S&P 5006,436.20 -0.98% Dow Jones45,631.40 -1.03% Nasdaq 10023,390.80 -1.13% Russell 20002,473.33 -1.28% FTSE 1009,980.00 +0.20% Nikkei 22552,014.50 -1.27% FUTY Delivers 64% in Five Years While Charging Investors Next to Nothing - 24/7 Wall St. Stock Market Live March 27, 2026: S&P 500 (SPY) Slips Despite Trump Deadline Extension Investing FUTY Delivers 64% in Five Years While Charging Investors Next to Nothing By John SeetooPublished Mar 27, 11:49AM EDT Quick Read Fidelity MSCI Utilities Index ETF (FUTY) ...

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The energy transition was the first trend to put the electric grid in the spotlight. Built for baseload generation rather than a swarm of wind and solar installations scattered all over the country, the grid and its expansion to incorporate more wind and solar became the main topic of transition discussions. Then came AI, and the conversation suddenly became really urgent. There is one pressing question, however. Who will pay for that expansion? The U.S. electricity grid, like all national grids, was bu ...

Core Insights - EDP (Energias de Portugal) reported a 44% increase in net profit for 2025, reaching 1.15 billion euros ($1.36 billion), primarily driven by strong performance in its renewable energy sector despite lower capital gains [1][2]. Group 1: Financial Performance - EDP's consolidated net profit rose to 1.15 billion euros ($1.36 billion), aligning with LSEG consensus estimates [1]. - EDP Renovaveis, a subsidiary and the world's fourth-largest wind energy producer, achieved a net profit of 216 million euros, recovering from a net loss of 556 million euros in 2024 [2]. - The company recorded only 64 million euros in capital gains from the sale of wind and solar parks in 2025, a decrease from 181 million euros in 2024, as part of its strategy to divest mature assets to finance new projects [2].

Core Insights - Southern Company reported fourth-quarter 2025 earnings per share (EPS) of 55 cents, missing the Zacks Consensus Estimate by one cent, primarily due to higher expenses impacting profitability [1] - Despite the miss, the EPS improved from the year-ago adjusted profit of 50 cents, driven by increased retail sales from data center load growth and new customer additions [1] Financial Performance - The utility's revenues reached $7 billion, reflecting a 10.1% increase compared to fourth-quarter 2024 sales and exceeding the Zacks Consensus Estimate by $117 million [2] - Southern Company guided for an EPS of $4.50-$4.60 for the current year and $1.20 for the March quarter, with a long-term EPS growth rate expectation of 8% through 2030 [2] Sales Breakdown - Wholesale power sales increased by 14.5%, contributing to a rise in retail electricity demand [3] - Total electricity sales during the fourth quarter were up 4.9% year-over-year, with total retail sales improving by 1.7% [3] Expense Overview - Operations and maintenance (O&M) costs rose by 6.1% year-over-year to $2.1 billion, while total operating expenses increased by 14.8% to $6.1 billion [4]

Investment Plan Overview - Enel plans to invest approximately $63 billion in total, with a significant portion allocated to power grids in Spain through its subsidiary Endesa [1][2] - The investment in Spanish power grids is projected to be around 5.5 billion euros ($6.5 billion), representing about 21% of the total grid investment [2] Historical Context - This new investment marks a substantial increase from the previous allocation of roughly 4 billion euros by Endesa for power grid investments [3] - The decision comes in the wake of a massive blackout in Spain and Portugal on April 28, which has intensified discussions regarding the necessity and returns of investments in the power network [2] Regulatory Environment - Spain's competition watchdog has set the expected financial return for power grid activities at 6.58%, which is lower than the over 7% return that Spanish power utilities, including Endesa, have advocated for [3]

