NRG Energy, Inc. Reports First Quarter 2025 Results and Reaffirms 2025 Financial Guidance (Form 8-K)

NRG Energy, Inc. Reports First Quarter 2025 Results and Reaffirms 2025 Financial Guidance

•Reporting $750 million of GAAP Net Income, $531 million of Adjusted Net Income, and $2.68 Adjusted EPS

•Announcing the strategic acquisition of a premier portfolio of 13 GW of natural gas generation primarily in PJM and ERCOT and 6 GW C&I VPP platform from LS Power for cash and stock

•Closed acquisition of 738 MW of flexible natural gas generation in Texas at an attractive value well below new build cost

•1.5 GW of eligible Texas Energy Fund projects are now all in active due diligence review, with the recent addition of Greens Bayou

•Reaffirming 2025 guidance ranges and capital allocation

HOUSTON-May 12, 2025-NRG Energy, Inc. (NYSE: NRG) today reports GAAP Net Income of $750 million for the three months ended March 31, 2025. GAAP EPS - basic is $3.70, Cash Provided by Operating Activities is $855 million, Adjusted Net Income is $531 million, Adjusted EPS is $2.68, Adjusted EBITDA is $1,126 million, and Free Cash Flow before Growth Investments (FCFbG) is $293 million for the first quarter of 2025.

"NRG achieved exceptional financial and operational performance in the first quarter. Every part of our organization operated at a high level to meet customer and market needs amidst the backdrop of increasing power demand," said Larry Coben, Chair, President, and Chief Executive Officer. "We are also increasing our gearing to tightening power markets and to better take advantage of the demand supercycle through the acquisition of assets from LS Power. This highly accretive transaction transforms our generation fleet, enhances our ability to serve customers, and drives long-term value for our shareholders."

NRG is reaffirming its 2025 guidance ranges for Adjusted EPS and FCFbG of $6.75 - $7.75 and $1,975 - $2,225 million, respectively, in addition to the other metrics found in Table 2.

Consolidated Financial Results

Table 1:

						Three Months Ended
($ in millions, except per share amounts)						3/31/2025						3/31/2024
GAAP Net Income						$	750					$	511
Adjusted Net Incomea b						$	531					$	305
GAAP EPS - basic						$	3.70					$	2.36
Adjusted EPSa c						$	2.68					$	1.46
Adjusted EBITDAa						$	1,126					$	870
Cash Provided by Operating Activities						$	855					$	267
Free Cash Flow Before Growth Investments (FCFbG)a						$	293					$	(40)

a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-1 through A-3 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 and A-2

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

NRG's GAAP Net Income for the first quarter 2025 is $239 million higher than prior year. This increase is primarily driven by strong performance from each of the Company's segments, as detailed in the Adjusted EBITDA results below. In addition, GAAP Net Income for the first quarter 2025 includes lower gains on unrealized non-cash mark-to-market economic hedges in 2025, compared to in 2024. Certain economic hedge positions are required to be marked-to-market every period, while the customer contracts related to these items are not, resulting in temporary unrealized non-cash losses or gains on the economic hedges that are not reflective of the expected economics at future settlement.

Adjusted Net Income for the first quarter 2025 is $531 million, $226 million higher than prior year, primarily driven by a $256 million improvement in Adjusted EBITDA described in the segment results below. Adjusted EPS is $2.68 for the first quarter 2025, $1.22 higher than prior year as a result of continued operational execution, in addition to 11 million fewer weighted average common shares outstanding - basic.

NRG's first quarter 2025 results for Adjusted EPS, FCFbG, and other metrics grew significantly, due to excellent consolidated financial and operational performance. The Company's retail energy business continued to deliver strong margins and the generation fleet had excellent 91% In-the-Money-Availability. NRG's Smart Home segment continued to deliver above expectations with over 6% net customer growth and 4% margin expansion from the first quarter of 2024, in addition to continuing a record-high retention rate of 90%.

Reaffirming 2025 Guidance

NRG is reaffirming its guidance for 2025 as set forth below.

Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2025a

						2025
($ in millions, except per share amounts)						Guidance
Adjusted Net Income						$1,330 - $1,530
Adjusted EPS						$6.75 - $7.75
Adjusted EBITDA						$3,725 - $3,975
FCFbG						$1,975 - $2,225

a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-5 and A-6 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

2025 Capital Allocation

NRG is reaffirming its 2025 capital allocation.

