NEW YORK, August 4, 2026, 13:10 EDT — U.S. markets open.
- NRG stock dropped 15.5% to $117.00 in the most recent trading session. Adjusted earnings per share came in at $1.49, below the $1.70 consensus from LSEG.
- EBITDA for the quarter increased by $308 million. According to company data, interest and depreciation together rose by $312 million.
- NRG maintained its 2026 outlook. The midpoint suggests adjusted EPS of $5.92 for the second half, compared to $2.98 during the first half.
Shares of NRG Energy declined 15.5% on Tuesday after the company reported adjusted earnings that came in below expectations. The selloff among power generators intensified following a Texas audit of data-center power requests.
The steeper drop sent a further signal. NRG’s expanded fleet delivered higher EBITDA, but increased financing and depreciation offset the improvement. The conversion did not succeed when measured per share.
NRG finalized its purchase of LS Power’s 13-GW portfolio in January, expanding its generating capacity to approximately 25 GW with the addition of 18 facilities.
Q2 earnings translation — $ millions, except for EPS. Adjusted metrics represent non-GAAP measures provided by the company. Variations are based on disclosed results.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $7,481 | $6,740 | up 11.0% |
| Adjusted EBITDA | $1,217 | $909 | jumped 33.9% |
| Interest expense | $310 | $148 | soared 109.5% |
| Depreciation and amortization | $494 | $344 | climbed 43.6% |
| Adjusted net income | $315 | $339 | fell 7.1% |
| Adjusted EPS | $1.49 | $1.73 | dropped 13.9% |
Adjusted net income slipped by 7.1%, with adjusted earnings per share down 13.9%. The $1.49 per share outcome was roughly 12% below the LSEG consensus estimate. Weighted average shares were up 7.7% due to new stock issued for the acquisition.
The bulk of the operating increase was driven by the East. Segment EBITDA reached $469 million, up from $99 million, due to new facilities and elevated capacity prices. Texas EBITDA declined 26% to $381 million because of higher supply expenses and mild weather. Vivint EBITDA climbed 16% to $301 million.
NRG maintained its 2026 outlook ranges, but reaching the midpoint will need a significantly stronger performance in the second half.
Implied second-half need — $ millions, except EPS. Derived from first-half figures and full-year midpoint estimates; this does not represent specific company guidance.
| Adjusted measure | H1 actual | FY midpoint | H2 required | H2 versus H1 |
|---|---|---|---|---|
| Net income | $623 | $1,900 | $1,277 | +105.0% |
| EPS | $2.98 | $8.90 | $5.92 | +98.7% |
| EBITDA | $2,297 | $5,575 | $3,278 | +42.7% |
| Free cash flow before growth investments | $959 | $3,050 | $2,091 | +118.0% |
At the midpoint, adjusted EPS for the second half needs to hit $5.92, nearly double the figure reported in the first half. Free cash flow before growth investments will have to climb by more than two times. Power earnings continue to be affected by both weather conditions and shifts in market prices.
NRG has finished $932 million out of its $1 billion share repurchase program set for 2026. This leaves $68 million remaining in the current plan, aside from any additional approval.
The Texas policy development also had a significant impact. Governor Greg Abbott directed the PUC and ERCOT to conduct audits on progressing data-center projects prior to granting additional approvals. In his letter, Abbott referenced 474 GW of connection requests, with roughly 90% originating from data centers.
Intraday peer comparison — most recent prices as of approximately 12:54 p.m. EDT.
| Company | Price | Day move | Intraday low |
|---|---|---|---|
| NRG Energy | $117.00 | fell 15.5% | $115.48 |
| Vistra Corp. NYSE:VST | $145.71 | dropped 6.6% | $144.08 |
| Constellation Energy Corp. NASDAQ:CEG | $268.39 | down 1.9% | $263.80 |
| Talen Energy Corp. NASDAQ:TLN | $342.71 | off 0.5% | $332.51 |
NRG lagged Vistra by about nine percentage points. The company’s earnings shortfall contributed an additional, specific burden to the sector’s downturn.
NRG disclosed key terms agreed with an unnamed cloud and AI hyperscaler. The proposal involves a 1.2-GW gas facility in Texas, with potential expansion to 2.4 GW pending completion of documentation and regulatory clearances. “This is the model for how large load growth should work,” CEO Robert Gaudette said.
The customer-backed structure aligns with the guidance outlined in Abbott’s letter, which calls on data centers to specify their plans for self-generated power. NRG did not state that its project is exempt from the audit.
James West, an analyst at Melius Research, stated that the miss is unlikely to impact NRG’s long-term outlook. He pointed to upcoming contracts and anticipated cash-flow increases.
Risks: Results may face pressure from elevated rates, unfavorable weather, integration expenses and potential approval lags. The outlook also depends on strong cash-flow conversion in the second half.
EBITDA increased due to the acquired assets in the quarter. Investors now look for that growth to translate into per-share earnings.
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