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** |

Core Viewpoint - Entergy Corporation reported strong second quarter 2025 earnings, affirming its guidance and raising outlooks for 2027-2028, indicating confidence in future growth and operational performance [1][9]. Financial Performance - The company reported second quarter 2025 earnings of $468 million, or $1.05 per share, compared to $49 million, or $0.11 per share in the same quarter of 2024, reflecting a significant increase [3][29]. - Adjusted earnings for the second quarter 2025 were $468 million, or $1.05 per share, up from $411 million, or $0.96 per share in the second quarter of 2024, marking a $57 million increase [2][3]. - Year-to-date earnings for 2025 reached $829 million, or $1.87 per share, compared to $124 million, or $0.29 per share in 2024, showing a substantial improvement [2][3]. Business Segments - The Utility business segment reported earnings of $599 million, or $1.34 per share, for the second quarter 2025, compared to $441 million, or $1.03 per share in the same quarter of 2024 [5][27]. - The Parent & Other segment reported a loss of $(131) million, or $(0.29) per share, for the second quarter 2025, an improvement from a loss of $(392) million, or $(0.91) per share in the second quarter of 2024 [10][27]. Operational Highlights - Entergy's capital plan was updated, and the company completed the sale of its natural gas distribution businesses in New Orleans and Louisiana [9]. - Entergy Texas received approval for $188 million in distribution investments, and Entergy Louisiana reached a settlement to support a new large customer [9]. - The company celebrated the 40th anniversary of its Waterford 3 and Grand Gulf nuclear plants, emphasizing its commitment to clean energy [9]. Customer and Sales Metrics - Total retail sales increased by 3.2% in the second quarter 2025, driven by a significant rise in industrial usage, particularly in primary metals and technology sectors [41][42]. - Residential sales, however, declined by 6.9%, indicating a mixed performance across customer segments [41][42]. Future Outlook - Entergy affirmed its 2025 adjusted earnings per share guidance range of $3.75 to $3.95, reflecting confidence in continued operational success [12][13].

Market Overview - Wall Street has experienced a rally, with the S&P 500 and Nasdaq reaching multiple record highs due to positive trade negotiations and a strong earnings season [1] - Despite the rally, concerns about the economy persist, particularly regarding high inflation and the Federal Reserve's stance on interest rates [2][8] Federal Reserve Insights - The Federal Reserve is expected to maintain interest rates in the range of 4.25-4.5% during the upcoming FOMC meeting, with no cuts anticipated [5][8] - Retail sales increased by 0.6% in June, indicating resilient consumer spending despite inflationary pressures [5] - The Consumer Price Index (CPI) rose by 0.3% in June, influenced by higher consumer goods prices due to tariffs [6] Investment Recommendations - It is advisable to invest in low-beta defensive stocks from the utility and consumer staples sectors, which include Entergy Corporation, Fortis, Inc., Northwest Natural Holding Company, and Ingredion Incorporated [3][4] - These stocks are characterized by high dividend yields and favorable Zacks Ranks, making them appealing amid inflation and interest rate uncertainties [11] Company Profiles Entergy Corporation - Engaged in electric power production and retail distribution, with a generating capacity of 30,000 MW, including over 8,000 MW of nuclear capacity [9] - Expected earnings growth rate of 6.6% for the current year, with a Zacks Rank of 2 and a dividend yield of 2.72% [10] Fortis, Inc. - Operates in the electric and gas utility sector, primarily in Canada and the Caribbean [12] - Expected earnings growth rate of 4.2% for the current year, with a Zacks Rank of 2 and a dividend yield of 3.63% [12] Northwest Natural Holding Company - Focuses on natural gas distribution systems and pipeline projects, serving residential, commercial, and industrial customers [13] - Expected earnings growth rate of 23.6% for the current year, with a Zacks Rank of 2 and a dividend yield of 4.80% [14] Ingredion Incorporated - Provides ingredient solutions, specializing in nature-based sweeteners and starches for various industries [15] - Expected earnings growth rate of 6.8% for the current year, with a Zacks Rank of 2 and a dividend yield of 2.40% [16]

NEW ORLEANS, July 28, 2025 /PRNewswire/ -- The board of directors for Entergy Corporation today announced the election of R. Lewis Ropp as an independent director, effective Aug.15. Ropp brings to Entergy's board a deep understanding of finance, capital markets, investor relations and regulatory compliance. "We strive to have a mix of directors with skills and experience that align with Entergy's long-term strategy," said Drew Marsh, Entergy chair and CEO. "Lewis has extensive experience in both the finance ...

The upcoming report from Entergy (ETR) is expected to reveal quarterly earnings of $0.85 per share, indicating a decline of 11.5% compared to the year-ago period. Analysts forecast revenues of $3.13 billion, representing an increase of 6% year over year.The consensus EPS estimate for the quarter has undergone a downward revision of 1.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.P ...