J P M O R G A N North America Equity Research 08 December 2025 Clean Energy 2026 Outlook: Back to Baseload Basics; Renewables Likely Consolidate Heading into 2026, we expect baseload power sources to remain top of mind for investors, though we expect the thematic trade to become more nuanced by individual stock fundamentals and valuation, rather than simply by exposure. Within renewables, we expect another year of outperformance for the utility-scale market, though we expect a trend towards larger, more com ...

Group 1: Company Overview - Constellation Energy is the largest operator of nuclear power plants in the U.S., with a nuclear capacity of approximately 22.1 gigawatts, significantly ahead of its nearest competitor at 6.3 gigawatts [5] - The company is not a regulated utility, allowing it greater flexibility to invest in the power grid and pursue growth opportunities [2][4] - Constellation primarily generates and sells electricity under contracts to various customers, including utilities and corporations, without the constraints of government regulation [4] Group 2: Future Growth and Strategy - The company plans to focus on growth in its nuclear business over the next five years, including potential investments in extending the life of existing reactors and reopening shut-down reactors [8] - Constellation has signed significant contracts, including a 20-year deal with Meta Platforms and a 10-year contract with the U.S. government, indicating strong demand for nuclear power [9] - The company is also diversifying its portfolio through the acquisition of Calpine, a large producer of electricity from natural gas and hydroelectric sources, while maintaining its leadership in nuclear power [7][8] Group 3: Market Dynamics and Financial Outlook - State-backed programs currently consume a portion of Constellation's nuclear capacity, but these programs are expected to end in the next five years, allowing the company to sell more nuclear energy at market prices [10] - Management anticipates that this shift will lead to increased earnings as the company can charge higher market-based rates for its nuclear power [10] - The stock has appreciated over 600% in the past five years, reflecting investor interest in the company's growth potential, although caution is advised as the stock may experience volatility [12]

The power that Torness generates—enough to supply over 2% of Britain’s electricity—has proved vital, in a grid hungry for stable baseload power and in a country that had forgotten how to build nuclear reactors at a reasonable cost https://t.co/sVbmBEsUtH ...