Core Viewpoint - Southern Company is expected to report fourth-quarter earnings of 56 cents per share on revenues of $6.9 billion, with a year-over-year profit increase of 12% and an 8.3% rise in revenues [1][3][8] Group 1: Previous Quarter Performance - In the last reported quarter, Southern Company achieved adjusted earnings per share of $1.60, exceeding the Zacks Consensus Estimate by $1.50, with sales of $7.8 billion surpassing the consensus by 3.8% [2] - The company has topped the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average earnings surprise of 3% [3] Group 2: Factors Influencing Performance - Weather conditions are a significant factor affecting earnings, with milder temperatures in Q3 impacting year-over-year results and potentially limiting heating-related usage in Q4 [4] - Increased financing and depreciation expenses may pressure fourth-quarter profitability, as management noted higher costs offsetting operating growth [5] - Despite challenges, Southern Company has solid earnings visibility due to firm load growth and executed contracts, with retail sales rising 1.8% and commercial sales increasing by 3.5% in Q3 [6] Group 3: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for Southern Company in the fourth quarter, as the Earnings ESP is -4.76% and the company holds a Zacks Rank of 4 (Sell) [7][9]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $3.91 for 2025, which is in the top half of the guidance range, with expectations of over 8% adjusted EPS annual growth through 2029 [4][25] - Retail sales increased approximately 4% in 2025, with industrial sales contributing a 7% increase [25][26] - The company anticipates an 8% compound annual growth rate in retail sales through 2029, driven by a 15% growth in industrial sales [5][26] Business Line Data and Key Metrics Changes - The company achieved 4% sales growth in 2025, primarily driven by industrial sales [5] - Significant electric service agreements totaling approximately 3.5 gigawatts were signed in 2025, indicating strong demand from industrial sectors [5][6] - The company has a pipeline of 7-12 gigawatts for data centers and 3-5 gigawatts for other industries, with a clear line of sight on equipment to serve 8 gigawatts of incremental load [8][12] Market Data and Key Metrics Changes - Entergy's utility remains in the first quartile for Net Promoter Score for both residential and business customers, with Entergy Texas ranked number one in customer satisfaction for business electric service in the South [5] - The company noted record employment milestones across all states in 2025, reflecting positive economic development activity [8] Company Strategy and Development Direction - The company is focused on a customer-first strategy that aims to create value for all stakeholders, with a $43 billion capital plan through 2029 to support customer needs [12][25] - Entergy is actively engaging with potential new customers to secure additional growth, particularly in data centers and traditional industrial segments [8][10] - The company is exploring new rate offerings such as demand response and time of use rates to complement existing billing options [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook, citing strong demand from data centers and traditional industries [4][5] - The company is committed to maintaining low rates while improving customer experience and reliability through infrastructure investments [5][10] - Management acknowledged the impact of Winter Storm Fern on operations, estimating restoration costs of up to $300 million for Louisiana and $200 million for Mississippi [31] Other Important Information - The company plans to host an Investor Day on June 9 in New York City to discuss significant opportunities and provide a five-year outlook [24] - Entergy's credit metrics remain strong, with expectations of cash flow from operations free working capital to debt greater than 17% for 2025 [29][30] Q&A Session Summary Question: On the large load ramp, was phase one of Hut 8 already partially in plan? - Management indicated that Hut 8 and similarly sized data centers are included in the probability-weighted industrial growth, and additional growth may require incremental capital [37][39] Question: What protections are in place for large load customers? - Management confirmed that significant credit requirements, including termination fees and minimum bills, are in place to protect against customer walkaways [42][43] Question: What is the expected impact of the Cottonwood addition to the capital plan? - The Cottonwood project is included in the capital plan and is pending regulatory approval, but it does not change the EPS outlook significantly [61] Question: What updates can be expected at the Investor Day in June? - Management plans to provide more clarity on data center contracts and a longer-term outlook, along with insights from various leaders within the company [67] Question: How is the political and regulatory environment affecting data center activity? - Management reported continued strong support for data centers in their jurisdictions, with no significant shifts in customer preferences among states [70]

Group 1 - The CEO of Endesa, Jose Bogas, stated that the Spanish power grid operator REE lacked sufficient conventional plants in its energy mix planning, which contributed to the nationwide blackout on April 28 last year [1] - Bogas emphasized that Endesa's power plants adhered to regulations and did not disconnect improperly during the blackout event, indicating that similar conditions could lead to another blackout in the future [1]

Core Insights - Winter Storm Fern is expected to cause widespread disruptions across various sectors in the U.S., impacting travel, retail, energy production, and power markets [1][12] Airlines and Travel - Airlines have begun scaling back operations, with Delta Air Lines adjusting staffing and aircraft positioning due to cancellations in North Texas, Oklahoma, Arkansas, Louisiana, and Tennessee [3] - American Airlines has added over 6,200 seats to mitigate disruptions, while more than 10,000 flights were canceled on a single day [4] Logistics and Delivery - FedEx and UPS have warned of potential delivery delays, and hotel operators like Hilton have implemented flexible cancellation policies for affected travelers [5] Energy Production and Prices - The storm is disrupting U.S. energy markets, with crude oil production potentially falling by approximately 300,000 barrels per day, including a loss of 200,000 barrels per day from the Permian Basin [7] - Natural gas production could decrease by 86 billion cubic feet over the next two weeks, with significant price spikes in wholesale electricity [8] Retail and Consumer Impact - Consumer-facing businesses are at risk, particularly those reliant on weekend foot traffic, such as specialty apparel and department stores, which may face earnings pressure [9][10] - Companies like Walmart, Kroger, Lowe's, Home Depot, and AutoZone are identified as having major regional exposure to the storm's impact [11]