Entergy(ETR) - 2025 Q1 - Quarterly Results

Financial Highlights and Business Update Entergy reported strong Q1 2025 results with increased EPS, affirmed full-year guidance, and key regulatory progress Q1 2025 Earnings Per Share Summary | (After-tax, per share in $) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | As-reported earnings | $0.82 | $0.18 | $0.64 | | Adjusted earnings (non-GAAP) | $0.82 | $0.54 | $0.28 | - The company affirmed its 2025 adjusted earnings per share guidance range of $3.75 to $3.95[16] - Approval in Texas to place $137 million of transmission investments into rates[4] - Favorable legislation in Arkansas for generation and transmission investment recovery[4] - Final approval for the sale of Entergy Louisiana's gas distribution business[4] - Completion of an approximately $1.5 billion common stock offering[4] Consolidated Financial Performance Entergy reported consolidated Q1 2025 earnings of $361 million, a substantial increase from prior year, primarily driven by the Utility segment Consolidated Earnings (GAAP vs. Non-GAAP) | (After-tax, $ in millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | As-reported earnings | 361 | 75 | 285 | | Adjusted earnings (non-GAAP) | 361 | 230 | 131 | Consolidated Operating Cash Flow | ($ in millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Consolidated OCF | 536 | 521 | 15 | Business Segment Performance The Utility business was the primary driver of earnings growth, reporting adjusted earnings of $490 million, while the Parent & Other segment reported a slightly larger loss Utility Utility segment earnings increased to $490 million in Q1 2025, driven by higher sales volume and regulatory actions, partially offset by increased expenses Utility Earnings Attributable to Entergy Corp. | ($ in millions) | Q1 2025 (Adjusted) | Q1 2024 (Adjusted) | Change | | :--- | :--- | :--- | :--- | | Earnings | 490 | 350 | 140 | - Primary drivers for the Utility segment's earnings increase were higher retail sales volume, including weather impacts, net effect of regulatory actions across operating companies, and lower other O&M expenses[11] - The earnings increase was partially offset by higher interest expense, as well as higher depreciation and amortization[10] Parent & Other The Parent & Other segment reported an adjusted loss of $(129) million for Q1 2025, representing a slightly wider loss compared to the prior year Parent & Other Loss Attributable to Entergy Corp. | (metric) | Q1 2025 (Adjusted) | Q1 2024 (Adjusted) | | :--- | :--- | :--- | | Loss ($ in millions) | (129) | (120) | | Loss per share ($) | (0.29) | (0.28) | Appendices The appendices provide detailed financial information, including GAAP to non-GAAP reconciliations, earnings variance analysis, and key operating metrics A: Consolidated results and adjustments This section details the reconciliation of as-reported to adjusted earnings, noting no adjustments in Q1 2025 versus $(155) million in Q1 2024 Q1 2024 Adjustments (After-tax) | Driver | Impact ($ in millions) | | :--- | :--- | | E-AR write-off of a regulatory asset | (97) | | E-NO increase in customer sharing of income tax benefits | (57) | | Total Adjustments | (155) | B: Earnings variance analysis This appendix details the drivers of the $0.28 increase in adjusted consolidated EPS from Q1 2024 to Q1 2025, primarily from operating revenue Adjusted EPS Variance Analysis (Q1 2024 vs Q1 2025) | Driver | Consolidated EPS Impact ($) | | :--- | :--- | | 2024 Adjusted EPS | 0.54 | | Operating revenue less certain costs | 0.47 | | Other O&M | 0.02 | | Interest expense | (0.11) | | Other (net) | (0.10) | | 2025 Adjusted EPS | 0.82 | C: Utility operating and financial measures This section presents key Utility operating metrics, showing total retail electricity sales increased by 8.1% (or 5.2% weather-adjusted), led by industrial customer growth Utility GWh Sold by Customer Class (Q1 2025 vs Q1 2024) | Customer Class | % Change | % Weather-adjusted Change | | :--- | :--- | :--- | | Residential | 13.2% | 4.5% | | Commercial | 0.3% | (1.1)% | | Industrial | 9.3% | 9.3% | | Total Retail | 8.1% | 5.2% | D: Consolidated financial measures This appendix shows key consolidated financial metrics, with Adjusted ROE improving to 11.5% and gross liquidity increasing to $5.9 billion Key Financial Measures (as of March 31) | Measure | 2025 | 2024 | | :--- | :--- | :--- | | Adjusted ROE (LTM) | 11.5% | 10.4% | | FFO to adjusted debt (LTM, non-GAAP) | 14.5% | 13.4% | | Gross liquidity ($M, non-GAAP) | 5,858 | 5,540 | | Net liquidity ($M, non-GAAP) | 7,904 | 4,380 | E: Definitions and abbreviations and acronyms This section provides definitions for various operating, GAAP, and non-GAAP financial measures, along with a comprehensive list of abbreviations and acronyms - Provides definitions for key terms and non-GAAP measures used internally and for investors, including Adjusted EPS, Adjusted ROE, FFO to adjusted debt, and Gross/Net Liquidity[60] - Includes a comprehensive list of abbreviations such as E-AR (Entergy Arkansas), LPSC (Louisiana Public Service Commission), and FRP (Formula Rate Plan)[61] F: Other GAAP to non-GAAP reconciliations This appendix offers detailed quantitative reconciliations for key non-GAAP financial measures, bridging GAAP figures to metrics like Adjusted ROE and FFO to adjusted debt - Reconciles As-reported net income to Adjusted earnings to calculate Adjusted ROE (11.5% for LTM Q1 2025)[64] - Reconciles Net cash flow from operating activities to FFO and Total debt to Adjusted debt to calculate FFO to adjusted debt (14.5% for LTM Q1 2025)[64] - Provides reconciliations for various debt and liquidity metrics, including Adjusted debt to adjusted capitalization (65% at Q1 2025) and Net Liquidity ($7.9 billion at Q1 2025)[65] Financial Statements This section includes the unaudited consolidating financial statements for Q1 2025, presenting the Balance Sheet, Income Statement, and Cash Flow Statement Consolidating Balance Sheet As of March 31, 2025, Entergy's consolidated balance sheet showed total assets of $66.6 billion, total liabilities of $51.3 billion, and total equity of $15.3 billion Consolidated Balance Sheet Highlights (March 31, 2025) | ($ in billions) | Amount | | :--- | :--- | | Total Assets | $66.6 | | Total Liabilities | $51.3 | | Total Equity | $15.3 | Consolidating Income Statement For Q1 2025, Entergy generated total operating revenues of $2.85 billion and reported a consolidated net income of $362 million, a significant improvement from prior year Consolidated Income Statement Highlights (Three Months Ended March 31) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Revenues | 2,847 | 2,795 | | Operating Income | 700 | 238 | | Net Income | 362 | 77 | Consolidated Cash Flow Statement For Q1 2025, net cash from operating activities was $536 million, with increased cash used in investing and substantial cash provided by financing activities Consolidated Cash Flow Highlights (Three Months Ended March 31) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | 536 | 521 | | Net cash used in investing activities | (1,710) | (1,288) | | Net cash from financing activities | 1,828 | 1,929 | | Net increase in cash | 654 | 1,162 |