Core Insights - Entergy (NYSE: ETR) has experienced a remarkable 58% increase in share price over the past year, driven by demand from AI data centers and potential growth in industrial demand due to higher LNG exports [1] Group 1: Company Performance - Entergy's stock performance has significantly outpaced the market, attributed to its strategic positioning in sectors benefiting from technological advancements and energy export trends [1] Group 2: Market Trends - The utility sector is witnessing increased demand from AI-related infrastructure, indicating a shift in energy consumption patterns that could favor companies like Entergy [1] - Higher LNG exports are expected to boost industrial demand, further enhancing the growth prospects for utility companies involved in energy supply [1]

Core Insights - Entergy Corporation's shares have increased by 59.94% since May 2024 and are up 63.22% year-over-year [1] Financial Performance - The company recently reported strong Q2 2025 earnings with total revenues [1]

Forward-looking Information This section provides cautionary statements regarding future results and identifies key risks and uncertainties [Forward-looking Information](index=7&type=section&id=Forward-looking%20Information) This section provides cautionary language on forward-looking statements, highlighting risks from regulatory outcomes, operational challenges, market volatility, and environmental factors that could cause actual results to differ - The company identifies numerous risk factors that could cause actual results to differ from forward-looking statements, including regulatory proceedings, operational performance, environmental laws, climate change impacts, and capital project execution[19](index=19&type=chunk)[20](index=20&type=chunk)[22](index=22&type=chunk) - Significant risks are associated with the company's participation in the Midcontinent Independent System Operator (MISO), including market rules, transmission cost allocation, and interconnection delays, potentially exacerbated by expected load growth from data centers[20](index=20&type=chunk) - Entergy highlights its commitment to achieve net-zero carbon emissions by 2050 but notes that expected load growth could challenge the achievement of its climate goals[24](index=24&type=chunk) [Definitions](index=11&type=section&id=Definitions) This section provides a comprehensive list of abbreviations and acronyms used throughout the report, defining key terms related to the company's entities, regulatory bodies, financial metrics, and operational assets - The report defines key entities such as Entergy Corporation, the Registrant Subsidiaries (Entergy Arkansas, Louisiana, Mississippi, New Orleans, Texas, and System Energy), and the Utility operating companies[28](index=28&type=chunk)[30](index=30&type=chunk) - Key regulatory bodies are defined, including the Federal Energy Regulatory Commission (FERC), various state Public Service Commissions (APSC, LPSC, MPSC), and the Public Utility Commission of Texas (PUCT)[28](index=28&type=chunk)[30](index=30&type=chunk) Part I. Financial Information This section presents the company's consolidated financial performance, detailed financial statements, and subsidiary-specific results [Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis](index=13&type=section&id=Entergy%20Corporation%20and%20Subsidiaries%20Management's%20Financial%20Discussion%20and%20Analysis) Entergy's consolidated financial performance significantly improved in Q2 and H1 2025 due to higher revenues and the absence of prior-year charges, supported by strong liquidity and updated capital expenditure plans [Results of Operations](index=13&type=section&id=Results%20of%20Operations) Consolidated net income significantly increased in Q2 and H1 2025, driven by higher operating revenues and the non-recurrence of a 2024 pension settlement charge, with new legislation impacting clean energy incentives Net Income Attributable to Entergy Corporation (In Thousands) | Period | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Q2** | $467,930 | $48,922 | $419,008 | | **H1** | $828,690 | $124,203 | $704,487 | Utility Electric Energy Sales Change (GWh) | Period | 2025 vs 2024 | Key Drivers | | :--- | :--- | :--- | | **Q2 Total Retail** | +3% | Industrial sales up 12%, offsetting a 7% decline in Residential | | **H1 Total Retail** | +5% | Industrial sales up 11%, Residential sales up 2% | - A significant factor in the year-over-year net income increase was a **$317 million** ($250 million net-of-tax) non-cash pension settlement charge recognized in Q2 2024, which did not recur in 2025[35](index=35&type=chunk)[51](index=51&type=chunk)[72](index=72&type=chunk) - The One Big Beautiful Bill Act of 2025 was enacted, modifying clean energy tax incentives by extending credits for existing nuclear facilities but shortening the qualification period for new solar and wind projects, potentially affecting Entergy's resource planning and carbon emission goals[76](index=76&type=chunk)[81](index=81&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) Entergy maintains