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Power producer NRG Energy (NRG.N) has been named as a potential suitor for a West Virginia coal plant that landed in bankruptcy last month with $13 million in cash ​and several profitable years ahead of it, a court filing shows.

A motion to ‌dismiss the case on Friday disclosed that NRG Energy is evaluating a potential acquisition of the coal plant or an ownership stake. NRG was not immediately available to comment on the filing.

A major question in the ​case is whether the Pleasants Power Station should even be in bankruptcy, given its ​cash position and future prospects.

The fight over control of the coal plant escalated ⁠on Friday when its owner asked a federal bankruptcy judge in Delaware to dismiss the ​Chapter 11 reorganization case. Omnis Energy, led by clean-tech entrepreneur Simon Hodson, argued the bankruptcy case ​is unjustified because Pleasants Power Station is on track to generate at least $466 million in revenue over the next four years while making an operating profit estimated at $286 million.

Hodson's group is battling a turnaround management team ​installed earlier this year by lenders.

The new management team said Hodson failed to convert the ​coal plant into a clean hydrogen power producer. As a result, Pleasants missed out on securing crucial capacity ‌payments from ⁠the PJM Interconnection, a grid operator for 67 million people in a territory that stretches from Washington, D.C. to Chicago, it said.

"From 2023 through mid-2025 ... Pleasants incurred significant operating losses caused by misconduct and mismanagement by prior leadership, inadequate working capital, deferred maintenance that caused significant generation ​outages that impaired the ​Plant's performance," David Hindman, ⁠the head of the management turnaround team, said in a July 27 declaration filed in bankruptcy court.

Hindman also said the U.S. Federal Energy ​Regulatory Commission began an investigation of the coal plant's operation in October ​2025.

Omnis denies ⁠any wrongdoing. Offers to purchase Pleasants Power Station range from $350 million to $400 million, more than 10 times the amount of its 2023 purchase price, and any sale would immediately pay in full all ⁠of the ​estimated indebtedness related to the plant, Omnis told the ​court.

Omnis contends the new management group was not authorized to file for bankruptcy protection. Omnis added that its attempt to ​settle outstanding obligations — with a $76 million payment — was rejected.

Energy Vault Electrifies Market With Accelerated GrowthNRG Energy NYSE: NRG reported second-quarter 2026 adjusted EBITDA of $1.2 billion, up 34% from a year earlier, while outlining plans for a 1.2-gigawatt Texas power plant intended to support a cloud and artificial intelligence hyperscaler’s data center load.

President and Chief Executive Officer Robert Gaudette said NRG is aligned on principal commercial terms with the unnamed investment-grade customer. The project remains subject to negotiations, land-related matters and customary internal approvals, but the customer has made a financial commitment to advance development, according to the company.

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Hims, Block, and NRG Just Launched Huge Stock Buybacks The proposed combined-cycle natural gas plant would be developed, owned and operated by NRG. It is planned to serve a 1-gigawatt data center load and could eventually expand the customer relationship to as much as 2.4 GW. Commercial operation for the initial 1.2-GW facility is targeted for late 2029.

Capacity-Payment Structure Supports Proposed Texas Project Gaudette described the arrangement as NRG’s first “bring your own power” project, or BYOP, a model under which new power demand is paired with new generation supported by the customer. He said the facility is designed to add more generation to Texas than the data center is expected to require.

Best Utilities Stocks for Stability and Growth in 2025Under the contemplated structure, NRG would receive capacity payments intended to recover its invested capital and provide its targeted return, while separate payments would recover fuel and operating costs. The company said 95% of the project’s free cash flow would be supported by capacity payments independent of the data center’s utilization rate.

“We’re paid for the megawatts we build and make available, not for how much the data center runs,” Gaudette said. The customer’s obligations would be backed by an investment-grade parent guarantee.

NRG expects the 1.2-GW project to require $3.2 billion of investment, or about $2,700 per kilowatt. At full operation, management expects at least $500 million of annual adjusted EBITDA and approximately $375 million of annual free cash flow before growth. Chief Financial Officer Bruce Chung said the anticipated pre-tax unlevered internal rate of return is within NRG’s 12% to 15% target range, implying an approximately 6-times build multiple at projected run-rate EBITDA.

The initial agreement would have a term of at least 15 years from commercial operation, with potential extensions. Chung said capacity payments would begin immediately upon commercial operation rather than ramping as the data center increases usage.

NRG has secured 5.4 GW of turbine and engineering, procurement and construction capacity through 2032 via GE Vernova and Kiewit. Gaudette said the company’s development pipeline exceeds twice that capacity, with each turbine slot tied to active customer discussions. The company also cited roughly 2 GW of upgrade opportunities across its PJM fleet.

Capital Plan Shifts Funds Toward New Build NRG updated its 2026 capital allocation plan to include $721 million of expected spending on the Texas new-build project. Of that amount, $40 million was reclassified from plant and other investments, while $681 million represents incremental spending funded by reducing planned liability management.

The revised approach means less net debt reduction in 2026 than previously planned, but management said its shareholder-return plans remain unchanged. NRG continues to expect at least $1 billion of annual share repurchases and $407 million in common dividends for 2026. During the first half, the company repurchased $921 million of shares and paid $202 million in dividends.

NRG expects cumulative project investment of about $800 million through the end of 2026, including prior reservation payments, followed by $1 billion in 2027, $1.1 billion in 2028 and $300 million in 2029. About 60% of total investment relates to EPC costs, with the remainder allocated to turbine equipment and other project costs.

Chung said NRG’s base case is to fund the project through operating cash flow and balance-sheet capacity. Under that approach, reaching the company’s 3-times net leverage target would shift from 2028 to 2029. The company may also consider financial partners to improve capital efficiency, though no such arrangement has been announced.

Second-Quarter Results Reflect Acquired Assets, Texas Weakness Adjusted EBITDA rose $308 million year over year, driven primarily by the portfolio acquired from LS Power, higher PJM capacity values and Smart Home growth. Adjusted net income fell to $315 million from $339 million, while adjusted earnings per share declined to $1.49 from $1.73, as acquisition-related interest expense and depreciation and amortization offset EBITDA growth.

Free cash flow before growth was $1.025 billion, up $111 million from the prior-year quarter. Texas adjusted EBITDA declined $131 million, reflecting lower load and power prices. East adjusted EBITDA increased $370 million, primarily due to the LS Power portfolio acquisition. West adjusted EBITDA increased $27 million, aided by lower operating expenses after a facility lease expired last year. Smart Home adjusted EBITDA increased $42 million; customer count reached 2.45 million, up 8% year over year. In Texas, ERCOT Houston around-the-clock prices averaged $33 per megawatt-hour during the quarter, down 8% from a year earlier and below NRG’s $52 planning assumption for 2026. Lower prices and limited volatility reduced generation dispatch and portfolio optimization opportunities, Chung said.

In the East, legacy hedges associated with the acquired assets limited NRG’s ability to fully capture higher PJM power prices. The company also cited higher retail supply costs and an estimated $70 million of incremental 2026 costs associated with Virginia’s return to the Regional Greenhouse Gas Initiative, affecting 1.2 GW of acquired Virginia assets.

