CenterPoint Energy (CNP) Q4 2024 earnings summary

Executive summary

• Reported non-GAAP EPS of $0.40 for Q4 2024 and $1.62 for the full year, up 8% over 2023, marking the fourth consecutive year of meeting or exceeding guidance.

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

• Increased 10-year capital investment plan to $47.5B, with $500M added for Houston Electric resiliency and grid hardening.

• Announced sale of Louisiana and Mississippi LDCs for $1.2B gross, with proceeds to support capital plan and balance sheet.

• Focused on balance sheet health, maintaining FFO/Debt at 13.6% for 2024 and targeting 14–15% through 2030.

Financial highlights

• Q4 2024 non-GAAP EPS was $0.40, up from $0.32 in Q4 2023; full year 2024 non-GAAP EPS was $1.62, up from $1.50 in 2023.

• Q4 2024 income available to common shareholders was $248 million; full year 2024 was $1,019 million.

• 2024 capital expenditures totaled ~$4.8B, with a 10-year plan of $47.5B.

• Adjusted FFO to debt ratio at year-end was 13.6%, expected to improve with asset sales and securitization proceeds.

• Growth and rate recovery contributed $0.34 to FY 2024 EPS, offset by $0.14 from weather/usage and $0.05 from other items.

Outlook and guidance

• 2025 non-GAAP EPS guidance range reaffirmed at $1.74–$1.76, representing 8% growth from 2024.

• Long-term non-GAAP EPS and dividend growth expected at 6–8% annually through 2030.

• Anticipates $3B in asset recycling and securitization proceeds in 2025+ and $2.65B in equity or equity-like proceeds through 2030.

• Residential delivery charges expected to align with inflation; O&M reductions of 1–2% targeted.

• Anticipates further CapEx increases pending Texas PUCT decision on transmission standards, with at least $3B in additional electric transmission CapEx likely.