Vistra(VST) - 2025 Q2 - Quarterly Results

Financial Performance - Vistra reported a GAAP net income of $327 million for Q2 2025, a decrease of $140 million compared to Q2 2024, primarily due to higher plant outage expenses [4]. - Ongoing Operations Adjusted EBITDA for Q2 2025 was $1,349 million, down $63 million from Q2 2024, driven by increased plant outage costs [4]. - Operating revenues for Q2 2025 reached $4,250 million, a 10.6% increase from $3,845 million in Q2 2024 [19]. - Net income for Q2 2025 was $327 million, compared to $467 million in Q2 2024, reflecting a decrease of 30% [19]. - Adjusted EBITDA for the first half of 2025 was $2,589 million, up from $2,548 million in the same period of 2024, indicating a slight increase [29]. - Cash provided by operating activities for the first half of 2025 was $1,171 million, down from $1,508 million in the first half of 2024 [21]. - The company reported a net loss of $41 million before income taxes for the first half of 2025, contrasting with a profit of $624 million in the first half of 2024 [19]. - Interest expense and related charges increased to $303 million in Q2 2025 from $241 million in Q2 2024, marking a 25.8% rise [19]. - The cumulative dividends paid to common stockholders in the first half of 2025 were $152 million, slightly higher than $150 million in the same period of 2024 [23]. - The ending balance of cash, cash equivalents, and restricted cash was $495 million as of June 30, 2025, down from $1,661 million at the end of June 2024 [23]. - The company incurred impairment of long-lived assets amounting to $68 million in Q2 2025, with no such charges reported in Q2 2024 [19]. - Adjusted EBITDA for the same period was $2,222 million, reflecting a decrease of $44 million compared to the previous period [36]. - Interest expense and related charges for the latest period totaled $411 million, including $58 million of unrealized mark-to-market net gains on interest rate swaps [36]. - Depreciation and amortization expenses reached $986 million, with significant contributions from the Texas and East segments [36]. Guidance and Projections - The company reaffirmed its 2025 Ongoing Operations Adjusted EBITDA guidance range of $5.5 billion to $6.1 billion and Ongoing Operations Adjusted Free Cash Flow guidance of $3.0 billion to $3.6 billion [7]. - The midpoint opportunity for 2026 Ongoing Operations Adjusted EBITDA has been increased to over $6.8 billion, excluding potential benefits from the acquisition [4]. - The company projects 2025 adjusted EBITDA guidance between $5,500 million and $6,100 million, with consolidated net income guidance of $2,220 million to $2,690 million [39]. - Free cash flow is projected to be between $2,350 million and $2,950 million for 2025, with adjusted free cash flow guidance before growth between $3,000 million and $3,600 million [42]. Capital Expenditures and Investments - Capital expenditures for the first half of 2025 totaled $1,458 million, compared to $963 million in the first half of 2024, representing a significant increase [21]. - Capital expenditures, including nuclear fuel purchases, are projected at $1,221 million for 2025 [42]. - Vistra Corp. plans to continue its focus on solar and storage development, with expenditures projected at $736 million for 2025 [42]. - The company is advancing its clean energy investments, including the construction of a 52-MW solar and 2-MW storage facility in Illinois and a 50-MW solar and storage facility in California [9]. Acquisitions and Agreements - Vistra executed a definitive agreement to acquire seven natural gas facilities totaling approximately 2,600 MW of capacity, enhancing geographic diversification [4]. - The company received approval from the Nuclear Regulatory Commission to extend the operating license of the Perry Nuclear Power Plant for an additional 20 years, through 2046 [4]. - Vistra has executed approximately $5.4 billion in share repurchases since November 2021, reducing shares outstanding by approximately 30% [9]. Hedging and Risk Management - Vistra has hedged approximately 100% of its expected generation volumes for 2025 and about 95% for 2026, supporting its reaffirmed guidance [7]. - The company reported a significant unrealized net gain from hedging transactions of $130 million in the latest period [36].