Track market-moving stories before they get noisy

HIGHLIGHTS Amplia has executed a Clinical Trial Collaboration & Supply Agreement (CTCSA) with Eli Lilly & Company, to evaluate the Company's investigational FAK inhibitor narmafotinib in combination with Lilly's late‑stage investigational next generation KRAS inhibitor olomorasib The collaboration is underpinned by narmafotinib's growing base of clinical evidence and a strong scientific rationale that FAK activation is a key driver of resistance to KRAS G12C inhibitors The collaboration further extends narmafotinib beyond pancreatic and ovarian cancer into NSCLC, broadening Amplia's clinical footprint and addressable opportunity Melbourne, Australia, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Amplia Therapeutics Limited (ASX:ATX; OTCQB:INNMF), (“Amplia” or the “Company”), announces that it has entered into a Clinical Trial Collaboration and Supply Agreement (“CTCSA”) with Eli Lilly & Company (“Lilly”), to evaluate the combination of Amplia's investigational FAK inhibitor, narmafotinib, with Lilly's investigational KRAS G12C inhibitor, olomorasib. The Phase 1b/2b clinical trial will evaluate the safety and efficacy of this novel targeted therapy combination as a second line treatment in patients with advanced stage non-small cell lung cancer (NSCLC).

NEAR Protocol co-founder Illia Polosukhin has put forward a proposal to establish a Sovereign Fund seeded with 30 million $NEAR tokens, in what would mark a significant shift in how the network funds its core operations and incentivises participants.

The fund is designed to generate yield, which would then be distributed to validators, security providers, and public goods projects. If the model proves sustainable, it could pave the way for NEAR to eventually adopt a fixed token supply, ending the current inflationary issuance model.

A Break From Inflation-Driven RewardsThe proposal reflects a broader push within the NEAR ecosystem to rethink its tokenomics. Polosukhin has publicly dismissed community proposals to burn tokens held by the NEAR Foundation, arguing that simple token burns have historically failed to deliver meaningful benefits to markets or network ecosystems. Instead, he advocates for a fixed maximum supply model similar to Bitcoin's, which would cap total $NEAR tokens and move away from the current inflationary approach to rewarding validators.

This is not the first time the network has moved in this direction. On October 30, 2025, NEAR's inflation rate was cut from 5% to 2.5% annually, roughly halving new token issuance from around 64 million to 32 million $NEAR per year, with the long-term effect of reducing sell pressure from validator rewards. Then, on February 23, 2026, the NEAR Intents fee conversion mechanism activated, routing 100% of Intents fees into open-market $NEAR purchases.

Community Input Before Any VoteThe Sovereign Fund proposal remains in its early stages. The plan is open for community feedback before any formal governance vote takes place, and it also aims to improve treasury transparency through on-chain governance mechanisms.

The community will ultimately determine whether the Sovereign Fund advances to a formal vote. The move away from short-term mechanisms in favour of a fixed supply model represents a meaningful departure from conventional tokenomics, and signals a focus on sustainability that could influence how other blockchain networks approach supply management.

Sources:
CryptoNews: Near Protocol Co-Founder Rejects Token Burn Proposal, Advocates Fixed Supply Model
ChangeNow: NEAR Protocol Overview in 2026
NEAR Foundation: Supporting Community Proposals to Upgrade NEAR Tokenomics

HOUSTON, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) (“Sysco” or the “company”) today announced financial results for its 13-week fourth fiscal quarter and its fiscal year ended June 27, 2026.

Key financial results for the fourth quarter of fiscal year 2026 include the following (comparisons are to the same period in fiscal year 2025):

Sales increased 4.7%; U.S. Foodservice volume increased 2.5%, U.S. local volume increased 2.6%;Gross profit increased 3.7% to $4.1 billion;Operating income increased 10.6% to $983 million, and adjusted operating income increased 4.1% to $1.1 billion1;Net earnings increased 3.8% to $551 million, and adjusted net earnings increased 2.5% to $734 million1;EBITDA increased 5.4% to $1.2 billion1, and adjusted EBITDA increased 4.7% to $1.3 billion1;EPS2 increased 4.5% to $1.15, and adjusted EPS1,2 increased 3.4% to $1.53, inclusive of higher incentive compensation costs of $11 million, as previously disclosed, representing a $0.01 impact to EPS;Introduction of fiscal year 2027 guidance of 6%-7% sales growth and 9%-11% adjusted EPS1 growth on a 53-week basis; andIncluded in the 2027 guidance is approximately $100 million of efficiency improvements driven by an artificial intelligence (AI)-powered transformation of business processes and customer engagement. “Sysco delivered strong results in the fourth quarter of fiscal year 2026, including positive case growth across our local, national, and international businesses. This included local volume growth of 2.6% in our USFS segment, as well as local volume growth of 4.5% in our International segment. Continued productivity gains from our supply chain enabled year over year profit growth across each of our four business segments,” said Kevin Hourican, Sysco’s Chair of the Board and Chief Executive Officer. “We have clear positive momentum in our business domestically and internationally. We are excited about the progress and the opportunity to improve further through the AI-driven business process transformation underway at Sysco. These efforts will improve how we serve our customers and expand our operating margins.”

“We exceeded our previously communicated guidance for the quarter and the year, as our company specific initiatives drove tangible results across our business. For the year, we generated robust cash flows and returned $1.2 billion to our shareholders through dividends and share repurchase. We expect positive momentum to continue in FY27 and are introducing guidance on a 53-week basis that includes sales growth of 6%-7% and adjusted EPS growth of 9%-11%. Today, we are also announcing incremental cost out efforts which we expect, when combined with our Q3 update, to deliver a combined $100 million of net cost savings in FY27.” said Brandon Sewell, Sysco’s Interim Chief Financial Officer.

1 Non-GAAP financial measure, refer to the reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure included at the end of this release.
2 Earnings per share (EPS) is shown on a diluted basis, unless otherwise specified.

Key financial results for fiscal year 2026 include the following (comparisons are to the same period in fiscal year 2025):

Sales increased 3.9%; U.S. Foodservice volume increased 1.4%, U.S. local volume increased 1.7%;Gross profit increased 4.5% to $15.6 billion;Operating income increased 0.2% to $3.1 billion, and adjusted operating income increased 2.6% to $3.6 billion1;Net earnings decreased 3.9% to $1.8 billion, and adjusted net earnings increased 1.4% to $2.2 billion1;Cash flow from operations increased 5.1% to $2.6 billion and free cash flow1 increased 16.3% to $2.1 billion on a year-over-year basis;EBITDA decreased 0.7% to $4.0 billion1, and adjusted EBITDA increased 2.2% to $4.4 billion1;EPS2 decreased 1.9% to $3.66, and adjusted EPS1,2 increased 3.4% to $4.61, inclusive of higher incentive compensation costs of $100 million, as previously disclosed, representing a $0.16 impact to EPS; andWe returned approximately $1.2 billion of capital to shareholders via $1.0 billion of dividends and $200 million of share repurchases. Fiscal Year 2027 Productivity and Cost Savings Initiatives

Sysco is also advancing a multi-year AI-enabled business transformation program designed to further improve productivity, operating efficiency, and customer service across the enterprise. In fiscal year 2027, the company expects combined cost-outs of approximately $100 million, including the carry-forward benefit from previously announced actions. Efforts reflect initiatives focused on enhanced inventory management and forecasting accuracy, improved coding efficiency, routing optimization and back-office automation. Together, Sysco expects these AI-related initiatives and previously announced cost-out efforts to deliver bottom line benefits in fiscal year 2027, supporting the company’s outlook for continued profit growth and margin expansion.

Fourth Quarter Fiscal Year 2026 Results (comparisons are to the same period in fiscal year 2025)

Total Sysco

Sales for the fourth quarter increased 4.7% to $22.1 billion.

Gross profit increased 3.7% to $4.1 billion, and gross margin decreased 17 basis points to 18.7%. Product cost inflation was 2.8% at the total enterprise level, as measured by the estimated change in Sysco’s product costs, primarily in the meat and fresh produce categories. The increase in gross profit for the fourth quarter was primarily driven by continued positive momentum in U.S. local volume growth, positive mix shift from improved Sysco Brand penetration, strategic sourcing efficiencies, and effective management of product cost inflation.

Operating expenses increased 1.7%, primarily driven by acquisition-related costs, sales headcount and capacity investments, partially offset by cost-out efficiencies. Adjusted operating expenses increased 3.6%1.

Operating income increased 10.6% to $983 million, and adjusted operating income increased 4.1% to $1.1 billion1.

U.S. Foodservice Operations

The U.S. Foodservice Operations segment results reflected positive case growth across local and national customers, improved mix shift from improved Sysco Brand penetration, and supply chain productivity improvements, partially offset by planned investments in sales headcount and expanded capacity.

Sales for the fourth quarter increased 4.4% to $15.4 billion. Total case volume within U.S. Foodservice increased 2.5% for the fourth quarter, while local case volume within U.S. Foodservice increased 2.6%.

Gross profit increased 3.0% to $3.0 billion, and gross margin decreased 26 basis points to 19.2%.

Operating expenses increased 3.3%, and adjusted operating expenses increased 4.7%1.

Operating income increased 2.4% to $1.0 billion, and adjusted operating income increased 0.1% to $1.1 billion1.

International Foodservice Operations

The International Foodservice Operations segment delivered continued sales growth and volume gains, marking its eleventh consecutive quarter of double-digit adjusted operating income growth.

Sales for the fourth quarter increased 6.7% to $4.2 billion. On a constant currency basis3, sales for the fourth quarter increased 5.6% to $4.1 billion. Foreign exchange rates increased both International Foodservice Operations sales by $46 million and total Sysco sales by $47 million during the quarter.

Gross profit increased 7.3% to $909 million, and gross margin increased 12 basis points to 21.7%. On a constant currency basis3, gross profit increased 6.0% to $898 million. Foreign exchange rates increased both International Foodservice Operations gross profit by 1.3% and total Sysco gross profit by 0.3% during the quarter.

Operating expenses increased 8.4%, and adjusted operating expenses increased 4.8%1. On a constant currency basis3, adjusted operating expenses increased 3.4%. Foreign exchange rates increased both International Foodservice Operations operating expenses by 1.4% and total Sysco operating expenses by 0.3% during the quarter.

Operating income increased 2.1% to $148 million, and adjusted operating income increased 15.7% to $228 million1. On a constant currency basis3, adjusted operating income increased 14.7% to $226 million. Foreign exchange rates increased both International Foodservice Operations operating income by 1.0% and total Sysco operating income by 0.3% during the quarter.

Fiscal Year 2026 Results (comparisons are to fiscal year 2025)

Total Sysco

Sales for fiscal year 2026 increased 3.9% to $84.6 billion.

Gross profit increased 4.5% to $15.6 billion, and gross margin increased 10 basis points to 18.5%. Product cost inflation was 3.0% at the total enterprise level, as measured by the estimated change in Sysco’s product costs, primarily in the meat and seafood categories. The increase in gross profit for the year was primarily driven by positive volumes, strategic sourcing efficiencies, and effective management of product cost inflation.

Operating expenses increased 5.6%, primarily driven by sales headcount and capacity investments, higher incentive compensation, and acquisition-related costs, partially offset by cost-out efficiencies. Adjusted operating expenses increased 5.1%1.

Operating income increased 0.2% to $3.1 billion, and adjusted operating income increased 2.6% to $3.6 billion1.

3 Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. These adjusted measures are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.

U.S. Foodservice Operations

Sales for fiscal year 2026 increased 3.2% to $58.8 billion. Total case volume within U.S. Foodservice increased 1.4% for fiscal year 2026, while local case volume within U.S. Foodservice increased 1.7%.

Gross profit increased 3.3% to $11.2 billion, and gross margin increased 2 basis points to 19.1%.

Operating expenses increased 4.9%, and adjusted operating expenses increased 4.7%1.

Operating income increased 0.1% to $3.5 billion, and adjusted operating income increased 0.7% to $3.7 billion1.

International Foodservice Operations

Sales for fiscal year 2026 increased 7.6% to $16.0 billion. On a constant currency basis3, sales for fiscal year 2026 increased 4.1% to $15.5 billion. Foreign exchange rates increased both International Foodservice Operations sales by 3.5% and total Sysco sales by 0.6% during the year.

Gross profit increased 9.4% to $3.4 billion, and gross margin increased 34 basis points to 21.2%. On a constant currency basis3, gross profit increased 5.4% to $3.3 billion. Foreign exchange rates increased both International Foodservice Operations gross profit by 4.0% and total Sysco gross profit by 0.9% during the year.

Operating expenses increased 10.0%, and adjusted operating expenses increased 7.8%1. On a constant currency basis3, adjusted operating expenses increased 3.4%. Foreign exchange rates increased both International Foodservice Operations operating expense by 4.4% and total Sysco operating expense by 1.0% during the year.

Operating income increased 5.9% to $463 million, and adjusted operating income increased 16.4% to $681 million1. On a constant currency basis3, adjusted operating income increased 14.0% to $667 million. Foreign exchange rates increased both International Foodservice Operations operating income by 2.4% and total Sysco operating income by 0.5% during the year.