Guidance Reaffirmed NRG reaffirmed its 2026 guidance ranges, although Chung said first-half results indicate performance is tracking below the midpoint. He said the company has limited unhedged exposure for the remainder of the year and does not depend on a material recovery in commodity prices to remain within its guidance ranges.

Management said the proposed Texas project is not included in NRG’s previously issued long-term framework, which calls for adjusted EPS compound annual growth of more than 14% through 2030 from the base business. Gaudette said the company intends to maintain its return thresholds and credit protections as it evaluates additional large-load generation projects.

About NRG Energy (NYSE:NRG)NRG Energy NYSE: NRG is a U.S.-based integrated power company headquartered in Houston, Texas. The company develops, owns and operates a diversified portfolio of power generation assets and participates in wholesale and retail energy markets. NRG supplies electricity to utilities, commercial and industrial customers, and retail consumers, while also providing energy-related products and services designed to manage consumption and support reliability.

NRG's generation mix includes conventional thermal plants as well as renewable and distributed energy resources.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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HOUSTON--(BUSINESS WIRE)--NRG Energy, Inc. (NYSE: NRG) today announced financial results for the second quarter ended June 30, 2026, and reports GAAP Net Income of $506 million, GAAP Earnings per Share (EPS) — basic of $2.32, and GAAP Cash Provided by Operating Activities of $1,117 million. The Company's non-GAAP metrics are Adjusted Net Income of $315 million, Adjusted EPS of $1.49, Adjusted EBITDA of $1,217 million, and Free Cash Flow before Growth Investments (FCFbG) of $1,025 million for the second quarter of 2026.

“Today we provided a progress update on our Bring Your Own Power data center strategy,” said Robert Gaudette, President & CEO. “This is the model for how large load growth should work. The customer supports the investment, with reliability and affordability protected for all. We also delivered a solid second quarter and are reaffirming our 2026 guidance. I am confident in the discipline and execution that continue to drive NRG forward.”

Consolidated Financial Results

Table 1:

Three Months Ended

Six Months Ended

(In millions, except per share amounts)

6/30/2026

6/30/2025

6/30/2026

6/30/2025

GAAP Net Income/(Loss)

$

506

$

(104

)

$

631

$

646

Adjusted Net Incomea b

$

315

$

339

$

623

$

870

GAAP EPS — basicc

$

2.32

$

(0.62

)

$

2.86

$

3.11

Adjusted EPSa d

$

1.49

$

1.73

$

2.98

$

4.42

Adjusted EBITDAa

$

1,217

$

909

$

2,297

$

2,035

GAAP Cash Provided by Operating Activities

$

1,117

$

451

$

948

$

1,306

Free Cash Flow Before Growth Investments (FCFbG)a

$

1,025

$

914

$

959

$

1,207

a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-1 through A-6 for GAAP reconciliations. Adjusted EPS, Adjusted Net Income, and Adjusted EBITDA exclude fair value adjustments related to derivatives

b Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see Appendix tables A-1 through A-4

c GAAP Net Income/(Loss) per Weighted Average Common Share - Basic

d Adjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic

NRG reported GAAP Net Income of $506 million for the second quarter of 2026, an increase of $610 million from the prior year. The improvement was due to the addition of the portfolio of assets acquired from LS Power and higher realized capacity prices in the East, partially offset by milder weather and higher supply costs. Results also benefited from unrealized, non-cash gains on economic hedges, primarily in the East, compared to losses in the prior year. These hedge positions are adjusted to market value each period, while the related customer contracts are not. As a result, the accounting treatment can result in temporary unrealized gains or losses that may differ from expected results when the contracts settle.

Adjusted Net Income for the second quarter 2026 is $315 million, $24 million lower than prior year, primarily driven by higher interest expense and depreciation and amortization related to the acquisition of the portfolio of assets acquired from LS Power, partially offset by a $308 million increase in Adjusted EBITDA, the impacts of which are described in the segment results below. Adjusted EPS is $1.49 for the second quarter 2026, $0.24 lower than prior year. The second quarter 2026 Adjusted EPS results include the financial impacts from Adjusted Net Income and impacts of shares issued as part of the completed acquisition of generation assets and CPower from LS Power.

Reaffirming 2026 Guidance

NRG is reaffirming its guidance for 2026 as set forth below.

Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2026a

2026

(In millions, except per share amounts)

Guidance

Adjusted Net Income

$1,685 - $2,115

Adjusted EPS

$7.90 - $9.90

Adjusted EBITDA

$5,325 - $5,825

FCFbG

$2,800 - $3,300

a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 and A-9 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year.

2026 Capital Allocation

The Company plans to return $1.0 billion to shareholders through share repurchases and approximately $407 million through common stock dividends in 2026, as part of its previously announced 2026 capital allocation plan. Through July 31, 2026, the Company completed $932 million in share repurchases and distributed $202 million in common stock dividends.

On July 22, 2026, NRG declared a quarterly dividend of $0.475 per common share, or $1.90 per share on an annualized basis. The dividend is payable on August 17, 2026 to common stockholders of record as of August 3, 2026.

NRG's share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of common stock repurchased under the share repurchase authorization will be determined by NRG’s management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company’s ability to maintain satisfactory credit ratings.

NRG Strategic Developments

Advanced BYOP Data Center Strategy

NRG advanced its Bring Your Own Power (BYOP) strategy with a leading global cloud and AI hyperscaler. The parties are aligned on principal commercial terms for the development of a 1.2 GW combined cycle natural gas generation facility in Texas and remains subject to final documentation and approvals. This update highlights NRG's BYOP strategy of meeting large load growth through customer-backed generation investment to support grid reliability, energy affordability, and local communities.

Texas Energy Fund (TEF)

On May 26, 2026, NRG achieved commercial operations at its first project, the 415 MW T.H. Wharton facility. The project satisfied the eligibility requirements for the completion bonus grant program, and on June 17, 2026, the Company entered into a completion bonus grant agreement with the PUCT for T.H. Wharton for up to $54.72 million, to be paid in ten annual installments, subject to performance of the facility, beginning after the initial test period ends on May 31, 2027. NRG's two additional TEF projects remain on time and on budget. Through the program, NRG plans to bring online a total of 1.5 GW of new, reliable, affordable power generation by mid-2028 to support the increasing energy demands of Texas consumers.

Segment Results

Table 3: Adjusted EBITDAa

(In millions)

Three Months Ended

Six Months Ended

Segment

6/30/2026

6/30/2025

6/30/2026

6/30/2025

Texas

$

381

$

512

$

597

$

811

East

469

99

933

573

West/Otherb

66

39

172

112

Vivint Smart Home

301

259

595

539

Adjusted EBITDA

$

1,217

$

909

$

2,297

$

2,035

a Adjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1 through A-4 for GAAP reconciliation of Adjusted EBITDA (by operating segment) to GAAP Net Income (by operating segment). Adjusted EBITDA excludes fair value adjustments related to derivatives

b Includes Corporate activities

Texas: Second quarter 2026 Adjusted EBITDA was $381 million, $131 million lower than the prior year. For the first six months of 2026, Adjusted EBITDA was $597 million, $214 million lower than prior year. Results were primarily driven by higher supply costs, mild winter weather, including a ~30% decrease in heating degree days as compared to prior year leading to lower retail load, and additional operating expenses for the new generation assets.

