Entergy(US:ETR)2026-02-12 17:00Financial 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% annual growth through 2029 [3][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 [4][26] Business Line Data and Key Metrics Changes - The company achieved 4% sales growth in 2025, primarily driven by industrial sales [4] - Significant electric service agreements totaling approximately 3.5 gigawatts were signed in 2025, indicating strong demand from data centers and traditional industrial segments [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 [6][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 [4] - 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 [11][25] - The company is exploring new rate offerings such as demand response and time of use rates to complement existing billing options [10] - Entergy is committed to maintaining low rates while improving customer experience and reliability through investments in infrastructure [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook, citing strong demand from data centers and industrial sectors [5][25] - The company is proactive in addressing equity needs and has secured significant credit requirements to protect existing customers [31][43] - Management acknowledged the impact of Winter Storm Fern on operations, estimating restoration costs of up to $300 million for Louisiana and up to $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] - The company has implemented various programs to improve reliability and reduce outages, funded by data center revenues [9][10] 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 is included in the probability-weighted growth but does not add to the capital plan at this stage [38][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 updates should be expected at the Investor Day? - Management stated that the Investor Day will provide more clarity on data center contracts and a longer-term outlook, with potential announcements depending on timing [68] Question: How is the company addressing customer benefits from data centers? - Management explained that the $5 billion in rate offsets is related to contributions to fixed costs and investments in resilience and reliability [60][61] Question: What is the status of the Cottonwood addition to the capital plan? - Management confirmed that Cottonwood is included in the capital plan and is pending regulatory approval [61]