NRG Energy (NRG) Q1 2026 earnings summary

Executive summary

• Delivered strong operational performance in Q1 2026, reaffirming full-year financial guidance and capital allocation plans, despite lower net income and EBITDA due to non-cash hedge losses and higher costs.

• CEO transition completed, with Robert Gaudette as CEO and Antonio Carrillo as Chair, emphasizing disciplined capital allocation and long-term returns.

• Integration of LS Power portfolio is progressing, doubling generation capacity by 13 GW and expanding the footprint in Texas and the Northeast.

• Positioned to capture value from rising power demand, especially from AI infrastructure, data centers, and electrification, outpacing available capacity.

• Revenue for Q1 2026 was $10.26 billion, up 19% year-over-year, driven by the LS Power acquisition and higher realized power prices.

Financial highlights

• Adjusted EBITDA for Q1 2026 was $1.08 billion, down from $1.126 billion year-over-year; adjusted net income was $308 million, and adjusted EPS was $1.49, both lower year-over-year.

• Net income was $125 million, down from $750 million in Q1 2025, primarily due to increased operating costs, higher interest expense, and acquisition-related costs.

• Retail revenue rose to $9.5 billion from $8.2 billion year-over-year; economic gross margin for Q1 2026 was $2.15 billion, up from $2.09 billion.

• Smart Home customer count increased 9% year-over-year to 2.37 million, with recurring service margin per customer up 8%.

• Interest expense increased by $122 million due to new debt for the LS Power acquisition.

Outlook and guidance

• 2026 financial guidance reaffirmed: Adjusted Net Income $1,685–$2,115 million, Adjusted EPS $7.90–$9.90, Adjusted EBITDA $5,325–$5,825 million, FCFbG $2,800–$3,300 million.

• Expecting at least 14% adjusted EPS and free cash flow per share growth over the next five years, excluding large load or incremental development upside.

• 7–9% annual dividend growth targeted, with $1.90 per share for 2026.

• Organic growth plan of $750 million for 2025–2029 remains on track.

• Guidance excludes fair value adjustments related to derivatives.