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NRG(NRG) - 2025 Q2 - Earnings Call Presentation
2025-08-06 13:00
Financial Performance - NRG's first half Adjusted EBITDA reached $2035 million, an 11% year-over-year increase[20] - Adjusted EPS for the first half of the year increased by 48% to $442, compared to $315 in the previous year[15] - Free Cash Flow before Growth (FCFbG) for the first half of the year was $1207 million, higher than the $623 million in the previous year, driven by higher Adjusted EBITDA and favorable working capital timing[36, 40] - The company reaffirms its 2025 guidance for Adjusted EPS at $675-$775, Adjusted EBITDA at $3725-$3975 million, and Free Cash Flow before Growth at $1975-$2225 million[15, 16] Strategic Initiatives and Growth - NRG announced the acquisition of a 13 GW natural gas fleet and a 6 GW C&I Virtual Power Plant platform from LS Power, expected to close in the first quarter of 2026[18, 19] - The company signed 295 MW of premium long-term retail power agreements for data centers in Texas, with operations expected to start in the second half of 2026 and full capacity by 2030[13, 22] - NRG is exploring potential expansion of data center agreements up to 1 GW across additional sites[24] - The Texas Residential Virtual Power Plant (VPP) is exceeding initial expectations, leading to an increased 2025 capacity target from 20 MW to 150 MW, a 75x increase[13, 31, 33] Texas Energy Fund (TEF) Development - The T H Wharton Texas Energy Fund project, with a capacity of 415 MW, has closed its TEF loan of $216 million with a 3% interest rate and a 20-year term, and construction is underway with an expected COD in mid-2026[13, 26, 28, 30]