isolation or as an alternative to GAAP measures
of performance. In addition, other companies may calculate non-GAAP financial
measures differently than NRG does, limiting their usefulness as a comparative
measure.
NRG uses the following non-GAAP measures to provide additional insight into
financial performance:
•
Adjusted EBITDA
: Defined as EBITDA (earnings before interest, taxes, depreciation, and
amortization, impact of asset retirement obligation expenses and contract
amortization consisting of amortization of power and fuel contracts and
amortization of emission allowances) with further adjustments for stock-based
compensation, impairment losses, deactivation costs, gains or losses on sales,
dispositions or retirements of assets, any mark-to-market gains or losses from
forward position of economic hedges, gains or losses on the repurchase,
modification or extinguishment of debt, restructuring costs, and other non-
recurring items plus adjustments to reflect the Adjusted EBITDA from our
unconsolidated investments or non-controlling interests. Adjusted EBITDA is
intended to facilitate period-to-period comparisons and is widely used by
investors for performance assessment.
•
Adjusted Net Income
: Defined as net income available to common shareholders excluding the impact of
asset retirement obligation expenses, contract amortization consisting of
amortization of power and fuel contracts and amortization of emission
allowances, stock-based compensation, impairment losses, deactivation costs,
gains or losses on sales, dispositions or retirements of assets, any mark-to-
market gains or losses from forward position of economic hedges, gains or losses
on the repurchase, modification or extinguishment of debt, the impact of
restructuring and any extraordinary, unusual or non-recurring items plus
adjustments to reflect the Adjusted EBITDA from our unconsolidated investments
and non-controlling interests.
•
Adjusted Earnings per Share (EPS)
: Defined as Adjusted Net Income, divided by the average basic common shares
outstanding.
•
Adjusted Cash Provided/(Used) by Operating Activities : Defined as cash
provided/(used) by operating activities with the reclassification of net
payments of derivative contracts acquired in business combinations from
financing to operating cash flow, as well as the add back of merger,
integration, related restructuring costs, adjustment for change in collateral,
and the impact of extraordinary, unusual or non-recurring items.
•
Free Cash Flow before Growth Investments
: Defined as Adjusted Cash provided/(used) by operating activities less
maintenance and environmental capital expenditures, net of funding and insurance
recoveries related to property, plant and equipment, and adjustments to exclude
cost of acquisition related to growth.
Management believes these non-GAAP financial measures are useful to investors
and other users of NRG's financial statements in evaluating the Company’s
operating performance and growth, as well as the impact of the Company’s capital
allocation program. They provide an additional tool to compare business
performance across periods and adjust for items that management does not
consider indicative of NRG’s future operating performance. Management uses these
non-GAAP financial measures to assist in comparing financial performance from
period to period on a consistent basis and to readily view operating trends, as
a measure for planning and forecasting overall expectations, and for evaluating
actual results against such expectations, and in communications with NRG's Board
of Directors, shareholders, creditors, analysts and investors concerning its
financial performance.
27