First Quarter Fiscal Year 2026 Results February 2, 2026 Cautionary Statement Information in this presentation contains forward-looking statements regarding future events and our future results within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, the results of our ongoing focus on operational excellence, increased output, more consistent execution, and innovation, including whether such focus ultimately leads to susta ...

Core Viewpoint - NRG Energy, Inc. shares are experiencing a decline following the release of updated financial guidance for FY26, which includes adjusted EPS and net income projections that differ from market consensus [1][2]. Group 1: FY26 Guidance - The company has provided adjusted EPS guidance of $7.90–$9.90, compared to the consensus estimate of $9.72 [2]. - Adjusted net income is projected to be between $1.685 billion and $2.115 billion [2]. - The guidance reflects the anticipated completion of the LS Power asset portfolio acquisition on January 30, 2026, which will account for approximately 11 months of asset ownership [2]. Group 2: Adjusted EBITDA and Free Cash Flow - NRG has raised its outlook for adjusted EBITDA to a range of $5.325 billion to $5.825 billion, up from the previous estimate of $3.925 billion to $4.175 billion [3]. - The forecast for Free Cash Flow Before Growth Investments has also been increased to between $2.800 billion and $3.300 billion, compared to the earlier range of $1.975 billion to $2.225 billion [3]. Group 3: LS Power Acquisition - NRG Energy recently completed the acquisition of a generation asset portfolio and CPower from LS Power, which includes 18 natural gas-fired power plants with a total capacity of approximately 13 GW [4]. - The acquisition also incorporates CPower's commercial and industrial virtual power plant platform [4]. - NRG plans to report its fourth quarter 2025 results on February 24, 2026 [4].

Core Viewpoint - GE Vernova has announced a registered public offering of senior notes, with proceeds intended for general corporate purposes, including financing the acquisition of the remaining 50% stake in Prolec GE, expected to close on February 2, 2026 [1]. Group 1: Offering Details - The offering is subject to market and other conditions, and the notes will be managed by Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC as joint book-running managers [2]. - The offering is made pursuant to an effective shelf registration statement, which includes a prospectus and related preliminary prospectus supplement [2]. Group 2: Company Overview - GE Vernova Inc. is a global energy company focused on Power, Wind, and Electrification segments, with a mission to lead the energy transition while decarbonizing the world [6]. - The company has over 130 years of experience and operates with approximately 75,000 employees across around 100 countries, emphasizing the importance of delivering affordable, reliable, sustainable, and secure energy [6].

Performance Highlights - New Yi Sheng (300502.SZ) expects net profit between 9.4 billion and 9.9 billion CNY, a year-on-year increase of 231.24% to 248.86% due to rising demand for high-speed optical modules driven by global computing power investments[4] - Han's Chip (688256.SH) anticipates net profit between 1.85 billion and 2.15 billion CNY, turning from a loss of 450 million CNY last year, benefiting from the growing demand for AI computing power[5] - Zhongji Xuchuang (300308.SZ) projects net profit between 9.8 billion and 11.8 billion CNY, a year-on-year growth of 89.50% to 128.17%, driven by strong customer investment in computing infrastructure[6] - Runze Technology (300442.SZ) expects net profit between 5 billion and 5.3 billion CNY, a year-on-year increase of 179.28% to 196.03%, largely due to non-recurring gains from public REITs issuance[10] Underperformance Highlights - Great Wall Motors (601633.SH) forecasts net profit of 9.912 billion CNY, a year-on-year decline of 21.71% due to increased marketing expenses and competitive pressures[36] - GAC Group (601238.SH) expects a net loss between 8 billion and 9 billion CNY, turning from a profit of 824 million CNY last year, impacted by fierce competition and increased asset impairment provisions[39] - Xiexin Integrated (002506.SZ) anticipates a net loss between 890 million and 1.29 billion CNY, shifting from a profit of 68 million CNY last year due to structural supply-demand issues in the photovoltaic industry[41] - Baile Tianheng (688506.SH) projects a net loss of around 1.1 billion CNY, down from a profit of 3.708 billion CNY last year, primarily due to increased R&D expenses[42] Industry Trends - Technology-driven sectors like AI and innovative pharmaceuticals are leading growth, with companies like New Yi Sheng and Han's Chip benefiting from strong demand and technological advancements[69] - Cost control is becoming a critical competitive advantage, particularly in the energy and manufacturing sectors, as seen with companies like Datang Power (601991.SH) benefiting from lower coal prices[70] - Traditional cyclical industries such as real estate and agriculture are facing significant downward pressure, with companies like Vanke (000002.SZ) and Tianbang Foods (002124.SZ) experiencing substantial losses due to market adjustments[72]

Core Insights - BKV has completed the acquisition of an additional stake in BKV-BPP Power, increasing its ownership from 50% to 75% for $115.1 million, enhancing control over the joint venture [1] - The acquisition supports BKV's closed-loop energy strategy and positions the company to meet rising power demand in Texas, driven by AI and data center growth [2] - The increased ownership allows BKV to consolidate the JV's financial results, improving transparency in cash flow and aligning power operations with growth objectives [3] Company Strategy - BKV's CEO emphasized that the majority stake enhances strategic flexibility and capitalizes on growth opportunities in the Texas power market [4] - The company aims to expand its power asset portfolio while maintaining a strong partnership with BPPUS, focusing on baseload power delivery and sustainable energy solutions [5]

