Financial Data and Key Metrics Changes - Clearway Energy delivered Adjusted EBITDA of $237 million for Q4 2025 and Cash Available for Distribution (CAFD) of $35 million, with full-year CAFD generation of $430 million, exceeding the midpoint of the original guidance range of $400 million-$440 million [17][18] - The company reiterated its 2026 CAFD guidance range of $470 million-$510 million, reflecting incremental contributions from closed and committed drop-downs and third-party acquisitions [18][19] Business Line Data and Key Metrics Changes - The renewables and storage segment experienced below median expectations in wind resources, while solar performance was impacted by the timing of debt service related to growth investments [17] - Flexible generation exhibited solid operational execution in line with budgeted expectations [17] Market Data and Key Metrics Changes - Hyperscaler demand significantly drove growth, with approximately 2 gigawatts of new Power Purchase Agreements (PPAs) signed in 2025, enhancing revenue contracting opportunities [5][8] - The pricing environment for PPAs has been favorable, with current pricing approximately double that of three years ago, indicating robust demand across various geographies [39][40] Company Strategy and Development Direction - Clearway Energy aims to achieve a CAFD per share target of $2.90-$3.10 by 2030, representing a 7%-8% compound annual growth rate (CAGR) from 2025 [5][12] - The company is focusing on proven technologies in strategic geographic markets, with a significant pipeline of storage projects expected to be cost-competitive [12][13] - Clearway plans to maintain a long-term payout ratio below 70% after 2030, with retained cash flows becoming a greater source of funding for investments [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet its 2030 targets, citing strong organic growth and a favorable M&A environment [26][29] - The management team highlighted the importance of maintaining operational excellence and high levels of plant availability, which contributed to exceeding financial guidance [18][19] Other Important Information - Clearway Energy raised $600 million in senior unsecured notes due in 2034, demonstrating strong credit quality and supporting long-term growth targets [21] - The company executed $50 million of opportunistic equity issuances, which were the least dilutive in its history, providing flexibility for future capital needs [22] Q&A Session Summary Question: M&A Outlook - The management noted that the current M&A environment is similar to the previous year, allowing for disciplined evaluation of opportunities that are accretive to existing growth [26][28] Question: PPA Pricing Environment - Management indicated that the pricing environment is robust across all geographies, with significant demand for new projects, and that they are not seeing observable price escalation [39][40] Question: Revenue Enhancement Opportunities - The company is executing new long-term unit-contingent PPAs, which will enhance the quality of earnings and provide a favorable risk profile for existing projects [78] Question: Interconnection Capacity and Hybridization - Clearway is exploring opportunities to co-locate battery storage at existing sites, particularly in solar projects, to enhance capacity and meet growing demand [82][84] Question: Deriva Acquisition Timeline - Management expects to close the Deriva acquisition well before the end of the first half of the year, with financing already in place [87]

Industry Overview - Energy stocks have faced significant challenges over the past three years, with crude oil and natural gas prices declining since mid-2022, impacting many sector stocks [1] - The U.S. Energy Information Administration forecasts crude oil prices to average around $55 per barrel in 2023 and 2024, down from an average of $69 in 2025, which poses a threat to profit margins in the industry [1] Company Analysis: BP - BP is highlighted as a potential investment opportunity for income-minded investors, especially after a 15% pullback from its early 2023 peak, resulting in a forward-looking dividend yield of 5.6% [2] - The notion of "peak oil" has been postponed to 2050 according to the International Energy Agency, indicating that oil will still be needed for several decades, and BP possesses the necessary assets to thrive during this period [4] - BP is actively managing the transition from fossil fuels to renewable energy, exemplified by its partnership with JERA Nex to develop offshore wind farms, with current generation capacity of 1 gigawatt and future plans for 13 gigawatts, enough to power approximately 10 million homes [6] - Despite the transition efforts, BP announced a noncash impairment of $4 billion to $5 billion for its low-carbon business, highlighting the challenges faced in moving away from fossil fuels [7] - The company is positioned to perform well even in a low-price environment while evolving towards renewable energy solutions [8]

