NRG Energy (NYSE:NRG) Releases Quarterly Earnings Results, Misses Estimates By $0.30 EPS

Key Points

• NRG Energy missed earnings estimates for the quarter, reporting $1.48 EPS versus the $1.78 consensus, though revenue came in above expectations at $10.26 billion.
• Management reaffirmed FY2026 guidance at 7.9 to 9.9 EPS, saying the business is tracking to plan and that LS Power integration is progressing ahead of expectations.
• The company is focusing on debt reduction and shareholder returns, including $3.5 billion of new financing, about $1 billion of expected debt repayment this year, and at least $1.4 billion targeted for return to shareholders.

NRG Energy (NYSE:NRG - Get Free Report) released its quarterly earnings results on Wednesday. The utilities provider reported $1.48 earnings per share for the quarter, missing the consensus estimate of $1.78 by ($0.30), FiscalAI reports. The company had revenue of $10.26 billion for the quarter, compared to analysts' expectations of $8.43 billion. NRG Energy had a net margin of 0.74% and a return on equity of 70.67%. The business's quarterly revenue was up 19.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.68 EPS. NRG Energy updated its FY 2026 guidance to 7.900-9.900 EPS.

Here are the key takeaways from NRG Energy's conference call:

• Reaffirmed 2026 guidance as the business is "tracking to plan" with Q1 adjusted EBITDA of $1.08B and adjusted EPS of $1.49, and management says integration of the LS Power portfolio is underway and performing ahead of expectations.
• T.E.F. development on schedule: T.H. Wharton is expected online in May on time, on budget and qualifying for the TEF completion bonus, and three TEF projects will add 1.5 GW (serving ~300k Texas homes) — a claimed competitive advantage in new gas build capability.
• Management highlights a potentially massive demand shift (ERCOT pipeline >367 GW by 2033 vs ~85 GW record peak) and sees up to 2 GW of upgrade/conversion opportunities in PJM, but outcomes depend on interconnection, contracts and evolving regulation.
• Balance-sheet and shareholder actions: the company closed $3.5B of new financing (Apr 28) to deleverage post-acquisition, expects ~$1B of debt repayment this year, has repurchased $817M to date, and remains committed to returning at least $1.4B to shareholders.
• Q1 performance was weighed by unusually mild Texas weather and timing of Winter Storm Fern (the LS assets closed Jan 30 and missed most of the storm), and higher interest expense and D&A from the acquisition drove lower year‑over‑year adjusted net income and EPS.

NRG Energy Trading Down 2.6%

NRG stock traded down $3.74 during trading on Friday, hitting $138.12. The company had a trading volume of 2,447,390 shares, compared to its average volume of 2,599,127. NRG Energy has a 52-week low of $117.43 and a 52-week high of $189.96. The company has a 50 day simple moving average of $157.32 and a 200-day simple moving average of $160.31. The firm has a market capitalization of $29.64 billion, a P/E ratio of 162.50 and a beta of 1.32. The company has a quick ratio of 1.58, a current ratio of 0.84 and a debt-to-equity ratio of 4.68.

NRG Energy Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be paid a $0.475 dividend. This represents a $1.90 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, May 1st. NRG Energy's dividend payout ratio (DPR) is currently 223.53%.

Analyst Upgrades and Downgrades

NRG has been the topic of a number of analyst reports. BNP Paribas Exane began coverage on shares of NRG Energy in a research report on Wednesday, March 18th. They set an "outperform" rating and a $232.00 price objective on the stock. Morgan Stanley set a $159.00 price target on shares of NRG Energy in a research note on Friday, May 1st. Wolfe Research raised shares of NRG Energy from a "peer perform" rating to an "outperform" rating and set a $190.00 price objective on the stock in a research report on Wednesday, March 18th. Weiss Ratings downgraded shares of NRG Energy from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday. Finally, Wells Fargo & Company boosted their target price on NRG Energy from $202.00 to $206.00 and gave the company an "overweight" rating in a research report on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $197.57.

Insider Buying and Selling

In other news, VP Virginia Kinney sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $156.65, for a total transaction of $783,250.00. Following the transaction, the vice president directly owned 55,495 shares of the company's stock, valued at approximately $8,693,291.75. This trade represents a 8.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NRG Energy

Hedge funds have recently made changes to their positions in the company. Brighton Jones LLC lifted its stake in NRG Energy by 41.8% in the fourth quarter. Brighton Jones LLC now owns 5,187 shares of the utilities provider's stock worth $468,000 after acquiring an additional 1,528 shares during the period. Integrated Wealth Concepts LLC bought a new stake in shares of NRG Energy in the 1st quarter valued at about $323,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of NRG Energy by 7.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,257 shares of the utilities provider's stock valued at $1,934,000 after purchasing an additional 1,381 shares in the last quarter. Woodline Partners LP lifted its position in shares of NRG Energy by 40.7% in the 1st quarter. Woodline Partners LP now owns 17,114 shares of the utilities provider's stock worth $1,634,000 after purchasing an additional 4,949 shares during the period. Finally, Marshall Wace LLP bought a new position in shares of NRG Energy during the second quarter valued at approximately $7,937,000. 97.72% of the stock is currently owned by hedge funds and other institutional investors.

About NRG Energy

NRG Energy NYSE: NRG is a U.S.-based integrated power company headquartered in Houston, Texas. The company develops, owns and operates a diversified portfolio of power generation assets and participates in wholesale and retail energy markets. NRG supplies electricity to utilities, commercial and industrial customers, and retail consumers, while also providing energy-related products and services designed to manage consumption and support reliability.

NRG's generation mix includes conventional thermal plants as well as renewable and distributed energy resources.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.