Entergy(ETR) - 2025 Q2 - Quarterly Results

News Release Financial Highlights 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][4] Business Highlights 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] - Entergy Arkansas secured significant new growth for the state[4] - Entergy Texas received approval for a Distribution Cost Recovery Factor (DCRF) rider to place $188 million of distribution investments into rates[4] - The Mississippi Public Service Commission (MPSC) approved Entergy Mississippi's formula rate plan[4] Consolidated Results 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 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] - Growth was partially offset by higher O&M, depreciation, interest expense, and unrecovered MISO capacity costs at Entergy Texas[12] Parent & Other Segment Results 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] Earnings Guidance 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 $3.95[20] Appendices and Financial Statements Appendix A: Consolidated Results and Adjustments This appendix reconciles GAAP to non-GAAP earnings, details 2024 adjustments, and presents consolidated operating cash flow Consolidated Operating Cash Flow (YTD) | ($ 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] - Adjustments in 2024, which are excluded from non-GAAP earnings, included a $(317) million pre-tax charge for a pension lift-out and various charges related to regulatory agreements with Entergy Louisiana and Entergy Arkansas[45] Appendix B: Earnings Variance Analysis This section details the drivers of Q2 2024 to Q2 2025 EPS changes, highlighting operating revenue as a positive driver and interest expense and share dilution as negative factors Q2 2025 vs. Q2 2024 Adjusted EPS Variance Drivers | Driver | Consolidated EPS Impact ($) | | :--- | :--- | | 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] - 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] Appendix C: Utility Operating and Financial Measures 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] Appendix D: Consolidated Financial Measures 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 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 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 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 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 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 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 |