Strong financial and operating results; reaffirming 2025 guidance ranges and capital allocation
Signed 295 MW of premium, long-term retail agreements for data centers on NRG sites; potential expansion up to 1 GW across additional sites
Executed loan agreement under the Texas Energy Fund for T.H. Wharton generation facility, expected online in 2026; continuing to advance due diligence on Cedar Bayou and Greens Bayou
Increasing 2025 Texas Residential Virtual Power Plant target from 20 MW to 150 MW
Submitted all required regulatory filings for previously announced acquisition from LS Power; continue to target first quarter 2026 for closing

HOUSTON–(BUSINESS WIRE)–NRG Energy, Inc. (NYSE: NRG) today announces financial results for the second quarter ended June 30, 2025 and reports GAAP Net Loss of $(104) million, GAAP Earnings per Share (EPS) — basic of $(0.62), and GAAP Cash Provided by Operating Activities of $451 million. The Company’s non-GAAP metrics are Adjusted Net Income of $339 million, Adjusted EPS of $1.73, Adjusted EBITDA of $909 million, and Free Cash Flow before Growth Investments (FCFbG) of $914 million for the second quarter of 2025.

“NRG once again delivered superb financial and operational performance in the quarter, completing the most successful first half performance in the company’s history. Our results underscore the strength and resilience of our core business combined with meaningful progress on our strategic initiatives,” said Larry Coben, Chair, President, and Chief Executive Officer. “We have also signed our first long-term data center power agreements. What continues to differentiate NRG is our ability to innovate at scale while staying laser-focused on delivering the full spectrum of energy services to an ever-growing realm of customers – from data centers to businesses of all sizes to families. I am proud of the opportunities and solutions we are creating for our customers, and I am confident that we are creating substantial value.”

Consolidated Financial Results
Table 1:

	Three Months Ended					Six Months Ended
(In millions, except per share amounts)	6/30/2025			6/30/2024		6/30/2025		6/30/2024
GAAP Net (Loss)/Income	$	(104	)	$	738	$	646	$	1,249
Adjusted Net Income^{a b}	$	339		$	353	$	870	$	658
GAAP EPS — basic	$	(0.62	)	$	3.47	$	3.11	$	5.81
Adjusted EPS^{a c}	$	1.73		$	1.70	$	4.42	$	3.15
Adjusted EBITDA^a	$	909		$	962	$	2,035	$	1,832
GAAP Cash Provided by Operating Activities	$	451		$	1,056	$	1,306	$	1,323
Free Cash Flow Before Growth Investments (FCFbG)^a	$	914		$	663	$	1,207	$	623

^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

^bAdjusted Net Income as shown here is ‘Adjusted Net Income available for common stockholders’; see Appendix tables A-1 through A-4

^cAdjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding – basic

NRG’s GAAP Net Loss for the second quarter of 2025 is $842 million lower than the same period in 2024, primarily due to unrealized non-cash losses on mark-to-market economic hedges driven by declines in forward natural gas and northeast power prices, as well as an increase to reserves for legal matters in 2025. The prior year also included positive impact from rising ERCOT power prices and market heat rate expansion. Certain economic hedge positions must be marked-to-market each period, while the related customer contracts are not, resulting in temporary unrealized gains or losses that do not reflect the underlying economics expected at settlement. Other factors that contributed to the decrease in current year GAAP earnings includes certain asset sales and retirements and an increase in equity-linked compensation driven by NRG’s increased share price in 2025. The year-over-year decrease was partially offset by a loss on debt extinguishment recorded in 2024.

Adjusted Net Income for the second quarter 2025 is $339 million, $14 million lower than prior year, primarily driven by a $53 million decline in Adjusted EBITDA, which includes the financial impacts mentioned in the previous paragraph and additional drivers described in the segment results below. Adjusted EPS is $1.73 for the second quarter 2025, $0.03 higher than prior year.

NRG’s Adjusted EPS and FCFbG results for the first six months of 2025 compare favorably to last year, primarily due to strong financial and operational performance.