Balance Sheet, Cash Flow and Capital Spending

As of the end of the quarter, the company had a cash balance of $1.8 billion and total liquidity4 of $4.8 billion.

Debt to net earnings was approximately 7.7 times, and Net Debt to adjusted EBITDA1 was approximately 2.7 times.

During the fiscal year, Sysco returned $1.2 billion to shareholders via $200 million of share repurchases and $1.0 billion of dividends.

Cash flow from operations was $2.6 billion for fiscal year 2026, which was 5.1% higher compared to the prior year. Free cash flow1 for fiscal year 2026 was $2.1 billion, which was 16.3% higher compared to the prior year.

Capital expenditures, net of proceeds from sales of plant and equipment, for fiscal year 2026 were $524 million.

4 Available liquidity includes cash and cash equivalents, available borrowing capacity under our revolving credit facility, less outstanding drawings under our commercial paper program, as of the applicable reporting date.

Conference Call & Webcast

Sysco will host a conference call to review the company’s fourth quarter and full fiscal year 2026 financial results on Tuesday, August 4, 2026, at 10:00 a.m. Eastern Time. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com.

Key Highlights: 13-Week Period Ended52-Week Period Ended     Financial Comparison (1):June 27, 2026ChangeJune 27, 2026ChangeGAAP:    Sales$22.1 billion4.7%
$84.6 billion3.9%
Gross Profit$4.1 billion3.7%
$15.6 billion4.5%
Gross Margin18.7%
-17 bps18.5%
10 bpsOperating Expenses$3.2 billion1.7%
$12.5 billion5.6%
Operating Income$983 million10.6%
$3.1 billion0.2%
Operating Margin4.4%
23 bps3.7%
-14 bpsNet Earnings$551 million3.8%
$1.8 billion-3.9%
Diluted Earnings Per Share$1.15
4.5%
$3.66
-1.9%
     Non-GAAP (2):    Adjusted Operating Expenses$3.0 billion3.6%
$12.0 billion5.1%
Adjusted Operating Income$1.1 billion4.1%
$3.6 billion2.6%
Adjusted Operating Margin5.2%
-3 bps4.3%
-6 bpsEBITDA$1.2 billion5.4%
$4.0 billion-0.7%
Adjusted EBITDA$1.3 billion4.7%
$4.4 billion2.2%
Adjusted Net Earnings$734 million2.5%
$2.2 billion1.4%
Adjusted Diluted Earnings Per Share$1.53
3.4%
$4.61
3.4%
     Case Growth:    U.S. Foodservice2.5%
 1.4%
 Local2.6%
 1.7%
      Sysco Brand Sales as a % of Cases (3):    U.S. Broadline35.5%
-4 bps35.4%
-59 bpsLocal46.4%
30 bps45.8%
-45 bps Note:(1) Individual components in the table may not sum to the totals due to rounding.(2) Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measures are included at the end of this release.(3) Amounts reflect the impact of current customer classifications; prior period history has been reclassified to match the current period customer classification.  Forward-Looking Statements

Statements made in this press release or in our earnings call for the fourth quarter of fiscal year 2026 include statements that are forward-looking or that express management’s beliefs, expectations or hopes and are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, among other things, our future financial performance and results, business strategy, plans, goals and objectives, including certain outlook, business trends, our dividend and share repurchase programs, our expectation of future macroeconomic conditions and other statements that are not historical facts, including our expectations regarding foot traffic and volume growth, and benefits to gross margins; and our expectations regarding our future growth, including growth in sales and earnings per share; as well as statements about the expected timing and completion of the proposed transaction with Jetro Restaurant Depot and the anticipated benefits of such proposed transaction, including estimated synergies, and plans, impact on Sysco and expectations for Sysco after completion of the proposed transaction.

Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions, including those outside of Sysco’s control. Risks and uncertainties include without limitation: the impact of geopolitical, economic and market conditions and developments, including changes in global trade policies and tariffs and foreign conflicts; risks related to our business initiatives; periods of significant or prolonged inflation or deflation and their impact on our product costs, volume, foot traffic, and profitability generally; risks related to our efforts to implement our transformation initiatives and meet our other long-term strategic objectives; risks of interruption of supplies and increase in product costs; risks related to changes in consumer eating habits; and impact of natural disasters or adverse weather conditions, public health crises, adverse publicity or lack of confidence in our products, and product liability claims as well as risks and uncertainties associated with our proposed transaction with Jetro Restaurant Depot, including but not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of either or both parties to terminate the merger agreement; the risk that regulatory approvals may not be obtained or other closing conditions may not be satisfied in a timely manner or at all, as well as the risk that regulatory approvals are obtained subject to conditions that are not anticipated; the risk of other delays in closing the transaction; the possibility that any of the anticipated benefits and projected synergies of the transaction will not be realized or will not be realized within the expected time period; and the risk that the proposed transaction and its announcement could have an adverse effect on the market price of the common stock of Sysco. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Therefore, you should not place undue reliance on any of the forward-looking statements contained herein. For more information on these risks and other concerning factors that could cause actual results to differ from those expressed or forecasted, see our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC. We do not undertake to update our forward-looking statements, except as required by applicable law.

About Sysco

Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 333 distribution centers, in 10 countries, with 75,000 colleagues serving approximately 670,000 customer locations. The company generated sales of more than $84 billion in fiscal year 2026 that ended June 27, 2026.

As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions.

For more information, visit www.sysco.com. For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com.

