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NRG Energy Q2 earnings call highlights. August 5, 2026 Key points. * NRG reported strong Q2 results, with adjusted EBITDA up 34% year over year to $1.2 billion and free cash flow before growth reaching $1.025 billion. Growth was driven by the LS Power acquisition, higher PJM capacity values and Smart Home expansion, despite weaker Texas performance. * NRG plans to develop a 1.2-GW Texas natural-gas plant for an unnamed hyperscaler, targeting late 2029 operations. The $3.2 billion project is expected to generate at least $500 million in annual adjusted EBITDA and benefit from capacity payments covering 95% of projected free cash flow. * The project will shift some 2026 capital away from liability reduction, delaying NRG's 3-times net-leverage target from 2028 to 2029, but the company maintained plans for at least $1 billion in share repurchases and $407 million in dividends. NRG also reaffirmed its 2026 guidance, while noting results are tracking below the midpoint. * MarketBeat previews top five stocks to own in September. NRG Energy NYSE: NRG reported second-quarter 2026 adjusted EBITDA of $1.2 billion, up 34% from a year earlier, while outlining plans for a 1.2-gigawatt Texas power plant intended to support a cloud and artificial intelligence hyperscaler's data center load. President and Chief Executive Officer Robert Gaudette said NRG is aligned on principal commercial terms with the unnamed investment-grade customer. The project remains subject to negotiations, land-related matters and customary internal approvals, but the customer has made a financial commitment to advance development, according to the company. The proposed combined-cycle natural gas plant would be developed, owned and operated by NRG. It is planned to serve a 1-gigawatt data center load and could eventually expand the customer relationship to as much as 2.4 GW. Commercial operation for the initial 1.2-GW facility is targeted for late 2029. Capacity-Payment structure supports proposed Texas project. Gaudette described the arrangement as NRG's first "bring your own power" project, or BYOP, a model under which new power demand is paired with new generation supported by the customer. He said the facility is designed to add more generation to Texas than the data center is expected to require. Under the contemplated structure, NRG would receive capacity payments intended to recover its invested capital and provide its targeted return, while separate payments would recover fuel and operating costs. The company said 95% of the project's free cash flow would be supported by capacity payments independent of the data center's utilization rate. "We're paid for the megawatts we build and make available, not for how much the data center runs," Gaudette said. The customer's obligations would be backed by an investment-grade parent guarantee. NRG expects the 1.2-GW project to require $3.2 billion of investment, or about $2,700 per kilowatt. At full operation, management expects at least $500 million of annual adjusted EBITDA and approximately $375 million of annual free cash flow before growth. Chief Financial Officer Bruce Chung said the anticipated pre-tax unlevered internal rate of return is within NRG's 12% to 15% target range, implying an approximately 6-times build multiple at projected run-rate EBITDA. The initial agreement would have a term of at least 15 years from commercial operation, with potential extensions. Chung said capacity payments would begin immediately upon commercial operation rather than ramping as the data center increases usage. NRG has secured 5.4 GW of turbine and engineering, procurement and construction capacity through 2032 via GE Vernova and Kiewit. Gaudette said the company's development pipeline exceeds twice that capacity, with each turbine slot tied to active customer discussions. The company also cited roughly 2 GW of upgrade opportunities across its PJM fleet. Capital plan shifts funds toward new build. NRG updated its 2026 capital allocation plan to include $721 million of expected spending on the Texas new-build project. Of that amount, $40 million was reclassified from plant and other investments, while $681 million represents incremental spending funded by reducing planned liability management. The revised approach means less net debt reduction in 2026 than previously planned, but management said its shareholder-return plans remain unchanged. NRG continues to expect at least $1 billion of annual share repurchases and $407 million in common dividends for 2026. During the first half, the company repurchased $921 million of shares and paid $202 million in dividends. NRG expects cumulative project investment of about $800 million through the end of 2026, including prior reservation payments, followed by $1 billion in 2027, $1.1 billion in 2028 and $300 million in 2029. About 60% of total investment relates to EPC costs, with the remainder allocated to turbine equipment and other project costs. Chung said NRG's base case is to fund the project through operating cash flow and balance-sheet capacity. Under that approach, reaching the company's 3-times net leverage target would shift from 2028 to 2029. The company may also consider financial partners to improve capital efficiency, though no such arrangement has been announced. Second-Quarter results reflect acquired assets, Texas weakness. Adjusted EBITDA rose $308 million year over year, driven primarily by the portfolio acquired from LS Power, higher PJM capacity values and Smart Home growth. Adjusted net income fell to $315 million from $339 million, while adjusted earnings per share declined to $1.49 from $1.73, as acquisition-related interest expense and depreciation and amortization offset EBITDA growth. * Free cash flow before growth was $1.025 billion, up $111 million from the prior-year quarter. * Texas adjusted EBITDA declined $131 million, reflecting lower load and power prices. * East adjusted EBITDA increased $370 million, primarily due to the LS Power portfolio acquisition. * West adjusted EBITDA increased $27 million, aided by lower operating expenses after a facility lease expired last year. * Smart Home adjusted EBITDA increased $42 million; customer count reached 2.45 million, up 8% year over year. In Texas, ERCOT Houston around-the-clock prices averaged $33 per megawatt-hour during the quarter, down 8% from a year earlier and below NRG's $52 planning assumption for 2026. Lower prices and limited volatility reduced generation dispatch and portfolio optimization opportunities, Chung said. In the East, legacy hedges associated with the acquired