Entergy(US:ETR)2026-02-12 17:02Financial 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]