SYY-INVESTORS

 Sysco Corporation and its Consolidated Subsidiaries
CONSOLIDATED RESULTS OF OPERATIONS
(In Millions, Except for Share and Per Share Data) 13-Week Period Ended 52-Week Period Ended Jun. 27, 2026 Jun. 28, 2025 Jun. 27, 2026 Jun. 28, 2025 (Unaudited) (Unaudited) (Unaudited)  Sales$22,124 $21,138 $84,553 $81,370Cost of sales 17,990  17,152  68,914  66,401Gross profit 4,134  3,986  15,639  14,969Operating expenses 3,151  3,097  12,544  11,881Operating income 983  889  3,095  3,088Interest expense 205  166  717  635Other expense (income), net 58  6  102  38Earnings before income taxes 720  717  2,276  2,415Income taxes 169  186  519  587Net earnings$551 $531 $1,757 $1,828        Net earnings:       Basic earnings per share$1.15 $1.10 $3.67 $3.74Diluted earnings per share 1.15  1.10  3.66  3.73        Average shares outstanding 479,019,305  482,335,556  479,117,877  488,144,333Diluted shares outstanding 480,232,028  483,381,310  480,612,203  489,825,648 Sysco Corporation and its Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In Millions, Except for Share Data) Jun. 27, 2026 Jun. 28, 2025 (Unaudited)  ASSETS   Current assets   Cash and cash equivalents$1,786  $1,071 Accounts receivable, less allowances of $13 and $17 5,865   5,502 Inventories 5,338   5,053 Prepaid expenses and other current assets 427   338 Income tax receivable 21   4 Total current assets 13,437   11,968 Plant and equipment at cost, less accumulated depreciation 5,974   6,084 Other long-term assets   Goodwill 5,225   5,231 Intangibles, less amortization 952   1,080 Deferred income taxes 506   497 Operating lease right-of-use assets, net 1,389   1,131 Other assets 914   783 Total other long-term assets 8,986   8,722 Total assets$28,397  $26,774     LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilities   Accounts payable$6,640  $6,512 Accrued expenses 2,456   2,268 Accrued income taxes 60   51 Current operating lease liabilities 166   136 Current maturities of long-term debt 1,201   949 Total current liabilities 10,523   9,916 Long-term liabilities   Long-term debt 12,315   12,360 Deferred income taxes 456   345 Long-term operating lease liabilities 1,285   1,049 Other long-term liabilities 1,152   1,247 Total long-term liabilities 15,208   15,001 Commitments and contingencies   Noncontrolling interest —   27 Shareholders’ equity   Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none —   — Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued
765,174,900 shares 765   765 Paid-in capital 2,114   1,986 Retained earnings 13,748   13,061 Accumulated other comprehensive loss (1,014)  (1,098)Treasury stock at cost, 286,631,270 and 287,678,658 shares (12,947)  (12,884)Total shareholders’ equity 2,666   1,830 Total liabilities and shareholders’ equity$28,397  $26,774  Sysco Corporation and its Consolidated Subsidiaries
CONSOLIDATED CASH FLOWS
(In Millions) 52-Week Period Ended Jun. 27, 2026 Jun. 28, 2025 (Unaudited)  Cash flows from operating activities:   Net earnings$1,757  $1,828 Adjustments to reconcile net earnings to cash provided by operating activities:   Share-based compensation expense 118   93 Depreciation and amortization 976   945 Operating lease asset amortization 153   141 Amortization of debt issuance and other debt-related costs 46   15 Deferred income taxes 10   (13)Provision for losses on receivables 73   85 Goodwill impairment —   92 Other non-cash items (40)  (100)Additional changes in certain assets and liabilities, net of effect of businesses
acquired:   Increase in receivables (469)  (206)Increase in inventories (293)  (330)Increase in prepaid expenses and other current assets (25)  (22)Increase in accounts payable 354   143 Increase (decrease) in accrued expenses 214   (14)Decrease in operating lease liabilities (215)  (177)Decrease in accrued income taxes (7)  (62)(Increase) decrease in other assets (29)  18 Increase in other long-term liabilities 15   74 Net cash provided by operating activities 2,638   2,510 Cash flows from investing activities:   Additions to plant and equipment (700)  (906)Proceeds from sales of plant and equipment 176   214 Acquisition of businesses, net of cash acquired (189)  (40)Purchase of marketable securities (61)  (32)Proceeds from sales of marketable securities 54   29 Other investing activities 23   18 Net cash used for investing activities (697)  (717)Cash flows from financing activities:   Bank and commercial paper borrowings, net (263)  45 Other debt borrowings including senior notes 1,252   1,254 Other debt repayments including senior notes (908)  (549)Proceeds from stock option exercises 137   110 Stock repurchases (200)  (1,250)Dividends paid (1,037)  (1,000)Debt issuance costs (108)  — Other financing activities (32)  (22)Net cash used for financing activities (1,159)  (1,412)Effect of exchange rates on cash, cash equivalents and restricted cash (14)  22 Net increase in cash, cash equivalents and restricted cash 768   403 Cash, cash equivalents and restricted cash at beginning of period 1,349   945 Cash, cash equivalents and restricted cash at end of period$2,117  $1,348     Supplemental disclosures of cash flow information:   Cash paid during the period for:   Interest$670  $629 Income taxes, net of refunds (1) 477   640  (1) Cash paid for income taxes, net for fiscal year 2026 and 2025 includes $227 million and $190 million, respectively, of cash paid for the purchase of federal tax credits. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions. Adjustments provided herein for fiscal year 2026 results of operations also remove the impact of a charge associated with a legal matter, amortization expense associated with debt issuance costs on a bridge loan facility, and a loss on deal contingent rate lock transactions entered into to mitigate interest rate risk on future permanent debt that could potentially be issued to finance the purchase of Jetro Restaurant Depot. No similar charges were applicable in fiscal year 2025. Adjustments provided herein for fiscal year 2025 results of operations also remove the impact of a goodwill impairment charge. No similar charge was applicable in fiscal year 2026. The results of our operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. We also measure our sales growth for our International Foodservice Operations excluding the impact of our joint venture in Mexico which was divested in the second quarter of fiscal year 2025. Management believes that adjusting its operating expenses, operating income, operating margin, interest expense, other (income) expense, net earnings and diluted earnings per share to remove these Certain Items, presenting its results on a constant currency basis, and adjusting its sales results to exclude the impact of its joint venture in Mexico provides an important perspective with respect to our underlying business trends and results. It provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis. Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due-diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal year 2026 and fiscal year 2025. Set forth on the following page is a reconciliation of sales, operating expenses, operating income, interest expense, other (income) expense, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not be equal to the total presented when added due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. The non-GAAP financial measures shown in the following tables should not be used as a substitute for the most comparable GAAP financial measures in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
(Dollars in Millions, Except for Share and Per Share Data) 13-Week
Period Ended
Jun. 27, 2026 13-Week
Period Ended
Jun. 28, 2025 Change in
Dollars %/bps
ChangeSales (GAAP)$22,124  $21,138  $986  4.7%Impact of currency fluctuations (1) (47)    (47) (0.3)Comparable sales using a constant currency basis
(Non-GAAP)$22,077  $21,138  $939  4.4%        Cost of sales (GAAP)$17,990  $17,152  $838  4.9%        Gross profit (GAAP)$4,134  $3,986  $148  3.7%Impact of currency fluctuations (1) (12)    (12) (0.3)Comparable gross profit adjusted for Certain Items
using a constant currency basis (Non-GAAP)$4,122  $3,986  $136  3.4%        Gross margin (GAAP) 18.69%  18.86%   -17 bpsImpact of currency fluctuations (1) (0.02)     -2 bpsComparable gross margin adjusted for Certain Items
using a constant currency basis (Non-GAAP) 18.67%  18.86%   -19 bps        Operating expenses (GAAP)$3,151  $3,097  $54  1.7%Impact of restructuring and transformational project costs (2) (80)  (75)  (5) (6.7)Impact of acquisition-related costs (3) (77)  (39)  (38) (97.4)Impact of goodwill impairment —   (92)  92  NMOperating expenses adjusted for Certain Items (Non-GAAP) 2,994   2,891   103  3.6 Impact of currency fluctuations (1) (8)    (8) (0.3)Comparable operating expenses adjusted for Certain Items
using a constant currency basis (Non-GAAP)$2,986  $2,891  $95  3.3%        Operating expense as a percentage of sales (GAAP) 14.24%  14.65%   -41 bpsImpact of certain item adjustments (0.71)  (0.97)   26 bpsAdjusted operating expense as a percentage of sales
(Non-GAAP) 13.53%  13.68%   -15 bps        Operating income (GAAP)$983  $889  $94  10.6%Impact of restructuring and transformational project costs (2) 80   75   5  6.7 Impact of acquisition-related costs (3) 77   39   38  97.4 Impact of goodwill impairment —   92   (92) NMOperating income adjusted for Certain Items (Non-GAAP) 1,140   1,095   45  4.1 Impact of currency fluctuations (1) (3)    (3) (0.3)Comparable operating income adjusted for Certain Items
using a constant currency basis (Non-GAAP)$1,137  $1,095  $42  3.8%        Operating margin (GAAP) 4.44%  4.21%   23 bpsOperating margin adjusted for Certain Items (Non-GAAP) 5.15%  5.18%   -3 bpsOperating margin adjusted for Certain Items
using a constant currency basis (Non-GAAP) 5.15%  5.18%   -3 bps        Interest expense (GAAP)$205  $166  $39  23.5%Impact of bridge loan amortization (4) (30)  —   (30) NMInterest expense adjusted for Certain Items (Non-GAAP)$175  $166  $9  5.4%        Other expense (GAAP)$58  $6  $52  NMImpact of deal contingent rate lock transactions (4) (54)  —   (54) NMOther expense adjusted for Certain Items (Non-GAAP)$4  $6  $(2) (33.3)%        Net earnings (GAAP)$551  $531  $20  3.8%Impact of restructuring and transformational project costs (2) 80   75   5  6.7 Impact of acquisition-related costs (3) 77   39   38  97.4 Impact of goodwill impairment —   92   (92) NMImpact of bridge loan amortization (4) 30   —   30  NMImpact of deal contingent rate lock transactions (4) 54   —   54  NMTax impact of restructuring and transformational project costs (5) (19)  (14)  (5) (35.7)Tax impact of acquisition-related costs (5) (19)  (7)  (12) NMTax impact of goodwill impairment (5) —   (10)  10  NMTax impact of bridge loan amortization (5) (7)  —   (7) NMTax impact of deal contingent rate lock transactions (5) (13)  —   (13) NMImpact of other non-routine tax adjustments —   10   (10) NMNet earnings adjusted for Certain Items (Non-GAAP)$734  $716  $18  2.5%        Diluted earnings per share (GAAP)$1.15  $1.10  $0.05  4.5%Impact of restructuring and transformational project costs (2) 0.17   0.16   0.01  6.3 Impact of acquisition-related costs (3) 0.16   0.08   0.08  100.0 Impact of goodwill impairment —   0.19   (0.19) NMImpact of bridge loan amortization (4) 0.06   —   0.06  NMImpact of deal contingent rate lock transactions (4) 0.11   —   0.11  NMTax impact of restructuring and transformational project costs (5) (0.04)  (0.03)  (0.01) (33.3)Tax impact of acquisition-related costs (5) (0.04)  (0.01)  (0.03) NMTax impact of goodwill impairment (5) —   (0.02)  0.02  NMTax impact of bridge loan amortization (5) (0.01)  —   (0.01) NMTax impact of deal contingent rate lock transactions (5) (0.03)  —   (0.03) NMImpact of other non-routine tax adjustments —   0.02   (0.02) NMDiluted earnings per share adjusted for Certain Items
(Non-GAAP) (6)$1.53  $1.48  $0.05  3.4%        Diluted shares outstanding 480,232,028   483,381,310      (1) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results.(2) Fiscal year 2026 includes $29 million related to restructuring costs and severance charges, partially offset by the reversal of costs associated with a legal matter and $72 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy. Fiscal year 2025 includes $26 million related to restructuring and severance charges and $49 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy.(3) Fiscal year 2026 includes $39 million of intangible amortization expense and $38 million in acquisition and due diligence costs. Fiscal year 2025 includes $36 million of intangible amortization expense and $3 million in acquisition and due diligence costs.(4) Fiscal year 2026 includes amortization expense associated with debt issuance costs on a bridge loan facility and a loss on deal contingent rate lock transactions, both of which are related to the planned acquisition of Jetro Restaurant Depot.(5) The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.(6) Individual components of diluted earnings per share may not equal the total presented when added due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.NM Represents that the percentage change is not meaningful. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
(Dollars in Millions, Except for Share and Per Share Data) 52-Week
Period Ended
Jun. 27, 2026 52-Week
Period Ended
Jun. 28, 2025 Change in
Dollars %/bps
ChangeSales (GAAP)$84,553  $81,370  $3,183  3.9%Impact of Mexico joint venture sales —   (207)  207  0.3 Comparable sales excluding Mexico joint venture (Non-GAAP)$84,553  $81,163  $3,390  4.2%        Sales (GAAP)$84,553  $81,370  $3,183  3.9%Impact of currency fluctuations (1) (527)    (527) (0.6)Comparable sales using a constant currency basis (Non-GAAP)$84,026  $81,370  $2,656  3.3%        Cost of sales (GAAP)$68,914  $66,401  $2,513  3.8%        Gross profit (GAAP)$15,639  $14,969  $670  4.5%Impact of currency fluctuations (1) (127)    (127) (0.9)Comparable gross profit adjusted for Certain Items
using a constant currency basis (Non-GAAP)$15,512  $14,969  $543  3.6%        Gross margin (GAAP) 18.50%  18.40%   10 bpsImpact of currency fluctuations (1) (0.04)     -4 bpsComparable gross margin adjusted for Certain Items
using a constant currency basis (Non-GAAP) 18.46%  18.40%   6 bps        Operating expenses (GAAP)$12,544  $11,881  $663  5.6%Impact of restructuring and transformational project costs (2) (287)  (183)  (104) (56.8)Impact of acquisition-related costs (3) (232)  (160)  (72) (45.0)Impact of goodwill impairment —   (92)  92  NMOperating expenses adjusted for Certain Items (Non-GAAP) 12,025   11,446   579  5.1 Impact of currency fluctuations (1) (111)    (111) (1.0)Comparable operating expenses adjusted for Certain Items
using a constant currency basis (Non-GAAP)$11,914  $11,446  $468  4.1%        Operating expense as a percentage of sales (GAAP) 14.84%  14.60%   24 bpsImpact of certain item adjustments (0.62)  (0.53)   -9 bpsAdjusted operating expense as a percentage of sales