Core Insights - CenterPoint Energy, Inc. (CNP) is focused on systematic investments to enhance its infrastructure, improve transmission and distribution networks, upgrade the grid, and expand its renewable energy portfolio to provide clean energy to customers [1] - The company's long-term earnings growth rate is projected at 8.86% over the next three to five years [1] Tailwinds - Rising electricity consumption from residential and commercial sectors, driven by the electrification of transportation and buildings, as well as the growth of AI-based data centers, is increasing demand for utility services, leading to higher sales for CenterPoint Energy [2] Capital Investment Plan - CenterPoint Energy has a long-term capital investment plan of $65 billion for the period 2026-2035 aimed at modernizing the grid system, which includes upgrading underground distribution lines and installing self-healing automation devices to enhance grid resilience and reliability [3] - These investments are expected to reduce the frequency and duration of outages while lowering operating costs [3] Renewable Energy Expansion - The company is expanding its energy portfolio by adding renewable and clean energy sources, targeting approximately 1,000 megawatts (MW) of wind and solar generation capacity by 2026 [4] - Additionally, CenterPoint aims to add 200 MW each of wind and solar resources by 2030, with a potential need for an additional 400 MW of wind resources by 2032 [4] Headwinds - Tariffs imposed by the U.S. government on imports, including solar panels, pose a significant threat to the company's solar project development, potentially increasing costs and impacting the financial viability of projects [5] Price Performance - Over the past year, CNP shares have increased by 20.3%, although this growth lags behind the industry's growth of 21.1% [6] Zacks Rank & Comparisons - CenterPoint Energy currently holds a Zacks Rank 3 (Hold), while competitors such as Dominion Energy, Inc. (D), NextEra Energy, Inc. (NEE), and OGE Energy Corp. (OGE) have better rankings with Zacks Rank 2 (Buy) [9] - These competitors have delivered average earnings surprises of 12.72%, 4.39%, and 10.45% over the last four quarters, respectively [9]

Core Viewpoint - OGE Energy Corp. is positioned as a strong investment option in the Zacks Utility Electric Power industry due to its consistent infrastructure investments and expansion of renewable generation assets [1] Growth Outlook & Surprise History - The Zacks Consensus Estimate for OGE's 2025 earnings per share is $2.28, reflecting a year-over-year growth of 4.1% [2] - The consensus estimate for 2025 sales is $3.28 billion, indicating a year-over-year growth of 9.8% [2] - OGE's long-term earnings growth rate is projected at 7% over the next three to five years [2] - The company has delivered an average earnings surprise of 10.45% over the last four quarters, beating estimates in two quarters and missing in two [2] Return on Equity - OGE's return on equity (ROE) stands at 10.77%, surpassing the industry average of 9.9%, indicating more efficient utilization of funds compared to peers [3] Return to Shareholders - OGE Energy has been enhancing shareholder value through consistent dividend payments, currently offering a dividend yield of 3.95%, which is higher than the industry average of 3.22% [4] Infrastructure Investments & Renewable Focus - OGE plans to invest $6.50 billion in infrastructure from 2025 to 2029 to improve the safety, resiliency, and reliability of its transmission and distribution grids [5][8] - The company is expanding its renewable generation assets, owning several wind farms and solar sites, and aims to add more resources with zero greenhouse gas emissions [6][8] Stock Price Performance - Over the past year, OGE shares have increased by 2.8%, while the industry has seen a growth of 20.2% [7]