Reaffirming 2025 Guidance

NRG is trending at the upper end of its guidance ranges and is reaffirming its guidance for 2025 as set forth below.

Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2025^a

		2025
(In millions, except per share amounts)		Guidance
Adjusted Net Income		$1,330 – $1,530
Adjusted EPS		$6.75 – $7.75
Adjusted EBITDA		$3,725 – $3,975
FCFbG		$1,975 – $2,225

^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.

2025 Capital Allocation

The Company plans to return $1.3 billion to shareholders via share repurchases and approximately $345 million via common stock dividends in 2025, as part of its previously announced 2025 capital allocation plan. Through July 31, 2025, the Company completed $768 million in share repurchases and distributed $173 million in common stock dividends.

On July 8, 2025, the Company retired the remaining $232 million of its outstanding 2.75% convertible senior notes due 2048. In connection with this retirement, the Company also paid $292 million in option premiums on the capped call transactions that hedged the conversion premium on the convertible senior notes.

On July 22, 2025, NRG closed a $1.0 billion upsize to its existing Term Loan B, with the proceeds to be utilized for replenishment of capital employed for the acquisition of assets added to its Texas generation portfolio, the redemption of principal related to the convertible senior notes, development of its Texas new builds, and general company purposes.

On July 21, 2025, NRG declared a quarterly dividend of $0.44 per common share, or $1.76 per share on an annualized basis. The dividend is payable on August 15, 2025, to common stockholders of record as of August 1, 2025.

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

Data Center Update

NRG has entered into 295 MW of premium, long-term retail agreements to power data centers constructed on two NRG-owned sites in Texas. Initial powering is expected by the second half of 2026, with the facilities to be fully online by 2030. There is potential to expand up to 1 GW across additional sites.

Texas Energy Fund (TEF)

On July 31, 2025, NRG entered into a $216 million loan agreement with the Public Utility Commission of Texas (PUCT) under the TEF for a low-interest rate loan at 3% to support development at its 415 MW (456 MW nameplate) T.H. Wharton generation facility. Initial disbursement of funds occurred in July 2025 and is expected to continue through the projected summer 2026 commercial operations date.

NRG has two additional Texas new build projects in TEF due diligence review, Greens Bayou and Cedar Bayou, totaling 1.1 GW.

Accelerating Texas Residential Virtual Power Plant

Building on strong customer adoption of the Home Essentials and other offerings, NRG has raised its 2025 Texas Residential Virtual Power Plant target to 150 MW, up from 20 MW. The program remains on track to achieve 650 MW in Texas by 2030 and 1 GW by 2035.

Acquisition of Premier Power Portfolio from LS Power On Track to Close First Quarter 2026

On May 12, 2025, NRG entered into a definitive agreement with LS Power to acquire a power portfolio including 13 GW of natural gas-fired generation facilities and a Commercial & Industrial Virtual Power Plant platform with 6 GW of capacity.

The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals including Hart-Scott-Rodino (HSR), Federal Energy Regulatory Commission (FERC), and the New York State Public Service Commission (NYSPSC). All required filings have been submitted.

Segment Results

Table 3: Adjusted EBITDA^a

(In millions)	Three Months Ended				Six Months Ended
Segment	6/30/2025		6/30/2024		6/30/2025		6/30/2024
Texas	$	512	$	452	$	811	$	671
East		99		209		573		560
West/Services/Other^b		43		73		120		129
Vivint Smart Home		255		228		531		472
Adjusted EBITDA	$	909	$	962	$	2,035	$	1,832

^aAdjusted 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

^bIncludes Corporate activities

Texas: Second quarter 2025 Adjusted EBITDA is $512 million, $60 million higher than prior year. For the first six months of 2025, Adjusted EBITDA is $811 million, $140 million higher than prior year. The increase for both the quarter and for the first six months are primarily driven by improved retail margin. Results for the first six months of 2025 further benefited from favorable weather.

