20 February 2026 | 3:15PM EST Equity Research Energy, Utilities & Mining Pulse: Investors Asking: What Are Takeaways from the Road or Recent Management Meetings? While the Natural Resources complex has performed well this year, there has been significant dispersion under the hood. One of the key drivers of relative performance has been corporate governance and management changes. With that in mind, our analysts have spent much of February on the road, at conferences and on earnings calls engaging with manag ...

Core Viewpoint - The article discusses the appeal of five Dividend Aristocrats as preferred retirement income stocks for Baby Boomers, emphasizing their reliability in providing consistent dividend increases over 25 years, which is crucial for investors seeking stable income during market volatility [1]. Group 1: Dividend Aristocrats Overview - Dividend Aristocrats are S&P 500 companies that have raised their dividends for 25 consecutive years, making them attractive for growth and income investors [1]. - The 69 companies on the 2026 S&P 500 Dividend Aristocrats list must meet specific criteria, including being a member of the S&P 500, having an average daily trading volume of at least $5 million, and a market capitalization of at least $3 billion [1]. Group 2: Featured Dividend Aristocrats - **Amcor PLC**: Offers a 5.18% dividend and is involved in sustainable packaging solutions across various industries, including food and healthcare. It has a Buy rating with a target price of $60 [1]. - **Eversource Energy**: Provides a 4.09% dividend and operates in energy delivery across Connecticut, Massachusetts, and New Hampshire. It has a Buy rating with a target price of $79 [1]. - **Hormel Foods Corp.**: Known for its diverse food products, it offers a 4.95% dividend and is restructuring to improve performance. It has a Buy rating with a target price of $31 [2]. - **Kimberly-Clark Corp.**: A personal care company with a 4.66% dividend, it has raised dividends for 53 consecutive years and is acquiring Kenvue Inc. in a $48.7 billion deal. It has a Buy rating with a target price of $120 [2]. - **Realty Income Corp.**: A real estate investment trust with a 4.89% monthly dividend, it invests in commercial properties and has a Buy rating with a target price of $69 [2].

Financial Performance - For the fourth quarter of 2025, the company reported GAAP EPS of $4.56, up from $2.27 in 2024, and non-GAAP EPS of $4.76, compared to $1.01 in the fourth quarter of 2024 [2][5] - The company paid dividends of $3.01 per share, reflecting a 5.2% increase [3][5] - The full-year non-GAAP EPS for 2025 was $4.76, with GAAP EPS at $4.56 [5] Operational Highlights - The company achieved top-decile reliability performance and high service reliability, with customers experiencing outages only once in nearly two years [6] - Over $4 billion was deployed in capital for grid modernization and energy efficiency programs in 2025 [6] Capital and Investment Plans - The five-year regulated capital plan was raised to approximately $26.5 billion, indicating an 8.3% rate base growth through 2030 [5][8] - Major projects include the $1.8 billion Cambridge underground substation and ongoing work on the Revolution Wind project [12][13] Regulatory Developments - Eversource received approval for performance-based regulation rate adjustments in Massachusetts, including a $55 million increase for NSTAR Electric effective January 1, 2026 [10] - A decision on storm cost prudency in Connecticut is expected in July, which could enable securitization proceeds of up to $1.5 billion [15] Future Guidance - The company provided 2026 EPS guidance of $4.80 to $4.95, not assuming the sale of Aquarion Water [16] - Expected cash needs for the five-year financing plan are approximately $34.5 billion to $35 billion, with cash from operations projected to cover nearly 70% of these needs [18][21] Long-term Outlook - Management anticipates an earnings growth inflection in 2027 and 2028, with long-term EPS growth expectations of 5% to 7% based on 2025 non-GAAP recurring EPS [19]

Core Viewpoint - Eversource Energy reported a significant increase in fourth-quarter profit, driven by improved performance in its gas business and the absence of substantial one-time charges that impacted earnings in the previous year [1]. Financial Performance - Eversource's net income for the fourth quarter reached $421.3 million, or $1.12 per share, compared to $72.5 million, or 20 cents per share, in the same quarter last year [1]. - The natural gas segment earned $123.6 million, up from $103.4 million a year earlier [1]. Future Outlook - The company forecasts 2026 profit to be between $4.80 and $4.95 per share, with analysts estimating a full-year profit of $4.97 per share [1]. - Eversource expects its long-term earnings per share growth rate to remain in the range of 5% to 7% through 2030 [1]. Capital Investment - Eversource raised its five-year capital investment plan to $26.5 billion, an increase from the previous $24.2 billion, primarily due to higher spending on electric and natural gas distribution infrastructure [1]. - The company anticipates raising between $800 million and $1.1 billion in equity from 2026 to 2030, excluding routine issuances related to its dividend reinvestment and compensation programs [1].

Core Viewpoint - Entergy Corporation (ETR) is expected to report its fourth-quarter 2025 earnings on February 12, with a prior earnings surprise of 4.79% in the last quarter [1] Factors Impacting Q4 Results - Warmer-than-normal weather conditions in Entergy's service territories likely reduced electricity demand for heating, negatively impacting top-line performance [2] - Increased retail and industrial sales, along with rising demand from data centers, may have partially offset the negative impact on performance [2][3] - Higher operations and maintenance expenses could have countered some of the positive factors in the quarter [4] Q4 Expectations - The Zacks Consensus Estimate for sales is $2.9 billion, indicating a year-over-year growth of 5.9% [5] - The consensus estimate for earnings per share is 51 cents, reflecting a year-over-year decline of 22.7% [5] Earnings Prediction Model - The earnings model predicts a potential earnings beat for ETR, supported by a positive Earnings ESP of +1.64% and a Zacks Rank of 3 (Hold) [6][7] Other Industry Players - Eversource Energy (ES) is also expected to report on February 12, with an Earnings ESP of +1.27% and a Zacks Rank of 2, indicating a potential earnings beat [8][9] - IDACORP, Inc. (IDA) and Alliant Energy (LNT) are scheduled to report their results on February 19, with positive Earnings ESPs and Zacks Ranks suggesting favorable outcomes [9][10]

