By Reuters
Reuters) – NRG Energy beat Wall Street estimates for second-quarter profit on Wednesday, as the utility got a boost from surging power demand and improved retail margins in its Texas unit.
The company also entered into a 295 megawatt long-term retail deal to power data centers constructed on two NRG-owned sites in Texas, with a potential to expand to about 1 gigawatt across additional sites.
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NRG is positioned to benefit from surging electricity demand in Texas, driven in part by a boom in data centers, which require steady, large-scale power supplies to support artificial intelligence and cloud computing operations.
The U.S. Energy Information Administration (EIA) said in April that power consumption in the country is expected to reach record highs in 2025 and 2026.
NRG added that it plans to return $1.3 billion to shareholders and about $345 million in common stock dividends in 2025 as part of its previously announced 2025 capital allocation plan.
The company’s Texas unit posted an adjusted core profit of $512 million, up form last year’s $452 million.
NRG’s operating expenses rose to $6.74 billion in the quarter ended June 30, from $5.25 billion a year ago.
On an adjusted basis, the company posted a profit of $1.73 per share, beating the average analyst estimate of $1.56, according to data compiled by LSEG.
NRG reaffirmed its current-year adjusted profit forecast of $6.75 to $7.75 per share.
Reporting by Pranav Mathur in Bengaluru; Editing by Maju Samuel
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