East: Second quarter 2026 Adjusted EBITDA was $469 million, $370 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $933 million, $360 million higher than prior year. Results were primarily driven by contribution of the new generation assets and CPower and higher capacity prices for owned generation, partially offset by higher power supply costs during Winter Storm Fern and lower natural gas margins.

West/Other: Second quarter 2026 Adjusted EBITDA was $66 million, $27 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $172 million, $60 million higher than prior year. The increase was primarily driven by lower operating expenses associated with a lease expiration in May 2025.

Vivint Smart Home: Second quarter 2026 Adjusted EBITDA was $301 million, $42 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $595 million, $56 million higher than prior year. The increase for both the quarter and the first six months of 2026 is attributable to higher new customer adds and an increase in monthly recurring service margin per customer.

Liquidity and Capital Resources

Table 4: Corporate Liquidity

(In millions)

6/30/26

12/31/25

Cash and Cash Equivalents

$

162

$

4,708

Restricted Cash

50

30

Total

$

212

$

4,738

Total availability under revolving credit facility and collective collateral facilitiesa

5,068

4,890

Total liquidity, excluding funds deposited by counterparties

$

5,280

$

9,628

a Total capacity of the revolving credit facility and collective collateral facilities was $9.0 billion and $7.7 billion as of June 30, 2026 and December 31, 2025, respectively

As of June 30, 2026, NRG's unrestricted cash was approximately $0.2 billion, and $5.1 billion was available under the Company’s credit facilities. Total liquidity was $5.3 billion, which was $4.3 billion lower than December 31, 2025, primarily driven by funding of the acquisition of generation assets and CPower from LS Power.

Earnings Conference Call

On August 4, 2026, NRG will host a conference call at 9:00 a.m. Eastern (8:00 a.m. Central) to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials through the investor relations website under “presentations and webcasts” on investors.nrg.com. The webcast will be archived on the site for those unable to listen in real-time.

About NRG

NRG is a leading provider of electricity, natural gas, and smart home solutions to eight million customers across North America. The company operates a customer-first platform supported by a diversified supply strategy and the safe, reliable operation of approximately 25 GW of power generation. NRG plays a meaningful role in competitive energy markets and our innovative team is creating the flexible and affordable solutions that households and large businesses need today and in the future.

Forward-Looking Statements

In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about NRG's future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, the imposition of tariffs, the escalation of international trade disputes, and the occurrence or re-escalation of geopolitical conflicts (including the hostilities with Iran and the conflicts in the Middle East) and inflationary impacts resulting therefrom, risks associated with the integration of the portfolio of assets acquired from LS Power, including potential disruption to ongoing operations and other transition difficulties, the inability of the combined company to realize expected synergies and benefits of integration (or that it takes longer than expected) which may result in the combined company not operating as effectively as expected, the emergence of hazards customary in the power industry, weather conditions and extreme weather events, competition in wholesale power, gas and smart home markets, the volatility of energy and fuel prices, the volatility in demand for power and gas, customer affordability concerns that may constrain the pricing of NRG's products and services and limit its ability to recover costs, the failure of customers or counterparties to perform under contracts, changes in the wholesale power and gas markets, the failure of NRG’s expectations regarding load growth to materialize, changes in government or market regulations, the condition of capital markets generally and NRG’s ability to access capital markets, NRG’s ability to execute its supply strategy, risks related to data privacy, cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated outages at NRG’s generation facilities, operational and reputational risks related to the use of artificial intelligence and the adherence to developing laws and regulations related to the use thereof, NRG’s ability to achieve its net debt targets, adverse results in current and future litigation, complaints, product liability claims and/or adverse publicity, failure to identify, execute or successfully implement acquisitions or asset sales, risks of the smart home and security industry, including risks of and publicity surrounding the sales, customer origination and retention process, the impact of changes in consumer spending patterns, consumer preferences, geopolitical tensions, demographic trends, supply chain disruptions, NRG’s ability to implement value enhancing improvements to plant operations and company wide processes, NRG’s ability to achieve or maintain investment grade credit metrics, NRG’s ability to execute definitive agreements for, and proceed with or complete, proposed projects (including the data center project) on the contemplated terms, timeline and budget, the inability to maintain or create successful partnering relationships, NRG’s ability to operate its business efficiently, NRG’s ability to retain customers, the ability to successfully integrate businesses of acquired assets or companies (including the portfolio acquisition from LS Power), NRG’s ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, NRG’s ability to execute its capital allocation plan, and the other risks and uncertainties discussed in this release and in our Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC"). Achieving investment grade credit metrics is not an indication of or guarantee that NRG will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Adjusted EBITDA, adjusted cash provided by operating activities, Free Cash Flow before Growth Investments, Adjusted Net Income, and Adjusted EPS guidance are estimates as of August 4, 2026. These estimates are based on assumptions NRG believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the SEC at www.sec.gov. For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in NRG’s most recent Annual Report on Form 10-K, and in subsequent SEC filings. NRG’s forward-looking statements speak only as of the date of this communication or as of the date they are made.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

  Three months ended June 30,

Six months ended June 30,

(In millions, except per share amounts)

2026

2025

2026

2025

Revenue

Revenue

$

7,481

$

6,740

$

17,737

$

15,325

Operating Costs and Expenses

Cost of operations (excluding depreciation and amortization shown below)

5,470

5,629

14,328

12,190

Depreciation and amortization

494

344

926

670

Selling, general and administrative costs (excluding amortization of customer acquisition costs of $93, $68, $180, and $133 respectively, which are included in depreciation and amortization shown separately above)

562

724

1,155

1,273

Acquisition-related transaction and integration costs

16

43

61

51

Total operating costs and expenses

6,542

6,740

16,470

14,184

Gain/(Loss) on sale of assets

37

—

37

(7

)

Operating Income

976

—

1,304

1,134

Other Income/(Expense)

Other income, net

6

5

46

19

Loss on debt extinguishment

(9

)

(10

)

(9

)

(10

)

Interest expense

(310

)

(148

)

(595

)

(311

)

Total other expense

(313

)

(153

)

(558

)

(302

)

Income/(Loss) Before Income Taxes

663

(153

)

746

832

Income tax expense/(benefit)

157

(49

)

115

186

Net Income/(Loss)

$

506

$

(104

)

$

631

$

646

Less: Cumulative dividends attributable to Series A Preferred Stock

17

17

34

34

Net Income/(Loss) Available for Common Stockholders

$

489

$

(121

)

$

597

$

612

Income/(Loss) per Share

Weighted average number of common shares outstanding — basic

211

196

209

197

Income/(Loss) per Weighted Average Common Share — Basic

$

2.32

$

(0.62

)

$

2.86

$

3.11

Weighted average number of common shares outstanding — diluted

212

196

210

203

Income/(Loss) per Weighted Average Common Share — Diluted

$

2.31

$

(0.62

)

$

2.84

$

3.01

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(Unaudited)

  Three months ended June 30,

Six months ended June 30,

(In millions)

2026

2025

2026

2025

Net Income/(Loss)

$

506

$

(104

)

$

631

$

646

Other Comprehensive (Loss)/Income

Foreign currency translation adjustments

(3

)

13

(4

)

15

Defined benefit plans

—

1

(2

)

1

Other comprehensive (loss)/income

(3

)

14

(6

)

16

Comprehensive Income/(Loss)

$

503

$

(90

)

