NRG Energy Reports Third Quarter 2026 Results, Reaffirms 2026 Financial Guidance, and Initiates 2027 Guidance (Form 8-K)

NRG Energy Reports Third Quarter 2026 Results, Reaffirms 2026 Financial Guidance, and Initiates 2027 Guidance

•Delivered strong third quarter financial and operational results; reaffirming 2026 guidance ranges

•Announcing $4 billion agreement to sell select generation assets; supports increased share repurchases and debt reduction

•Initiating 2027 guidance; reaffirming long-term targets

•Previously announced 1.2 GW Bring Your Own Power (BYOP) data center project remains on track

•Nationally recognized for responsible operations and community impact with the Good Neighbor and Top Water Plant awards

HOUSTON-November 9, 2026-NRG Energy, Inc. (NYSE: NRG) today announced financial results for the third quarter ending September 30, 2026, and reports GAAP Net Income of $561 million, GAAP Earnings per Share (EPS) - basic of $2.59, and GAAP Cash Provided by Operating Activities of $1,097 million. The Company's non-GAAP metrics are Adjusted Net Income of $983 million, Adjusted EPS of $4.68, Adjusted EBITDA of $2,013 million, and Free Cash Flow before Growth Investments (FCFbG) of $1,242 million for the third quarter of 2026.

"Our 17,000 employees delivered strong third quarter results that reflect the depth of NRG, with our eight million customers and a substantial generation business that produce steady earnings and cash flows," said Robert Gaudette, President & CEO. "Today's announcement is about returning more to our shareholders and supporting future growth investments. We remain focused on execution and deliberate about how we allocate capital in pursuit of long-term value."

Consolidated Financial Results

Table 1:

						Three Months Ended												Nine Months Ended
(In millions, except per share amounts)						9/30/2026						9/30/2025						9/30/2026						9/30/2025
GAAP Net Income						$	561					$	152					$	1,192					$	798
Adjusted Net Incomea b						$	983					$	537					$	1,605					$	1,406
GAAP EPS - basicc						$	2.59					$	0.70					$	5.46					$	3.81
Adjusted EPSa d						$	4.68					$	2.78					$	7.68					$	7.17
Adjusted EBITDAa						$	2,013					$	1,205					$	4,310					$	3,240
GAAP Cash Provided by Operating Activities						$	1,097					$	484					$	2,045					$	1,790
Free Cash Flow Before Growth Investments (FCFbG)a						$	1,242					$	828					$	2,201					$	2,035

a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-1 through A-6 for GAAP reconciliations. Adjusted EPS, Adjusted Net Income, and Adjusted EBITDA exclude fair value adjustments related to derivatives

b Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see Appendix tables A-1 through A-4

c GAAP Net Income per Weighted Average Common Share - Basic

d Adjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic

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NRG reported GAAP Net Income of $561 million for the third quarter of 2026, an increase of $409 million from the prior year. The increase was primarily driven by contributions from the portfolio acquired from LS Power, higher realized capacity prices in the East, and higher margins in Texas, including favorable weather impacts. These benefits were partially offset by higher depreciation and amortization and interest expense associated with the acquired assets and related acquisition financing. The increase is also offset by unrealized, non-cash losses on economic hedges, primarily driven by a decrease in natural gas prices. These hedge positions are adjusted to market value each period, while the related customer contracts are not. As a result, the accounting treatment can result in temporary unrealized gains or losses that may differ from expected results when the contracts settle.

Adjusted Net Income for the third quarter 2026 is $983 million, $446 million higher than prior year, primarily driven by an $808 million increase in Adjusted EBITDA, the impacts of which are described in the segment results below. This is partially offset by higher interest expense and depreciation and amortization related to the portfolio acquired from LS Power. Adjusted EPS is $4.68 for the third quarter 2026, $1.90 higher than prior year. The third quarter 2026 Adjusted EPS results include the financial impacts from Adjusted Net Income and impacts of shares issued as part of the completed acquisition of generation assets and CPower from LS Power.

Reaffirming 2026 Guidance

NRG is reaffirming its guidance for 2026 as set forth below.

Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2026a

						2026
(In millions, except per share amounts)						Guidance
Adjusted Net Income						$1,685 - $2,115
Adjusted EPS						$7.90 - $9.90
Adjusted EBITDA						$5,325 - $5,825
FCFbG						$2,800 - $3,300

a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 and A-10 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year.

2026 Capital Allocation

The Company plans to return $1.0 billion to shareholders through share repurchases and approximately $407 million through common stock dividends in 2026, as part of its previously announced 2026 capital allocation plan. Through October 31, 2026, the Company completed $977 million in share repurchases and distributed $302 million in common stock dividends.

On October 19, 2026, NRG declared a quarterly dividend of $0.475 per common share, or $1.90 per share on an annualized basis. The dividend is payable on November 16, 2026, to common stockholders of record as of November 2, 2026.

Initiating 2027 Guidance and Pro Forma Capital Allocation Plan

NRG initiates 2027 guidance as follows:

Table 3: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2027a,b

						2027						2027
(In millions, except per share amounts)						Guidance						Guidance Midpoint
Adjusted Net Income						$1,665 - $2,075						$1,870
Adjusted EPS						$8.05 - $10.05						$9.05
Adjusted EBITDA						$5,500 - $6,000						$5,750
FCFbG						$2,900 - $3,400						$3,150

a 2027 Guidance does not reflect the expected impacts of the announced 4.9 GW asset sale

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b Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-9 and A-11 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year

The Company is also announcing its 2027 base capital allocation plan, which includes $1 billion of debt reduction, $1 billion of share repurchases and an 8% increase in the annual common dividend to $2.05 per share, consistent with the Company's 7-9% long-term dividend growth target.

