NRG(NRG)2025-02-26 11:57Financial Performance - NRG Energy reported GAAP Net Income of $643 million for Q4 2024 and $1.1 billion for the full year 2024, with Adjusted EPS of $6.83, exceeding prior guidance[2][4][7]. - Total revenue for 2024 was $28,130 million, a decrease of 2.4% from $28,823 million in 2023[34]. - Operating income increased significantly to $2,424 million in 2024, compared to $384 million in 2023[34]. - Net income available for common stockholders was $1,058 million in 2024, a recovery from a net loss of $256 million in 2023[34]. - The company reported a comprehensive income of $1,099 million in 2024, compared to a comprehensive loss of $163 million in 2023[37]. - Net income for the year ended December 31, 2024, was $1,125 million, a significant recovery from a net loss of $202 million in 2023[44]. - Adjusted Net Income for the twelve months ended December 31, 2024, was $1,408 million, compared to $1,076 million for the same period in 2023, representing a 30.8% increase[59]. - Adjusted Net Income before Preferred Stock dividends for Full Year 2024 was $1.475 billion, indicating robust profitability[54]. Shareholder Returns - The company returned $1.263 billion to shareholders in 2024, including $925 million in share repurchases and $338 million in dividends[12][13]. - The company plans to execute $1.3 billion in share repurchases and approximately $345 million in dividends for 2025[13][14]. - Cumulative dividends attributable to Series A Preferred Stock of $67 million for 2024, an increase from $54 million in 2023[63]. - Cumulative dividends attributable to Series A Preferred Stock are expected to be $67 million[67]. Guidance and Projections - NRG is reaffirming its 2025 guidance for Adjusted EPS of $6.75 - $7.75 and Free Cash Flow before Growth (FCFbG) of $1,975 - $2,225 million[3][10]. - 2025 guidance for Net Income is projected to be between $1,025 million and $1,225 million[65]. - Adjusted EBITDA is expected to range from $3,725 million to $3,975 million[65]. - Adjusted Net Income is forecasted to be between $1,330 million and $1,530 million, translating to Adjusted EPS of $6.75 to $7.75[67]. - Cash provided by operating activities is estimated to be between $2,085 million and $2,335 million[69]. - Free Cash Flow before Growth Investments (FCFbG) is projected to be between $1,975 million and $2,225 million[69]. Operational Highlights - NRG's retail energy business achieved over 5% net subscriber growth and a record-high retention rate of 90% in 2024[8]. - A strategic Project Development Agreement was signed with GE Vernova and Kiewit to develop up to 5.4 GW of new gas-fired generation projects by 2029-2032[5][17]. - The company has 1.1 GW of Texas Energy Fund projects in active due diligence, with commercial operation expected by summer 2026[5][20]. - Adjusted EBITDA for the full year 2024 was $3.8 billion, reflecting a $470 million improvement year-over-year[6][7]. - Adjusted EBITDA for Full Year 2024 was $3.789 billion, with significant contributions from the East segment at $2.036 billion and the Texas segment at $1.582 billion[54]. Liquidity and Cash Flow - NRG's total liquidity increased to $5.4 billion as of December 31, 2024, up $0.6 billion from the previous year[25]. - Cash provided by operating activities increased to $2,306 million in 2024, compared to a cash used of $221 million in 2023[44]. - Cash and cash equivalents increased to $966 million in 2024 from $541 million in 2023[40]. - Cash and cash equivalents at the end of 2024 were $1,173 million, up from $649 million at the end of 2023[45]. - Total current assets decreased to $8,964 million in 2024 from $9,727 million in 2023[40]. - Total liabilities decreased to $21,544 million in 2024 from $23,132 million in 2023[42]. Expenses and Costs - The company incurred a loss on debt extinguishment of $382 million in 2024, contrasting with a gain of $109 million in 2023[44]. - Capital expenditures for 2024 were $472 million, a decrease from $598 million in 2023[44]. - The provision for credit losses increased to $314 million in 2024, compared to $251 million in 2023[44]. - The company reported a provision for credit losses of $312 million, highlighting the impact of economic conditions on receivables[55]. - Depreciation and amortization expenses increased to $1,403 million for the twelve months ended December 31, 2024, compared to $1,295 million in 2023[63]. - The company incurred acquisition and divestiture integration and transaction costs of $(113) million for the twelve months ended December 31, 2024[64]. Market Performance - Total revenue for Q4 2024 reached $6,858 million, an increase from $6,767 million in Q4 2023, representing a growth of approximately 1.34%[48]. - Adjusted EBITDA for Q4 2024 was $902 million, compared to $861 million in Q4 2023, reflecting an increase of about 4.77%[50]. - Economic gross margin for Q4 2024 was $1,968 million, up from $1,818 million in Q4 2023, indicating a growth of approximately 8.25%[51]. - The economic gross margin percentage for Q4 2024 was approximately 28.7%, compared to 26.9% in Q4 2023, showing an improvement of 1.8 percentage points[51]. - The company recognized a mark-to-market gain of $2,863 million on economic hedges, significantly impacting the overall financial results[56].