Core Insights - OGE Energy Corp. is positioned for stronger long-term performance through ongoing capital investments, carbon-reduction initiatives, and a robust renewable generation portfolio [1] - The company is expanding its renewable portfolio to capture incentives from large clean-energy investments [2] - OGE Energy plans to invest $6.50 billion from 2025 to 2029 to upgrade infrastructure and enhance grid reliability [3] - The company expects long-term earnings growth of 5-7% and aims to reward shareholders with steady dividend hikes [4] - Supply-chain disruptions and rising production costs pose risks to OGE Energy's project timelines [5][6] - OGE Energy's share price has increased by 2.8% over the past year, compared to the industry's 18.9% growth [7] Factors Supporting OGE Energy - The company operates several wind farms with a total capacity of nearly 450 MW and solar sites with 32.2 MW as of December 31, 2024 [2] - OGE Energy offers voluntary renewable programs for Oklahoma retail customers and plans to add more zero-emission resources [2] - The planned capital spending of $6.50 billion represents a 4% increase from the previous five-year plan of $6.25 billion [3] Challenges Facing OGE Energy - Supply-chain disruptions due to raw material inflation, logistical challenges, and component shortages may delay construction and equipment deliveries [5] - Rising electricity production costs, driven by increased fuel prices and inflation, have led to an 11% year-over-year surge in fuel, purchased power, and transmission expenses in Q3 2025 [6] Share Price Performance - OGE Energy's shares have risen 2.8% in the past year, while the industry has seen an 18.9% growth [7]

Core Insights - NextEra Energy (NEE) is positioned for sustainable long-term growth due to its well-balanced generation portfolio, which includes a significant presence in renewable energy, particularly wind and solar power [1][9] - The company is expanding its renewable footprint and securing long-term contracts that provide stable cash flows [1] Generation Portfolio - In 2024, Florida Power and Light, a unit of NextEra, generated electricity using natural gas (69%), solar (20%), nuclear (10%), and other sources (1%) [2] - Another unit, Energy Resources, utilized wind (64%), nuclear (17%), solar (15%), and other sources (4%) for its generation [2] Reliability and Stability - NextEra's natural gas generation assets are crucial for ensuring reliability and grid stability, providing dependable baseload and peaking capacity to balance renewable output fluctuations [3] - Nuclear generation further strengthens the portfolio by providing carbon-free baseload power, complementing intermittent renewable sources and reducing reliance on fossil fuels [4] Strategic Advantages - The integration of multiple fuel-based generation assets reduces risk, supports customer needs, and aligns with national energy transition goals, securing consistent earnings growth [5][6] - Utilities with diverse fuel sources, like Duke Energy and Dominion Energy, also benefit from enhanced reliability and competitiveness, mitigating risks and supporting long-term decarbonization goals [7] Financial Performance - NextEra's shares have outperformed the Zacks Utility Electric-Power industry, gaining 11.8% over the past three months compared to the industry's 1.6% rise [8] - The company has a trailing 12-month return on equity (ROE) of 12.31%, surpassing the industry average of 10.14%, indicating efficient use of shareholders' equity [11] Earnings Growth Expectations - NextEra anticipates its 2025 earnings per share to range between $3.45 and $3.70, reflecting a year-over-year increase from $3.43 [13] - The Zacks Consensus Estimate indicates expected year-over-year growth of 7.29% and 7.88% for 2025 and 2026 earnings per share, respectively [13]

Core Insights - National Grid (NGG) is positioned to benefit from strategic investments in infrastructure upgrades and expansion, making it an attractive investment opportunity in the Utility Electric Power industry [1] Earnings Growth Projection - The Zacks Consensus Estimate for NGG's fiscal 2026 earnings per share (EPS) has increased by 6.3% to $5.25 over the past 60 days, with a projected earnings growth rate of 8.4% over the next three to five years [2][8] Solvency - National Grid's times interest earned (TIE) ratio at the end of fiscal 2025 was 3, indicating strong capability to meet interest payment obligations in the near term [3] Dividend Yield - NGG has a current dividend yield of 5.77%, significantly higher than the S&P 500 Composite's yield of 1.15%, reflecting the company's commitment to increasing shareholder value [4][8] Investment Plans and Customer Demand - The company plans to invest nearly $69 billion (£60 billion) across its service territories in the UK and the US over the next five years, driven by rising demand from new customer connections [5] - In total, 2.5 gigawatts (GW) of customer projects were connected to the transmission network this year, with 1.6 GW being from renewable sources [5] Clean Energy Initiatives - National Grid aims to achieve net-zero emissions by 2050 and is actively investing in large-scale renewable energy projects, including wind and solar, to facilitate the energy transition [6] Stock Performance - Over the past six months, NGG shares have increased by 16.1%, outperforming the industry's growth of 11.1% [7]