$

625

$

662

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

  June 30, 2026

December 31, 2025

(In millions, except share data)

(Unaudited)

(Audited)

ASSETS

Current Assets

Cash and cash equivalents

$

162

$

4,708

Funds deposited by counterparties

167

260

Restricted cash

50

30

Accounts receivable, net

3,534

4,065

Inventory

793

461

Derivative instruments

3,188

2,189

Cash collateral paid in support of energy risk management activities

441

365

Prepayments and other current assets

1,318

1,069

Total current assets

9,653

13,147

Property, plant and equipment, net

14,076

3,632

Other Assets

Operating lease right-of-use assets, net

142

130

Goodwill

8,815

5,017

Customer relationships, net

1,177

1,203

Other intangible assets, net

963

1,106

Derivative instruments

1,617

1,568

Deferred income taxes

1,725

1,843

Other non-current assets

1,772

1,494

Total other assets

16,211

12,361

Total Assets

$

39,940

$

29,140

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Current portion of long-term debt and finance leases

$

1,512

$

31

Current portion of operating lease liabilities

41

35

Accounts payable

2,579

2,834

Derivative instruments

3,120

2,257

Cash collateral received in support of energy risk management activities

167

260

Deferred revenue current

837

748

Accrued expenses and other current liabilities

1,719

1,864

Total current liabilities

9,975

8,029

Other Liabilities

Long-term debt and finance leases

21,744

16,412

Non-current operating lease liabilities

170

144

Derivative instruments

1,327

1,103

Deferred income taxes

15

15

Deferred revenue non-current

984

895

Other non-current liabilities

870

861

Total other liabilities

25,110

19,430

Total Liabilities

35,085

27,459

Commitments and Contingencies

Stockholders’ Equity

Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at June 30, 2026 and December 31, 2025, aggregate liquidation preference of $650; at June 30, 2026 and December 31, 2025

650

650

Common stock; $0.01 par value; 500,000,000 shares authorized; 225,198,900 and 199,828,615 shares issued and 210,307,902 and 190,376,607 shares outstanding at June 30, 2026 and December 31, 2025, respectively

2

2

Additional paid-in-capital

3,880

215

Retained earnings

2,374

1,982

Treasury stock, at cost; 14,890,998 shares and 9,452,008 shares at June 30, 2026, and December 31, 2025, respectively

(1,964

)

(1,087

)

Accumulated other comprehensive loss

(87

)

(81

)

Total Stockholders’ Equity

4,855

1,681

Total Liabilities and Stockholders’ Equity

$

39,940

$

29,140

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

  Six months ended June 30,

(In millions)

2026

2025

Cash Flows from Operating Activities

Net income

$

631

$

646

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation of property, plant and equipment and amortization of customer relationships and other intangible assets

602

444

Amortization of capitalized contract costs

324

226

Accretion of asset retirement obligations

17

20

Provision for credit losses

104

113

Amortization of financing costs and debt discounts/premiums

10

13

Loss on debt extinguishment

9

10

Amortization of in-the-money contracts and emissions allowances

47

51

Amortization of unearned equity compensation

72

62

Net (gain)/loss on sale of assets and disposal of assets

(38

)

10

Gain on proceeds from insurance recoveries for Property, plant and equipment, net

—

(100

)

Changes in derivative instruments

(61

)

18

Changes in current and deferred income taxes and liability for uncertain tax benefits

(33

)

126

Changes in collateral deposits in support of risk management activities

14

197

Changes in other working capital:

Accounts receivable, net

910

(17

)

Inventory

(156

)

16

Prepayments and other current assets

(441

)

(368

)

Accounts payable

(780

)

(39

)

Accrued expenses and other current liabilities

(164

)

(120

)

Other assets and liabilities

(119

)

(2

)

Cash provided by operating activities

$

948

$

1,306

Cash Flows from Investing Activities

Payments for acquisitions of businesses and assets, net of cash acquired

$

(7,101

)

$

(586

)

Capital expenditures

(655

)

(595

)

Proceeds from sales of assets, net

44

6

Purchases of emissions allowances

(41

)

(10

)

Sales of emissions allowances

44

3

Proceeds from insurance recoveries for Property, plant and equipment, net

—

100

Cash used in investing activities

$

(7,709

)

$

(1,082

)

Cash Flows from Financing Activities

Equivalent shares purchased in lieu of tax withholdings

$

(99

)

$

(77

)

Payments for share repurchase activity and excise tax

(931

)

(603

)

Payments of dividends to preferred and common stockholders

(235

)

(207

)

Proceeds from issuance of long-term debt

3,652

—

Repayments of long-term debt and finance leases

(1,619

)

(10

)

Payments for debt extinguishment costs

(9

)

—

Payments of deferred financing costs

(84

)

(31

)

Net receipts from settlement of acquired derivatives that include financing elements

16

38

Proceeds from credit facilities

8,675

865

Repayments to credit facilities

(7,226

)

(730

)

Cash provided by/(used in) financing activities

$

2,140

$

(755

)

Effect of exchange rate changes on cash and cash equivalents

2

1

Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash

(4,619

)

(530

)

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period

4,998

1,173

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period

$

379

$

643

Appendix Table A-1: Second Quarter 2026 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Earnings

Per

Share,

Basic 6, 7

Earnings

Per

Share,

Diluted 6, 7

Net Income/(Loss) Available for Common Stockholders

$

289

$

506

$

155

$

71

$

(532

)

$

489

$

2.32

$

2.31

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

17

17

0.08

0.08

Net Income/(Loss)

$

289

$

506

$

155

$

71

$

(515

)

$

506

$

2.40

$

2.39

Plus:

Interest expense, net

—

—

—

—

305

305

1.45

1.44

Income tax expense

—

—

—

—

157

157

0.74

0.74

Loss on debt extinguishment

—

—

—

—

9

9

0.04

0.04

Depreciation and amortization

123

134

7

216

14

494

2.34

2.33

ARO expense

6

4

—

—

—

10

0.05

0.05

Contract and emission credit amortization, net

1

(10

)

1

—

—

(8

)

(0.04

)

(0.04

)

Stock-based compensation1

12

7

1

8

—

28

0.13

0.13

Acquisition and divestiture integration and transaction costs

—

—

—

—

16

16

0.08

0.08

Cost to achieve1

3

—

—

5

12

20

0.09

0.09

Deactivation costs

1

2

—

—

—

3

0.01

0.01

Loss/(gain) on sale of assets

—

6

(43

)

—

—

(37

)

(0.18

)

(0.17

)

Other and non-recurring charges

2

—

1

1

(1

)

3

0.01

0.01

Mark to market (MtM) (gain) on economic hedges2

(56

)

(180

)

(53

)

—

—

(289

)

(1.37

)

(1.36

)

Adjusted EBITDA

$

381

$

469

$

69

$

301

$

(3

)

$

1,217

$

5.77

$

5.74

Adjusted interest expense, net3

—

—

—

—

(313

)

(313

)

(1.48

)

(1.48

)

Depreciation and amortization

(123

)

(134

)

(7

)

(216

)

(14

)

(494

)

(2.34

)

(2.33

)

Adjusted Income before income taxes

258

335

62

85

(330

)

410

1.94

1.93

Adjusted income tax expense4

—

—

—

—

(78

)