East: Second quarter 2025 Adjusted EBITDA is $99 million, $110 million lower than prior year. This decrease is primarily driven by increased supply costs to serve retail load, partially offset by increased retail natural gas margins and higher capacity prices for owned generation. For the first six months of 2025, Adjusted EBITDA is $573 million, $13 million higher than prior year. Results include favorable impact from higher natural gas wholesale margins in the first quarter.

West/Services/Other: Second quarter 2025 Adjusted EBITDA is $43 million, $30 million lower than prior year. For the first six months of 2025, Adjusted EBITDA is $120 million, $9 million lower than prior year. These decreases are primarily driven by the sale of Airtron in September 2024 and the expiration of the Cottonwood lease in May 2025, partially offset by higher retail power margins.

Vivint Smart Home: Second quarter 2025 Adjusted EBITDA is $255 million, $27 million higher than prior year. For the first six months of 2025, Adjusted EBITDA is $531 million, $59 million higher than prior year. The increase for both the quarter and the first six months of 2025 is attributable to growth in customer count, driven by higher new customer adds and record customer retention, and an increase in monthly recurring service margin per customer.

Liquidity and Capital Resources

Table 4: Corporate Liquidity

(In millions)	6/30/25		12/31/24
Cash and Cash Equivalents	$	180	$	966
Restricted Cash		17		8
Total	$	197	$	974
Total availability under revolving credit facility and collective collateral facilities		5,058		4,469
Total liquidity, excluding funds deposited by counterparties	$	5,255	$	5,443

As of June 30, 2025, 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. The ending cash balance decrease is mainly a result of the acquisition of assets added to the Company’s Texas generation portfolio with the increase in availability due to seasonal shaping of the AR Securitization facility and upsize of Revolving Credit Facility net of funds drawn. In July 2025, some proceeds from the $1 billion increase to the Term Loan B facility were used to repay the revolver and replenish cash used for the additions to the Company’s Texas generation portfolio.

Earnings Conference Call

On August 6, 2025, 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 Energy, Inc. is leading the future of energy—now. Our solutions power a smarter, brighter future by helping customers achieve today’s goals while solving for the challenges of tomorrow. Every day, we deliver innovative natural gas, electricity, and smart home solutions to customers large and small across North America.

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 the proposed transaction between NRG and LS Power, the expected closing of the transaction and the timing thereof, including receipt of required regulatory approvals and satisfaction of other customary closing conditions, the financing of the proposed transaction, enhancements to NRG’s credit profile, synergies, opportunities, anticipated future financial and operational performance, and 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 and escalation of international trade disputes, the inability to close (or any delay in closing) the proposed acquisition of the portfolio of assets from LS Power (the “Portfolio”), the occurrence of any event, change or other circumstances that could give rise to the termination of the purchase agreement relating to the Portfolio (including the inability to obtain required governmental and regulatory approvals in a timely manner or at all), the inability to obtain financing for the proposed acquisition of the Portfolio, 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, 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, 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 proceed with projects under development or the inability to complete the construction of such projects on schedule or within 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), 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 Commissions (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, cash provided by operating activities, Free Cash Flow before Growth, Adjusted Net Income, and Adjusted EPS guidance are estimates as of August 6, 2025. 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)	2025			2024			2025			2024
Revenue
Revenue	$	6,740		$	6,659		$	15,325		$	14,088
Operating Costs and Expenses
Cost of operations (excluding depreciation and amortization shown below)		5,629			4,328			12,190			9,990
Depreciation and amortization		344			360			670			693
Impairment losses		—			15			—			15
Selling, general and administrative costs (excluding amortization of customer acquisition costs of $68, $47, $133 and $89, respectively, which are included in depreciation and amortization shown separately above)		724			545			1,273			1,094
Acquisition-related transaction and integration costs		43			6			51			15
Total operating costs and expenses		6,740			5,254			14,184			11,807
Gain/(loss) on sale of assets		—			5			(7	)		1
Operating Income		—			1,410			1,134			2,282
Other Income/(Expense)
Equity in earnings of unconsolidated affiliates		1			4			3			7
Other income, net		4			3			16			33
Loss on debt extinguishment		(10	)		(202	)		(10	)		(260	)
Interest expense		(148	)		(163	)		(311	)		(315	)
Total other expense		(153	)		(358	)		(302	)		(535	)
(Loss)/Income Before Income Taxes		(153	)		1,052			832			1,747
Income tax (benefit)/expense		(49	)		314			186			498
Net (Loss)/Income	$	(104	)	$	738		$	646		$	1,249
Less: Cumulative dividends attributable to Series A Preferred Stock		17			17			34			34
Net (Loss)/Income Available for Common Stockholders	$	(121	)	$	721		$	612		$	1,215
(Loss)/Income per Share
Weighted average number of common shares outstanding — basic		196			208			197			209
(Loss)/Income per Weighted Average Common Share — Basic	$	(0.62	)	$	3.47		$	3.11		$	5.81
Weighted average number of common shares outstanding — diluted		196			214			203			214
(Loss)/Income per Weighted Average Common Share —Diluted	$	(0.62	)	$	3.37		$	3.01		$	5.68