a stable capital structure with a $3 billion credit facility and plans over $29.5 billion in capital expenditures for 2025-2027 to support growth and reliability Debt to Capital Ratio | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Debt to capital | 64.9% | 65.3% | | Net debt to net capital (non-GAAP) | 63.8% | 64.4% | Planned Capital Investments (In Millions) | Category | 2025 | 2026 | 2027 | | :--- | :--- | :--- | :--- | | Generation | $4,310 | $6,200 | $5,355 | | Transmission | $1,260 | $2,405 | $2,485 | | Distribution | $2,200 | $2,425 | $1,965 | | Utility Support | $430 | $290 | $265 | | **Total** | **$8,200** | **$11,320** | **$10,070** | - Entergy Louisiana is pursuing regulatory approval for three new combined cycle gas turbine resources totaling **2,262 MW** and significant transmission upgrades to serve a new data center customer[103](index=103&type=chunk)[104](index=104&type=chunk) - In March 2025, Entergy entered into forward sale agreements for **17.8 million shares** of common stock, with settlement required by September 30, 2026, to support its financing needs[91](index=91&type=chunk)[213](index=213&type=chunk) [Cash Flow Activity](index=30&type=section&id=Cash%20Flow%20Activity) Net cash from operating activities increased to $1.8 billion, while investing cash outflow rose to $3.74 billion due to higher construction expenditures, with financing activities supported by common stock issuances Consolidated Cash Flow Summary (Six Months Ended June 30, In Millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from Operating | $1,798 | $1,546 | | Net cash used in Investing | ($3,741) | ($2,466) | | Net cash from Financing | $2,259 | $2,142 | - Operating cash flow increased due to **$313 million** in customer advance payments and higher collections, partially offset by higher fuel and interest payments[117](index=117&type=chunk)[118](index=118&type=chunk) - Investing cash outflow increased significantly due to a **$1.2 billion** rise in construction expenditures for new generation projects at Entergy Arkansas, Louisiana, Mississippi, and Texas[119](index=119&type=chunk) - Financing activities were bolstered by **$805 million** in net proceeds from the issuance of common stock under the at-the-market equity program in 2025[121](index=121&type=chunk) [Nuclear Matters](index=32&type=section&id=Nuclear%20Matters) The company provides an update on the NRC Reactor Oversight Process, noting that all utility-owned nuclear plants are in Column 1 (normal oversight), except Waterford 3, which was placed in Column 2 (increased regulatory response) in June 2025 - In June 2025, the NRC placed the Waterford 3 nuclear plant in Column 2 of its Reactor Oversight Process Action Matrix due to an issue with an emergency diesel generator, subjecting the plant to an increased level of inspection[129](index=129&type=chunk)[130](index=130&type=chunk) [Entergy Corporation and Subsidiaries Financial Statements and Notes](index=34&type=section&id=Entergy%20Corporation%20and%20Subsidiaries%20Financial%20Statements%20and%20Notes) This section presents the unaudited consolidated financial statements for Entergy Corporation and its subsidiaries, including income statements, balance sheets, cash flows, and detailed notes on accounting policies and recent transactions Consolidated Financial Highlights (Six Months Ended June 30) | Metric (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Total Operating Revenues** | $6,175,723 | $5,748,248 | | **Operating Income** | $1,537,529 | $855,613 | | **Net Income Attributable to Entergy** | $828,690 | $124,203 | | **Diluted EPS** | $1.87 | $0.29 | Consolidated Balance Sheet Highlights (As of June 30, 2025 and Dec 31, 2024) | Metric (In Thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $68,383,140 | $64,790,032 | | **Total Liabilities** | $51,854,790 | $49,385,638 | | **Total Equity** | $16,308,940 | $15,184,984 | - In Q2 2025, Entergy recognized **$571.2 million** in zero-emission nuclear power production tax credits for electricity generated in 2024 under the Inflation Reduction Act, with a corresponding provision for uncertain tax positions also recorded due to regulatory uncertainty[336](index=336&type=chunk)[337](index=337&type=chunk) - On July 1, 2025, Entergy completed the sale of its natural gas distribution businesses in Louisiana and New Orleans, resulting in an expected consolidated gain of **$11 million** ($6 million net-of-tax)[360](index=360&type=chunk) [Entergy Arkansas, LLC and Subsidiaries](index=103&type=section&id=Entergy%20Arkansas,%20LLC%20and%20Subsidiaries) Entergy Arkansas's net income significantly increased in H1 2025 due to the non-recurrence of a prior-year charge and higher revenues, with a $4.7 billion capital plan focused on new generation Entergy Arkansas Financial Highlights (Six Months Ended June 30) | Metric (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $1,311,198 | $1,230,843 | | **Operating Income** | $314,828 | $100,151 | | **Net Income** | $185,716 | $63,079 | - The significant increase in H1 2025 net income is primarily attributed to the