NRG shares rise 4.4% after Q3 earnings beat

NRG Energy (NRG) beat third-quarter estimates and reaffirmed its 2026 guidance.

Shares rose 4.4% at 9:38 a.m. ET, from a $88.29 close.

Here's how the company did:

• Adjusted EPS: $4.68 vs. $2.78 a year earlier, $3.36 expected
• Revenue: $9.47 billion vs. $7.64 billion a year earlier, $9.33 billion expected
• Adjusted EBITDA: $2.01 billion, up from $1.21 billion a year earlier
• GAAP net income: $561 million, up $409 million from a year earlier

Higher GAAP net income was driven by contributions from the portfolio acquired from LS Power, higher realized capacity prices in the East and higher margins in Texas. Higher depreciation, amortization and interest expense tied to the acquired assets partly offset those gains. Unrealized, non-cash losses on economic hedges, driven by lower natural gas prices, also weighed on results.

2026 guidance and 2027 outlook

NRG reaffirmed its 2026 guidance of $5.33 billion to $5.83 billion in adjusted EBITDA and adjusted EPS of $7.90 to $9.90.

For 2027, NRG initiated adjusted EPS guidance of $8.05 to $10.05, with a midpoint of $9.05, and adjusted EBITDA of $5.50 billion to $6.00 billion. The guidance does not reflect the pending asset sale.

Capital returns

The base 2027 capital allocation plan includes $1 billion of debt reduction, $1 billion of share repurchases and an 8% increase in the annual common dividend to $2.05 per share. The annualized dividend is currently $1.90 per share.

“Today’s announcement is about returning more to our shareholders and supporting future growth investments,” said President & CEO Robert Gaudette.

NRG has completed $977 million in share repurchases through Oct. 31, 2026. Unrestricted cash was about $0.1 billion at Sept. 30, and total liquidity was $6.0 billion, $3.6 billion lower than at Dec. 31, 2025.

Asset sale to LS Power

NRG agreed to sell six natural-gas fired generation assets totaling 4.9 GW to LS Power for $4 billion in cash, subject to working capital and other closing adjustments.

The sale keeps the entire PJM portfolio and CPower, acquired in January 2026. Closing is expected in the second quarter of 2027, subject to approvals including Hart-Scott-Rodino (HSR), the Federal Energy Regulatory Commission and the New York State Public Service Commission.

The company expects to provide updated 2027 guidance and an updated capital allocation plan after the sale closes.