NRG Energy, Inc. Reports Third Quarter Results, Reaffirms 2025 Financial Guidance, and Initiates 2026 Standalone Guidance

• Delivered solid third quarter financial and operational performance, including growth versus prior year across all key financial metrics; reaffirming recently raised 2025 guidance ranges

• Initiating 2026 NRG standalone (without LS Power portfolio) guidance in line with the Company’s long-term growth targets

• Expanded long-term retail power agreements for data centers with existing customer to 445 MW

• Closed Texas Energy Fund (TEF) loan agreement for Cedar Bayou 689 MW CCGT facility and received initial disbursement; still aiming to bring 1.5 GW of new generation online through TEF program

• LS Power portfolio acquisition on track for first quarter 2026 closing

• Announcing new $3 billion share repurchase authorization through 2028; expect to complete $1 billion in 2026

HOUSTON–(BUSINESS WIRE)–NRG Energy, Inc. (NYSE: NRG) today announces financial results for the third quarter ended September 30, 2025, and reports GAAP Net Income of $152 million, GAAP Earnings per Share (EPS) — basic of $0.70, and GAAP Cash Provided by Operating Activities of $484 million. The Company’s non-GAAP metrics are Adjusted Net Income of $537 million, Adjusted EPS of $2.78, Adjusted EBITDA of $1,205 million, and Free Cash Flow before Growth Investments (FCFbG) of $828 million for the third quarter of 2025.

“NRG again delivered strong quarterly results demonstrating the strength of our platform,” said Larry Coben, Chair, President, and Chief Executive Officer. “Our customer-focused strategy drives robust results, as we continue to advance our growth initiatives and capitalize on emerging opportunities. As the demand supercycle accelerates, NRG is generating substantial long-term value for shareholders while providing affordable options for the customers and communities we serve.”

Consolidated Financial Results

Table 1:
		Three Months Ended							Nine Months Ended
(In millions, except per share amounts)		9/30/2025			9/30/2024				9/30/2025			9/30/2024
GAAP Net Income/(Loss)		$	152		$	(767	)		$	798		$	482
Adjusted Net Incomea b		$	537		$	434			$	1,406		$	1,092
GAAP EPS — basicc		$	0.70		$	(3.79	)		$	3.81		$	2.08
Adjusted EPSa d		$	2.78		$	2.10			$	7.17		$	5.28
Adjusted EBITDAa		$	1,205		$	1,055			$	3,240		$	2,887
GAAP Cash Provided by Operating Activities		$	484		$	31			$	1,790		$	1,354
Free Cash Flow Before Growth Investments (FCFbG)a		$	828		$	815			$	2,035		$	1,438
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 Earnings/(Loss) 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

NRG reported a GAAP Net Income of $152 million, an increase of $919 million for the third quarter of 2025 compared to the same period in 2024. This growth was primarily driven by strong operational performance in Texas, as reflected in the Adjusted EBITDA results below. Additionally, the current period benefited from lower unrealized non-cash losses from mark-to-market economic hedges compared to prior year, which was impacted by declining ERCOT power prices and heat rate contraction. Certain economic hedge positions are required to be marked-to-market each period, while the associated customer contracts are not. This accounting treatment can result in temporary unrealized gains or losses that do not reflect the expected economics at settlement. The increase in GAAP Net Income was partially offset by the sale of Airtron in 2024 and the termination of the Cottonwood lease in 2025, along with related impacts from income tax expense versus the prior year tax benefit.

Adjusted Net Income for the third quarter 2025 is $537 million, $103 million higher than prior year, primarily driven by a $150 million increase in Adjusted EBITDA, which includes the financial impacts described in the segment results below. Adjusted EPS is $2.78 for the third quarter 2025, $0.68 higher than prior year.

NRG’s Adjusted EPS and FCFbG results for the first nine months of 2025 compare favorably to last year, primarily due to strong financial and operational performance.

Raised 2025 Guidance

NRG is reaffirming its 2025 guidance, which was raised on September 17, 2025 as follows: Adjusted Net Income guidance to $1,470 – $1,590 million, Adjusted EPS guidance to $7.55 – $8.15, Adjusted EBITDA guidance to $3,875 – $4,025 million, and FCFbG guidance to $2,100 – $2,250 million.

Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2025a
		2025		2025
(In millions, except per share amounts)		Original Guidance		Raised Guidance
Adjusted Net Income		$1,330 – $1,530		$1,470 – $1,590
Adjusted EPS		$6.75 – $7.75		$7.55 – $8.15
Adjusted EBITDA		$3,725 – $3,975		$3,875 – $4,025
FCFbG		$1,975 – $2,225		$2,100 – $2,250
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.

2025 Capital Allocation

The Company plans to return $1.3 billion to shareholders through share repurchases and approximately $345 million through common stock dividends in 2025, as part of its previously announced 2025 capital allocation plan. Through October 31, 2025, the Company completed $1.1 billion in share repurchases and distributed $258 million in common stock dividends.