(Non-GAAP) 14.22%  14.07%   15 bps        Operating income (GAAP)$3,095  $3,088  $7  0.2%Impact of restructuring and transformational project costs (2) 287   183   104  56.8 Impact of acquisition-related costs (3) 232   160   72  45.0 Impact of goodwill impairment —   92   (92) NMOperating income adjusted for Certain Items (Non-GAAP) 3,614   3,523   91  2.6 Impact of currency fluctuations (1) (16)    (16) (0.5)Comparable operating income adjusted for Certain Items
using a constant currency basis (Non-GAAP)$3,598  $3,523  $75  2.1%        Operating margin (GAAP) 3.66%  3.80%   -14 bpsOperating margin adjusted for Certain Items (Non-GAAP) 4.27%  4.33%   -6 bpsOperating margin adjusted for Certain Items using a constant
currency basis (Non-GAAP) 4.28%  4.33%   -5 bps        Interest expense (GAAP)$717  $635  $82  12.9%Impact of bridge loan amortization (4) (30)  —   (30) NMInterest expense adjusted for Certain Items (Non-GAAP)$687  $635  $52  8.2%        Other expense (GAAP)$102  $38  $64  NMImpact of deal contingent rate lock transactions (4) (54)  —   (54) NMOther expense adjusted for Certain Items (Non-GAAP)$48  $38  $10  26.3%        Net earnings (GAAP)$1,757  $1,828  $(71) (3.9)%Impact of restructuring and transformational project costs (2) 287   183   104  56.8 Impact of acquisition-related costs (3) 232   160   72  45.0 Impact of goodwill impairment —   92   (92) NMImpact of bridge loan amortization (4) 30   —   30  NMImpact of deal contingent rate lock transactions (4) 54   —   54  NMTax impact of restructuring and transformational project costs (5) (69)  (42)  (27) (64.3)Tax impact of acquisition-related costs (5) (56)  (37)  (19) (51.4)Tax impact of goodwill impairment (5) —   (10)  10  NMTax impact of bridge loan amortization (5) (7)  —   (7) NMTax impact of deal contingent rate lock transactions (5) (13)  —   (13) NMImpact of other non-routine tax adjustments —   10   (10) NMNet earnings adjusted for Certain Items (Non-GAAP)$2,215  $2,184  $31  1.4%        Diluted earnings per share (GAAP)$3.66  $3.73  $(0.07) (1.9)%Impact of restructuring and transformational project costs (2) 0.60   0.37   0.23  62.2 Impact of acquisition-related costs (3) 0.48   0.33   0.15  45.5 Impact of goodwill impairment —   0.19   (0.19) NMImpact of bridge loan amortization (4) 0.06   —   0.06  NMImpact of deal contingent rate lock transactions (4) 0.11   —   0.11  NMTax impact of restructuring and transformational project costs (5) (0.14)  (0.09)  (0.05) (55.6)Tax impact of acquisition-related costs (5) (0.12)  (0.08)  (0.04) (50.0)Tax impact of goodwill impairment (5) —   (0.02)  0.02  NMTax impact of bridge loan amortization (5) (0.01)  —   (0.01) NMTax impact of deal contingent rate lock transactions (5) (0.03)  —   (0.03) NMImpact of other non-routine tax adjustments —   0.02   (0.02) NMDiluted earnings per share adjusted for Certain Items
(Non-GAAP) (6)$4.61  $4.46  $0.15  3.4%        Diluted shares outstanding 480,612,203   489,825,648      (1) Represents a constant currency adjustment which eliminates the impact of foreign currency fluctuations on the current year results.(2) Fiscal year 2026 includes $71 million related to restructuring costs, severance charges, and costs associated with a legal matter and $216 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy. Fiscal year 2025 includes $57 million related to restructuring and severance charges and $126 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy.(3) Fiscal year 2026 includes $147 million of intangible amortization expense and $85 million in acquisition and due diligence costs. Fiscal year 2025 includes $133 million of intangible amortization expense and $27 million in acquisition and due diligence costs.(4) Fiscal year 2026 includes amortization expense associated with debt issuance costs on a bridge loan facility and a loss on deal contingent rate lock transactions, both of which are related to the planned acquisition of Jetro Restaurant Depot.(5) The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.(6) Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.NM Represents that the percentage change is not meaningful. Sysco Corporation and its Consolidated Subsidiaries
Segment Results
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Applicable Segments
(Dollars in Millions) 13-Week
Period Ended
Jun. 27, 2026 13-Week
Period Ended
Jun. 28, 2025 Change in
Dollars %/bps
ChangeU.S. FOODSERVICE OPERATIONS       Sales (GAAP)$15,406  $14,759  $647  4.4%Gross profit (GAAP) 2,958   2,872   86  3.0%Gross margin (GAAP) 19.20%  19.46%   -26 bps        Operating expenses (GAAP)$1,912  $1,851  $61  3.3%Impact of restructuring and transformational project costs (1) 5   (19)  24  NMImpact of acquisition-related costs (2) (18)  (18)  —  — Operating expenses adjusted for Certain Items (Non-GAAP)$1,899  $1,814  $85  4.7%        Operating income (GAAP)$1,046  $1,021  $25  2.4%Impact of restructuring and transformational project costs (1) (5)  19   (24) NMImpact of acquisition-related costs (2) 18   18   —  — Operating income adjusted for Certain Items (Non-GAAP)$1,059  $1,058  $1  0.1%        INTERNATIONAL FOODSERVICE OPERATIONS       Sales (GAAP)$4,191  $3,927  $264  6.7%Impact of currency fluctuations (3) (46)    (46) (1.1)Comparable sales using a constant currency basis
(Non-GAAP)$4,145  $3,927  $218  5.6%        Gross profit (GAAP)$909  $847  $62  7.3%Impact of currency fluctuations (3) (11)    (11) (1.3)Comparable gross profit using a constant currency basis
(Non-GAAP)$898  $847  $51  6.0%        Gross margin (GAAP) 21.69%  21.57%   12 bpsImpact of currency fluctuations (3) (0.03)     -3 bpsComparable gross margin using a constant currency basis
(Non-GAAP) 21.66%  21.57%   9 bps        Operating expenses (GAAP)$761  $702  $59  8.4%Impact of restructuring and transformational project costs (4) (57)  (34)  (23) (67.6)Impact of acquisition-related costs (2) (23)  (18)  (5) (27.8)Operating expenses adjusted for Certain Items (Non-GAAP) 681   650   31  4.8 Impact of currency fluctuations (3) (9)    (9) (1.4)Comparable operating expenses adjusted for Certain Items
using a constant currency basis (Non-GAAP)$672  $650  $22  3.4%        Operating income (GAAP)$148  $145  $3  2.1%Impact of restructuring and transformational project costs (4) 57   34   23  67.6 Impact of acquisition-related costs (2) 23   18   5  27.8 Operating income adjusted for Certain Items (Non-GAAP) 228   197   31  15.7 Impact of currency fluctuations (3) (2)    (2) (1.0)Comparable operating income adjusted for Certain Items
using a constant currency basis (Non-GAAP)$226  $197  $29  14.7%        SYGMA       Sales (GAAP)$2,231  $2,164  $67  3.1%Gross profit (GAAP) 175   170   5  2.9%Gross margin (GAAP) 7.84%  7.86%   -2 bps        Operating expenses (GAAP)$145  $143  $2  1.4%Operating income (GAAP) 30   27   3  11.1%        OTHER       Sales (GAAP)$296  $288  $8  2.8%Gross profit (GAAP) 79   69   10  14.5%Gross margin (GAAP) 26.69%  23.96%   273 bps        Operating expenses (GAAP)$66  $151  $(85) (56.3)%Impact of goodwill impairment —   (92)  92  NMOperating expenses adjusted for Certain Items (Non-GAAP)$66  $59  $7  11.9%        Operating income (loss) (GAAP)$13  $(82) $95  NMImpact of goodwill impairment —   92   (92) NMOperating income adjusted for Certain Items (Non-GAAP)$13  $10  $3  30.0%        GLOBAL SUPPORT CENTER       Gross profit (GAAP)$13  $28  $(15) (53.6)%        Operating expenses (GAAP)$267  $250  $17  6.8%Impact of restructuring and transformational project costs (5) (28)  (22)  (6) (27.3)Impact of acquisition-related costs (6) (36)  (3)  (33) NMOperating expenses adjusted for Certain Items (Non-GAAP)$203  $225  $(22) (9.8)%        Operating loss (GAAP)$(254) $(222) $(32) (14.4)%Impact of restructuring and transformational project costs (5) 28   22   6  27.3 Impact of acquisition-related costs (6) 36   3   33  NMOperating loss adjusted for Certain Items (Non-GAAP)$(190) $(197) $7  3.6%        TOTAL SYSCO       Sales (GAAP)$22,124  $21,138  $986  4.7%Gross profit (GAAP) 4,134   3,986   148  3.7%Gross margin (GAAP) 18.69%  18.86%   -17 bps        Operating expenses (GAAP)$3,151  $3,097  $54  1.7%Impact of restructuring and transformational project costs (1) (4) (5) (80)  (75)  (5) (6.7)Impact of acquisition-related costs (2) (6) (77)  (39)  (38) (97.4)Impact of goodwill impairment —   (92)  92  NMOperating expenses adjusted for Certain Items (Non-GAAP)$2,994  $2,891  $103  3.6%        Operating income (GAAP)$983  $889  $94  10.6%Impact of restructuring and transformational project costs (1) (4) (5) 80   75   5  6.7 Impact of acquisition-related costs (2) (6) 77   39   38  97.4 Impact of goodwill impairment —   92   (92) NMOperating income adjusted for Certain Items (Non-GAAP)$1,140  $1,095  $45  4.1% (1) Primarily represents severance charges and transformation initiative costs, partially offset by the reversal of costs associated with a legal matter.(2) Fiscal year 2026 and fiscal year 2025 include intangible amortization expense and acquisition costs.(3) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results.(4) Includes restructuring and transformation costs primarily in Europe.(5) Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy.(6) Represents due diligence costs.NM Represents that the percentage change is not meaningful. Sysco Corporation and its Consolidated Subsidiaries
Segment Results
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Applicable Segments
(Dollars in Millions) 52-Week
Period Ended
Jun. 27, 2026 52-Week
Period Ended
Jun. 28, 2025 Change in
Dollars %/bps
ChangeU.S. FOODSERVICE OPERATIONS       Sales (GAAP)$58,803  $56,965  $1,838  3.2%Gross profit (GAAP) 11,239   10,875   364  3.3%Gross margin (GAAP) 19.11%  19.09%   2 bps        Operating expenses (GAAP)$7,721  $7,359  $362  4.9%Impact of restructuring and transformational project costs (1) (49)  (45)  (4) 8.9 Impact of acquisition-related costs (2) (90)  (71)  (19) (26.8)Operating expenses adjusted for Certain Items (Non-GAAP)$7,582  $7,243  $339  4.7%        Operating income (GAAP)$3,518  $3,516  $2  0.1%Impact of restructuring and transformational project costs (1) 49   45   4  8.9 Impact of acquisition-related costs (2) 90   71   19  26.8 Operating income adjusted for Certain Items (Non-GAAP)$3,657  $3,632  $25  0.7%        INTERNATIONAL FOODSERVICE OPERATIONS       Sales (GAAP)$16,042  $14,905  $1,137  7.6%Impact of Mexico joint venture sales —   (207)  207  1.5 Comparable sales excluding Mexico joint venture (Non-GAAP)$16,042  $14,698  $1,344  9.1%        Sales (GAAP)$16,042  $14,905  $1,137  7.6%Impact of currency fluctuations (3) (523)    (523) (3.5)Comparable sales using a constant currency basis
(Non-GAAP)$15,519  $14,905  $614  4.1%        Gross profit (GAAP)$3,401  $3,109  $292  9.4%Impact of currency fluctuations (3) (125)    (125) (4.0)Comparable gross profit using a constant currency basis (Non-GAAP)$3,276  $3,109  $167  5.4%        Gross margin (GAAP) 21.20%  20.86%   34 bpsImpact of currency fluctuations (3) (0.09)     -9 bpsComparable gross margin using a constant currency basis
(Non-GAAP) 21.11%  20.86%   25 bps        Operating expenses (GAAP)$2,938  $2,672  $266  10.0%Impact of restructuring and transformational project costs (4) (148)  (74)  (74) (100.0)Impact of acquisition-related costs (2) (70)  (74)  4  5.4 Operating expenses adjusted for Certain Items (Non-GAAP) 2,720   2,524   196  7.8 Impact of currency fluctuations (3) (111)    (111) (4.4)Comparable operating expenses adjusted for Certain Items
using a constant currency basis (Non-GAAP)$2,609  $2,524  $85  3.4%        Operating income (GAAP)$463  $437  $26  5.9%Impact of restructuring and transformational project costs (4) 148   74   74  100.0 Impact of acquisition-related costs (2) 70   74   (4) (5.4)Operating income adjusted for Certain Items (Non-GAAP) 681   585   96  16.4 Impact of currency fluctuations (3) (14)    (14) (2.4)Comparable operating income adjusted for Certain Items
using a constant currency basis (Non-GAAP)$667  $585  $82  14.0%        SYGMA       Sales (GAAP)$8,623  $8,410  $213  2.5%Gross profit (GAAP) 671   662   9  1.4%Gross margin (GAAP) 7.78%  7.87%   -9 bps        Operating expenses (GAAP)$577  $581  $(4) (0.7)%Operating income (GAAP) 94   81   13  16.0%        OTHER       Sales (GAAP)$1,085  $1,090  $(5) (0.5)%Gross profit (GAAP) 281   266   15  5.6%Gross margin (GAAP) 25.90%  24.40%   150 bps        Operating expenses (GAAP)$251  $339  $(88) (26.0)%Impact of goodwill impairment —   (92)  92  NMOperating expenses adjusted for Certain Items (Non-GAAP)$251  $247  $4  1.6%        Operating income (loss) (GAAP)$30  $(73) $103  NMImpact of goodwill impairment —   (92)  92  NMOperating income adjusted for Certain Items (Non-GAAP)$30  $19  $11  57.9%        GLOBAL SUPPORT CENTER       Gross profit (GAAP)$47  $57  $(10) (17.5)%        Operating expenses (GAAP)$1,057  $930  $127  13.7%Impact of restructuring and transformational project costs (5) (90)  (64)  (26) (40.6)Impact of acquisition-related costs (6) (72)  (15)  (57) NMOperating expenses adjusted for Certain Items (Non-GAAP)$895  $851  $44  5.2%        Operating loss (GAAP)$(1,010) $(873) $(137) (15.7)%Impact of restructuring and transformational project costs (5) 90   64   26  40.6 Impact of acquisition-related costs (6) 72   15   57  NMOperating loss adjusted for Certain Items (Non-GAAP)$(848) $(794) $(54) (6.8)%        TOTAL SYSCO       Sales (GAAP)$84,553  $81,370  $3,183  3.9%Gross profit (GAAP) 15,639   14,969   670  4.5%Gross margin (GAAP) 18.50%  18.40%   10 bps        Operating expenses (GAAP)$12,544  $11,881  $663  5.6%Impact of restructuring and transformational project costs (1) (4) (5) (287)  (183)  (104) (56.8)Impact of acquisition-related costs (2) (6) (232)  (160)  (72) (45.0)Impact of goodwill impairment —   (92)  92  NMOperating expenses adjusted for Certain Items (Non-GAAP)$12,025  $11,446  $579  5.1%        Operating income (GAAP)$3,095  $3,088  $7  0.2%Impact of restructuring and transformational project costs (1) (4) (5) 287   183   104  56.8 Impact of acquisition-related costs (2) (6) 232   160   72  45.0 Impact of goodwill impairment —   92   (92) NMOperating income adjusted for Certain Items (Non-GAAP)$3,614  $3,523  $91  2.6% (1) Primarily represents severance charges, transformation initiative costs, and costs associated with a legal matter.(2) Fiscal year 2026 and fiscal year 2025 include intangible amortization expense and acquisition costs.(3) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results.(4) Includes restructuring and transformation costs primarily in Europe.(5) Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy.(6) Represents due diligence costs.NM Represents that the percentage change is not meaningful.    Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Free Cash Flow
(In Millions)

Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Sysco considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases and sales of buildings, fleet, equipment and technology, which may potentially be used to pay for, among other things, strategic uses of cash including dividend payments, share repurchases and acquisitions. However, free cash flow may not be available for discretionary expenditures, as it may be necessary that we use it to make mandatory debt service or other payments. Free cash flow should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities.

 52-Week
Period Ended
Jun. 27, 2026 52-Week
Period Ended
Jun. 28, 2025 52-Week
Period Change
in DollarsNet cash provided by operating activities (GAAP)$2,638  $2,510  $128 Additions to plant and equipment (700)  (906)  206 Proceeds from sales of plant and equipment 176   214   (38)Free Cash Flow (Non-GAAP)$2,114  $1,818  $296              Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(Dollars in Millions)

EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA plus the impact of Certain Items, excluding certain items related to interest expense, income taxes, depreciation and amortization. Sysco's management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings.

 13-Week
Period Ended
Jun. 27, 2026 13-Week
Period Ended
Jun. 28, 2025 Change in
Dollars % ChangeNet earnings (GAAP)$551  $531  $20  3.8%Interest (GAAP) 205   166   39  23.5 Income taxes (GAAP) 169   186   (17) (9.1)Depreciation and amortization (GAAP) 252   234   18  7.7 EBITDA (Non-GAAP)$1,177  $1,117  $60  5.4%Certain Item adjustments:       Impact of restructuring and
transformational project costs (1) 77   74   3  4.1 Impact of acquisition-related costs (2) 38   3   35  NMImpact of deal contingent rate lock
transactions (3) 54   —   54  NMImpact of goodwill impairment —   92   (92) NMEBITDA adjusted for Certain Items
(Non-GAAP) (4)$1,346  $1,286  $60  4.7%Other expense (income), net, as
adjusted (Non-GAAP) (5) 4   6   (2) (33.3)Depreciation and amortization, as
adjusted (Non-GAAP) (6) (210)  (197)  (13) (6.6)Operating income adjusted for Certain
Items (Non-GAAP)$1,140  $1,095  $45  4.1% (1) Fiscal year 2026 and fiscal year 2025 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, fiscal year 2026 includes the reversal of charges associated with a legal matter.(2) Fiscal year 2026 and fiscal year 2025 include acquisition and due diligence costs.(3) Fiscal year 2026 includes a loss on deal contingent rate lock transactions related to the planned acquisition of Jetro Restaurant Depot.(4) In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $8 million and $8 million or non-cash stock compensation expense of $24 million and $19 million in fiscal year 2026 and fiscal year 2025, respectively.(5) Fiscal year 2026 represents $58 million in GAAP other expense (income), net less $54 million in expense from a loss on deal contingent rate lock transactions entered into to mitigate interest rate risk on future permanent debt that could potentially be issued to finance the purchase of Jetro Restaurant Depot. Fiscal year 2025 represents $6 million in GAAP other expense (income), net.(6) Fiscal year 2026 includes $252 million in GAAP depreciation and amortization expense, less $42 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal year 2025 includes $234 million in GAAP depreciation and amortization expense, less $37 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions.NM Represents that the percentage change is not meaningful.  52-Week
Period Ended
Jun. 27, 2026 52-Week
Period Ended
Jun. 28, 2025 Change in
Dollars % ChangeNet earnings (GAAP)$1,757  $1,828  $(71) (3.9)%Interest (GAAP) 717   635   82  12.9 Income taxes (GAAP) 519   587   (68) (11.6)Depreciation and amortization (GAAP) 976   945   31  3.3 EBITDA (Non-GAAP)$3,969  $3,995  $(26) (0.7)%Certain Item adjustments:       Impact of restructuring and
transformational project costs (1) 280   179   101  56.4 Impact of acquisition-related costs (2) 84   27   57  NMImpact of deal contingent rate lock
transactions (3) 54   —   54  NMImpact of goodwill impairment —   92   (92) NMEBITDA adjusted for Certain Items
(Non-GAAP) (4)$4,387  $4,293  $94  2.2%Other expense (income), net, as adjusted
(Non-GAAP) (5) 48   38   10  26.3 Depreciation and amortization, as
adjusted (Non-GAAP) (6) (821)  (808)  (13) (1.6)Operating income adjusted for Certain
Items (Non-GAAP)$3,614  $3,523  $91  2.6% (1) Fiscal year 2026 and fiscal year 2025 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, fiscal 2026 includes charges associated with a legal matter.(2) Fiscal year 2026 and fiscal year 2025 include acquisition and due diligence costs.(3) Fiscal year 2026 includes a loss on deal contingent rate lock transactions related to the planned acquisition of Jetro Restaurant Depot.(4) In arriving at adjusted EBITDA, Sysco does not exclude interest income of $27 million and $29 million or non-cash stock compensation expense of $118 million and $93 million for fiscal year 2026 and fiscal year 2025, respectively.(5) Fiscal year 2026 represents $102 million in GAAP other expense (income), net less $54 million in expense from a loss on deal contingent rate lock transactions entered into to mitigate interest rate risk on future permanent debt that could potentially be issued to finance the purchase of Jetro Restaurant Depot. Fiscal year 2025 represents $38 million in GAAP other expense (income), net.(6) Fiscal year 2026 includes $976 million in GAAP depreciation and amortization expense, less $155 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal year 2025 includes $945 million in GAAP depreciation and amortization expense, less $137 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions.NM Represents that the percentage change is not meaningful.    Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Net Debt to Adjusted EBITDA
(In Millions)

Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. It is an important measure used by management to evaluate our access to liquidity, and we believe it is a representation of our financial strength. Our Net Debt to Adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of Adjusted EBITDA. In the table that follows, we have provided the calculation of our debt and net debt as a ratio of Adjusted EBITDA.

  Jun. 27, 2026Current maturities of long-term debt $1,201 Long-term debt  12,315 Total Debt (GAAP)  13,516 Cash & Cash Equivalents  (1,786)Net Debt (Non-GAAP) $11,730    Net Earnings for the previous 12 months (GAAP) $1,757 Adjusted EBITDA for the previous 12 months (Non-GAAP) (1) $4,387    Total Debt/Net Earnings Ratio (GAAP)  7.69 Total Debt/Adjusted EBITDA Ratio (Non-GAAP)  3.08 Net Debt/Adjusted EBITDA Ratio (Non-GAAP)  2.67    Note:(1) Refer to non-GAAP reconciliation at the end of this release.  Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months)
(In Millions)

 13-Week
Period Ended
Jun. 27, 2026 13-Week
Period Ended
Mar. 28, 2026 13-Week
Period Ended
Dec. 27, 2025 13-Week
Period Ended
Sep. 27, 2025 TotalNet earnings (GAAP)$551 $340 $389 $477 $1,757Interest (GAAP) 205  168  173  171  717Income taxes (GAAP) 169  105  121  124  519Depreciation and amortization (GAAP) 252  251  240  233  976EBITDA (Non-GAAP)$1,177 $864 $923 $1,005 $3,969Certain Item adjustments:         Impact of restructuring and
transformational project costs (1) 77  93  55  55  280Impact of acquisition-related costs (2) 38  13  23  10  84Impact of deal contingent rate lock
transactions (3) 54  —  —  —  54EBITDA adjusted for Certain Items
(Non-GAAP) (4)$1,346 $970 $1,001 $1,070 $4,387 (1) Includes charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, the 13-week period ended Jun. 27, 2026 includes the reversal of charges associated with a legal matter that were included in the 13-week period ended Mar. 28, 2026.(2) Includes acquisition and due diligence costs.(3) Includes a loss on deal contingent rate lock transactions related to the planned acquisition of Jetro Restaurant Depot.(4) In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $8 million or non-cash stock compensation expense of $24 million in Q4 fiscal year 2026, interest income of $6 million or non-cash stock compensation expense of $31 million in Q3 fiscal year 2026, interest income of $5 million or non-cash stock compensation expense of $33 million in Q2 fiscal year 2026, nor interest income of $6 million or non-cash stock compensation expense of $31 million in Q1 fiscal year 2026.    Projected Adjusted EPS Guidance

Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty the magnitude or scope of certain items that would be included in the most directly comparable GAAP measure for the relevant future periods, and such items may be significant. Due to these uncertainties, we cannot provide a quantitative reconciliation of projected adjusted EPS to the most directly comparable GAAP financial measure without unreasonable effort. However, we expect to calculate adjusted earnings per share for future periods in the same manner as the reconciliations provided for the historical periods herein.

For more information contact:

Kevin Kim Cassandra MauelInvestor Contact Media [email protected] [email protected] 281-584-1219 T 281-584-1390

, /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS) today announced that on August 3, 2026, its Board of Directors declared a quarterly dividend of $0.12 per share for each issued and outstanding share of the Company's common stock. The dividend is payable on September 16, 2026, to shareholders of record as of the close of business on August 21, 2026.

About Viatris
Viatris Inc. (Nasdaq: VTRS) is a global healthcare company whose mission is to empower people worldwide to live healthier at every stage of life. We meet the needs of patients around the world by acting decisively with ingenuity and resolve. Whether we're developing new medicines, working to maintain a resilient supply of needed therapies, or pursuing bold innovation, we strive to deliver solutions that are effective at scale and built to endure. We're purpose-built to make an impact with a broad portfolio that spans generics, value-added medicines, established brands, and innovative medicines that address areas of significant unmet need. We are headquartered in the U.S., with global centers in Pittsburgh, Shanghai, China, and Hyderabad, India. Learn more at viatris.com and investor.viatris.com, and connect with us on LinkedIn, Instagram, YouTube and X.

Forward-Looking Statements
This press release includes statements that constitute "forward-looking statements." These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include statements that the Viatris Board of Directors declared a quarterly dividend of $0.12 per share for each issued and outstanding share of the Company's common stock, payable on September 16, 2026, to shareholders of record as of the close of business on August 21, 2026. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: failure to achieve the intended benefits of our strategic initiatives and priorities; goodwill or impairment charges or other losses; any changes in or difficulties with the Company's manufacturing facilities; failure to achieve expected or targeted future financial and operating performance and results; Viatris' or its partners' ability to develop, manufacture, and commercialize products; any regulatory, legal or other impediments to Viatris' ability to bring new products to market; products in development and/or that receive regulatory approval may not achieve expected levels of market acceptance, efficacy or safety; actions and decisions of healthcare and pharmaceutical regulators; changes in healthcare and pharmaceutical laws and regulations in the U.S. and abroad; the scope, timing and outcome of any ongoing legal proceedings, and the impact of any such proceedings on Viatris; any significant breach of data security or data privacy or disruptions to our IT systems; risks associated with international operations; changes in third-party relationships; the effect of any changes in Viatris' or its partners' customer and supplier relationships and customer purchasing patterns; the impacts of competition; changes in the economic and financial conditions of Viatris or its partners; uncertainties regarding future demand, pricing and reimbursement for the Company's products; uncertainties and matters beyond the control of management, including but not limited to general political and economic conditions, potential adverse impacts from future tariffs and trade restrictions, inflation rates and global exchange rates; and the other risks described in Viatris' filings with the Securities and Exchange Commission ("SEC"). Viatris routinely uses its website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC's Regulation Fair Disclosure (Reg FD). Viatris undertakes no obligation to update these statements for revisions or changes after the date of this press release other than as required by law.

SOURCE Viatris Inc.

Table of contents

For a blockchain that spent much of the past two years synonymous with meme coins and retail speculation, the Solana Foundation’s latest hiring push reads like a deliberate turn toward infrastructure. The organization has opened several senior positions including a General Manager of AI Ecosystem, a Head of Stablecoins, a Director of Institutional Growth, and institutional growth leads for Greater China and Japan, according to a report from WuBlockchain. Rather than chasing the next viral token, these roles target the plumbing of a durable layer-one network: on-chain intelligence, dollar-pegged assets, and serious capital.

The listings arrive at a moment when Solana’s network metrics have largely recovered from the congestion crises of 2024, and developer engagement has been climbing. Solana has consistently ranked among the top blockchains by developer activity, but institutional onboarding and deeper stablecoin liquidity have lagged behind Ethereum and even some newer ecosystems. A full-time Head of Stablecoins signals that the Foundation now views this gap as strategic, not incidental.

Not Just Another AI Narrative The GM of AI Ecosystem role is the most revealing. While every chain now claims an AI strategy, few foundations have committed to a dedicated senior executive for it. Solana’s AI ambitions come as the broader market watches decentralized compute networks and on-chain agents evolve from experiments into real products. It also aligns with the growing trend of AI-driven Web3 applications, similar to projects like UXLINK and Origins Network’s partnership, which aims to merge decentralized computing with scalable user experiences.

What matters here is timing. Solana’s high throughput gives it a natural advantage for AI agent interactions that demand sub-second finality. But without a coordinated foundation effort, developer tooling and grant programs for AI on Solana have been fragmented. Hiring a GM suggests the Foundation wants to consolidate these efforts before competitors close the window.

Stablecoins as Institutional Rails The Head of Stablecoins position is equally pragmatic. Stablecoin supply on Solana has grown, but it remains dominated by a few large players. A dedicated lead implies the Foundation wants to diversify issuer relationships, expand regional on-ramps, and potentially explore yield-bearing or compliant alternatives that traditional institutions find palatable. In practice, that means courting fintechs and payment firms in Asia and the US, not just crypto-native issuers.

This is not happening in a vacuum. Across the industry, tokenization of real-world assets and stablecoin-based settlement is accelerating, as seen in recent milestones like the first live tokenized Treasury settlement between Ondo and JPMorgan. For Solana to capture a slice of that institutional flow, it needs a stablecoin stack that meets the compliance and integration demands of traditional finance. The new hire will face the hard problem of making Solana rails feel safe to treasury managers who still equate crypto with chaos.

Asia Takes Center Stage The institutional growth leads for Greater China and Japan confirm that Solana sees Asia as the primary battleground for the next adoption wave. These are not passive outreach roles; they imply dedicated boots on the ground who can navigate regulatory nuance, broker exchange liquidity deals, and onboard local institutions. Both markets have seen a surge in Web3 gaming and social-fi, two verticals where Solana has already gained traction. Yet institutional capital in the region has mostly flowed to Ethereum and, in some cases, to newer L1s that offer staking incentives to traditional firms, as seen when institutional staking drove a SUI price surge earlier this month.

Japan’s evolving regulatory clarity and China’s gray-market innovation demand local knowledge. A San Francisco–led playbook will not work. If filled quickly, these hires could reshape where Solana’s next wave of validators, wallets, and on-ramp partners emerge.

What remains uncertain is how quickly these roles will be filled and whether the Foundation can secure candidates who combine deep crypto expertise with mainstream institutional credibility. Job listings don’t guarantee execution, and Solana has lost senior talent in the past. Still, the positions themselves tell a story about where the network’s stewards believe the puck is moving. For market participants accustomed to chasing memes, it’s a reminder that the foundations underneath are getting more serious.

AUTHOR

Brenda is a writer with three years of experience specializing in cryptocurrency, artificial intelligence and emerging technologies. She graduated from the University of Mombasa with a degree in Psychology. She has worked at Cryptopolitan and Blockchain Reporter.

Intesa Sanpaolo, Italy’s largest banking group, has significantly changed the composition of its crypto exchange-traded fund (ETF) holdings, according to its latest mandatory disclosure to US regulators.

Sharp reduction in Bitcoin ETF exposureAccording to the Form 13F filed with the US Securities and Exchange Commission (SEC) on July 31, the bank’s common shareholding in the iShares Bitcoin Trust fund fell dramatically between March and June. The reported position decreased from 646,809 shares on March 31 to 40,723 by June 30, marking an approximate 94% reduction.

Intesa Sanpaolo also reduced its exposure through call options. The underlying share count tied to these positions fell steeply, from 2,496,500 to 18,000, which reflects a drop of over 99%. Additionally, the June filing introduced a new put option tied to 500,000 underlying shares, a position that did not appear in earlier disclosures.