Core Insights - NRG Energy has finalized the acquisition of a portfolio from LS Power, which includes 18 natural gas-fired generation facilities with a total capacity of approximately 13GW and CPower's commercial and industrial virtual power plant (VPP) platform [1][2] - The transaction is valued at nearly $12 billion, comprising $6.4 billion in cash, $2.8 billion in stock, $3.2 billion of net debt assumed, and around $400 million of net present value of tax benefits [2] Group 1: Transaction Details - The acquisition doubles NRG's total generation fleet to about 25GW and enhances its presence in key US electricity markets [2] - The newly acquired assets include quick-start facilities located in the northeast and Texas, along with VPP capabilities that improve NRG's demand response management for commercial and industrial clients [3] Group 2: Regulatory Approvals - NRG completed the acquisition after obtaining all necessary regulatory approvals, including anti-trust clearance from the US Department of Justice on January 23 and prior authorizations from the Federal Energy Regulatory Commission and the New York State Public Service Commission [3] Group 3: Strategic Implications - The expanded platform will support energy supply and flexible demand solutions for residential, commercial, and large-load customers, addressing the growing energy consumption [4] - NRG aims to enhance affordability and grid reliability through a diversified supply strategy and an expanded operational footprint, serving eight million customers daily [5]

Core Insights - GE Vernova Inc. reported mixed fourth-quarter earnings, with revenue growth but an earnings miss, leading to a decline in share price [1] Financial Performance - Fourth-quarter revenue reached $10.956 billion, a 4% increase from $10.559 billion, surpassing analyst expectations of $10.213 billion [2] - Fourth-quarter EPS was $2.79, missing the estimate of $3.18, while diluted GAAP EPS rose significantly to $13.39 from $1.73 year-over-year [2] - Net income for the quarter was $3.670 billion, yielding a margin of 33.5%, which included a $2.9 billion tax benefit [2] - Adjusted EBITDA was $1.158 billion, with an adjusted EBITDA margin of 10.6% [2] Orders and Backlog - Total orders for the fourth quarter amounted to $22.2 billion, reflecting a 65% organic growth, with a sequential backlog increase of $15.0 billion [3] Segment Performance - In the Power segment, revenue increased by 6% to $5.749 billion, with an EBITDA margin rising to 16.9% from 14.9%, and orders totaling $11.693 billion [4] - In the Wind segment, revenue declined by 24% to $2.368 billion, with an EBITDA loss of $225 million, compared to a profit of $19 million a year earlier, resulting in an EBITDA margin of (9.5)% [5] - In Electrification, revenue rose by 36% to $2.960 billion, with an EBITDA margin increasing to 17.1% from 13.0%, and orders of $7.424 billion [5] Cash Flow - Cash from operating activities for the quarter was $2.480 billion, and free cash flow was $1.809 billion [5] Full-Year Results - For the full year 2025, revenue increased by 9% to $38.068 billion, with diluted GAAP EPS rising to $17.69 from $5.58 [7] - Net income for the year was $4.879 billion, with a margin of 12.8%, and adjusted EBITDA was $3.196 billion, yielding an adjusted EBITDA margin of 8.4% [7] - Operating cash flow for the year totaled $4.987 billion, and free cash flow was $3.710 billion, with cash and equivalents totaling $8.848 billion as of December 31, 2025 [7]

Group 1 - Liberty Energy Inc. (NYSE: LBRT) experienced an 18.28% week-on-week gain, reaching an all-time high due to a positive business outlook and expectations of stronger power demand [1][2] - The stock peaked at $27.21 before closing at $24.65 after a 2.68% decline due to profit-taking [2] - CEO Ron Gusek projected that power demand would increase more than threefold over the next four years, and announced plans to deploy 3 gigawatts of power by 2029 to meet this demand [2] Group 2 - Despite the optimistic outlook, Liberty Energy reported a 53% decline in net income for 2025, falling to $147.87 million from $316 million in 2024, and a 7.2% drop in revenues to $4 billion from $4.3 billion year-on-year [3] - In Q4, net income plummeted by 74% to $13.69 million from $51.89 million, even though revenues exceeded $1 billion, reaching $1.04 billion, which is a 10% increase from $943 million in the same period last year [3]

Group 1 - GE Vernova Inc. (NYSE:GEV) is positioned to benefit from the increasing demand for power generation, particularly due to the growth of data centers by big tech companies [1] - The company has a strong visibility on earnings extending to the 2030s, which is a significant advantage in the current market [1] - GE Vernova provides a range of products and services for electricity generation, including gas, nuclear, hydro, and wind technologies [2] Group 2 - While GE Vernova shows potential as an investment, there are AI stocks that may offer greater upside potential and lower downside risk [3]

Core Viewpoint - NRG Energy, Inc. has completed the acquisition of a portfolio of generation assets and CPower from LS Power, enhancing its ability to provide reliable and affordable energy solutions as demand continues to grow [1][2]. Group 1: Acquisition Details - The acquisition includes 18 natural-gas-fired generation facilities with a total capacity of approximately 13 GW, along with CPower's commercial and industrial virtual power plant (C&I VPP) platform [2]. - This transaction effectively doubles NRG's generation fleet, increasing its total capacity to approximately 25 GW, which will improve affordability and grid reliability across its core markets [2][3]. Group 2: Strategic Implications - Larry Coben, NRG's Chair & CEO, emphasized that the acquisition is a response to the increasing power demand supercycle, allowing NRG to offer a broader range of affordable and resilient solutions for various customer segments, including data centers and households [3]. - The expanded demand response and VPP capabilities will further enhance NRG's ability to serve residential, commercial, and large load customers with dependable power and innovative energy solutions [3]. Group 3: Company Overview - NRG is a leading provider of electricity, natural gas, and smart home solutions, serving eight million customers across North America with a diversified supply strategy and reliable operation of approximately 25 GW of power generation [4]. - The company aims to play a significant role in dependable and competitive energy markets, focusing on creating flexible and affordable solutions for both households and large businesses [4].