Financial Data and Key Metrics Changes - The company achieved record revenue of just under $1,900,000,000 for Q2, an increase of $327,000,000 or 20.9% from the prior year, driven by double-digit growth in both the Energy and Utility segments [19][20] - Gross profit for Q2 was $231,700,000, up $45,000,000 or 24.1% compared to the prior year, with gross margins improving to 12.3% from 11.9% [20][22] - Net income increased to $84,300,000 or $1.54 per fully diluted share, both up around 70% from the prior year [24] Business Line Data and Key Metrics Changes - In the Utility segment, revenues were up double digits from the prior year, with gross profit increasing to $97,500,000, up 52.3% [11][20] - The Energy segment saw revenue growth of $263,300,000 or 27% from the prior year, primarily driven by increased renewables activity [19][22] - Communications revenue and margins were also up double digits from the prior year, supported by growth in fiber to the home programs [12][20] Market Data and Key Metrics Changes - The company is evaluating nearly $1,700,000,000 of work related to data centers, with optimism about winning a fair share of this work [8][19] - There are between $20,000,000,000 and $30,000,000,000 of solar projects planned through 2028 that are on the company's sales radar [11] - The company expects a solid renewables bookings environment in the second half of the year and into 2026 [15][16] Company Strategy and Development Direction - The company aims to grow profitably through disciplined capital allocation and sees significant opportunities in power generation and electric utility needs [6][9] - The strategy to improve utility margins is showing results, with a focus on attracting and retaining talent to meet growing demand [14][29] - The company is committed to disciplined bidding and project execution while managing risk to expand margins and increase cash flow [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand backdrop, stating it is the best experienced as a company, with a strong portfolio of services to meet critical infrastructure needs [29] - The outlook for gas operations is trending more favorably than anticipated, with utilities opting for third-party service providers [12][21] - Management expects to see bookings accelerate in the remainder of the year into 2026, particularly in the renewables and energy sectors [26][27] Other Important Information - The company maintained strong liquidity of $690,000,000, including approximately $390,000,000 in cash [24][25] - Total backlog at the end of Q2 was just under $11,500,000,000, with MSA backlog up over $600,000,000 from Q1 [25][26] - The company updated its guidance for EPS to $4.4 to $4.6 per fully diluted share and adjusted EBITDA guidance to $490,000,000 to $510,000,000 for the full year 2025 [27] Q&A Session Summary Question: Is the expectation for a robust end to the year from an order perspective still valid? - Management confirmed that they are still predicting a back half loaded order book, with good bookings expected in Q3 and Q4 [32][34] Question: How much of the overall demand in the utility segment stems from MSA customers? - Most demand is driven by MSA work, particularly in gas and electric utilities, with improved margins expected to hold [37][38] Question: What are the big levers for the utility segment's bookings? - The growth in bookings was primarily MSA driven, with unexpected mid single-digit growth in gas and communications [51][52] Question: How much of the $2,500,000,000 in solar revenue was realized in the first half? - About $1,000,000,000 of the solar revenue was realized in the first half, with expectations for continued growth [43][44] Question: Can you quantify the closeout payments in the utility segment? - Closeout payments contributed about $6,000,000 of incremental gross profit during the quarter [48] Question: What are the capital allocation priorities moving forward? - The company continues to focus on working capital improvement, paying down debt, and looking for M&A opportunities [91][92]