Asset/PositionMarch 31 HoldingsJune 30 HoldingsChange (%)iShares Bitcoin Trust (Common Shares)646,80940,723-93.7%iShares Bitcoin Trust (Call Options)2,496,50018,000-99.3%iShares Bitcoin Trust (Put Options)0500,000New PositionThe Form 13F report, a quarterly filing required by institutional investment managers with at least $100 million in assets under management, only reveals positions held as of the end of the reporting period. It does not specify strike prices, expiry dates, or whether options were sold short, leaving the bank’s precise strategy and risk exposure open to interpretation.

Intesa Sanpaolo is Italy’s leading financial institution, with operations spanning commercial banking, asset management, and insurance in Europe and beyond.

Ethereum positions surge as Solana holdings all but disappearWhile reducing its Bitcoin ETF exposure, Intesa Sanpaolo increased its stake in the iShares Staked Ethereum Trust fund. The bank tripled its holding, from 116,200 shares on March 31 to 349,600 shares at the end of June.

Meanwhile, its investment in the Bitwise Solana Staking ETF was almost entirely eliminated, dropping from 2,817 shares to just seven between quarters. Holdings of the Grayscale XRP Trust ETF remained steady at 712,319 shares, showing little to no movement after accounting for possible trading activity that left the quarter-end balance unchanged.

ETFMarch 31 SharesJune 30 SharesChangeiShares Staked Ethereum Trust116,200349,600+201%Bitwise Solana Staking ETF2,8177-99.8%Grayscale XRP Trust ETF712,319712,3190% Intesa Sanpaolo reported a sharp reduction in both its Bitcoin ETF and call option positions, while increasing its staked Ethereum fund exposure more than threefold. The bank’s Solana holdings nearly vanished, with XRP balances remaining unaltered over the quarter.

Form 13F filings reveal only a snapshot at the end of each quarter, presenting limited insight into daily trading or rationale behind trades. The filings do not capture written or short option strategies and lack detail concerning strike prices or expiration dates.

Due to these disclosure gaps, outside observers cannot definitively calculate the bank’s net exposure to any crypto asset based only on publicly available records.

Nevertheless, the data show Intesa Sanpaolo’s declared crypto investments now favor staked Ethereum over Bitcoin, with dramatically reduced exposure to Solana and steady XRP holdings.

Mini dictionary: Form 13F, a quarterly report that US institutional investment managers managing at least $100 million in certain securities must file with the SEC, disclosing their equity holdings as of the quarter’s end.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

, /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the third quarter ended June 27, 2026.

Third quarter highlights include:

Net sales of $2,741 million, up 23% from $2,237 million in the prior year's quarter; Net income of $540 million, up 10% from the prior year's quarter; Earnings per share of $9.39, up 11% from the prior year's quarter; EBITDA As Defined of $1,447 million, up 19% from $1,217 million in the prior year's quarter; EBITDA As Defined margin of 52.8%; Adjusted earnings per share of $10.87, up 13% from $9.60 in the prior year's quarter; and Upward revision to fiscal 2026 financial guidance. Quarter-to-Date Results

Net sales for the quarter increased 23%, or $504 million, to $2,741 million from $2,237 million in the comparable quarter a year ago. Organic sales growth as a percentage of net sales was 13%.

Net income for the quarter increased $47 million, or 10%, to $540 million from $493 million in the comparable quarter a year ago. The increase in net income primarily reflects the increase in net sales described above and the application of our value-driven operating strategy. The increase was partially offset by higher selling and administration expense and higher interest expense.

Adjusted net income for the quarter increased 12% to $624 million, or $10.87 per share, from $558 million, or $9.60 per share, in the comparable quarter a year ago.

EBITDA for the quarter increased 20% to $1,345 million from $1,123 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 19% to $1,447 million compared with $1,217 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 52.8% compared with 54.4% in the comparable quarter a year ago.

"Our team executed another strong quarter, and we are very pleased with our results," stated Mike Lisman, TransDigm Group's CEO. "All three of our major market channels again delivered double-digit growth compared to the prior year's third quarter. Commercial aftermarket growth of 17% remained strong this quarter. Commercial OEM grew nicely as well as the aircraft OEMs continue to increase build rates. Meanwhile, Defense saw another quarter of consistent growth and also built sizable backlog. Our reported EBITDA As Defined margin for the quarter was 52.8%. Adjusting for acquisition dilution, our base businesses continued to expand EBITDA margins on a year-over-year basis as the team executes on our value drivers.

After the quarter ended, we announced the acquisition of Prince & Izant for approximately $1.07 billion. Prince & Izant's highly engineered, proprietary products are sold primarily into the aerospace and defense,  aeroderivative turbine, and transportation end markets, and we believe the business will be an excellent fit within TransDigm.

Additionally, during the third quarter, we returned capital of approximately $1.0 billion to our shareholders through share repurchases bringing our year-to-date repurchases of our common stock to over $1.8 billion. As we look ahead to the remainder of fiscal 2026, we have significant liquidity and financial flexibility to address any likely range of capital requirements and remain highly focused on our capital allocation.

As always, we remain committed to our operating strategy and the TransDigm value drivers. We look forward to the opportunity to continue creating value for our shareholders as we finish our fiscal 2026."

Acquisition Activity

As previously announced on April 7, 2026, TransDigm completed the acquisition of Jet Parts Engineering  and Victor Sierra for approximately $2.2 billion in cash. Jet Parts Engineering is a leading independent designer and manufacturer of aerospace aftermarket solutions, primarily proprietary OEM-alternative parts and repairs. Victor Sierra is a leading designer, manufacturer, and distributor of proprietary PMA and other aftermarket parts serving the commercial aerospace end market — primarily the general aviation and business aviation sectors.

Subsequent to the quarter-end and as previously announced on July 27, 2026, TransDigm entered into a definitive agreement to acquire Prince & Izant ("P&I") from Industrial Growth Partners for approximately $1.07 billion in cash, including certain tax benefits. P&I is a global designer and manufacturer of highly engineered brazing alloys and specialty metal components used across a range of advanced performance and high cost-of-failure applications. P&I primarily supports the aerospace and defense, aeroderivative turbine, and transportation end markets. Additionally, but to a lesser degree, P&I serves the medical and general industrial end markets.

Financing Activity

During the quarter, on April 17, 2026, TransDigm completed an incremental debt offering of $1.5 billion of new debt consisting of an additional $0.5 billion of 6.125% Senior Subordinated Notes maturing July 31, 2034 and $1.0 billion of additional Tranche N term loans maturing February 13, 2033.

Share Repurchase Activity

During the third quarter of fiscal 2026, TransDigm repurchased 809,101 shares of its common stock at an average price per share of $1,208 for a total amount of $1.0 billion. For the thirty-nine week period ended June 27, 2026, TransDigm repurchased 1,496,383 shares of its common stock at an average price per share of $1,207 for a total amount of $1.8 billion.

Year-to-Date Results

Net sales for the thirty-nine week period ended June 27, 2026 increased 18%, or $1,175 million, to $7,569 million from $6,394 million in the comparable period a year ago. Organic sales growth as a percentage of net sales for fiscal 2026 was 10%.

Net income for the thirty-nine week period ended June 27, 2026 increased $56 million, or 4%, to $1,521 million from $1,465 million in the comparable period a year ago. The increase in net income primarily reflects the increase in net sales described above and the application of our value-driven operating strategy. The increase was offset by higher selling and administrative expenses and higher interest expense.

GAAP earnings per share were reduced for the thirty-nine week periods ended June 27, 2026 and June 28, 2025 by $1.02 per share and $0.83 per share, respectively, as a result of dividend equivalent payments made during each year. As a reminder, GAAP earnings per share are reduced when TransDigm makes dividend equivalent payments pursuant to its stock option plans. These dividend equivalent payments are made during TransDigm's first fiscal quarter each year and also upon payment of any special dividends.

Adjusted net income for the thirty-nine week period ended June 27, 2026 increased 9% to $1,677 million, or $28.94 per share, from $1,543 million, or $26.53 per share, in the comparable period a year ago.

EBITDA for the thirty-nine week period ended June 27, 2026 increased 15% to $3,781 million from $3,299 million for the comparable period a year ago. EBITDA As Defined for the period increased 16% to $3,981 million compared with $3,441 million in the comparable period a year ago. EBITDA As Defined as a percentage of net sales for the period was 52.6% compared with 53.8% in the comparable period a year ago.

Please see the attached tables for a reconciliation of net income to EBITDA, EBITDA As Defined, and adjusted net income; a reconciliation of net cash provided by operating activities to EBITDA and EBITDA As Defined; and a reconciliation of earnings per share to adjusted earnings per share for the periods discussed in this press release.

Fiscal 2026 Outlook

Mr. Lisman stated, "Our strong third quarter performance is enabling us to increase our guidance for the full year. Bookings have exceeded expectations, and we see the current momentum continuing. At the mid-point, we are increasing guidance for sales by $150 million, EBITDA As Defined by $100 million, and adjusted EPS by $1.52.

Additionally, we are shifting our market channel guidance upward to reflect our latest market growth expectations." The guidance excludes any contribution from the pending acquisition of P&I.

TransDigm now expects fiscal 2026 financial guidance to be as follows:

Net sales are anticipated to be in the range of $10,470 million to $10,550 million compared with $8,831 million in fiscal 2025, an increase of 19% at the midpoint (an increase of $150 million at the midpoint from prior guidance); Net income is anticipated to be in the range of $2,102 million to $2,150 million compared with $2,074 million in fiscal 2025, an increase of 3% at the midpoint (an increase of $60 million at the midpoint from prior guidance); Earnings per share is expected to be in the range of $35.38 to $36.21 per share based upon weighted average shares outstanding of 57.7 million shares, compared with $32.08 per share in fiscal 2025, which is an increase of 12% at the midpoint (an increase of $1.20 per share at the midpoint from prior guidance); EBITDA As Defined is anticipated to be in the range of $5,490 million to $5,550 million compared with $4,760 million in fiscal 2025, an increase of 16% at the midpoint (an increase of $100 million at the midpoint from prior guidance and corresponding to an EBITDA As Defined margin guide of approximately 52.5% for fiscal 2026); Adjusted earnings per share is expected to be in the range of $40.62 to $41.46 per share compared with $37.33 per share in fiscal 2025, an increase of 10% at the midpoint compared to prior year (and an increase of $1.52 per share at the midpoint from prior guidance); and Fiscal 2026 outlook is based on the following market growth assumptions: Commercial OEM revenue growth in the mid-teens percentage range; Commercial aftermarket revenue growth in the low double-digit percentage range; and Defense revenue growth in the high single-digit to low double-digit percentage range. Please see the attached Table 6 for a reconciliation of EBITDA, EBITDA As Defined to net income and reported earnings per share to adjusted earnings per share guidance midpoint estimated for the fiscal year ending September 30, 2026. Additionally, please see attached Table 7 for comparison of the current fiscal year 2026 guidance versus the previously issued fiscal year 2026 guidance.

Earnings Conference Call

TransDigm Group will host a conference call for investors and security analysts on August 4, 2026, beginning at 11:00 a.m., Eastern Time. To join the call telephonically, please register for the call at https://register-conf.media-server.com/register/BI7977bf81590d469998b139f1d3e8ff9a. Once registered, participants will receive the dial-in information and a unique pin to access the call. The dial-in information and unique pin will be sent to the email used to register for the call. The unique pin is exclusive to the registrant and can only be used by one person at a time. A live audio webcast of the call can also be accessed online at https://www.transdigm.com. A slide presentation will also be available for reference during the conference call; go to the investor relations page of our website and click on "Presentations."

The call will be archived on the website and available for replay at approximately 2:00 p.m., Eastern Time.

About TransDigm Group

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Non-GAAP Supplemental Information

EBITDA, EBITDA As Defined, EBITDA As Defined margin, adjusted net income and adjusted earnings per share are non-GAAP financial measures presented in this press release as supplemental disclosures to net income and reported results. TransDigm Group defines EBITDA as earnings before interest, taxes, depreciation and amortization and defines EBITDA As Defined as EBITDA plus certain non-operating items recorded as corporate expenses, including non-cash compensation charges incurred in connection with TransDigm Group's stock option or deferred compensation plans, foreign currency gains and losses, acquisition-integration costs, acquisition transaction-related expenses, and refinancing costs. Acquisition transaction and integration-related expenses represent costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses. TransDigm Group defines adjusted net income as net income plus purchase accounting backlog amortization expense, effects from the sale on businesses, non-cash compensation charges incurred in connection with TransDigm Group's stock option or deferred compensation plans, foreign currency gains and losses, acquisition-integration costs, acquisition transaction-related expenses, and refinancing costs. EBITDA As Defined margin represents EBITDA As Defined as a percentage of net sales. TransDigm Group defines adjusted diluted earnings per share as adjusted net income divided by the total outstanding shares for basic and diluted earnings per share. For more information regarding the computation of EBITDA, EBITDA As Defined, adjusted net income and adjusted earnings per share, please see the attached financial tables.