On October 8, 2025, NRG closed a $4.9 billion issuance of Senior Unsecured Notes and Senior Secured Notes, with the proceeds to be utilized to fund the cash portion of the anticipated LS Power portfolio acquisition and the repayment of the Senior Secured Notes due in December 2025.

On October 20, 2025, NRG declared a quarterly dividend of $0.44 per common share, or $1.76 per share on an annualized basis. The dividend is payable on November 17, 2025, to common stockholders of record as of November 3, 2025.

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.

Initiating 2026 Standalone Guidance and Capital Allocation

NRG is initiating 2026 standalone guidance and capital allocation updates as detailed below. This interim view reflects NRG on a standalone basis. The Company will provide a complete guidance and capital allocation update following the close of the LS Power portfolio acquisition.

Table 3: Standalone Adjusted EBITDA and FCFbG Guidance for 2026a
		2025		2025		2026
(In millions)		Original Guidance		Raised Guidance		NRG Standalone Guidance
Adjusted EBITDA		$3,725 – $3,975		$3,875 – $4,025		$3,925 – $4,175
FCFbG		$1,975 – $2,225		$2,100 – $2,250		$1,975 – $2,225
a Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 through A-10 for GAAP reconciliations. Adjusted EBITDA excludes 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.

On October 16, 2025, NRG’s Board of Directors approved a new $3 billion share repurchase authorization to be completed through 2028. The Company expects to complete $1 billion in share repurchases in 2026. The Board also approved an 8% increase of the annual common stock dividend to $1.90 per share, consistent with the Company’s 7-9% long-term growth target.

NRG Strategic Developments

Data Center Update

NRG successfully expanded an existing data center relationship, adding two additional long-term retail power agreements totaling 150 MW in the third quarter. These grid-served data centers will be constructed on NRG-owned sites in PJM, with initial powering expected in 2028 and the facilities to be fully online by the second half of 2032. NRG’s data center retail power agreements with this counterparty now total 445 MW for sites across ERCOT and PJM.

Texas Energy Fund (TEF)

On September 26, 2025, NRG entered into a $562 million loan agreement with the Public Utility Commission of Texas (PUCT) under the TEF for a low-interest rate loan at 3% to support development of its 689 MW (721 MW nameplate) Cedar Bayou generation facility. Initial disbursement of funds occurred in September 2025 and is expected to continue through the projected mid-2028 commercial operations date.

NRG previously executed a loan agreement through the TEF for its TH Wharton facility and has an additional project, Greens Bayou, in TEF due diligence review. Through the TEF program, NRG expects to bring approximately 1.5 GW of new generation to Texas between mid-2026 and mid-2028.

Acquisition of Premier Power Portfolio from LS Power On Track to Close First Quarter 2026

On May 12, 2025, NRG entered into a definitive agreement with LS Power to acquire a power portfolio including 13 GW of natural gas-fired generation facilities and a Commercial & Industrial Virtual Power Plant platform with 6 GW of capacity.

The transaction is expected to close in the first quarter of 2026, 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). All required filings have been submitted.

Segment Results

Table 4: Adjusted EBITDAa
(In millions)		Three Months Ended						Nine Months Ended
Segment		9/30/2025			9/30/2024			9/30/2025			9/30/2024
Texas		$	807		$	584		$	1,618		$	1,255
East			107			164			680			724
West/Services/Otherb			19			50			139			179
Vivint Smart Home			272			257			803			729
Adjusted EBITDA		$	1,205		$	1,055		$	3,240		$	2,887
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 2025 Adjusted EBITDA is $807 million, $223 million higher than the prior year. For the first nine months of 2025, Adjusted EBITDA is $1,618 million, $363 million higher than prior year. The increase for both the quarter and the first nine months is primarily driven by improved margins and supply cost optimization.

East: Third quarter 2025 Adjusted EBITDA is $107 million, $57 million lower than the prior year. For the first nine months of 2025, Adjusted EBITDA is $680 million, $44 million lower than prior year. The decrease for both the quarter and the first nine months is primarily driven by increased supply costs to serve retail load and the retirement of the Indian River facility, partially offset by higher capacity prices for owned generation, and favorable first quarter impact from higher natural gas wholesale margins.

West/Services/Other: Third quarter 2025 Adjusted EBITDA is $19 million, $31 million lower than the prior year. For the first nine months of 2025, Adjusted EBITDA is $139 million, $40 million lower than prior year. These decreases are primarily driven by the sale of Airtron in September 2024 and termination of the Cottonwood lease in May 2025.

Vivint Smart Home: Third quarter 2025 Adjusted EBITDA is $272 million, $15 million higher than the prior year. For the first nine months of 2025, Adjusted EBITDA is $803 million, $74 million higher than prior year. The increase for both the quarter and the first nine months of 2025 is attributable to growth in customer count, driven by record new customer adds and continued strong customer retention, and an increase in monthly recurring service margin per customer.

