Group 1 - Vistra Corp. reported $4.25 billion in revenue for the quarter ended June 2025, a year-over-year increase of 10.5% [1] - The EPS for the same period was $1.01, compared to $0.90 a year ago, indicating a positive growth in earnings [1] - The reported revenue was below the Zacks Consensus Estimate of $4.99 billion, resulting in a surprise of -14.8% [1] Group 2 - The company delivered an EPS surprise of +3.06%, with the consensus EPS estimate being $0.98 [1] - Total retail electricity sales volumes were 33,267.00 GWh, lower than the estimated 35,391.30 GWh [4] - Adjusted EBITDA for Retail was $756 million, exceeding the average estimate of $462.23 million [4] Group 3 - Adjusted EBITDA for Texas was $142 million, below the average estimate of $173.6 million [4] - Adjusted EBITDA for Corporate and Other was -$16 million, significantly lower than the estimated $183.27 million [4] - Adjusted EBITDA for East was $418 million, compared to the estimated $518.55 million [4] Group 4 - Shares of Vistra have returned +5% over the past month, outperforming the Zacks S&P 500 composite's +1.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q2 2025 were $1.73, reflecting an 8% growth year over year when normalized for asset sales and retirements [10] - For 2025, adjusted EPS was $4.42, representing an increase of 48% on the same basis [10] - Adjusted EBITDA for Q2 was $900 million, while adjusted net income was $339 million [22] - Free cash flow before growth was $914 million for Q2 and $1.207 billion for 2025, exceeding the same periods in 2024 by $251 million [25][26] Business Line Data and Key Metrics Changes - Texas segment produced $512 million of adjusted EBITDA in Q2 2025, an improvement of over 1320% from the same period in 2024 [24] - East segment contributed adjusted EBITDA of $99 million in Q2 2025, driven by higher margins from the natural gas business [24] - Smart Home business achieved an adjusted EBITDA of $255 million in Q2 2025, with record customer retention at over 90% [25] Market Data and Key Metrics Changes - The company announced long-term retail power agreements with a data center operator for an initial 295 megawatts, with potential growth to one gigawatt [8][14] - The Texas residential virtual power plant (VPP) program exceeded expectations, increasing the 2025 target from 20 megawatts to 150 megawatts of curtailable capacity [20] Company Strategy and Development Direction - The company is focused on expanding its footprint in attractive power markets, including PJM and ERCOT, through acquisitions and strategic partnerships [11][12] - The T.H. Wharton project is on track for mid-2026 completion, supporting reliability and strengthening the Texas grid [17] - The company is actively working to expand its data center agreements and has over 4 gigawatts of joint development agreements and letters of intent across multiple sites [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver value to shareholders and reaffirmed full-year financial guidance across all key metrics [7][29] - The management highlighted the strong execution in each segment, driven by expanded margins and favorable weather [23] - The company is optimistic about the long-term demand for additionality in power supply, particularly for data centers [92] Other Important Information - The company closed the Rockland acquisition during the quarter, integrating Texas assets into its portfolio [11] - The Texas Senate Bill 6 was signed into law, providing new tools to support reliability and improve long-term planning in the ERCOT market [18] Q&A Session Summary Question: Can you talk about the structure of the 295 megawatts agreement? - Management views it as a C&I contract with premium margins, longer duration than average C&I contracts, and various mechanisms to protect margins [35] Question: What is the line of sight to convert the four gigawatts to actual ESAs? - Management is optimistic but does not want to predict specific timelines due to complexities involved [48] Question: How is the VPP opportunity shaping up? - Early results show strong uptake, but management is cautious about making long-term projections based on initial momentum [82] Question: What is the difference between the new contract and other C&I contracts? - The new contract offers a longer duration and premium pricing, providing assurance for customers [62] Question: What is the current outlook for power prices in Texas? - Management sees potential upward movement in power prices driven by large industrial loads and tight grid conditions [93]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for Q2 2025 were $1.73, reflecting an 8% growth year over year when normalized for asset sales and retirements [8] - For 2025, adjusted EPS was $4.42, representing a 48% increase on the same basis [9] - Adjusted EBITDA for Q2 was $900 million, while adjusted net income was $339 million [21] - Free cash flow before growth was $914 million for Q2 2025, exceeding the same period in 2024 by $251 million [24] Business Line Data and Key Metrics Changes - The Texas segment produced $512 million of adjusted EBITDA in Q2 2025, an improvement of over 1320% from the same period in 2024 [23] - The East segment contributed adjusted EBITDA of $99 million in Q2 2025, driven by higher margins from the natural gas business [23] - The Smart Home business achieved an adjusted EBITDA of $255 million in Q2 2025, with record customer retention at over 90% [24] Market Data and Key Metrics Changes - The company announced long-term retail power agreements with a data center operator for an initial commitment of 295 megawatts, with potential growth to 1 gigawatt [7] - The Texas residential virtual power plant (VPP) program exceeded expectations, increasing the 2025 target from 20 megawatts to 150 megawatts of curtailable capacity [20] Company Strategy and Development Direction - The company is focused on expanding its footprint in attractive power markets, particularly through acquisitions and partnerships in the data center sector [11][12] - The T.H. Wharton project is on track for mid-2026 completion, supporting reliability and strengthening the Texas grid [17] - The company is actively working to expand its data center agreements and has over 4 gigawatts of joint development agreements and letters of intent across multiple sites [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results for the remainder of the year, citing exceptional first-half performance [27] - The management team highlighted the importance of disciplined execution and long-term value creation [20] - The company is optimistic about the demand for additionality in the market, particularly from data centers [90] Other Important Information - The company reaffirmed its full-year financial guidance across all key metrics and is trending at the high end of the ranges [6][25] - The acquisition of a 13-gigawatt natural gas generation portfolio is expected to enhance the company's ability to serve large loads and accelerate long-term earnings growth targets [11] Q&A Session Summary Question: Can you talk about the structure of the 295 megawatts agreement? - Management views it as a C&I contract with premium margins, longer duration than average C&I contracts, and various mechanisms to protect margins [32] Question: What is the outlook for converting the 4 gigawatts of LOIs to actual contracts? - Management is optimistic but does not want to predict specific timelines due to the complexities involved [47] Question: How is the Texas residential VPP performing? - The program is exceeding expectations, with adoption rates significantly higher than initial targets [20] Question: What is the margin structure for the new data center agreement? - The margin is well protected and structured to maintain levels as initially priced, though specific details are confidential [88] Question: How are power prices in Texas expected to trend? - There is an upward movement in off-peak prices driven by large industrial loads, with potential for further increases as load data becomes available [92]