CenterPoint Energy (CNP) investor relations material

Updated earnings guidance and growth outlook

• Raised 2025 non-GAAP EPS guidance to $1.75–$1.77, representing 9% growth from 2024, and initiated 2026 guidance at $1.89–$1.91, targeting at least the midpoint, or 8% growth from 2025 midpoint.

• Targeting non-GAAP EPS annual growth of 7%–9% through 2035, with a focus on the mid to high end of the range from 2026–2028.

• Dividend growth moderated to 6% annually, supporting capital investment and maintaining a payout ratio above 45%.

• Four positive capital plan revisions in 2024, totaling a $7.5 billion increase through 2030, with no additional common equity needed for the latest $2 billion increase.

• Anticipates modest common equity issuances of $3 billion from 2028–2035, with equity needs through 2027 already addressed.

Long-term capital investment and growth strategy

• Announced a $65 billion 10-year capital investment plan through 2035, up nearly 40% from the 2021 plan, with over $10 billion in additional opportunities identified.

• Plan includes $33 billion investment from 2026–2030 and $32 billion from 2031–2035.

• Over $10 billion in incremental capital investment opportunities identified, including smart meters, undergrounding, transmission, and data center projects.

• Houston Electric expects a 50% increase in peak electric load by 2031, nearly doubling by 2035, driven by diverse economic growth.

• Self-funding about 65% of capital investments over the next decade through improved operating cash flows and asset recycling.

Execution, operational efficiency, and customer impact

• Achieved a 7% cumulative O&M reduction over four years, meeting 1%–2% annual reduction targets, with peer-leading O&M per customer.

• Maintained customer charges at or below in-state peers, with Houston Electric's residential delivery charge nearly unchanged since 2014.

• Investments have led to a 45% reduction in average outage minutes for Houston Electric customers through June 2025.

• Targeting elimination of cast iron pipe in gas systems and deploying upgraded meters and pipeline replacements.

• Focused on keeping customer bill increases in line with historical inflation, leveraging O&M reductions and system modernization.