assets limited NRG's ability to fully capture higher PJM power prices. The company also cited higher retail supply costs and an estimated $70 million of incremental 2026 costs associated with Virginia's return to the Regional Greenhouse Gas Initiative, affecting 1.2 GW of acquired Virginia assets. Guidance reaffirmed. NRG reaffirmed its 2026 guidance ranges, although Chung said first-half results indicate performance is tracking below the midpoint. He said the company has limited unhedged exposure for the remainder of the year and does not depend on a material recovery in commodity prices to remain within its guidance ranges. Management said the proposed Texas project is not included in NRG's previously issued long-term framework, which calls for adjusted EPS compound annual growth of more than 14% through 2030 from the base business. Gaudette said the company intends to maintain its return thresholds and credit protections as it evaluates additional large-load generation projects. About NRG Energy (NYSE:NRG). NRG Energy NYSE: NRG is a U.S.-based integrated power company headquartered in Houston, Texas. The company develops, owns and operates a diversified portfolio of power generation assets and participates in wholesale and retail energy markets. NRG supplies electricity to utilities, commercial and industrial customers, and retail consumers, while also providing energy-related products and services designed to manage consumption and support reliability. NRG's generation mix includes conventional thermal plants as well as renewable and distributed energy resources. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider NRG Energy, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NRG Energy wasn't on the list. While NRG Energy currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. 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NRG Energy reported second quarter 2026 financial results, with GAAP net income of $506 million and earnings per share of $2.32. The company reaffirmed its 2026 guidance ranges. NRG achieved commercial operations at its 415 MW T.H. Wharton facility, marking its first new build generation asset in nearly a decade. The company is advancing its Bring Your Own Power strategy with a hyperscaler for 1.2 GW combined cycle gas turbine in Texas. President and CEO Robert Gaudette said the Bring Your Own Power data centre model ensures customer support for investment whilst protecting reliability and affordability. The company reported adjusted EBITDA of $1,217 million and free cash flow before growth investments of $1,025 million for the quarter. NRG's second quarter results showed a $610 million increase in GAAP net income compared to the prior year, driven by acquired assets and higher capacity prices.

Variscite and NRG team up to simplify embedded medical device development. Wednesday, 22 Jul 2026 Getting a regulated medical product to market requires more than great hardware. Engineering teams must simultaneously manage embedded software, cybersecurity, QMS documentation, and validation - keeping all of it aligned around a single certified, long-term-reliable product. That is precisely the challenge a new Variscite and NRG partnership is designed to address. Variscite, a leading System on Module manufacturer with proven expertise in medical applications, has joined forces with NRG, an engineering firm specializing in regulated medtech systems, to deliver an integrated hardware-software solution for companies building embedded medical products. The partnership gives development teams access to both a proven hardware platform and the software and engineering capabilities needed to support regulated development goals and product readiness. Variscite - A hardware foundation built for regulated environments. Variscite's contribution to the partnership rests on a manufacturing and product infrastructure purpose-built for regulated industries: * ISO 13485-certified manufacturing, handled entirely in-house * SoMs with extensive field validation across both medical and industrial deployments globally * Modules configurable to a specific feature set and cost target * Three pin-compatible SoM families enabling performance upgrades without requiring a carrier board redesign, safeguarding investment across generations * 15 years of product availability * Predictable lead times through direct supply chain ownership and in-house production * Engineering support at no additional cost, provided directly by Variscite's engineering team. "Our ISO 13485-certified in-house manufacturing, direct R&D engineering support, proven quality, and long-term longevity provide a strong foundation for all companies developing embedded medical products," said Ofer Austerlitz, VP of Business Development and Sales at Variscite. "Partnering with NRG adds the software system-level medtech domain expertise and regulatory know-how that turns that foundation into a complete path from concept to successful mass production in all related medical segments." The VAR-SMARC-MX8M-PLUS includes a Cortex-M7 real-time co-processor and a dedicated TPM chip, providing the speed and security crucial for medical devices. NRG - closing the gap between engineering and regulatory compliance. NRG contributes the systems-level software and regulatory depth that takes a strong hardware foundation all the way to certification: * A unified point of contact for architecture decisions and cybersecurity-focused engineering * QMS documentation woven into the project from day one, not added after the fact * Simulation-driven workflows that allow hardware and software workstreams to run in parallel, surfacing risks and incompatibilities well before they become costly * Delivery frameworks that balance agile execution with the traceability and release standards medtech demands "Medical device manufacturers need a development path that reduces uncertainty from the earliest architectural decisions through release readiness," said Marco Ciambrone, CTO and shareholder at NRG. "After more than 20 years working on regulated MedTech systems, we know that product risk often emerges between disciplines: hardware, firmware, software, usability, cybersecurity, documentation, and validation. By combining Variscite's proven hardware platforms with NRG's system-level expertise, we help teams make better technical decisions earlier and move toward product release with greater predictability." Start your medical device program on solid ground. Building an embedded medical product? Learn how Variscite's ISO 13485-certified SoMs and NRG's medtech engineering services can support your program - contact Variscite.