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

• Strong financial and operating results; reaffirming 2025 guidance ranges and capital allocation
• Signed 295 MW of premium, long-term retail agreements for data centers on NRG sites; potential expansion up to 1 GW across additional sites
• Executed loan agreement under the Texas Energy Fund for T.H. Wharton generation facility, expected online in 2026; continuing to advance due diligence on Cedar Bayou and Greens Bayou
• Increasing 2025 Texas Residential Virtual Power Plant target from 20 MW to 150 MW
• Submitted all required regulatory filings for previously announced acquisition from LS Power; continue to target first quarter 2026 for closing

NRG Energy, Inc. (NYSE: NRG) today announces financial results for the second quarter ended June 30, 2025 and reports GAAP Net Loss of $(104) million, GAAP Earnings per Share (EPS) — basic of $(0.62), and GAAP Cash Provided by Operating Activities of $451 million. The Company's non-GAAP metrics are Adjusted Net Income of $339 million, Adjusted EPS of $1.73, Adjusted EBITDA of $909 million, and Free Cash Flow before Growth Investments (FCFbG) of $914 million for the second quarter of 2025.

“NRG once again delivered superb financial and operational performance in the quarter, completing the most successful first half performance in the company’s history. Our results underscore the strength and resilience of our core business combined with meaningful progress on our strategic initiatives,” said Larry Coben, Chair, President, and Chief Executive Officer. “We have also signed our first long-term data center power agreements. What continues to differentiate NRG is our ability to innovate at scale while staying laser-focused on delivering the full spectrum of energy services to an ever-growing realm of customers - from data centers to businesses of all sizes to families. I am proud of the opportunities and solutions we are creating for our customers, and I am confident that we are creating substantial value.”

NRG's GAAP Net Loss for the second quarter of 2025 is $842 million lower than the same period in 2024, primarily due to unrealized non-cash losses on mark-to-market economic hedges driven by declines in forward natural gas and northeast power prices, as well as an increase to reserves for legal matters in 2025. The prior year also included positive impact from rising ERCOT power prices and market heat rate expansion. Certain economic hedge positions must be marked-to-market each period, while the related customer contracts are not, resulting in temporary unrealized gains or losses that do not reflect the underlying economics expected at settlement. Other factors that contributed to the decrease in current year GAAP earnings includes certain asset sales and retirements and an increase in equity-linked compensation driven by NRG's increased share price in 2025. The year-over-year decrease was partially offset by a loss on debt extinguishment recorded in 2024.

Adjusted Net Income for the second quarter 2025 is $339 million, $14 million lower than prior year, primarily driven by a $53 million decline in Adjusted EBITDA, which includes the financial impacts mentioned in the previous paragraph and additional drivers described in the segment results below. Adjusted EPS is $1.73 for the second quarter 2025, $0.03 higher than prior year.

NRG’s Adjusted EPS and FCFbG results for the first six months of 2025 compare favorably to last year, primarily due to strong financial and operational performance.

Reaffirming 2025 Guidance

NRG is trending at the upper end of its guidance ranges and is reaffirming its guidance for 2025 as set forth below.

2025 Capital Allocation

The Company plans to return $1.3 billion to shareholders via share repurchases and approximately $345 million via common stock dividends in 2025, as part of its previously announced 2025 capital allocation plan. Through July 31, 2025, the Company completed $768 million in share repurchases and distributed $173 million in common stock dividends.

On July 8, 2025, the Company retired the remaining $232 million of its outstanding 2.75% convertible senior notes due 2048. In connection with this retirement, the Company also paid $292 million in option premiums on the capped call transactions that hedged the conversion premium on the convertible senior notes.

On July 22, 2025, NRG closed a $1.0 billion upsize to its existing Term Loan B, with the proceeds to be utilized for replenishment of capital employed for the acquisition of assets added to its Texas generation portfolio, the redemption of principal related to the convertible senior notes, development of its Texas new builds, and general company purposes.

On July 21, 2025, NRG declared a quarterly dividend of $0.44 per common share, or $1.76 per share on an annualized basis. The dividend is payable on August 15, 2025, to common stockholders of record as of August 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

Data Center Update

NRG has entered into 295 MW of premium, long-term retail agreements to power data centers constructed on two NRG-owned sites in Texas. Initial powering is expected by the second half of 2026, with the facilities to be fully online by 2030. There is potential to expand up to 1 GW across additional sites.

Texas Energy Fund (TEF)

On July 31, 2025, NRG entered into a $216 million loan agreement with the Public Utility Commission of Texas (PUCT) under the TEF for a low-interest rate loan at 3% to support development at its 415 MW (456 MW nameplate) T.H. Wharton generation facility. Initial disbursement of funds occurred in July 2025 and is expected to continue through the projected summer 2026 commercial operations date.

NRG has two additional Texas new build projects in TEF due diligence review, Greens Bayou and Cedar Bayou, totaling 1.1 GW.

Accelerating Texas Residential Virtual Power Plant

Building on strong customer adoption of the Home Essentials and other offerings, NRG has raised its 2025 Texas Residential Virtual Power Plant target to 150 MW, up from 20 MW. The program remains on track to achieve 650 MW in Texas by 2030 and 1 GW by 2035.

Acquisition of Premier Power Portfolio from LS Power On Track to Close First Quarter 2026

On May 12, 2025, NRG entered into a definitive agreement with LS Power to acquire a power portfolio including 13 GW of natural gas-fired generation facilities and a Commercial & Industrial Virtual Power Plant platform with 6 GW of capacity.