Core Viewpoint - National Grid (NGG) is positioned to benefit from strategic investments in infrastructure upgrades and expansion, making it an attractive investment opportunity in the utility electric power industry [1] Earnings Growth Forecast - The Zacks Consensus Estimate for NGG's fiscal 2026 earnings per share (EPS) has increased by 2.7% to $4.94 over the past 30 days [2] - The company's earnings growth rate over the next three to five years is projected at 2.3% [2] Dividend Yield - NGG has consistently increased shareholder value through dividends, with a current dividend yield of 5.73%, significantly higher than the S&P 500 Composite's 1.24% [3] Strategic Investments and Customer Demand - National Grid plans to invest nearly $69 billion (£60 billion) across its service territory in the UK and the US over the next five years [4] - The company anticipates increased demand from new customer connections, with 2.5 gigawatts (GW) of customer projects connected to the transmission network this year, including 1.6 GW from renewables [4] Liquidity Position - NGG's current ratio at the end of fiscal 2025 was 1.35, exceeding the industry's average of 0.93, indicating a strong ability to meet future short-term liabilities [5] Solvency - The times interest earned (TIE) ratio for NGG at the end of fiscal 2025 was 3, suggesting the company can comfortably meet its interest payment obligations in the near term [6] Commitment to Clean Energy - National Grid aims to achieve net-zero emissions by 2050 and is actively investing in large-scale renewable energy projects such as wind and solar in the US [7] Stock Price Performance - Over the past six months, NGG shares have increased by 15.3%, outperforming the industry's growth of 3.9% [9] Other Stocks to Consider - Other top-ranked stocks in the same industry include Evergy, Inc. (EVRG), NiSource Inc. (NI), and CenterPoint Energy (CNP), all holding a Zacks Rank 2 [10][11]

Financial Data and Key Metrics Changes - In 2024, the company delivered GAAP earnings per share of $3.44 and ongoing earnings per share of $3.50, marking the twentieth consecutive year of meeting or exceeding initial earnings guidance [19][20] - The company reaffirmed its 2025 earnings guidance range of $3.75 to $3.85 per share, with long-term earnings per share growth expectations of 6% to 8% and dividend growth of 4% to 6% [20] Business Line Data and Key Metrics Changes - The company invested over $7.5 billion in 2024 to modernize electric and natural gas systems, alongside updating its five-year capital plan [20] - The resource plans include proposals for 15,000 to 29,000 megawatts of new efficient, clean generation, with a focus on wind, solar, and battery storage [36][37] Market Data and Key Metrics Changes - The U.S. electricity demand growth rate through 2030 has tripled, with expectations to sell 30% more electricity in 2030 than in 2024 [14] - The company has received requests for nearly 9,000 megawatts of new daily demand from data center companies, equivalent to powering over 8 million homes each year [14] Company Strategy and Development Direction - The company is strategically positioned to capitalize on the growing demand for electricity driven by new technologies and the transition to cleaner energy sources [4][13] - A $45 billion investment plan over the next five years aims to modernize, strengthen, and expand the grid to support economic growth and the clean energy transition [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the unprecedented growth opportunities in the energy sector, emphasizing the importance of evolving and pushing to new heights [27][30] - The company is focused on enhancing customer experience, affordability, reliability, and advancing clean energy policy goals [19][21] Other Important Information - The company has been recognized as one of Ethisphere's world's most ethical companies for six consecutive years and has received accolades for its commitment to diversity and inclusion [29] - In 2024, the corporate economic development team closed on 24 projects resulting in over $5 billion in capital investment and the creation of more than 3,000 jobs [23] Q&A Session Summary Question: Can you provide an update on your recent resource plan? - The company plans to add between 15,000 and 29,000 megawatts of new generation resources, including 720 megawatts of firm dispatchable generation in the Upper Midwest [35][36] Question: What impact will data centers have on future load growth? - The company is experiencing significant interest from data centers, with nearly 9,000 megawatts of backlog and expects to serve about 25% of that demand [39][40] Question: What impact do recently announced tariffs have on your capital investment plans? - The company has been agile in managing its supply chain and expects tariffs to represent about 1% to 2% of its total capital bill over the next five years, which is considered manageable [42][45]