NRG Energy shares surge 10% as Q4 profit tops estimates; guide reaffirmed
Investing.com -- NRG Energy (NYSE: NRG ) saw its shares jump more than 10% following the market open Wednesday after the US energy company reported better Q4 profit than what analysts expected.
The company posted Q4 earnings per share (EPS) of $1.56, ahead of the consensus estimate of $1.08.
Revenue for the quarter came in at $6.86 billion, missing the $7.36 billion projected by analysts.
Adjusted EBITDA of $902 million also beat expectations of $878.6 million.
NRG reported cash from operating activities of $952 million.
“NRG had a stellar year, executing across all our strategic priorities. Our Adjusted EPS exceeded the top end of raised guidance, we announced the first-of-its-kind residential VPP of scale through our Renew Home and Google (NASDAQ: GOOGL ) Cloud partnerships, and we delivered on our capital allocation commitments,” said Larry Coben, NRG Chair, President and CEO.
Alongside earnings, NRG announced it has signed Letters of Intent with Menlo Equities and PowLan for 400 MW of initial retail supply, with potential expansion to 6.5 GW starting in 2026.
The company also disclosed a Project Development Agreement with GE Vernova LLC (NYSE: GEV ) and Kiewit to add up to 5.4 GW of gas-fired generation between 2029 and 2032.
For guidance, NRG reaffirmed its full-year 2025 EPS guidance of $6.75 to $7.75 per share, compared to the consensus estimate of $7.37.
It projects adjusted EBITDA in the range of $3.73 billion to $3.98 billion, compared to analyst expectations of $3.87 billion.
"We believe NRG’s 4Q earnings release has positive implications for the stock," Evercore ISI analysts said in a post-earnings report.
The firm sees the two announcements as "the key items from the print."