non-recurrence of a **$131.8 million** ($99.1 million net-of-tax) charge taken in Q1 2024 related to the opportunity sales proceeding[368](index=368&type=chunk)[387](index=387&type=chunk) - Total retail electric sales grew **8%** in the first half of 2025, driven by a **19% increase** in industrial sales from primary metals and technology customers[379](index=379&type=chunk) - Entergy Arkansas plans to invest **$1.075 billion** in 2025, with a focus on generation projects, including the APSC-approved Lake Catherine Unit 5 and the planned Jefferson Power Station[409](index=409&type=chunk)[414](index=414&type=chunk)[415](index=415&type=chunk) [Entergy Louisiana, LLC and Subsidiaries](index=118&type=section&id=Entergy%20Louisiana,%20LLC%20and%20Subsidiaries) Entergy Louisiana's net income rose significantly in H1 2025 due to the absence of a prior-year regulatory charge and increased revenues, while advancing major projects and completing a gas distribution business sale Entergy Louisiana Financial Highlights (Six Months Ended June 30) | Metric (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $2,811,610 | $2,478,564 | | **Operating Income** | $682,559 | $378,515 | | **Net Income** | $554,377 | $313,837 | - The primary driver for the net income increase was the non-recurrence of a **$151.5 million** regulatory charge taken in Q2 2024 related to a formula rate plan settlement[444](index=444&type=chunk)[445](index=445&type=chunk) - The company is pursuing LPSC approval for **2,262 MW** of new gas-fired generation and major transmission upgrades to serve a new data center being developed by a subsidiary of Meta Platforms, Inc[492](index=492&type=chunk)[493](index=493&type=chunk) - The sale of the natural gas distribution business was completed on July 1, 2025, for a purchase price of **$203 million**, resulting in an expected pre-tax gain of **$12 million**[360](index=360&type=chunk)[472](index=472&type=chunk) [Entergy Mississippi, LLC and Subsidiaries](index=138&type=section&id=Entergy%20Mississippi,%20LLC%20and%20Subsidiaries) Entergy Mississippi's net income increased in H1 2025 due to higher rates and industrial sales, supported by $600 million in new bonds for generation projects, including a planned 754 MW facility Entergy Mississippi Financial Highlights (Six Months Ended June 30) | Metric (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $915,584 | $857,750 | | **Operating Income** | $218,309 | $190,279 | | **Net Income** | $131,138 | $106,997 | - Net income growth was supported by higher retail electric prices from formula rate plan increases and an interim facilities rate adjustment, as well as an **8% increase** in industrial sales[536](index=536&type=chunk)[544](index=544&type=chunk)[547](index=547&type=chunk) - In March 2025, the company issued **$600 million** of 5.80% Series mortgage bonds to help finance construction of the Delta Blues Advanced Power Station and two solar facilities[237](index=237&type=chunk)[551](index=551&type=chunk) - Entergy Mississippi plans to build a new **754 MW** combined cycle combustion turbine facility in Ridgeland, MS, with an expected in-service date of 2029[574](index=574&type=chunk) [Entergy New Orleans, LLC and Subsidiaries](index=152&type=section&id=Entergy%20New%20Orleans,%20LLC%20and%20Subsidiaries) Entergy New Orleans reported a net income turnaround in H1 2025, primarily due to the non-recurrence of a prior-year regulatory charge and the completion of its gas distribution business sale Entergy New Orleans Financial Highlights (Six Months Ended June 30) | Metric (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $391,055 | $392,302 | | **Operating Income (Loss)** | $64,867 | ($21,421) | | **Net Income (Loss)** | $30,141 | ($27,847) | - The swing from a net loss to net income was mainly caused by a **$78.5 million** regulatory charge recorded in Q1 2024, which was related to sharing income tax benefits with customers[600](index=600&type=chunk)[618](index=618&type=chunk) - The sale of the natural gas distribution business was completed on July 1, 2025, for a purchase price of **$288 million**, with an expected pre-tax gain of **$5 million**[360](index=360&type=chunk)[624](index=624&type=chunk) [Entergy Texas, Inc. and Subsidiaries](index=166&type=section&id=Entergy%20Texas,%20Inc.%20and%20Subsidiaries) Entergy Texas's net income increased in H1 2025 due to higher retail prices and sales volume, despite increased unrecovered MISO costs, as it pursues major generation and transmission projects Entergy Texas Financial Highlights (Six Months Ended June 30) | Metric (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $973,580 | $963,568 | | **Operating Income** | $208,908 | $193,296 | | **Net Income** | $148,352 | $126,966 | - Net income was negatively impacted by **$21 million** in higher purchased power costs for MISO capacity, which are not currently recovered in base rates; however, recent legislation established a recovery rider mechanism that Entergy Texas plans to file for in 2026[659](index=659&type=chunk)[675](index=675&type=chunk) - Total retail electric