(78

)

(0.37

)

(0.37

)

Adjusted Net Income before Preferred Stock dividends

258

335

62

85

(408

)

332

1.57

1.57

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(17

)

(17

)

(0.08

)

(0.08

)

Adjusted Net Income5

$

258

$

335

$

62

$

85

$

(425

)

$

315

$

1.49

$

1.49

1 Stock-based compensation of $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense

2 Gain of $(289) million was primarily driven by the reversal of previously recognized unrealized losses on contracts that settled during the period as well as an increase in the value of open positions in East as a result of increases in RGGI prices

3 Excludes mark-to-market gain on interest hedges of $8 million

4 Income tax calculated using Adjusted effective tax rate (ETR) on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

5 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

6 Items may not sum due to rounding

7 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 211 million and on weighted average number of common shares outstanding - diluted of 212 million for the three months ended June 30, 2026

Second Quarter 2026 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Revenue1

$

2,747

$

3,484

$

644

$

587

$

(13

)

$

7,449

Cost of fuel, purchased power and other cost of sales2

1,886

2,682

538

60

(6

)

5,160

Economic gross margin

861

802

106

527

(7

)

2,289

Operations & maintenance and other cost of operations3

294

180

11

75

(1

)

559

Selling, marketing, general and administrative4

187

152

27

151

(2

)

515

Other

(1

)

1

(1

)

—

(1

)

(2

)

Adjusted EBITDA

$

381

$

469

$

69

$

301

$

(3

)

$

1,217

Adjusted interest expense, net5

—

—

—

—

(313

)

(313

)

Depreciation and amortization

(123

)

(134

)

(7

)

(216

)

(14

)

(494

)

Adjusted Income before income taxes

258

335

62

85

(330

)

410

Adjusted income tax expense5

—

—

—

—

(78

)

(78

)

Adjusted Net Income before Preferred Stock dividends

258

335

62

85

(408

)

332

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(17

)

(17

)

Adjusted Net Income5

$

258

$

335

$

62

$

85

$

(425

)

$

315

Weighted average number of common shares outstanding - basic

211

Adjusted EPS

$

1.49

1 Excludes MtM gain of $(18) million and contract amortization of $(14) million

2 Includes TDSP expense, capacity and emission credits

3 Excludes ARO expense of $10 million, deactivation costs of $3 million, stock-based compensation of $2 million and other and non-recurring charges of $1 million

4 Excludes stock-based compensation of $26 million, cost to achieve of $20 million and other and non-recurring charges of $1 million

5 See previous table for details

Appendix Table A-2: Second Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Earnings

Per

Share,

Basic 8, 9

Earnings

Per

Share,

Diluted 8, 9

Net Income/(Loss) Available for Common Stockholders

$

381

$

(346

)

$

142

$

(115

)

$

(183

)

$

(121

)

$

(0.62

)

$

(0.62

)

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

17

17

0.09

0.09

Net Income/(Loss)

$

381

$

(346

)

$

142

$

(115

)

$

(166

)

$

(104

)

$

(0.53

)

$

(0.53

)

Plus:

Interest expense, net

—

—

—

—

141

141

0.72

0.70

Income tax (benefit)

—

—

—

—

(49

)

(49

)

(0.25

)

(0.24

)

Loss on debt extinguishment

—

—

—

—

10

10

0.05

0.05

Depreciation and amortization

93

36

9

195

11

344

1.76

1.70

ARO expense

14

16

—

—

—

30

0.15

0.15

Contract and emission credit amortization, net

3

(2

)

2

—

—

3

0.02

0.01

Stock-based compensation1

9

3

1

15

—

28

0.14

0.14

Acquisition and divestiture integration and transaction costs1

—

—

—

—

40

40

0.20

0.20

Cost to achieve

—

—

—

—

4

4

0.02

0.02

Deactivation costs

5

5

—

—

—

10

0.05

0.05

Other and non-recurring charges2

1

(1

)

3

164

2

169

0.86

0.84

Mark to market (MtM) loss/(gain) on economic hedges3

6

388

(111

)

—

—

283

1.44

1.40

Dilutive impact adjustment on Net (Loss) Available for Common Stockholders4

0.02

Adjusted EBITDA

$

512

$

99

$

46

$

259

$

(7

)

$

909

$

4.64

$

4.50

Adjusted interest expense, net5

—

—

—

—

(136

)

(136

)

(0.69

)

(0.67

)

Depreciation and amortization

(93

)

(36

)

(9

)

(195

)

(11

)

(344

)

(1.76

)

(1.70

)

Adjusted Income before income taxes

419

63

37

64

(154

)

429

2.19

2.12

Adjusted income tax expense6

—

—

—

—

(73

)

(73

)

(0.37

)

(0.36

)

Adjusted Net Income before Preferred Stock dividends

419

63

37

64

(227

)

356

1.82

1.76

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(17

)

(17

)

(0.09

)

(0.08

)

Adjusted Net Income7

$

419

$

63

$

37

$

64

$

(244

)

$

339

$

1.73

$

1.68

1 Stock-based compensation of $5 million is reflected in acquisition and divestiture integration and transaction costs. Stock-based compensation includes employee stock purchase plan expense

2 Includes $163 million of reserves for legal matters

3 Loss of $283 million was primarily driven by unrealized non-cash mark-to-market loss on economic hedges due to declines in forward natural gas and northeast power prices

4 Includes the potential dilutive impacts of the Convertible Senior Notes of 4 million shares and equity compensation of 2 million shares for the three months ended June 30, 2025. Under GAAP when there is a net loss, dilutive securities are not included in the diluted share count as they are anti-dilutive. As Adjusted Net Income is in an income position and not a loss position, this line item reflects the impact of the anti-dilutive securities as if they were dilutive

5 Excludes mark-to-market loss on interest hedges of $5 million

6 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

8 Items may not sum due to rounding

9 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 196 million and on weighted average number of common shares outstanding - diluted of 202 million as if they were dilutive for the three months ended June 30, 2025

Second Quarter 2025 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Revenue1

$

2,846

$

2,735

$

646

$

522

$

(8

)

$

6,741

Cost of fuel, purchased power and other cost of sales2

1,846

2,367

526

55

(2

)

4,792

Economic gross margin

1,000

368

120

467

(6

)

1,949

Operations & maintenance and other cost of operations3

284

121

42

61

2

510

Selling, marketing, general & administrative4

204

149

34

147

(1

)

533

Other

—

(1

)

(2

)

—

—

(3

)

Adjusted EBITDA

$

512

$

99

$

46

$

259

$

(7

)

$

909

Adjusted interest expense, net5

—

—

—

—

(136

)

(136

)

Depreciation and amortization

(93

)

(36

)

(9

)

(195

)

(11

)

(344

)

Adjusted Income before income taxes

419

63

37

64

(154

)

429

Adjusted income tax expense5

—

—

—

—

(73

)

(73

)

Adjusted Net Income before Preferred Stock dividends

419

63

37

64

(227

)

356

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(17

)

(17

)

Adjusted Net Income5

$

419

$

63

$

37

$

64

$

(244

)