TransDigm Group presents these non-GAAP financial measures because it believes that they are useful indicators of its operating performance. TransDigm Group believes that EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes, capitalized asset values and employee compensation structures, all of which can vary substantially from company to company. In addition, analysts, rating agencies and others use EBITDA to evaluate a company's ability to incur and service debt. EBITDA As Defined is used to measure TransDigm Inc.'s compliance with the financial covenant contained in its credit facility. TransDigm Group's management also uses EBITDA As Defined to review and assess its operating performance, to prepare its annual budget and financial projections and to review and evaluate its management team in connection with employee incentive programs. Moreover, TransDigm Group's management uses EBITDA As Defined to evaluate acquisitions and as a liquidity measure. In addition, TransDigm Group's management uses adjusted net income as a measure of comparable operating performance between time periods and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance.

None of EBITDA, EBITDA As Defined, EBITDA As Defined margin, adjusted net income or adjusted earnings per share is a measurement of financial performance under U.S. GAAP and such financial measures should not be considered as an alternative to net income, operating income, earnings per share, cash flows from operating activities or other measures of performance determined in accordance with U.S. GAAP. In addition, TransDigm Group's calculation of these non-GAAP financial measures may not be comparable to the calculation of similarly titled measures reported by other companies.

Although we use EBITDA and EBITDA As Defined as measures to assess the performance of our business and for the other purposes set forth above, the use of these non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

neither EBITDA nor EBITDA As Defined reflects the significant interest expense, or the cash requirements, necessary to service interest payments on our indebtedness; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor EBITDA As Defined reflects any cash requirements for such replacements; the omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA and EBITDA As Defined; neither EBITDA nor EBITDA As Defined includes the payment of taxes, which is a necessary element of our operations; and EBITDA As Defined excludes the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions. Forward-Looking Statements

Statements in this press release that are not historical facts, including statements under the heading "Fiscal 2026 Outlook," are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning may identify forward-looking statements.

All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting regulatory requirements; our reliance on certain customers; the United States ("U.S.") defense budget and risks associated with being a government supplier including government audits and investigations; failure to maintain government or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs and potential changes in trade policies and tariffs; potential environmental liabilities; liabilities arising in connection with litigation; risks and costs associated with our international sales and operations; and other factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group's most recent Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. Except as required by law, TransDigm Group undertakes no obligation to revise or update the forward-looking statements contained in this press release.

Contact:

Investor Relations

216-706-2945

[email protected]

TRANSDIGM GROUP INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED

Table 1

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

NET SALES

$        2,741

$        2,237

$        7,569

$        6,394

COST OF SALES

1,113

905

3,078

2,553

GROSS PROFIT

1,628

1,332

4,491

3,841

SELLING AND ADMINISTRATIVE EXPENSES

332

242

859

689

AMORTIZATION OF INTANGIBLE ASSETS

69

51

185

148

INCOME FROM OPERATIONS

1,227

1,039

3,447

3,004

INTEREST EXPENSE—NET

514

397

1,472

1,152

OTHER EXPENSE (INCOME)

—

7

(10)

(24)

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

713

635

1,985

1,876

INCOME TAX PROVISION

173

142

464

411

NET INCOME

540

493

1,521

1,465

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(1)

(1)

(2)

(1)

NET INCOME ATTRIBUTABLE TO TD GROUP

$          539

$          492

$        1,519

$        1,464

NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS

$          539

$          492

$        1,460

$        1,415

Earnings per share attributable to TD Group common stockholders:

Earnings per share—Basic and diluted

$         9.39

$         8.47

$        25.20

$        24.31

Weighted-average shares outstanding:

Basic and diluted

57.4

58.1

57.9

58.2

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF

EBITDA, EBITDA AS DEFINED TO NET INCOME

FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED

Table 2

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net Income

$        540

$        493

$      1,521

$      1,465

Adjustments:

Depreciation and amortization expense

118

91

324

271

Interest expense-net

514

397

1,472

1,152

Income tax provision

173

142

464

411

EBITDA

1,345

$      1,123

3,781

3,299

Adjustments:

Acquisition transaction and integration-related expenses (1)

35

9

66

32

Non-cash stock and deferred compensation expense (2)

65

51

118

124

Other, net (3)

2

34

16

(14)

Gross Adjustments to EBITDA

102

94

200

142

EBITDA As Defined

$      1,447

$      1,217

$      3,981

$      3,441

EBITDA As Defined Margin (4)

52.8 %

54.4 %

52.6 %

53.8 %

(1)

Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses.

(2)

Represents the compensation expense recognized under our stock option plans and deferred compensation plans.

(3)

Primarily represents foreign currency transaction gains or losses, costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business.

(4)

The EBITDA As Defined Margin represents the amount of EBITDA As Defined as a percentage of net sales.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF REPORTED

EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE

FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED

Table 3

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Reported Earnings Per Share

Net income

$           540

$           493

$         1,521

$         1,465

Less: Net income attributable to noncontrolling interests

(1)

(1)

(2)

(1)

Net income attributable to TD Group

539

492

1,519

1,464

Less: Dividends paid on participating securities

—

—

(59)

(49)

Net income applicable to TD Group common stockholders—basic and diluted

$           539

$           492

$         1,460

$         1,415

Weighted-average shares outstanding under the two-class method

Weighted-average common shares outstanding

55.7

56.2

56.1

56.2

Vested options deemed participating securities

1.7

1.9

1.8

2.0

Total shares for basic and diluted earnings per share

57.4

58.1

57.9

58.2

Earnings per share—basic and diluted

$          9.39

$          8.47

$         25.20

$         24.31

Adjusted Earnings Per Share

Net income

$           540

$           493

$         1,521

$         1,465

Gross Adjustments to EBITDA

102

94

200

142

Purchase Accounting Backlog Amortization

7

6

23

14

Tax adjustment (1)

(25)

(35)

(67)

(78)

Adjusted net income

$           624

$           558

$         1,677

$         1,543

Adjusted diluted earnings per share under the two-class method

$         10.87

$          9.60

$         28.94

$         26.53

Diluted Earnings Per Share to Adjusted Earnings Per Share

Diluted earnings per share from net income attributable to TD Group

$          9.39

$          8.47

$         25.20

$         24.31

Adjustments to diluted earnings per share:

Inclusion of the dividend equivalent payments

—

—

1.02

0.83

Acquisition transaction and integration-related expenses

0.54

0.20

1.16

0.60

Non-cash stock and deferred compensation expense

0.87

0.67

1.55

1.62

Tax adjustment on income from continuing operations before taxes (1)

0.04

(0.19)

(0.20)

(0.67)

Other, net

0.03

0.45

0.21

(0.16)

Adjusted earnings per share

$         10.87

$          9.60

$         28.94

$         26.53

(1)

For the thirteen and thirty-nine week periods ended June 27, 2026 and June 28, 2025, the Tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate, as well as the impact on the effective tax rate when excluding the excess tax benefits on stock option exercises. Stock compensation expense is excluded from adjusted net income and therefore we have excluded the impact that the excess tax benefits on stock option exercises have on the effective tax rate for determining adjusted net income.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF NET CASH

PROVIDED BY OPERATING ACTIVITIES TO EBITDA, EBITDA AS DEFINED

FOR THE THIRTY-NINE WEEK PERIODS ENDED

Table 4

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions)

(Unaudited)

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

Net cash provided by operating activities

$        1,691

$        1,531

Adjustments:

Changes in assets and liabilities, net of effects from acquisitions and sales of businesses

305

337

Interest expense-net (1)

1,437

1,124

Income tax provision-current

466

414

Gain on sale of businesses, net

—

17

Non-cash stock and deferred compensation expense (2)

(118)

(124)

EBITDA

3,781

3,299

Adjustments:

Acquisition transaction and integration-related expenses (3)

66

32

Non-cash stock and deferred compensation expense (2)

118

124

Other, net (4)

16

(14)

EBITDA As Defined

$        3,981

$        3,441

(1)

Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and premium and discount on debt.

(2)

Represents the compensation expense recognized under our stock option plans and deferred compensation plans.

(3)

Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses.

(4)

Primarily represents foreign currency transaction gains or losses, costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - BALANCE SHEET DATA

Table 5

(Amounts in millions)

(Unaudited)

June 27, 2026

September 30, 2025

Cash and cash equivalents

$           2,773

$           2,808

Trade accounts receivable—Net

1,817

1,617

Inventories—Net

2,586

2,095

Current portion of long-term debt

139

124

Short-term borrowings—trade receivable securitization facility

725

724

Accounts payable

434

368

Accrued and other current liabilities

1,276

966

Long-term debt

32,621

29,167

Total TD Group stockholders' deficit

(9,809)

(9,686)

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF EBITDA,

EBITDA AS DEFINED TO NET INCOME AND REPORTED EARNINGS PER

SHARE TO ADJUSTED EARNINGS PER SHARE GUIDANCE MIDPOINT

FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2026

Table 6

(Amounts in millions, except per share amounts)

(Unaudited)

GUIDANCE MIDPOINT

Fiscal Year Ended September 30, 2026

Net Income

$                       2,126

Adjustments:

Depreciation and amortization expense

438

Interest expense-net

2,020

Income tax provision

653

EBITDA

5,237

Adjustments:

Acquisition transaction and integration-related expenses (1)

90

Non-cash stock and deferred compensation expense (1)

170

Other, net (1)

23

Gross Adjustments to EBITDA

283

EBITDA As Defined

$                       5,520

EBITDA As Defined Margin (1)

52.5 %

Earnings per share

$                       35.80

Adjustments to earnings per share:

Inclusion of the dividend equivalent payments

1.03

Acquisition transaction and integration-related expenses

1.65

Non-cash stock and deferred compensation expense

2.33

Other, net

0.23

Adjusted earnings per share

$                       41.04

Weighted-average shares outstanding

57.7

(1)

Refer to Table 2 above for definitions of Non-GAAP measurement adjustments.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION

CURRENT FISCAL YEAR 2026 GUIDANCE VERSUS

PRIOR FISCAL YEAR 2026 GUIDANCE

Table 7

(Amounts in millions, except per share amounts)

(Unaudited)

Current

Fiscal Year 2026
Guidance Issued
August 4, 2026

Prior

Fiscal Year 2026
Guidance Issued
May 5, 2026

Change at
Midpoint

Net Sales

$10,470 to $10,550

$10,300 to $10,420

$150

GAAP Net Income

$2,102 to $2,150

$2,026 to $2,106

$60

GAAP Earnings Per Share

$35.38 to $36.21

$33.91 to $35.29

$1.20

EBITDA As Defined

$5,490 to $5,550

$5,370 to $5,470

$100

Adjusted Earnings Per Share

$40.62 to $41.46

$38.83 to $40.21

$1.52

Weighted-Average Shares Outstanding

57.7

58.0

(0.3)

SOURCE TransDigm Group Inc.

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04.08.2026 14:34

McDonald's ve druhém čtvrtletí zvýšil čistý zisk o pět procent a pokračoval v růstu celkových tržeb, výsledky však zastínilo zpomalení na klíčovém americkém trhu. Tržby restaurací otevřených déle než rok v USA rostly podstatně pomaleji než před rokem a zaostaly za očekáváním analytiků. Slabší výkon podle firmy odráží opatrnější chování spotřebitelů, kteří kvůli ekonomické nejistotě a vyšším nákladům omezují výdaje za stravování mimo domov.

Americký řetězec restaurací rychlého občerstvení McDonald's ve druhém čtvrtletí zvýšil čistý zisk meziročně o pět procent na 2,36 miliardy dolarů (téměř 50 miliard Kč). Oznámila to dnes firma. Představila rovněž změnu ve vedení aktivit ve Spojených státech, kde zaznamenala zpomalení růstu tržeb.

Konsolidované tržby společnosti ve druhém čtvrtletí vzrostly o zhruba čtyři procenta na 7,1 miliardy dolarů z 6,8 miliardy před rokem. Tržby restaurací v USA otevřených nejméně rok se zvýšily pouze o 0,8 procenta. Jejich růst tak výrazně zpomalil z 2,5 procenta před rokem a zaostal za očekáváním analytiků.

Firma dnes oznámila, že novou šéfkou aktivit v USA se stane Skye Andersonová, která tak nahradí Joea Erlingera. Spojené státy jsou největším trhem společnosti. Američtí zákazníci se však v poslední době kvůli obavám ohledně vývoje ekonomiky snaží omezovat výdaje na stravování v restauracích, napsala agentura Reuters.

Společnost McDonald's již v květnu varovala, že vyšší ceny benzinu na čerpacích stanicích a obavy spotřebitelů související s konfliktem mezi USA a Íránem by mohly mít negativní dopad na její tržby.

Řetězec McDonald's působí rovněž v České republice, kde provozuje více než 140 restauraci. Předloni do restaurací McDonalds's v Česku zavítalo 53,5 milionu zákazníků.

Tagy: McDonald´s, výsledky, akcie, potravinářství
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Warren Buffett stepped down as CEO of Berkshire Hathaway (NYSE:BRK-B | BRK-B Price Prediction) on December 31, 2025, after six decades leading the conglomerate he transformed from a struggling textile mill into a $1 trillion empire. The “Oracle of Omaha” left his successor, Greg Abel, with a very concentrated portfolio: almost 70% of Berkshire’s $381 billion portfolio is invested in just six stocks. Abel, who has served as vice chair overseeing non-insurance operations, officially took over as CEO on January 1, 2026. At 95 years old, Buffett isn’t fully retiring—he remains chair of the board and plans to continue coming to the Omaha headquarters as much as before. However, he has stated he will be “going quiet” and leaving all decision-making to Abel.