sales grew **6%** in H1 2025, driven by a **7% increase** in residential sales due to favorable weather and a **7% increase** in industrial sales[669](index=669&type=chunk) - The company is awaiting a PUCT decision on its application to build the Legend and Lone Star Power Stations after ALJs issued a proposal for decision recommending rejection of the application[696](index=696&type=chunk)[697](index=697&type=chunk) [System Energy Resources, Inc.](index=182&type=section&id=System%20Energy%20Resources,%20Inc.) System Energy's net income decreased in H1 2025 due to a lower rate of return from regulatory settlements, with key developments including a MPSC dispute resolution and FERC approval for a Unit Power Sales Agreement change System Energy Financial Highlights (Six Months Ended June 30) | Metric (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $285,669 | $298,554 | | **Operating Income** | $60,804 | $42,392 | | **Net Income** | $44,714 | $55,966 | - Net income decreased primarily due to a lower authorized rate of return on equity and capital structure limitations implemented as part of settlement agreements with the City Council of New Orleans and the LPSC[730](index=730&type=chunk)[731](index=731&type=chunk) - In May 2025, System Energy issued **$240 million** of mortgage bonds and used the proceeds to repay **$200 million** of existing bonds[240](index=240&type=chunk) - FERC approved the removal of Entergy Louisiana as a party to the Unit Power Sales Agreement, effective October 2025, as part of a settlement with the LPSC[750](index=750&type=chunk)[751](index=751&type=chunk) Part II. Other Information This section covers legal proceedings, updates on risk factors, and other regulatory and environmental disclosures [Item 1. Legal Proceedings](index=179&type=section&id=Item%201.%20Legal%20Proceedings) This section discloses a new antitrust class action lawsuit filed in July 2025 against Entergy and other nuclear plant operators alleging a conspiracy to suppress employee compensation - On July 11, 2025, an antitrust class action lawsuit was filed against Entergy Corporation and other nuclear plant operators, alleging a conspiracy to suppress employee compensation from May 2003 to the present, with plaintiffs seeking unspecified monetary damages[772](index=772&type=chunk) [Item 1A. Risk Factors](index=179&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K - There have been no material changes to the risk factors discussed in the Annual Report on Form 10-K[773](index=773&type=chunk) [Item 5. Other Information](index=180&type=section&id=Item%205.%20Other%20Information) This section provides updates on nuclear and environmental regulations, including the Waterford 3 plant's oversight status, EPA deregulatory actions, and potential delays to Entergy's carbon reduction goals - The NRC placed the Waterford 3 nuclear plant in Column 2 of its oversight matrix in June 2025, requiring increased regulatory inspection[779](index=779&type=chunk)[780](index=780&type=chunk) - The EPA announced a series of deregulatory actions in March 2025, including the reconsideration of the Mercury and Air Toxics Standard (MATS) rule and greenhouse gas emissions rules[783](index=783&type=chunk) - In June 2025, the EPA proposed to repeal the May 2024 rule regulating greenhouse gas emissions from new and existing power plants[788](index=788&type=chunk) - Entergy stated that due to stronger than expected sales growth and tax credit uncertainty, its goal of 50% carbon-free capacity may not be achieved by 2030 and its carbon intensity goal may be delayed[789](index=789&type=chunk)

Financial Data and Key Metrics Changes - The company reported second quarter adjusted earnings per share (EPS) of $1.05, maintaining guidance for 2025 results [5][29] - Adjusted EPS for the quarter was $1.50, driven by net investments for customers, higher retail sales volume, and increased other income [29][30] - Weather-adjusted retail sales growth was strong at 4.5%, with industrial sales growing close to 12% [30] Business Line Data and Key Metrics Changes - The company secured significant new growth in Arkansas, expecting a four-year industrial sales growth rate of approximately 13% [9] - The four-year capital plan has been updated to $40 billion, focusing on customer-driven generation, including 3 gigawatts of solar and 1.4 gigawatts of battery storage [9][10] - The company has signed roughly 8 gigawatts of electric service agreements since the beginning of last year [9] Market Data and Key Metrics Changes - The company has over 3 million customers, primarily residential, achieving a Net Promoter Score in the first quartile for utility residential service [6] - The economic development model is attracting new businesses to the service area, contributing to job growth and tax base [8][12] Company Strategy and Development Direction - The company aims to be the premier utility, focusing on sustainable value creation for stakeholders [5] - A significant investment of $8 billion in transmission is planned, including projects that enhance grid resilience [15] - The