$

339

Weighted average number of common shares outstanding - basic

196

Adjusted EPS

$

1.73

1 Excludes MtM loss of $1 million

2 Includes TDSP expense, capacity and emission credits

3 Excludes ARO expense of $30 million, deactivation costs of $10 million and stock-based compensation of $2 million

4 Excludes other and non-recurring charges of $164 million, stock-based compensation of $26 million, cost to achieve of $4 million and acquisition and divestiture integration and transaction costs of $(3) million

5 See previous table for details

Appendix Table A-3: YTD Second Quarter 2026 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Earnings

Per

Share,

Basic 6,7

Earnings

Per

Share,

Diluted 6,7

Net Income/(Loss) Available for common stockholders

$

318

$

744

$

200

$

146

$

(811

)

$

597

$

2.86

$

2.84

Cumulative Dividends attributable to Series A Preferred Stock

—

—

—

—

34

34

0.16

0.16

Net Income/(Loss)

$

318

$

744

$

200

$

146

$

(777

)

$

631

$

3.02

$

3.00

Plus:

Interest expense, net

—

—

—

—

546

546

2.61

2.60

Income tax expense

—

—

—

—

115

115

0.55

0.55

Loss on debt extinguishment

—

—

—

—

9

9

0.04

0.04

Depreciation and amortization

231

236

15

416

28

926

4.43

4.41

ARO expense

9

8

—

—

—

17

0.08

0.08

Contract and emission credit amortization, net

3

(2

)

2

—

—

3

0.01

0.01

Stock-based compensation1

33

18

2

18

—

71

0.34

0.34

Acquisition and divestiture integration and transaction costs

—

—

—

—

61

61

0.29

0.29

Cost to achieve1

5

—

—

11

13

29

0.14

0.14

Deactivation costs

1

3

—

—

—

4

0.02

0.02

Loss/(gain) on sale of assets

—

6

(43

)

—

—

(37

)

(0.18

)

(0.18

)

Other and non-recurring charges

2

—

—

4

—

6

0.03

0.03

Mark to market (MtM) (gain)/loss on economic hedges2

(5

)

(80

)

1

—

—

(84

)

(0.40

)

(0.40

)

Adjusted EBITDA

$

597

$

933

$

177

$

595

$

(5

)

$

2,297

$

10.99

$

10.94

Adjusted Interest expense, net3

—

—

—

—

(560

)

(560

)

(2.68

)

(2.67

)

Depreciation and amortization

(231

)

(236

)

(15

)

(416

)

(28

)

(926

)

(4.43

)

(4.41

)

Adjusted Income before income taxes

366

697

162

179

(593

)

811

3.88

3.86

Adjusted income tax expense4

—

—

—

—

(154

)

(154

)

(0.74

)

(0.73

)

Adjusted Net Income before Preferred Stock dividends

366

697

162

179

(747

)

657

3.14

3.13

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(34

)

(34

)

(0.16

)

(0.16

)

Adjusted Net Income5

$

366

$

697

$

162

$

179

$

(781

)

$

623

$

2.98

$

2.97

1 Stock-based compensation of $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense

2 Gain of $(84) million was primarily driven by the reversal of previously recognized unrealized losses on contracts that settled during the period as well as an increase in the value of open positions in East as a result of increases in RGGI prices, partially offset by a decrease in the value of open positions in West/Other as a result of decreases in natural gas price and CAISO and Alberta power prices

3 Excludes mark-to-market gain on interest hedges of $14 million

4 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

5Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

6 Items may not sum due to rounding

7 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 209 million and on weighted average number of common shares outstanding - diluted of 210 million for the six months ended June 30, 2026

YTD Second Quarter 2026 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Revenue1

$

5,140

$

9,954

$

1,508

$

1,165

$

(26

)

$

17,741

Cost of fuel, purchased power and other cost of sales2

3,594

8,353

1,249

112

(7

)

13,301

Economic gross margin

1,546

1,601

259

1,053

(19

)

4,440

Operations & maintenance and other cost of operations3

564

349

25

146

(1

)

1,083

Selling, general and administrative costs4

385

319

56

312

(11

)

1,061

Other

—

—

1

—

(2

)

(1

)

Adjusted EBITDA

$

597

$

933

$

177

$

595

$

(5

)

$

2,297

Adjusted interest expense, net5

—

—

—

—

(560

)

(560

)

Depreciation and amortization

(231

)

(236

)

(15

)

(416

)

(28

)

(926

)

Adjusted Income before income taxes

366

697

162

179

(593

)

811

Adjusted income tax expense5

—

—

—

—

(154

)

(154

)

Adjusted Net Income before Preferred Stock dividends

366

697

162

179

(747

)

657

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(34

)

(34

)

Adjusted Net Income5

$

366

$

697

$

162

$

179

$

(781

)

$

623

Weighted average number of common shares outstanding - basic

209

Adjusted EPS

$

2.98

1 Excludes MtM loss of $24 million and contract amortization of $(20) million

2 Includes TDSP expense, capacity and emission credits

3 Excludes ARO expense of $17 million, stock-based compensation of $7 million, deactivation costs of $4 million and other and non-recurring charges of $1 million

4 Excludes stock-based compensation of $64 million, cost to achieve of $29 million and other and non-recurring charges of $1 million

5 See previous table for details

Appendix Table A-4: YTD Second Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Earnings

Per

Share,

Basic 7, 8

Earnings

Per

Share,

Diluted 7, 8

Net Income/(Loss) Available for Common Stockholders

$

718

$

359

$

208

$

(61

)

$

(612

)

$

612

$

3.11

$

3.01

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

34

34

0.17

0.17

Net Income/(Loss)

$

718

$

359

$

208

$

(61

)

$

(578

)

$

646

$

3.28

$

3.18

Plus:

Interest expense, net

—

—

—

—

290

290

1.47

1.43

Income tax expense

—

—

—

—

186

186

0.94

0.92

Loss on debt extinguishment

—

—

—

—

10

10

0.05

0.05

Depreciation and amortization

176

73

18

381

22

670

3.40

3.30

ARO expense

18

2

—

—

—

20

0.10

0.10

Contract and emission credit amortization, net

4

27

2

—

—

33

0.17

0.16

Stock-based compensation1

18

7

2

28

—

55

0.28

0.27

Acquisition and divestiture integration and transaction costs1

—

—

—

1

50

51

0.26

0.25

Cost to achieve1

—

—

—

—

7

7

0.04

0.03

Deactivation costs

8

7

—

—

—

15

0.08

0.07

Loss on sale of assets

—

—

7

—

—

7

0.04

0.03

Other and non-recurring charges2

(99

)

(1

)

4

190

(1

)

93

0.47

0.46

Mark to market (MtM) (gain)/loss on economic hedges3

(32

)

99

(115

)

—

—

(48

)

(0.24

)

(0.24

)

Adjusted EBITDA

$

811

$

573

$

126

$

539

$

(14

)

$

2,035

$

10.33

$

10.02

Adjusted interest expense, net4

—

—

—

—

(276

)

(276

)

(1.40

)

(1.36

)

Depreciation and amortization

(176

)

(73

)

(18

)

(381

)

(22

)

(670

)

(3.40

)

(3.30

)

Adjusted Income before income taxes

635

500

108

158

(312

)

1,089

5.53

5.36

Adjusted income tax expense5

—

—

—

—

(185

)

(185

)

(0.94

)

(0.91

)

Adjusted Net Income before Preferred Stock dividends

635

500

108

158

(497

)

