NYSE$NRG

NRG Energy Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong financial results for the third quarter of 2024, reaffirmed raised 2024 guidance, initiated 2025 guidance, and introduced adjusted net income and adjusted EPS metrics.

NRG Energy reported strong third quarter 2024 financial results, driven by margin expansion across all reporting segments. The company reaffirmed its raised 2024 guidance and initiated 2025 financial guidance, targeting long-term Adjusted EPS growth of greater than 10% from the raised 2024 guidance. NRG also announced a 2025 capital allocation plan with significant share repurchases.

  • NRG reaffirmed raised 2024 guidance for Adjusted EBITDA and FCFbG.
  • The company is on track to achieve investment grade credit metrics by the end of 2024, a year earlier than the original target.
  • NRG initiated 2025 financial guidance with a long-term Adjusted EPS growth target of greater than 10% from raised 2024 guidance.
  • A partnership was formed with Renew Home and Google Cloud to develop a Virtual Power Plant (VPP) portfolio of up to 1 GW of load management capacity in Texas.

Headline financials

Total Revenue

$7.22B

Previous: $7.95B-9.1%
EPS (adj)

$1.85

Previous: $1.41+31.2%
Capital Expenditures

-$286M

Previous: -$493M+42.0%
Free Cash Flow

-$1.05B

Previous: -$150M-602.0%
Net Income

-$767M

Previous: $343M-323.6%
Operating Income

-$812M

Previous: $561M-244.7%
Gross Profit

-$16M

Previous: $1.53B-101.0%
Cash & Equivalents

$1.1B

Previous: $401M+175.3%
Total Assets

$23.7B

Previous: $27.9B-15.0%
Stock-Based Comp

$25M

Previous: $26M-3.8%

Revenue & EPS history

NRG Energy · Revenue · Quarterly

$7.22B

Q3 2024-9.1%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

NRG Energy · $6.56B total across 2 segments · Q3 2023

  • Texas
    $3.69B+17.2%
  • East
    $2.88B

Forward guidance

NRG initiated 2025 guidance with Adjusted EBITDA between $3.725 - $3.975 billion, Adjusted Net Income between $1.330 - $1.530 billion, Adjusted EPS between $6.75 - $7.75, and FCFbG between $1.975 - $2.225 billion.

Tailwinds

  • Continued improved execution across all of NRG's businesses
  • Expected achievement of NRG's previously announced revenue and cost synergy programs
  • Flat power price environment assumption
  • Capital allocation plan includes $1.3 billion in share repurchases
  • 8% increase of the annual common dividend to $1.76 per share

Headwinds

  • Loss of Airtron's financial contribution due to the sale of the business
  • Guidance ranges reflect a flat power price environment
  • Guidance is not dependent on tightening power markets or price speculation
  • Guidance does not include any potential contributions from sites, or other similar opportunities
  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.3%

Avg return

30 days after

44%

32 / 72 earnings

Positive

+26.3%

Q1 2025

Best reaction

-10.1%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.3%-13.0%-17.9%
Q4 2025-1.6%+1.4%-17.2%
Q3 2025-2.3%-6.0%-5.9%
Q1 2025+26.3%+33.4%+24.9%
Q4 2024+10.6%-2.1%-7.1%
Q3 2024-2.2%-4.1%+3.0%
Q2 2024+11.4%+13.6%+6.2%
Q1 2024-2.7%+7.4%-0.1%
Q4 2023+2.4%+6.8%+25.3%
Q3 2023+2.6%+3.6%+10.3%
Q2 2023-0.8%-2.3%+2.2%
Q1 2023-6.5%-6.4%-0.4%
Q4 2022-4.5%-4.9%-12.1%
Q3 2022-0.2%+2.4%-25.3%
Q2 2022+2.9%+2.6%+11.0%
Q1 2022+9.9%+10.8%+20.6%
Q4 2021+3.1%-0.8%+0.5%
Q3 2021-9.3%-12.8%-8.6%
Q2 2021+5.2%+3.4%+8.8%
Q1 2021-0.5%-0.7%-3.0%
Q4 2020+7.6%+9.1%+3.3%
Q3 2020-4.5%-0.3%+5.5%
Q2 2020+2.1%+4.0%-0.5%
Q1 2020-0.0%-2.2%+12.0%
Q4 2019-5.2%-5.0%-15.7%
Q3 2019-2.9%-2.1%-2.8%
Q2 2019+3.5%+0.0%+11.2%
Q1 2019-2.7%-4.7%-16.1%
Q4 2018+2.9%+1.8%+3.6%
Q3 2018-0.3%+2.6%+5.5%
Q2 2018+2.2%+7.2%+10.9%
Q1 2018+9.3%+11.2%+11.3%
Q4 2017+7.8%+13.0%+18.1%
Q3 2017+11.2%+14.4%+12.5%
Q2 2017-0.1%-0.9%+1.4%
Q1 2017-10.1%-9.8%+0.5%
Q4 2016+0.5%+3.2%+9.5%
Q3 2016+12.3%+18.8%+11.0%
Q2 2016-5.7%-5.9%-8.1%
Q1 2016+6.2%
Q4 2015+1.6%
Q3 2015+0.7%
Q2 2015-10.1%
Q1 2015+4.1%
Q4 2014-5.6%
Q3 2014+9.0%
Q2 2014-1.6%
Q1 2014+3.9%
Q4 2013-0.2%
Q3 2013-2.8%
Q2 2013-3.5%
Q1 2013-1.5%
Q4 2012+0.7%
Q3 2012-2.6%
Q2 2012+6.9%
Q1 2012-6.9%
Q4 2010-2.8%
Q4 2011-2.8%
Q3 2011+2.5%
Q2 2011-6.3%
Q1 2011-0.9%
Q4 2007-5.2%
Q3 2010+0.3%
Q2 2010-2.2%
Q1 2009-3.0%
Q1 2010+1.8%
Q4 2009-5.2%
Q3 2008+1.3%
Q3 2009+1.3%
Q2 2008-1.2%
Q4 2008-1.2%
Q2 2009-1.2%

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