company is working on an accelerated resilience program to better manage storm impacts, with $2 billion approved for projects [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on 2025 guidance, despite challenges such as higher MISO capacity costs [37] - The company is optimistic about future growth opportunities, supported by a higher capital plan and strong customer demand [38] - Regulatory changes are expected to improve storm cost recovery and reduce financial risks for customers [102][104] Other Important Information - The company completed the sale of its gas LDC businesses to Delta Utilities, allowing a focus on core electric operations [19][20] - The company has been recognized as a top community-minded company, contributing over 122,000 volunteer hours valued at over $4 million [26] Q&A Session Summary Question: Inquiry about new Arkansas customer details - Management stated they cannot disclose specifics about the customer but will provide details in upcoming regulatory filings [44] Question: Clarification on gas generation capacity - The seven gigawatts mentioned are related to projects not yet publicly announced, available for future customer growth [46] Question: Update on Meta's Hyperion data center regulatory approval - Management confirmed no regulatory process has started for the upsizing of Hyperion and emphasized excitement about potential expansion [50][51] Question: Discussion on nuclear upgrades and risk management - Management indicated that the operating companies are not large enough to take on construction risks for nuclear units and are exploring various support options [55] Question: Clarification on storm recovery mechanisms - Management explained a new mechanism in Louisiana allows for quicker recovery of securitization costs, benefiting customers and improving credit metrics [102][104] Question: Concerns about gas plant construction timelines - Management expressed confidence in managing project timelines through strong relationships with EPCs and simplified designs [106][108] Question: Coexistence of storm resilience and data center customers - Management noted that data centers are locating further from the coast and emphasized building modern infrastructure to reduce storm risks [116]

Financial Data and Key Metrics Changes - The company reported second quarter adjusted earnings per share (EPS) of 1.05, which aligns with the guidance for 2025 [5][28] - Adjusted EPS for the quarter was positively impacted by net investments for customers, higher retail sales volume, and increased other income, despite higher operational and maintenance costs [29][30] - Weather-adjusted retail sales growth for the quarter was strong at 4.5%, with industrial sales contributing close to 12% growth [29][30] Business Line Data and Key Metrics Changes - The company has updated its four-year capital plan to $40 billion, which includes significant investments in customer-driven generation, including approximately 3 gigawatts of solar and 1.4 gigawatts of battery storage [8][9] - The industrial sales growth rate is expected to be approximately 13% over the next four years, driven by new growth in Arkansas [8][10] Market Data and Key Metrics Changes - The company has secured significant new growth opportunities in Arkansas, which will benefit existing customers and communities [8][10] - The customer pipeline remains robust, particularly in the data center segment, which is expected to contribute significantly to future growth [10] Company Strategy and Development Direction - The company aims to be the premier utility provider and create sustainable value for stakeholders, focusing on customer service and economic development [5][6] - The strategy includes a focus on storm resilience and grid hardening, with a planned $8 billion investment in transmission over the next four years [14][15] - The company is also exploring new nuclear opportunities while managing construction risks through potential partnerships with larger entities [54][122] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 guidance and highlighted the importance of capital deployment to support growth [35][36] - The company is optimistic about the economic impact of its projects on communities and the potential for job creation [11][24] - Management noted improvements in storm recovery processes and regulatory support, which are expected to enhance financial stability and customer confidence [100][104] Other Important Information - The company completed the sale of its gas local distribution company to focus on its core electric business [17] - The company has been recognized as a top community-minded company, reflecting its commitment to social responsibility [24][25] - The board of directors has welcomed a new member with extensive investment experience, which is expected to enhance governance [25] Q&A Session Summary Question: Inquiry about the new Arkansas customer and sales growth - Management indicated that specific details about the customer cannot be disclosed at this time, but regulatory filings will provide more information