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). All required filings have been submitted.

Texas: Second quarter 2025 Adjusted EBITDA is $512 million, $60 million higher than prior year. For the first six months of 2025, Adjusted EBITDA is $811 million, $140 million higher than prior year. The increase for both the quarter and for the first six months are primarily driven by improved retail margin. Results for the first six months of 2025 further benefited from favorable weather.

East: Second quarter 2025 Adjusted EBITDA is $99 million, $110 million lower than prior year. This decrease is primarily driven by increased supply costs to serve retail load, partially offset by increased retail natural gas margins and higher capacity prices for owned generation. For the first six months of 2025, Adjusted EBITDA is $573 million, $13 million higher than prior year. Results include favorable impact from higher natural gas wholesale margins in the first quarter.

West/Services/Other: Second quarter 2025 Adjusted EBITDA is $43 million, $30 million lower than prior year. For the first six months of 2025, Adjusted EBITDA is $120 million, $9 million lower than prior year. These decreases are primarily driven by the sale of Airtron in September 2024 and the expiration of the Cottonwood lease in May 2025, partially offset by higher retail power margins.

Vivint Smart Home: Second quarter 2025 Adjusted EBITDA is $255 million, $27 million higher than prior year. For the first six months of 2025, Adjusted EBITDA is $531 million, $59 million higher than prior year. The increase for both the quarter and the first six months of 2025 is attributable to growth in customer count, driven by higher new customer adds and record customer retention, and an increase in monthly recurring service margin per customer.

As of June 30, 2025, NRG's unrestricted cash was approximately $0.2 billion, and $5.1 billion was available under the Company’s credit facilities. Total liquidity was $5.3 billion. The ending cash balance decrease is mainly a result of the acquisition of assets added to the Company's Texas generation portfolio with the increase in availability due to seasonal shaping of the AR Securitization facility and upsize of Revolving Credit Facility net of funds drawn. In July 2025, some proceeds from the $1 billion increase to the Term Loan B facility were used to repay the revolver and replenish cash used for the additions to the Company's Texas generation portfolio.

Earnings Conference Call

On August 6, 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, Inc. is leading the future of energy—now. Our solutions power a smarter, brighter future by helping customers achieve today's goals while solving for the challenges of tomorrow. Every day, we deliver innovative natural gas, electricity, and smart home solutions to customers large and small across North America.

Forward-Looking Statements

In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the proposed transaction between NRG and LS Power, the expected closing of the transaction and the timing thereof, including receipt of required regulatory approvals and satisfaction of other customary closing conditions, the financing of the proposed transaction, enhancements to NRG's credit profile, synergies, opportunities, anticipated future financial and operational performance, and NRG's future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, the imposition of tariffs and escalation of international trade disputes, the inability to close (or any delay in closing) the proposed acquisition of the portfolio of assets from LS Power (the “Portfolio”), the occurrence of any event, change or other circumstances that could give rise to the termination of the purchase agreement relating to the Portfolio (including the inability to obtain required governmental and regulatory approvals in a timely manner or at all), the inability to obtain financing for the proposed acquisition of the Portfolio, the inability of the combined company to realize expected synergies and benefits of integration (or that it takes longer than expected) which may result in the combined company not operating as effectively as expected, hazards customary in the power industry, weather conditions and extreme weather events, competition in wholesale power, gas and smart home markets, the volatility of energy and fuel prices, the volatility in demand for power and gas, failure of customers or counterparties to perform under contracts, changes in the wholesale power and gas markets, the failure of NRG’s expectations regarding load growth to materialize, changes in government or market regulations, the condition of capital markets generally and NRG’s ability to access capital markets, NRG’s ability to execute its supply strategy, risks related to data privacy, cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated outages at NRG’s generation facilities, operational and reputational risks related to the use of artificial intelligence and the adherence to developing laws and regulations related to the use thereof, NRG’s ability to achieve its net debt targets, adverse results in current and future litigation, complaints, product liability claims and/or adverse publicity, failure to identify, execute or successfully implement acquisitions or asset sales, risks of the smart home and security industry, including risks of and publicity surrounding the sales, customer origination and retention process, the impact of changes in consumer spending patterns, consumer preferences, geopolitical tensions, demographic trends, supply chain disruptions, NRG’s ability to implement value enhancing improvements to plant operations and company wide processes, NRG’s ability to achieve or maintain investment grade credit metrics, NRG’s ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, the inability to maintain or create successful partnering relationships, NRG’s ability to operate its business efficiently, NRG’s ability to retain customers, the ability to successfully integrate businesses of acquired assets or companies (including the Portfolio), NRG’s ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, NRG’s ability to execute its capital allocation plan, and the other risks and uncertainties discussed in this release and in our Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commissions (the "SEC"). Achieving investment grade credit metrics is not an indication of or guarantee that NRG will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Adjusted EBITDA, cash provided by operating activities, Free Cash Flow before Growth, Adjusted Net Income, and Adjusted EPS guidance are estimates as of August 6, 2025. These estimates are based on assumptions NRG believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the SEC at www.sec.gov. For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in NRG’s most recent Annual Report on Form 10-K, and in subsequent SEC filings. NRG’s forward-looking statements speak only as of the date of this communication or as of the date they are made.

Appendix Table A-1: Second Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

Second Quarter 2025 condensed financial information by Operating Segment:

The following table reconciles the Condensed Consolidated Results of Operations to Adjusted EBITDA and Adjusted Net Income:

Appendix Table A-2: Second Quarter 2024 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

Second Quarter 2024 condensed financial information by Operating Segment: