Constellation tops Q3 estimates, raises 2026 profit forecast

Constellation Energy (CEG) topped third-quarter profit estimates and raised its 2026 earnings forecast. Adjusted operating earnings were $5.06 per share, against the $3.89 consensus.

Shares rose 1.7% at 9:39 a.m. ET, from a $249.95 close.

Here's how the company did:

• Adjusted EPS: $5.06 vs. $3.04 a year earlier, topping the $3.89 consensus estimate
• Diluted GAAP EPS: $5.19 vs. $2.97 a year earlier
• Revenue: $9.55 billion vs. $6.57 billion a year earlier, in line with the $9.47 billion consensus estimate

Favorable market and portfolio conditions and the addition of Calpine drove the gain. Unfavorable interest and nuclear production tax credit portfolio effects partly offset it.

2026 guidance

The company raised its 2026 adjusted operating earnings forecast to $12.50 to $12.80 per share, from $11.50 to $12.50 on Aug. 6.

Deals and agreements

Constellation agreed to acquire RISEC Holdings, LLC, owner of the Rhode Island State Energy Center, from Shell Energy North America (US), L.P. for $715 million, subject to customary purchase price adjustments. The 609-megawatt natural gas-fired combined-cycle plant sells into the ISO New England wholesale power market. Completion is subject to required regulatory approvals and other customary closing conditions.

The company signed a 20-year agreement with Amazon for 690 megawatts of power, plus a related retail supply agreement. It will enable more than $3 billion of infrastructure investment at the Calvert Cliffs Clean Energy Center, including a 190-megawatt capacity expansion expected to come online between 2030 and 2032.

A 20-year power purchase agreement with Google will enable more than $4.3 billion of investment across 11 nuclear units in Illinois, Pennsylvania and New Jersey. The units will add about 890 megawatts of incremental generation capacity to the PJM grid, with the first uprate expected in 2028.

The company signed a conditional loan commitment with the DOE Office of Energy Dominance Financing. Subject to a loan agreement, the DOE would guarantee up to $5.0 billion of an unsecured loan from the Federal Financing Bank to support nuclear uprates.

Constellation also signed a 20-year agreement for 270 megawatts from its existing nuclear fleet, beginning in 2028. It is the company's first Peak+ transaction.

Cash and capital returns

The company has deployed about $3.0 billion on share repurchases this year and has about $2.0 billion remaining under its authorization.

“Our disciplined capital allocation strategy, including accretive organic growth through nuclear uprates, the acquisition of Rhode Island State Energy Center and our continued aggressive pace of share repurchases, positions us to deliver sustained earnings growth,” said Shane Smith, executive vice president and chief financial officer of Constellation.

The company is targeting base earnings per share growth of 20% or more from 2026 through 2029.