soon [42] Question: Clarification on gas generation capacity - The seven gigawatts of gas generation capacity mentioned is related to projects not yet publicly announced, indicating potential for future customer growth [45] Question: Update on Meta's Hyperion data center expansion - Management confirmed that no regulatory approval process has started for the expansion, and further details would need to come from Meta [50] Question: Discussion on nuclear projects and risk management - Management is exploring various options to manage construction risks associated with new nuclear projects, including potential partnerships with larger entities [54][122] Question: Updates on storm recovery processes - Management highlighted new mechanisms in Louisiana for quicker storm cost recovery, which are expected to benefit customers and improve credit metrics [100][104] Question: Concerns regarding the ability to complete gas projects on time - Management expressed confidence in their relationships with EPCs and the use of standardized designs to facilitate timely project completion [106][109]

Financial Performance - Second quarter 2025 adjusted EPS was $105[7] - Second quarter 2025 OCF was $1262 million[8] - The company is affirming its 2025 adjusted EPS guidance and updating 2027E–2028E outlooks[9] - The company is raising 2027E–2028E adjusted EPS outlooks, projecting greater than 8% CAGR through 2028E[29] - The company's cumulative OCF outlook for 2025E-2028E is approximately $225 billion[118] Sales and Growth - The company experienced very strong second quarter 2025 retail sales growth, including approximately 12% industrial growth[9] - The company has a strong sales outlook, including significant new load in Arkansas and a strong pipeline of customer interest[9] - The company's four-year industrial sales CAGR is approximately 13%[10] Capital Investments and Equity - The company is updating its capital plan to serve growing customer needs[9] - The company is adding $3 billion to its four-year capital plan, bringing the total to $40 billion[23, 24] - The company settled approximately $800 million of equity forwards in May, contracting equity needs into 2027[9] Regulatory and Credit - Credit metric outlooks remain better than agency thresholds[16] - The company is continuing progress on resilience, including capital investment, regulatory/legislative enactments, and financial readiness[9]

Core Insights - Entergy reported $3.33 billion in revenue for the quarter ended June 2025, a year-over-year increase of 12.7% [1] - The EPS for the same period was $1.05, compared to $0.96 a year ago, indicating a positive growth trend [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.22 billion, resulting in a surprise of +3.43% [1] - The company delivered an EPS surprise of +15.38%, with the consensus EPS estimate being $0.91 [1] Revenue Breakdown - Operating Revenue from Natural Gas was $40.78 million, surpassing the three-analyst average estimate of $34.61 million, reflecting a year-over-year change of +15.3% [4] - Operating Revenue from Electric was $3.27 billion, slightly below the three-analyst average estimate of $3.33 billion, but still showing a year-over-year increase of +12.7% [4] - Operating Revenue from Other sources was $13.13 million, exceeding the $11.52 million average estimate based on two analysts, representing a year-over-year change of +7.5% [4] Stock Performance - Shares of Entergy have returned +6.9% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Key Takeaways Entergy Corporation ((ETR) reported second-quarter 2025 earnings of $1.05 per share, which improved 9.4% from the year-ago quarter's figure of 96 cents. The Zacks Consensus Estimate was pegged at 91 cents per share. The year-over-year bottom-line improvement can be attributed to higher operating revenues and operating income. ETR's Q2 Revenues Entergy reported revenues of $3.33 billion, which beat the Zacks Consensus Estimate of $3.22 billion by 3.4%. The top line also inched up 12.7% from the ...

Core Viewpoint - Entergy reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and showing an increase from $0.96 per share a year ago, representing an earnings surprise of +15.38% [1] Financial Performance - The company posted revenues of $3.33 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.43%, compared to $2.95 billion in the same quarter last year [2] - Over the last four quarters, Entergy has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - Entergy shares have increased approximately 16.4% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $1.32 for the coming quarter and $3.89 for the current fiscal year [4][7] - The Zacks Rank for Entergy is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Utility - Electric Power industry is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