Core Viewpoint - Entergy Corporation (ETR) is set to release its fourth-quarter 2025 earnings on February 12, with expectations of a mixed performance due to various factors impacting electricity demand and operational costs [1][5]. Group 1: Factors Influencing Q4 Results - Warmer-than-normal weather conditions in Entergy's service territories likely reduced electricity demand for heating, negatively impacting top-line performance [2]. - Increased retail and industrial sales, along with rising demand from data centers, may have partially offset the negative impact of weather on performance [2][3]. - Higher operations and maintenance expenses could have countered some of the positive factors in the quarter [4]. Group 2: Earnings Expectations - The Zacks Consensus Estimate for sales is projected at $2.9 billion, indicating a year-over-year growth of 5.9% [5]. - The consensus estimate for earnings per share is 51 cents, reflecting a year-over-year decline of 22.7% [5]. Group 3: Earnings Prediction Model - The earnings prediction model indicates a potential earnings beat for ETR, supported by a positive Earnings ESP of +1.64% and a Zacks Rank of 3 (Hold) [6][7].

Core Viewpoint - Wall Street anticipates a year-over-year decline in FirstEnergy's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - FirstEnergy is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year decrease of 22.4% [3]. - Revenue projections stand at $3.24 billion, which is a 2% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4]. - The Most Accurate Estimate for FirstEnergy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.26%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [8][9]. - FirstEnergy's current Zacks Rank is 2 (Buy), but the negative Earnings ESP complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, FirstEnergy exceeded earnings expectations by delivering $0.83 per share against an expected $0.76, resulting in a surprise of +9.21% [12]. - Over the past four quarters, FirstEnergy has beaten consensus EPS estimates three times [13]. Industry Comparison - Eversource Energy, another player in the utility sector, is expected to report earnings of $1.11 per share, marking a year-over-year increase of 9.9% [17]. - Eversource's revenues are projected at $3.53 billion, up 18.9% from the previous year, with a positive Earnings ESP of +1.27% and a Zacks Rank of 2, indicating a higher likelihood of beating estimates [18][19].

Key Takeaways Ameren is set to report Q4 results, with consensus EPS at 77 cents, flat year over year.AEE may benefit from grid modernization, smart switches, data center demand and new electric service rates.Ameren is likely to have faced higher O&M and interest costs, even as revenues may rise 7.9%.Ameren Corporation (AEE) is scheduled to release fourth-quarter 2025 results on Feb. 11, after market close. The company delivered an earnings surprise of 3.3% in the last reported quarter. Let’s discuss the fa ...

Core Viewpoint - PG&E Corporation (PCG) is expected to report its fourth-quarter 2025 results on February 12, with a prior earnings surprise of 13.64% in the last quarter [1] Factors Impacting Q4 Results - Increased electric load driven by electric vehicle adoption, data center expansion, and building electrification is anticipated to enhance energy consumption, supporting the company's growth [2] - The completion of 1,000 miles of underground power lines in high fire-risk areas is expected to significantly reduce wildfire-related outages and improve service reliability [4] - A partnership with Nissan and Fermata Energy to launch a pilot program integrating electric vehicles with a microgrid aims to enhance grid reliability and energy resilience [3] Financial Expectations - The Zacks Consensus Estimate for Q4 sales is $7.21 billion, indicating an 8.8% year-over-year growth [6] - The consensus estimate for earnings is 36 cents per share, reflecting a year-over-year increase of 16.1% [6] - Higher sales expectations and reduced non-fuel operating and maintenance expenses are likely to support PG&E's earnings for the quarter [5] Earnings Prediction Insights - The company's Earnings ESP is -0.46%, indicating that the model does not predict an earnings beat for this quarter [7] - PG&E currently holds a Zacks Rank of 3 (Hold), which does not favor an earnings beat [8]

Core Thesis - PG&E Corporation is viewed positively due to its progress in mitigating wildfire risks and potential regulatory clarity, which could lead to a revaluation of the company [1][5]. Company Overview - PG&E Corporation serves approximately 16 million customers in Northern and Central California, focusing on electric transmission and distribution as well as gas distribution [2]. - The company's earnings are largely determined by rates approved by the California Public Utilities Commission (CPUC), making regulatory outcomes crucial for long-term value [2]. Current Challenges - The stock trades at a discount due to ongoing concerns about wildfire liability, linked to PG&E's 2019 bankruptcy after its equipment was associated with catastrophic wildfires in 2017-2018 [3]. - Investor perception remains focused on wildfire risks, which pressures regulators to impose stringent safety standards and elevated costs, overshadowing operational improvements [3]. Mitigation Efforts - PG&E has made significant strides in reducing wildfire risk by undergrounding high-risk power lines, with approximately 1,000 miles completed by the third quarter of 2025, and deploying thousands of sensors and reinforced infrastructure [4]. - The demand for data centers, driven by AI, is expected to add up to 10 GW of incremental load over the next decade, enhancing grid utilization and economic activity [4]. Future Catalysts - The upcoming General Rate Case decision for 2027-2030 is anticipated to be constructive, as PG&E is requesting a modest revenue increase justified by wildfire mitigation and grid upgrades [5]. - Improving safety metrics, rising power demand, and potential regulatory clarity position PG&E as an undervalued regulated utility with a path toward earnings normalization and multiple expansion [5][7].