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/ INCOME
(Unaudited)

	Three months ended June 30,						Six months ended June 30,
(In millions)	2025			2024			2025		2024
Net (Loss)/Income	$	(104	)	$	738		$	646	$	1,249
Other Comprehensive Income/(Loss)
Foreign currency translation adjustments		13			(2	)		15		(10	)
Defined benefit plans		1			(1	)		1		(2	)
Other comprehensive income/(loss)		14			(3	)		16		(12	)
Comprehensive (Loss)/Income	$	(90	)	$	735		$	662	$	1,237


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2025			December 31, 2024
(In millions, except share data)	(Unaudited)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	180		$	966
Funds deposited by counterparties		446			199
Restricted cash		17			8
Accounts receivable, net		3,421			3,488
Inventory		451			478
Derivative instruments		2,332			2,686
Cash collateral paid in support of energy risk management activities		361			309
Prepayments and other current assets		987			830
Total current assets		8,195			8,964
Property, plant and equipment, net		3,192			2,021
Other Assets
Equity investments in affiliates		47			45
Operating lease right-of-use assets, net		133			151
Goodwill		5,017			5,011
Customer relationships, net		1,379			1,538
Other intangible assets, net		1,130			1,370
Derivative instruments		1,745			1,710
Deferred income taxes		1,935			2,067
Other non-current assets		1,315			1,145
Total other assets		12,701			13,037
Total Assets	$	24,088		$	24,022

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt and finance leases	$	1,132		$	996
Current portion of operating lease liabilities		38			66
Accounts payable		2,544			2,513
Derivative instruments		1,954			2,297
Cash collateral received in support of energy risk management activities		446			199
Deferred revenue current		715			711
Accrued expenses and other current liabilities		1,952			2,031
Total current liabilities		8,781			8,813
Other Liabilities
Long-term debt and finance leases		9,812			9,812
Non-current operating lease liabilities		134			117
Derivative instruments		1,273			1,107
Deferred income taxes		12			12
Deferred revenue non-current		905			862
Other non-current liabilities		883			821
Total other liabilities		13,019			12,731
Total Liabilities		21,800			21,544
Commitments and Contingencies
Stockholders’ Equity
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at June 30, 2025 and December 31, 2024, aggregate liquidation preference of $650; at June 30, 2025 and December 31, 2024		650			650
Common stock; $0.01 par value; 500,000,000 shares authorized; 201,087,779 and 205,064,058 shares issued and 194,630,094 and 198,604,003 shares outstanding at June 30, 2025 and December 31, 2024, respectively		2			2
Additional paid-in-capital		305			705
Retained earnings		1,970			1,535
Treasury stock, at cost; 6,457,685 shares and 6,460,055 shares at June 30, 2025, and December 31, 2024, respectively		(538	)		(297	)
Accumulated other comprehensive loss		(101	)		(117	)
Total Stockholders’ Equity		2,288			2,478
Total Liabilities and Stockholders’ Equity	$	24,088		$	24,022