[News Release](index=1&type=section&id=News%20Release) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Entergy Corporation reported solid second quarter 2025 results with $1.05 earnings per share, affirming 2025 guidance and raising its 2027–2028 outlook Q2 2025 Earnings Per Share | Metric | Value (per share) | | :--- | :--- | | As-Reported EPS | $1.05 | | Adjusted EPS (non-GAAP) | $1.05 | - The company affirmed its **2025 adjusted EPS guidance** and raised its outlook for **2027–2028**[1](index=1&type=chunk)[4](index=4&type=chunk) [Business Highlights](index=1&type=section&id=Business%20Highlights) Key strategic achievements include the sale of natural gas distribution businesses, new growth in Arkansas, and regulatory approvals for investments and rate plans - Entergy New Orleans and Entergy Louisiana completed the sale of their natural gas distribution businesses on July 1[4](index=4&type=chunk) - Entergy Arkansas secured significant new growth for the state[4](index=4&type=chunk) - Entergy Texas received approval for a Distribution Cost Recovery Factor (DCRF) rider to place **$188 million** of distribution investments into rates[4](index=4&type=chunk) - The Mississippi Public Service Commission (MPSC) approved Entergy Mississippi's formula rate plan[4](index=4&type=chunk) [Consolidated Results](index=3&type=section&id=Consolidated%20Results) Consolidated earnings for Q2 2025 reached $468 million, or $1.05 per share, significantly increasing from $49 million as-reported and modestly from $411 million adjusted in Q2 2024 Consolidated Earnings (Q2 2025 vs. Q2 2024) | (After-tax) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **As-reported earnings ($ million)** | $468 | $49 | $419 | | **Adjusted earnings ($ million, non-GAAP)** | $468 | $411 | $57 | | **As-reported EPS ($)** | $1.05 | $0.11 | $0.94 | | **Adjusted EPS ($, non-GAAP)** | $1.05 | $0.96 | $0.09 | [Utility Segment Results](index=3&type=section&id=Utility%20Segment%20Results) The Utility business reported Q2 2025 earnings of $599 million, or $1.34 per share, driven by regulatory actions and higher retail sales, partially offset by increased expenses Utility Segment Earnings (Q2 2025 vs. Q2 2024) | (After-tax) | Q2 2025 | Q2 2024 (Adjusted) | | :--- | :--- | :--- | | **Earnings ($ million)** | $599 | $553 | | **EPS ($)** | $1.34 | $1.29 | - Key drivers for the quarterly increase included the net effect of regulatory actions, higher retail sales volume, and higher other income[12](index=12&type=chunk) - Growth was partially offset by higher O&M, depreciation, interest expense, and unrecovered MISO capacity costs at Entergy Texas[12](index=12&type=chunk) [Parent & Other Segment Results](index=5&type=section&id=Parent%20%26%20Other%20Segment%20Results) The Parent & Other segment reported a Q2 2025 loss of $131 million, or $(0.29) per share, with as-reported results significantly impacted by a prior-year pension settlement charge Parent & Other Segment Loss (Q2 2025 vs. Q2 2024) | (After-tax) | Q2 2025 | Q2 2024 (Adjusted) | | :--- | :--- | :--- | | **Loss ($ million)** | $(131) | $(142) | | **Loss per share ($)** | $(0.29) | $(0.33) | - The as-reported change from Q2 2024 was significantly impacted by a **$(317) million** pre-tax pension settlement charge in the prior year, which was excluded from adjusted earnings[18](index=18&type=chunk) [Earnings Guidance](index=5&type=section&id=Earnings%20Guidance) Entergy affirmed its full-year 2025 adjusted earnings per share guidance range of $3.75 to $3.95 - 2025 affirmed adjusted EPS guidance range: **$3.75 to $3.95**[20](index=20&type=chunk) [Appendices and Financial Statements](index=9&type=section&id=Appendices%20and%20Financial%20Statements) [Appendix A: Consolidated Results and Adjustments](index=10&type=section&id=Appendix%20A%3A%20Consolidated%20Results%20and%20Adjustments) This appendix reconciles GAAP to non-GAAP earnings, details 2024 adjustments, and presents consolidated operating cash flow Consolidated Operating Cash Flow (YTD) | ($ in millions) | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | **Utility** | 1,937 | 1,626 | 311 | | **Parent & Other** | (139) | (79) | (60) | | **Consolidated** | 1,798 | 1,546 | 251 | - Q2 2025 operating cash flow increased primarily due to higher Utility customer receipts and advance payments, partially offset by higher fuel and purchased power payments[48](index=48&type=chunk) - Adjustments in 2024, which are excluded from non-GAAP earnings, included a **$(317) million** pre-tax charge for a pension lift-out and various charges related to regulatory agreements with Entergy Louisiana and Entergy Arkansas[45](index=45&type=chunk) [Appendix B: Earnings Variance Analysis](index=13&type=section&id=Appendix%20B%3A%20Earnings%20Variance%20Analysis) This section details the drivers of Q2 2024 to Q2 2025 EPS changes, highlighting operating revenue as a positive driver and interest expense and share dilution as negative factors Q2 2025 vs. Q2 2024 Adjusted EPS Variance Drivers | Driver | Consolidated EPS Impact ($) | | :--- | :--- | | 2024 Adjusted EPS | **0.96** | | Operating revenue (net) | +0.23 | | Other O&M | (0.04) | | Other income (deductions) | +0.05 | | Interest expense | (0.06) | | Share effect | (0.04) | | Other | (0.05) | | 2025 Adjusted EPS | **1.05** | - The increase in Utility operating revenue was driven by higher electric volume (including weather) and the effect of various rate actions across operating companies[52](index=52&type=chunk) - The negative share effect was primarily due to the settlement of equity forwards in May 2025 and the dilutive effect of unsettled forwards from a higher stock price[54](index=54&type=chunk) [Appendix C: Utility Operating and Financial Measures](index=18&type=section&id=Appendix%20C%3A%20Utility%20Operating%20and%20Financial%20Measures) This appendix presents key Utility segment operating metrics, showing a 3.2% increase in total retail electricity sales, or 4.5% weather-adjusted, driven by industrial growth GWh Sold by Customer Class (Q2 2025 vs. Q2 2024) | Customer Class | % Change (Actual) | % Change (Weather Adj.) | | :--- | :--- | :--- | | Residential | (6.9)% | (4.3)% | | Commercial | 0.4% | 1.8% | | Industrial | 11.8% | 11.8% | | **Total Retail** | **3.2%** | **4.5%** | - The increase in weather-adjusted retail sales was primarily driven by higher industrial usage, particularly in the primary metals, chlor-alkali, and technology industries[57](index=57&type=chunk) [Appendix D: Consolidated Financial Measures](index=19&type=section&id=Appendix%20D%3A%20Consolidated%20Financial%20Measures) This appendix provides key GAAP and non-GAAP financial measures, including improved adjusted ROE to 11.5% and FFO to adjusted debt ratio of 15.1% as of June 30, 2025 Key Financial Measures (as of June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | As-reported ROE | 11.4% | 12.8% | (1.4)% | | Adjusted ROE (non-GAAP) | 11.5% | 10.4% | 1.1% | | FFO to adjusted debt (non-GAAP) | 15.1% | 14.0% | 1.1% | | Gross liquidity ($ million, non-GAAP) | 5,521 | 5,700 | (179) | | Net liquidity ($ million, non-GAAP) | 7,631 | 5,915 | 1,716 | [Appendix E: Definitions and Abbreviations](index=20&type=section&id=Appendix%20E%3A%20Definitions%20and%20Abbreviations) This appendix serves as a glossary, defining key operating measures, GAAP and non-GAAP financial terms, and abbreviations used in the earnings materials [Appendix F: Other GAAP to non-GAAP Reconciliations](index=22&type=section&id=Appendix%20F%3A%20Other%20GAAP%20to%20non-GAAP%20Reconciliations) This section provides detailed quantitative reconciliations for various non-GAAP financial measures, including Return on Equity and Funds from Operations to adjusted debt Return on Equity (ROE) Reconciliation (LTM) | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | As-reported net income | 1,760 | 1,779 | | Adjustments | (5) | 333 | | **Adjusted earnings (non-GAAP)** | **1,765** | **1,446** | | Average common equity | 15,390 | 13,902 | | **As-reported ROE** | **11.4%** | **12.8%** | | **Adjusted ROE (non-GAAP)** | **11.5%** | **10.4%** | [Financial Statements](index=25&type=section&id=Financial%20Statements) This section contains Entergy Corporation's unaudited consolidating financial statements, including the Balance Sheet, Income Statement, and Cash Flow Statement, for periods ended June 30, 2025 [Consolidating Balance Sheet](index=25&type=section&id=Consolidating%20Balance%20Sheet) As of June 30, 2025, the balance sheet shows total consolidated assets of $68.4 billion and total shareholders' equity of $16.2 billion, primarily driven by increased Property, Plant, and Equipment Consolidated Balance Sheet Summary | ($ in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 5,189,450 | 4,396,237 | | Property, Plant, and Equipment - Net | 50,005,604 | 47,422,950 | | **Total Assets** | **68,383,140** | **64,790,032** | | Total Current Liabilities | 6,512,873 | 6,111,037 | | Total Non-Current Liabilities | 45,341,917 | 43,274,601 | | **Total Shareholders' Equity** | **16,213,000** | **15,083,908** | | **Total Liabilities and Equity** | **68,383,140** | **64,790,032** | [Consolidating Income Statement](index=29&type=section&id=Consolidating%20Income%20Statement) For the three months ended June 30, 2025, Entergy reported consolidated operating revenues of $3.33 billion and net income of $468 million, a substantial increase from the prior year due to higher operating income Consolidated Income Statement Summary (Three Months Ended June 30) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | | Operating Revenues | 3,328,849 | 2,953,620 | | Operating Income | 837,425 | 617,630 | | Income Before Income Taxes | 610,353 | 85,366 | | **Net Income Attributable to Entergy** | **467,930** | **48,922** | [Consolidated Cash Flow Statement](index=35&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash from operating activities was $1.80 billion, with $3.74 billion used in investing and $2.26 billion provided by financing, resulting in a $316 million net cash increase Consolidated Cash Flow Summary (Six Months Ended June 30) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | | Net cash flow from operating activities | 1,797,790 | 1,546,456 | | Net cash flow used in investing activities | (3,740,829) | (2,466,491) | | Net cash flow from financing activities | 2,258,967 | 2,142,651 | | **Net increase in cash and cash equivalents** | **315,928** | **1,222,616** |