Expected proceeds from the announced 4.9 GW asset sale will be used to support NRG's 2027 pro forma capital allocation plan of $3 billion of share repurchases across 2026 and 2027, including an incremental $1 billion expected to begin before the end of the fourth quarter of 2026. Upon closing of the asset sale, NRG plans an additional $2 billion of debt reduction to maintain the Company's current leverage profile, bringing total planned 2027 debt reduction to $3 billion. The remaining $1 billion of expected proceeds will provide flexibility for either contracted growth investments or additional debt reduction. The Company expects to provide updated 2027 financial guidance and an updated capital allocation plan following the closing of the asset sale.

NRG's share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of common stock repurchased under the share repurchase authorization will be determined by NRG's management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company's ability to maintain satisfactory credit ratings.

NRG Strategic Developments

4.9 GW Strategic Asset Sale

On November 9, NRG entered into a definitive agreement to sell six natural-gas fired generation assets totaling 4.9 GW to LS Power, for a purchase price of $4 billion in cash proceeds, subject to working capital and other closing adjustments. The sale retains the entire PJM portfolio and CPower acquired by the Company in January 2026.

The transaction is expected to close in the second quarter of 2027, subject to customary closing conditions and regulatory approvals including Hart-Scott-Rodino (HSR), Federal Energy Regulatory Commission (FERC), and the New York State Public Service Commission (NYSPSC).

BYOP Data Center Strategy

The Company's previously disclosed 1.2 GW BYOP project remains on track. NRG's BYOP strategy brings new, dispatchable generation alongside load growth to support reliability and affordability consistent with the approach policymakers and communities have called for.

Operational and Community Recognition

In September, NRG's WA Parish plant was awarded POWER Magazine's 2026 Top Plant Water Award for its wastewater treatment system that maintains plant reliability, reduces wastewater volume by nearly 93%, and allowed the plant to achieve zero liquid discharge from flue gas desulfurization wastewater.

In October, the Office of Surface Mining Reclamation and Enforcement (OSM) awarded NRG the 2026 Excellence in Surface Coal Mining Reclamation Good Neighbor award for its work establishing the Dewey Prairie Garden at the former Jewett Mine, providing lasting benefits to the local community.

These recognitions reflect NRG's commitment to responsible operations, environmental stewardship, and being a good neighbor in the communities where it operates.

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Segment Results

Table 4: Adjusted EBITDAa

(In millions)						Three Months Ended												Nine Months Ended
Segment						9/30/2026						9/30/2025						9/30/2026						9/30/2025
Texas						$	1,018					$	807					$	1,615					$	1,618
East						614						107						1,547						680
West/Otherb						64						13						236						125
Vivint Smart Home						317						278						912						817
Adjusted EBITDA						$	2,013					$	1,205					$	4,310					$	3,240

a Adjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1 through A-4 for GAAP reconciliation of Adjusted EBITDA (by operating segment) to GAAP Net Income (by operating segment). Adjusted EBITDA excludes fair value adjustments related to derivatives

b Includes Corporate activities

Texas: Third quarter 2026 Adjusted EBITDA was $1,018 million, $211 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $1,615 million, $3 million lower than prior year. Results were primarily driven by increased retail margins and favorable weather in the third quarter, largely offsetting the impact of mild winter weather earlier in the year, including a decrease of approximately 30% in heating degree days compared to prior year.

East: Third quarter 2026 Adjusted EBITDA was $614 million, $507 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $1,547 million, $867 million higher than prior year. Results were primarily driven by contribution of the new generation assets and CPower and higher capacity prices for owned generation, partially offset by higher power supply costs during Winter Storm Fern and lower natural gas margins.

West/Other: Third quarter 2026 Adjusted EBITDA was $64 million, $51 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $236 million, $111 million higher than prior year. The increase was primarily driven by lower operating expenses associated with a lease expiration in May 2025.

Vivint Smart Home: Third quarter 2026 Adjusted EBITDA was $317 million, $39 million higher than the prior year. For the first nine months of 2026, Adjusted EBITDA was $912 million, $95 million higher than prior year. The increase for both the quarter and the first nine months of 2026 is attributable to higher new customer adds and an increase in monthly recurring service margin per customer.

Liquidity and Capital Resources

Table 5: Corporate Liquidity

(In millions)						9/30/26						12/31/25
Cash and Cash Equivalents						$	148					$	4,708
Restricted Cash						29						30
Total						$	177					$	4,738
Total availability under revolving credit facility and collective collateral facilitiesa						5,850						4,890
Total liquidity, excluding funds deposited by counterparties						$	6,027					$	9,628

a Total capacity of the revolving credit facility and collective collateral facilities was $9.6 billion and $7.7 billion as of September 30, 2026 and December 31, 2025, respectively

As of September 30, 2026, NRG's unrestricted cash was approximately $0.1 billion, and $5.9 billion was available under the Company's credit facilities. Total liquidity was $6.0 billion, which was $3.6 billion lower than December 31, 2025, primarily driven by funding of the acquisition of generation assets and CPower from LS Power.

Earnings Conference Call

On November 9, 2026, NRG will host a conference call at 8:00 a.m. Eastern (7:00 a.m. Central) to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation

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materials through the investor relations website under "presentations and webcasts" on investors.nrg.com. The webcast will be archived on the site for those unable to listen in real-time.

About NRG

NRG is a leading provider of electricity, natural gas, and smart home solutions to eight million customers across North America. The company operates a customer-first platform supported by a diversified supply strategy and the safe, reliable operation of approximately 25 GW of power generation. NRG plays a meaningful role in competitive energy markets and our innovative team is creating the flexible and affordable solutions that households and large businesses need today and in the future.