While Berkshire Hathaway has erased much of its 2026 underperformance against the S&P 500, it still boils down to a few compounding and frustrating headwinds: a $397 billion cash pile earning T-bill yields while the market rallied hard, a deliberate retreat from equities at exactly the wrong time, and a leadership transition that shook investor confidence. Its sheer size makes transformative acquisitions nearly impossible, and its “old economy” tilt toward railroads, insurance, and energy meant it sat out the AI-driven tech surge that powered index returns. Remember, the only reason the S&P 500 and the Nasdaq are up this year is the technology sector’s outperformance. In short, Berkshire got penalized for being cautious and boring, though for patient, long-term investors, that may ultimately prove to be a feature, not a bug.

Here are the five reasons why Berkshire Hathaway is my favorite stock for the rest of 2026 and beyond.

1. Gigantic Pile of Cash Berkshire Hathaway sits on the largest cash pile in its history: $397.4 billion at the end of Q2 2026, equal to roughly 59% of its investable assets. In fact, it’s enough cash to buy 476 of the S&P 500. That massive reserve acts as a powerful safety net in the event of a recession or market downturn, while giving Abel tremendous flexibility to pursue attractive acquisitions or make bold capital investments in businesses Berkshire already owns. When the right deal finally appears—and it always does—this kind of financial firepower is truly exceptional.

2. Earnings Are Strong Berkshire’s operating earnings rose 18% to $11.35 billion in Q1 2026, boosted by a robust 28.5% jump in insurance underwriting profit to $1.72 billion. Net income more than doubled to $10.1 billion. This isn’t accounting noise; it’s a clear reflection of genuine operational strength across Berkshire’s massive portfolio of businesses. Second-quarter earnings are due next week, and Wall Street expects them to come in solidly.

3. Portfolio Built to Withstand Disruption Over the past 60 years, Berkshire has assembled a portfolio of operating businesses and investments that are remarkably resilient to disruption from AI and emerging technologies. Railroads, insurance, energy, and consumer staples form the core. These are classic businesses protected by wide, durable competitive moats that are unlikely to be upended overnight.

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4. Buybacks Have Started Berkshire ended its 21-month buyback moratorium because its shares finally became attractive enough to repurchase. The price-to-book ratio fell to 1.4 in March, well below the 60% to 80% premium range that had kept buybacks on hold for nearly two years. Consistent with Berkshire’s long-standing policy, the company repurchases shares only when management believes the stock is trading below its intrinsic value. The resumption of buybacks is therefore a clear signal that management views the current price as undervalued—and if they do, investors likely will too. Plus, financial analyses, including estimates from Barron’s, indicate that Berkshire repurchased between $5 billion and $11 billion of its stock in the second quarter.

5. Greg Abel Is the Right One to Lead the Way Abel personally purchased $15 million of Berkshire shares. That amount is roughly equal to his entire after-tax annual salary. In addition, he has committed to repeating the buy each year going forward. Given his decades-long tenure at the company, Abel is unlikely to make abrupt changes to Berkshire’s direction. However, his more active management approach could still unlock meaningful growth in the years ahead. Skin in the game and strong cultural continuity send a powerful positive signal. A signal that will likely continue to resonate with investors for decades to come.

A List of Berkshire Hathaway’s Wholly Owned Private Companies When you own the shares, you own a lot more than the 26 companies in the stock portfolio.

Insurance

GEICO (auto insurance) General Re (reinsurance) Berkshire Hathaway Reinsurance Group Alleghany Corporation Kansas Bankers Surety Transportation and Logistics

BNSF Railway (one of the largest freight railroads in North America) FlightSafety International (pilot training) NetJets (fractional aircraft ownership) Energy and Utilities

Berkshire Hathaway Energy (parent of MidAmerican Energy, PacifiCorp, NV Energy, Northern Powergrid) Manufacturing and Industrial

Marmon Holdings (100+ industrial businesses) Precision Castparts (aerospace/industrial components) IMC International Metalworking Companies Acme Brick Company OxyChem (acquired in January 2026 for $9.7 billion—the most recent major addition) Retail and Consumer

Dairy Queen See’s Candies Ben Bridge Jeweler Borsheims Fine Jewelry Nebraska Furniture Mart Building and Home

Benjamin Moore & Co. (paints) Clayton Homes (manufactured housing) Shaw Industries (flooring) Johns Manville (insulation/building products) Taylor Morrison (acquisition recently completed) Finance and Services

Berkshire Hathaway HomeServices (real estate brokerage) CORT Business Services (furniture rental) Berkadia (mortgage financing, 50% JV) Berkshire has a staggering 800 subsidiaries worldwide, but these are the flagship names that drive the bulk of operating earnings.

The Berkshire Hathaway shares are trading roughly 5% off their all-time high, sitting on a record cash pile, with buybacks just resuming and a new CEO who’s eating his own cooking. For long-term investors, that’s a rare combination. That said, always do your own due diligence before investing. With the stock market overbought and the AI/data center trade still driving investor groupthink, this may be the best opportunity to own a legendary company.

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, /PRNewswire/ -- KeyCorp (NYSE: KEY) announced today that it has completed its previously-announced acquisition of Clearwater Corporate Finance LLP ("Clearwater UK"), a leading UK-based middle market investment banking advisory firm.

"Completing this acquisition marks an important step in expanding our global advisory platform," said Randy Paine, President of Key Institutional Bank. "Clearwater UK's strong middle-market expertise and sector depth will help us better serve clients with more comprehensive, cross-border advice and execution."

About Clearwater UK
Clearwater UK focuses on providing corporate finance advice for mid-market transactions including M&A, private equity and debt advisory. Across its ten sectors covering automotive, business services, consumer, energy and utilities, financial services, food and beverage, healthcare, industrials and chemicals, real estate, and tech, as well as its debt advisory and private equity specialists, the team provides in-depth knowledge and industry experience to every project. The UK business has offices in Birmingham, London, Leeds and Manchester. 

About KeyCorp
KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $191 billion at June 30, 2026.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.

SOURCE KeyCorp

Regular Monthly Dividends of $0.265 Per Share for each of October, November and December 2026

 Supplemental Dividend of $0.30 Per Share Payable in September 2026

, /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that its Board of Directors declared regular monthly cash dividends of $0.265 per share for each of October, November and December 2026. These monthly dividends, which will be payable pursuant to the table below, total $0.795 per share for the fourth quarter of 2026 and are consistent with the regular monthly dividends declared for the third quarter of 2026 and represent a 3.9% increase from the regular monthly dividends paid in the fourth quarter of 2025. Since its October 2007 initial public offering, Main Street has periodically increased the amount of its regular monthly dividends paid per share and has never reduced its regular monthly dividend amount per share.

Summary of Fourth Quarter 2026 Regular Monthly Dividends

Declared

Ex-Dividend Date

Record Date

Payment Date

Amount Per Share

8/3/2026

10/8/2026

10/8/2026

10/15/2026

$0.265

8/3/2026

11/6/2026

11/6/2026

11/13/2026

$0.265

8/3/2026

12/8/2026

12/8/2026

12/15/2026

$0.265

Total for Fourth Quarter 2026:

$0.795

In addition to the regular monthly dividends for the fourth quarter of 2026, the Board of Directors declared a supplemental cash dividend of $0.30 per share payable in September 2026. This supplemental cash dividend, which will be payable as set forth in the table below, will be paid out of Main Street's undistributed taxable income (taxable income in excess of dividends paid) as of June 30, 2026.

Supplemental Cash Dividend Payable in September 2026

Declared

Ex-Dividend Date

Record Date

Payment Date

Amount Per Share

8/3/2026

9/21/2026

9/21/2026

9/28/2026

$0.30

Including all dividends declared to date, including the fourth quarter 2026 regular monthly dividends and the September 2026 supplemental dividend, Main Street will have paid $51.205 per share in cumulative cash dividends since its October 2007 initial public offering at $15.00 per share. Including the fourth quarter 2026 regular monthly dividends and the September 2026 supplemental dividend, these most recent dividend declarations represent total dividends to Main Street shareholders of $1.095 per share, representing an annualized current yield of 7.9% based on the closing price of $55.75 per share on August 3, 2026.

The final determination of the tax attributes for dividends each year are made after the close of the tax year. The final tax attributes for 2026 dividends are currently expected to include a combination of ordinary taxable income and qualified dividends and may include capital gains and return of capital.

Main Street maintains a dividend reinvestment and direct stock purchase plan (the "Plan"). The dividend reinvestment feature of the Plan (the "DRIP") provides for the reinvestment of dividends on behalf of Main Street's registered stockholders who hold their shares with Main Street's transfer agent and registrar, Equiniti Trust Company, LLC, or certain brokerage firms that have elected to participate in the DRIP. Under the DRIP, if Main Street declares a dividend, registered stockholders who have not "opted out" of the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of Main Street common stock. The direct stock purchase feature of the Plan (the "DSPP") provides investors with a convenient and economical method to purchase shares of Main Street common stock. More information about the Plan (including the DSPP prospectus) can be found on the Main Street website (https://ir.mainstcapital.com/dividend-reinvestment-and-direct-stock-purchase-plan).

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.

Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements, including but not limited to the continued payment and growth of future dividends and the potential tax attributes for 2026 dividends, which are based upon Main Street management's current expectations and are inherently uncertain. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance, events and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Main Street's filings with the U.S. Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to Main Street as of the date hereof and are qualified in their entirety by this cautionary statement. Main Street assumes no obligation to revise or update any such statement now or in the future.

SOURCE Main Street Capital Corporation

A securities fraud class action lawsuit has been filed on behalf of Insulet investors after its stock plummeted over 6% because of misrepresentation about the safety of Insulet's Omnipod products.

, /PRNewswire/ -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Insulet Corporation (NASDAQ: PODD) and certain of the Company's senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.

If you invested in Insulet, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/insulet-class-action-lawsuit.

Key Details of the Insulet ($PODD) Class Action:

Lead Plaintiff Deadline: August 31, 2026 Alleged Misconduct: Securities fraud relating to the safety of Insulet's Omnipod products Largest Alleged Stock Drop: March 12, 2026 – 6.88% Stock Drop  Court: U.S. District Court for the District of Massachusetts Take Action: Contact BFA Law to discuss your rights Insulet investors have until August 31, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Insulet securities. The class action is pending in the U.S. District Court for the District of Massachusetts. It is captioned Hu v. Insulet Corporation et al., No. 26-cv-13062.

Why is Insulet Being Sued for Securities Fraud?

Insulet is primarily engaged in the development, manufacture, and sale of insulin delivery systems for people with insulin-dependent diabetes through its Omnipod platform. The Omnipod platform includes: the Omnipod® 5 Automated Insulin Delivery System ("Omnipod 5"), the Omnipod DASH® Insulin Management System ("Omnipod DASH"), and the Omnipod Insulin Management System ("Omnipod Eros").

Throughout the relevant period, Insulet misrepresented the safety of its Omnipod products as well as its ability to efficiently produce "medical grade quality at consumer electronic scale."  In reality, certain of Insulet's products suffered from undisclosed manufacturing defects that put patient safety at risk.

Why did Insulet's Stock Drop?

On March 12, 2026, Insulet disclosed that a manufacturing issue with its Omnipod® 5 Pods caused a "tear in the internal tubing that delivers insulin" resulting in insulin being released inside the Pod "instead of being fully infused into the body as intended." Accordingly, Insulet "initiated a voluntary Medical Device Correction for specific lots of Omnipod® 5 Pods."

This news caused the price of Insulet stock to drop $16.23 per share, or 6.88%, from a closing price of $236.07 per share on March 12, 2026, to $219.84 per share on March 13, 2026.

On May 26, 2026, Insulet announced another voluntary Medical Device Correction due to a manufacturing issue, this time to its Omnipod 5, Omnipod DASH, and Omnipod Eros systems. It again indicated that the manufacturing issue resulted in a tear in the tubing which "could result in insulin under-delivery."

This news caused the price of Insulet stock to drop $7.79 per share, or 5.07%, from a closing price of $218.11 per share on May 26, 2026, to $146.01 per share on May 27, 2026.

Click here for more information: https://www.bfalaw.com/cases/insulet-class-action-lawsuit.

What Can You Do?

If you invested in Insulet, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/insulet-class-action-lawsuit

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named "Elite Trial Lawyers" by the National Law Journal, "Litigation Stars" by Benchmark Litigation, among the top "500 Leading Plaintiff Financial Lawyers" by Lawdragon, "Titans of the Plaintiffs' Bar" by Law360 and "SuperLawyers" by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff's securities litigation law firm, with clients noting: "[t]here is no better service provider in the practice area," "[t]he interest of the client is always front and center," and "[t]here isn't a better firm in this space."  One testimonial described the firm as "nimble and entrepreneurial," with a "relentless focus on adding value for clients."

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/insulet-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

SOURCE Bleichmar Fonti & Auld LLP

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.

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