904

4.59

4.45

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(34

)

(34

)

(0.17

)

(0.17

)

Adjusted Net Income6

$

635

$

500

$

108

$

158

$

(531

)

$

870

$

4.42

$

4.29

1 Stock-based compensation of $6 million is reflected in acquisition and divestiture integration and transaction costs and $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense

2 Includes $(100) million of property insurance proceeds and $180 million of reserves for legal matters

3 Gain of $(48) million was primarily driven by unrealized non-cash mark-to-market gains on economic hedges in Texas due to increases in ERCOT power prices

4 Excludes mark-to-market loss on interest hedges of $14 million

5 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

7 Items may not sum due to rounding

8 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 197 million and on weighted average number of common shares outstanding - diluted of 203 million for the six months ended June 30, 2025

YTD Second Quarter 2025 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart

Home

Corp/

Elim

Total

Revenue1

$

5,281

$

7,336

$

1,714

$

1,033

$

(18

)

$

15,346

Cost of fuel, purchased power and other cost of sales2

3,544

6,227

1,451

91

(5

)

11,308

Economic gross margin

1,737

1,109

263

942

(13

)

4,038

Operations & maintenance and other cost of operations3

526

252

76

123

1

978

Selling, marketing, general & administrative4

400

288

67

280

—

1,035

Other

—

(4

)

(6

)

—

—

(10

)

Adjusted EBITDA

$

811

$

573

$

126

$

539

$

(14

)

$

2,035

Adjusted interest expense, net5

—

—

—

—

(276

)

(276

)

Depreciation and amortization

(176

)

(73

)

(18

)

(381

)

(22

)

(670

)

Adjusted Income before income taxes

635

500

108

158

(312

)

1,089

Adjusted income tax expense5

—

—

—

—

(185

)

(185

)

Adjusted Net Income before Preferred Stock dividends

635

500

108

158

(497

)

904

Cumulative dividends attributable to Series A Preferred Stock

—

—

—

—

(34

)

(34

)

Adjusted Net Income5

$

635

$

500

$

108

$

158

$

(531

)

$

870

Weighted average number of common shares outstanding - basic

197

Adjusted EPS

$

4.42

1 Excludes MtM loss of $16 million and contract amortization of $5 million

2 Includes TDSP expense, capacity and emission credits

3 Excludes ARO expense of $20 million, deactivation costs of $15 million, stock-based compensation of $4 million and other and non-recurring charges of $(99) million

4 Excludes other and non-recurring charges of $180 million, stock-based compensation of $51 million and cost to achieve of $7 million

5 See previous table for details

Appendix Table A-5: Three Months Ended June 30, 2026 and 2025 Free Cash Flow before Growth Investments (FCFbG)

The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:

Three Months Ended

(In millions)

6/30/2026

6/30/2025

Adjusted EBITDA

$

1,217

$

909

Interest payments, net

(221

)

(103

)

Income tax payments

(44

)

(53

)

Gross capitalized contract costs

(387

)

(311

)

Collateral/working capital/other assets and liabilities

552

9

Cash provided by operating activities

1,117

451

Net (payments)/receipts from settlement of acquired derivatives that include financing elements

(3

)

13

Acquisition and divestiture integration and transaction costs1

38

29

Adjustment for change in collateral

(156

)

426

Other2

34

1

Adjusted cash provided by operating activities

1,030

920

Maintenance capital expenditures, net

(79

)

(67

)

Environmental capital expenditures

(8

)

(14

)

Cost of acquisition

82

75

Free Cash Flow before Growth Investments (FCFbG)

$

1,025

$

914

1 Three months ended 6/30/26 includes $16 million from acquisition and divestiture integration and transaction costs and $20 million cost to achieve payments (see Appendix table A-1), plus $2 million cash payments accrued in prior quarter; three months ended 6/30/25 includes $40 million from acquisition and divestiture integration and transaction costs and $4 million cost to achieve payments (see Appendix table A-2), less $15 million non-cash acquisition costs and non-cash stock-based compensation

2 Three months ended 6/30/26 includes a $15 million payment for a legal matter

Appendix Table A-6: Six Months Ended June 30, 2026 and 2025 Free Cash Flow before Growth Investments (FCFbG)

The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:

Six Months Ended

(In millions)

6/30/2026

6/30/2025

Adjusted EBITDA

$

2,297

$

2,035

Interest payments, net

(403

)

(241

)

Income tax payments

(73

)

(60

)

Gross capitalized contract costs

(587

)

(486

)

Collateral/working capital/other assets and liabilities

(286

)

58

Cash provided by operating activities

948

1,306

Net receipts from settlement of acquired derivatives that include financing elements

16

38

Acquisition and divestiture integration and transaction costs1

90

41

Adjustment for change in collateral

(14

)

(197

)

Other2

13

4

Adjusted cash provided by operating activities

1,053

1,192

Maintenance capital expenditures, net3

(173

)

(52

)

Environmental capital expenditures

(13

)

(19

)

Cost of acquisition

92

86

Free Cash Flow before Growth Investments (FCFbG)

$

959

$

1,207

1 Six months ended 6/30/26 includes from Table A-3 $61 million acquisition and divestiture integration and transaction costs, $29 million cost to achieve payments; Six months ended 6/30/25 includes from Table A-4 $51 million acquisition and divestiture integration and transaction costs, $7 million cost to achieve payments, excludes $17 million non-cash acquisition costs and non-cash stock-based compensation

2 Six months ended 6/30/26 includes a $15 million payment for a legal matter

3 Six months ended 6/30/25 is presented net of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment of $100 million

Appendix Table A-7: Six Months Ended June 30, 2026 Sources and Uses of Liquidity

The following table summarizes the sources and uses of liquidity for the six months ended June 30, 2026:

(In millions)

Six months ended June 30, 2026

Sources:

Adjusted cash provided by operating activities

$

1,053

Proceeds from credit facilities

8,675

Proceeds from issuance of long-term debt

3,652

Change in availability under revolving credit facility and collective collateral facilities

178

Cash collateral paid in support of energy risk management activities

108

Proceeds from sales of assets, net

44

Sales of emissions allowances

44

Uses:

Repayments to credit facilities

(7,226

)

Payments for acquisitions of businesses and assets, net of cash acquired

(7,101

)

Repayments of long-term debt and finance leases

(1,619

)

Payments for share repurchase activity and excise tax

(931

)

Investments and integration capital expenditures

(469

)

Payments of dividends to preferred and common stockholders

(235

)

Maintenance and environmental capital expenditures

(186

)

Equivalent shares purchased in lieu of tax withholdings

(99

)

Acquisition and divestiture integration and transaction costs1

(90

)

Payments of deferred financing costs

(84

)

Purchases of emissions allowances

(41

)

Payments for debt extinguishment costs

(9

)

Other

(12

)

Change in Total Liquidity

(4,348

)

1 Six months ended 6/30/26 includes from Table A-3 $61 million acquisition and divestiture integration and transaction costs, $29 million cost to achieve payments

Appendix Table A-8: 2026 Guidance Reconciliation

The following table summarizes the 2026 Guidance calculations of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income:

2026

(In millions, except per share amounts)