In 2025, the Company plans to return $1.3 billion in share repurchases and common stock dividends of approximately $345 million. Through April 30, 2025, the Company returned $532 million to shareholders through $445 million in share repurchases and $87 million in common stock dividends.

On April 8, 2025, NRG declared a quarterly dividend of $0.44 per common share, or $1.76 per share on an annualized basis. This dividend was increased in January 2025 representing an 8% annualized increase, in line with the Company's annual dividend target growth rate of 7-9% per share. The dividend is payable on May 15, 2025, to common stockholders of record as of May 1, 2025.

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

NRG to Acquire a Premier Power Portfolio from LS Power

NRG has entered into a definitive agreement with LS Power to acquire a power portfolio (the "Portfolio") including 13 GW of premier natural gas-fired generation and the leading C&I VPP business with 6 GW of capacity. The transaction has a purchase price consisting of 24.25 million shares of NRG common stock, $6.4 billion in cash, and the assumption of $3.2 billion in debt, in addition to working capital. The Company expects to realize net present value tax benefits of approximately $0.4 billion, generated directly as a result of the transaction.

The transaction is expected to close in the first quarter of 2026, 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).

Addition of 738 MW of Flexible Natural Gas Texas Generation

NRG successfully closed on April 10, 2025, the strategic acquisition of a 738 MW natural gas combined cycle peaking generation portfolio in Texas from Rockland Capital for $560 million subject to standard working capital adjustment, or an attractive $760 per kW, far below the cost of a new build. The transaction enhances NRG's integrated supply strategy with critical peaking and baseload capacity in key load zones across Texas.

1.5 GW Texas Brownfield Natural Gas New Build Updates

NRG continued the advancement of its three brownfield natural gas plants, now totaling 1.5 GW in Texas Energy Fund (TEF) due diligence. In March 2025, the Public Utility Commission of Texas (PUCT) selected the 443 MW Greens Bayou peaking facility project to advance to the next phase of diligence, marking the third NRG project chosen under the TEF process. The continued progress and expanded considerations for these projects underscore NRG's commitment to delivering high-quality dispatchable generation to meet the growing energy needs of Texas consumers. Commercial operation at T.H. Wharton is expected by summer 2026.

Segment Results

Table 3: Adjusted EBITDAa

($ in millions)						Three Months Ended
Segment						3/31/2025						3/31/2024
Texas						$	299					$	219
East						474						351
West/Services/Otherb						77						56
Vivint Smart Home						276						244
Adjusted EBITDA						$	1,126					$	870

a Adjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1 and A-2 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: First quarter 2025 Adjusted EBITDA is $299 million, $80 million higher than prior year. The increase is primarily driven by higher economic gross margin, including impact of weather, strong plant performance, and supply optimization.

East: First quarter 2025 Adjusted EBITDA is $474 million, $123 million higher than prior year. This increase is primarily driven by higher natural gas wholesale and retail gross margins and increased volumes from weather, and higher generation volumes and capacity prices in New York, partially offset by an increase in planned outage expenditures as compared to prior year.

West/Services/Other: First quarter 2025 Adjusted EBITDA is $77 million, $21 million higher than prior year. This increase is primarily driven by higher retail natural gas and power margins from lower supply costs, partially offset by the sale of Airtron in September 2024.

Vivint Smart Home: First quarter 2025 Adjusted EBITDA is $276 million, $32 million higher than prior year. The increase is attributable to growth in customer count and an increase in monthly recurring revenue per customer.

Liquidity and Capital Resources

Table 4: Corporate Liquidity

(In millions)						3/31/25						12/31/24
Cash and Cash Equivalents						$	693					$	966
Restricted Cash						15						8
Total						$	708					$	974
Total availability under revolving credit facility and collective collateral facilities						4,510						4,469
Total liquidity, excluding funds deposited by counterparties						$	5,218					$	5,443

As of March 31, 2025, NRG's unrestricted cash was $0.7 billion, and $4.5 billion was available under the Company's credit facilities. Total liquidity was $5.2 billion.

Earnings Conference Call

On May 12, 2025, NRG will host a conference call at 9:00 a.m. Eastern (8:00 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 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 Energy is a leading energy and home services company powered by people and our passion for a smarter, cleaner, and more connected future. A Fortune 500 company operating in the United States and Canada, NRG delivers innovative solutions that help people, organizations, and businesses achieve their goals while also advocating for competitive energy markets and customer choice. More information is available at www.nrg.com. Connect with NRG on Facebook and LinkedIn and follow us on X @nrgenergy.