NRG Energy (NRG) Q4 2025 earnings summary

Executive summary

• Exceeded raised 2025 guidance, marking a record year and the third consecutive year of raising and surpassing outlooks.

• Closed LS Power acquisition, doubling generation fleet to 25 GW, expanding natural gas assets and demand response capabilities via CPower.

• Integration of LS Power is ahead of plan, with performance exceeding underwriting assumptions.

• Targeting at least 14% annual growth in adjusted EPS and free cash flow per share from 2026 through 2030.

• Returned $1.6 billion to shareholders in 2025 via repurchases and dividends, with a sixth consecutive annual dividend increase.

Financial highlights

• 2025 adjusted EPS was $8.24, up 21% year-over-year; adjusted EBITDA reached $4.087 billion, both above the high end of guidance.

• Free cash flow before growth totaled $2.21 billion, up 7% year-over-year, with FCFbG per share at $11.63, a 12% increase.

• Adjusted net income for 2025 was $1.606 billion.

• Revenue for 2025 was $30.7 billion, up from $28.1 billion in 2024.

• Returned $1.6 billion to shareholders and raised dividend per share by 8% year-over-year.

Outlook and guidance

• 2026 guidance midpoints: adjusted EBITDA $5.575 billion, adjusted net income $1.9 billion, adjusted EPS $8.90, free cash flow before growth $3.05 billion.

• Guidance incorporates 11 months of LS Power contribution.

• Long-term outlook targets at least 14% annual growth in adjusted EPS and free cash flow per share through 2030.

• 2026 priorities include integrating LS Power, delivering $750 million organic growth plan (2025–2029), and returning $1.4 billion to shareholders.

• Outlook assumes flat power and capacity prices, with no additional data center contracts or price increases included.