Guidance8,9

Net Income1

$1,325 - $1,755

Interest expense, net

1,195

Income tax expense2

490 - 560

Depreciation and amortization3

1,955

ARO expense

30

Stock-based compensation

120

Acquisition and divestiture integration and transaction costs

110

Other4

100

Adjusted EBITDA

$5,325 - $5,825

Adjusted interest expense, net5

(1,195)

Depreciation and amortization3

(1,955)

Adjusted Income before income taxes

$2,175 - $2,675

Adjusted income tax expense6

(423) - (493)

Adjusted Net Income before Preferred Stock dividends

$1,752 - $2,182

Cumulative dividends attributable to Series A Preferred Stock

(67)

Adjusted Net Income7

$1,685 - $2,115

Weighted average number of common shares outstanding - basic

214

Adjusted EPS

$7.90 - $9.90

1 The Company does not guide to Net Income due to the impact of fair value adjustments related to derivatives in a given year. For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero

2 Represents anticipated GAAP income tax

3 Estimates for the acquired LS Power assets are provisional and subject to revisions until evaluations are completed to assess the fair value of long-lived assets

4 Includes adjustments for sale of assets, deactivation costs, and other and non-recurring charges

5 Excludes mark-to-market gains/losses on interest hedges

6 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

8 Items may not sum due to rounding

9 Includes 11 months of ownership of the portfolio acquired from LS Power

Appendix Table A-9: 2026 Guidance Reconciliation

The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:

2026

(In millions)

Guidance4,5

Adjusted EBITDA

$5,325 - $5,825

Interest payments, net1

(1,100)

Income tax payments

(70) - (90)

Gross capitalized contract costs

(1,020)

Working capital/other assets and liabilities2

(135)

Cash provided by operating activities3

$3,000 - $3,480

Acquisition and other costs2

110

Adjusted cash provided by operating activities

$3,110 - $3,590

Maintenance capital expenditures

(450) - (480)

Environmental capital expenditures

(10) - (20)

Cost of acquisition

180

Free Cash Flow before Growth Investments (FCFbG)

$2,800 - $3,300

1 Interest payments, net represents Interest expense, net of $(1,195) million on Appendix table A-8 plus $95 million accrued interest expense not yet paid

2 Working capital/other assets and liabilities includes payments for Acquisition and divestiture integration and transaction costs, which is adjusted in Acquisition and other costs, and includes net deferred revenues

3 Excludes fair value adjustments related to derivatives and changes in collateral deposits in support of risk management activities

4 Items may not sum due to rounding

5 Includes 11 months of ownership of the portfolio acquired from LS Power

Non-GAAP Financial Measures

NRG reports its financial results in accordance with the accounting principles generally accepted in the United States (GAAP) and supplements with certain non-GAAP financial measures. These measures are not recognized in accordance with GAAP and should not be viewed in isolation or as an alternative to GAAP measures of performance. In addition, other companies may calculate non-GAAP financial measures differently than NRG does, limiting their usefulness as a comparative measure.

NRG uses the following non-GAAP measures to provide additional insight into financial performance:

Adjusted EBITDA: Defined as EBITDA (earnings before interest, taxes, depreciation, and amortization, impact of asset retirement obligation expenses and contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances) with further adjustments for stock-based compensation, impairment losses, deactivation costs, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from forward position of economic hedges, gains or losses on the repurchase, modification or extinguishment of debt, restructuring costs, and other non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments or non-controlling interests. Adjusted EBITDA is intended to facilitate period-to-period comparisons and is widely used by investors for performance assessment. Adjusted Net Income: Defined as net income available to common shareholders excluding the impact of asset retirement obligation expenses, contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances, stock-based compensation, impairment losses, deactivation costs, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from forward position of economic hedges, gains or losses on the repurchase, modification or extinguishment of debt, the impact of restructuring and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments and non-controlling interests. Adjusted Earnings per Share (EPS): Defined as Adjusted Net Income, divided by the average basic common shares outstanding. Adjusted Cash Provided/(Used) by Operating Activities: Defined as cash provided/(used) by operating activities with the reclassification of net payments of derivative contracts acquired in business combinations from financing to operating cash flow, as well as the add back of merger, integration, related restructuring costs, adjustment for change in collateral, and the impact of extraordinary, unusual or non-recurring items. Free Cash Flow before Growth Investments: Defined as Adjusted Cash provided/(used) by operating activities less maintenance and environmental capital expenditures, net of funding and insurance recoveries related to property, plant and equipment, and adjustments to exclude cost of acquisition related to growth. Management believes these non-GAAP financial measures are useful to investors and other users of NRG's financial statements in evaluating the Company’s operating performance and growth, as well as the impact of the Company’s capital allocation program. They provide an additional tool to compare business performance across periods and adjust for items that management does not consider indicative of NRG’s future operating performance. Management uses these non-GAAP financial measures to assist in comparing financial performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations, and for evaluating actual results against such expectations, and in communications with NRG's Board of Directors, shareholders, creditors, analysts and investors concerning its financial performance.

More News From NRG Energy, Inc.

Key Takeaways NRG plans $1 billion in 2026 buybacks and nearly $407 million in dividends. NRG will invest about $310 million in growth, including 1.5 GW of Texas Energy Fund projects. Rising AI data-center, manufacturing and electrification demand support NRG's long-term growth. NRG Energy, Inc. (NRG - Free Report) , through systematic capital allocation, utilizes its cash to grow and create shareholder value through reinvestment, debt repayment, acquisitions, dividends and share buybacks. The company is making strategic capital investments across its business segments, generating attractive returns and enhancing shareholder value.

In 2026, NRG Energy plans to return $1.4 billion to shareholders through $1 billion of share repurchases and nearly $407 million in dividends. Rising electricity demand from AI data centers, manufacturing and electrification is strengthening NRG Energy’s long-term growth prospects. Growing investments in AI infrastructure are driving demand for reliable power, creating additional opportunities for the company’s generation business.

The company plans to invest approximately $310 million in growth initiatives during 2026. NRG is advancing 1.5 gigawatts of Texas Energy Fund projects, integrating the LS Power acquisition, expanding opportunities in data centers and providing flexible demand solutions. These investments are expected to drive long-term earnings growth while supporting disciplined capital allocation.

Capital Allocation Strengthens Shareholder ReturnsCapital allocation strengthens shareholder returns by balancing growth investments with disciplined cash deployment. Utilities invest in grid modernization while returning excess cash through dividends and share repurchases. This balanced capital allocation supports earnings growth, boosts per-share value and enhances long-term shareholder returns.

Vistra (VST - Free Report) returned about $600 million through dividends and share repurchases by May 1, 2026. It has repurchased $6.3 billion of shares since 2021, reducing share count by 30%, with $1.5 billion in buyback authorization remaining through 2027.

Constellation Energy (CEG - Free Report) repurchased 1.2 million shares for approximately $335 million in the first quarter of 2026 stock pullback, demonstrating confidence in its long-term value and 
commitment to enhancing shareholder returns.

The Zacks Rundown on NRGNRG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 10.16% and 26.55%, respectively.

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NRG’s Returns on Equity (ROE)NRG Energy's trailing-12-month ROE is 70.67%, ahead of the industry average of 11.21%.

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NRG’s Stock Price PerformanceIn the past month, NRG Energy’s shares have risen 0.2% compared with the industry’s 1% growth.

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NRG’s Zacks Rank