Liquidity and Capital Resources

Table 5: Corporate Liquidity
(In millions)		9/30/25			12/31/24
Cash and Cash Equivalents		$	732		$	966
Restricted Cash			30			8
Total		$	762		$	974
Total availability under revolving credit facility and collective collateral facilitiesa			5,730			4,469
Total liquidity, excluding funds deposited by counterparties		$	6,492		$	5,443
a Total capacity of Revolving Credit Facility and collective collateral facilities was $8.0 billion and $7.3 billion as of September 30, 2025 and December 31, 2024, respectively

As of September 30, 2025, NRG’s unrestricted cash was approximately $0.7 billion, and $5.7 billion was available under the Company’s credit facilities. Total liquidity was $6.5 billion. In October 2025, proceeds from the $4.9 billion debt issuance were held as cash in advance of the anticipated first quarter 2026 closing of the LS Power portfolio acquisition and repayment of the Senior Secured Notes due in December 2025.

Earnings Conference Call

On November 6, 2025, NRG will host a conference call at 9:00 a.m. Eastern (8:00 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 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 Energy, Inc. is leading the future of energy—now. Our solutions power a smarter, brighter future by helping customers achieve today’s goals while solving for the challenges of tomorrow. Every day, we deliver innovative natural gas, electricity, and smart home solutions to customers large and small across North America.

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 the proposed transaction between NRG and LS Power, the expected closing of the transaction and the timing thereof, including receipt of required regulatory approvals and satisfaction of other customary closing conditions, the financing of the proposed transaction, enhancements to NRG’s credit profile, synergies, opportunities, anticipated future financial and operational performance, and 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 and escalation of international trade disputes, the inability to close (or any delay in closing) the proposed acquisition of the portfolio of assets from LS Power (the “Portfolio”), the occurrence of any event, change or other circumstances that could give rise to the termination of the purchase agreement relating to the Portfolio (including the inability to obtain required governmental and regulatory approvals in a timely manner or at all), the inability to obtain financing for the proposed acquisition of the Portfolio, 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, 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, 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 prolonged continuation of the current shutdown of the U.S. federal government, 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, failure to identify, execute or successfully implement acquisitions or asset sales, 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 proceed with projects under development or the inability to complete the construction of such projects on schedule or within 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), 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, cash provided by operating activities, Free Cash Flow before Growth, Adjusted Net Income, and Adjusted EPS guidance are estimates as of November 6, 2025. 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.

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three months ended September 30,								Nine months ended September 30,
(In millions, except per share amounts)		2025				2024				2025				2024
Revenue
Revenue	$	7,635			$	7,223			$	22,960			$	21,311
Operating Costs and Expenses
Cost of operations (excluding depreciation and amortization shown below)		6,241				7,239				18,431				17,229
Depreciation and amortization		360				352				1,030				1,045
Impairment losses		—				—				—				15
Selling, general and administrative costs (excluding amortization of customer acquisition costs of $78, $55, $211 and $144, respectively, which are included in depreciation and amortization shown separately above)		612				645				1,885				1,739
Acquisition-related transaction and integration costs		8				7				59				22
Total operating costs and expenses		7,221				8,243				21,405				20,050
Gain/(loss) on sale of assets		—				208				(7	)			209
Operating Income/(Loss)		414				(812	)			1,548				1,470
Other Income/(Expense)
Equity in earnings of unconsolidated affiliates		1				6				4				13
Other income, net		10				5				26				38
Loss on debt extinguishment		—				—				(10	)			(260	)
Interest expense		(187	)			(213	)			(498	)			(528	)
Total other expense		(176	)			(202	)			(478	)			(737	)
Income/(Loss) Before Income Taxes		238				(1,014	)			1,070				733
Income tax expense/(benefit)		86				(247	)			272				251
Net Income/(Loss)	$	152			$	(767	)		$	798			$	482
Less: Cumulative dividends attributable to Series A Preferred Stock		17				17				51				51
Net Income/(Loss) Available for Common Stockholders	$	135			$	(784	)		$	747			$	431
Income/(Loss) per Share
Weighted average number of common shares outstanding — basic		193				207				196				207
Income/(Loss) per Weighted Average Common Share — Basic	$	0.70			$	(3.79	)		$	3.81			$	2.08
Weighted average number of common shares outstanding — diluted		195				207				201				213
Income/(Loss) per Weighted Average Common Share —Diluted	$	0.69			$	(3.79	)		$	3.72			$	2.02

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited)
	Three months ended September 30,								Nine months ended September 30,
(In millions)		2025				2024				2025			2024
Net Income/(Loss)	$	152			$	(767	)		$	798		$	482
Other Comprehensive (Loss)/Income
Foreign currency translation adjustments		(4	)			6				11			(4	)
Defined benefit plans		—				(8	)			1			(10	)
Other comprehensive (loss)/income		(4	)			(2	)			12			(14	)
Comprehensive Income/(Loss)	$	148			$	(769	)		$	810		$	468

Contacts

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Investors
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