NRG Energy Q2 profit misses on higher interest, depreciation costs - NRG News | RalliesNRG Energy Q2 profit misses on higher interest, depreciation costs
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NRG• Quarterly profit missed expectations
- NRG Energy said second-quarter adjusted EPS missed analyst expectations.
- Q2 adjusted net income and EPS declined due to higher interest and depreciation from acquisitions.
- The company also reaffirmed its 2026 financial guidance and continued share repurchases.
Key quarterly figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Adjusted EPS | Miss | $1.49 | $1.70 (10 Analysts) |
| Q2 Net Income | | $506 million | |
| Q2 Adjusted EBITDA | | $1.22 billion | |
The current average analyst rating on the shares is buy, with 15 strong buy or buy ratings, 3 hold ratings, and no sell or strong sell ratings.
The average consensus recommendation for the electric utilities peer group is buy.
Wall Street's median 12-month price target for NRG Energy Inc is $195.00, about 40.8% above its August 3 closing price of $138.47.
The stock recently traded at 13 times the next 12-month earnings, versus a P/E of 16 three months ago.
Results driven by acquisitions and regional performance
- Higher GAAP net income was driven by the addition of assets from LS Power and higher realized capacity prices in the East.
- Lower adjusted net income and EPS were primarily due to higher interest expense and depreciation and amortization related to the LS Power acquisition.
- The Texas segment declined on higher supply costs and mild weather, while the East segment improved due to new assets and higher capacity prices.
2026 outlook reaffirmed
- NRG reaffirmed 2026 adjusted net income guidance of $1.685 billion to $2.115 billion.
- It maintained 2026 adjusted EPS guidance of $7.90 to $9.90.
- The company continued to expect 2026 adjusted EBITDA of $5.325 billion to $5.825 billion.
