CenterPoint Energy (CNP) Q3 2024 earnings summary

Executive summary

• Q3 2024 non-GAAP EPS was $0.31, down from $0.40 in Q3 2023, with 2024 guidance reaffirmed at $1.61–$1.63 and 2025 guidance initiated at $1.74–$1.76, targeting 8% annual growth.

• Net income for Q3 2024 was $193 million, down from $256 million in Q3 2023; nine-month net income rose to $771 million from $675 million year-over-year.

• Increased 10-year capital investment plan by $2.5 billion to $47 billion, focusing on grid resiliency and reliability, especially for Houston Electric.

• Initiated sale of Louisiana and Mississippi LDC businesses for ~$1.2 billion, expected to close by end of Q1 2025.

• Significant operational focus on grid resiliency, storm response, and customer communications, especially after a challenging hurricane season.

Financial highlights

• Q3 2024 non-GAAP EPS was $0.31, down from $0.40 in Q3 2023, mainly due to increased O&M expenses and weather impacts.

• Q3 2024 revenues were $1.86 billion, flat year-over-year; nine-month revenues were $6.38 billion, down from $6.51 billion.

• Year-to-date non-GAAP EPS reached $1.22, up from $1.18 for the same period last year.

• Cash flow from operations for the nine months ended September 30, 2024, was $1.25 billion, down from $3.07 billion year-over-year, primarily due to 2023 Texas securitization proceeds.

• Customer-driven investments contributed $0.09 favorability, with strong organic growth in Houston.

Outlook and guidance

• Reaffirmed 2024 non-GAAP EPS guidance of $1.61–$1.63, with 75% of the midpoint achieved year-to-date.

• Initiated 2025 non-GAAP EPS guidance of $1.74–$1.76, targeting 8% annual growth and maintaining 6–8% annual growth through 2030.

• Long-term non-GAAP EPS growth expected at the mid to high end of 6%–8% annually through 2030.

• Dividend per share growth targeted in line with EPS growth.

• Guidance excludes ZENS-related items, merger/divestiture impacts, and other unusual items.