Nrg Energy, Inc. · NYSE:NRG
Nrg Energy — Q2 2025 Earnings Presentation
41 slides from Nrg Energy's earnings presentation, Aug 6, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
NRG ENERGY INC. SECOND QUARTER 2025 EARNINGS PRESENTATION August 6, 2025 1
Slide 2: Safe Harbor
SAFE HARBOR Forward-Looking Statements In addition to historical information, the information presented in this presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements involve estimates, ex
Slide 3: Agenda
• 2Q Results & Business Review • Financial Highlights • Closing Remarks • Q&A AGENDA Dr. Larry Coben Bruce Chung Chair, President & CEO Executive Vice President & CFO NRG 2Q25 Earnings 3
Slide 4: Key Messages
KEY MESSAGES Strong Second Quarter Caps Robust First Half; Trending At the Upper End of 2025 Guidance Ranges Signed 295 MW Premium Long-Term Retail Power Agreements for Data Centers with Significant Expansion Potential T.H. Wharton TEF Loan Closed and Construction Well Underway Texas Virtual Power P
Slide 5: 2Q25 Business and Financial Highlights
2Q25 BUSINESS AND FINANCIAL HIGHLIGHTS ($ millions, except per share amounts) Adjusted EPS1 2Q Highlights Financial & Operational Results Second Quarter First Half of Year • Top decile safety performance • Strong first half Adjusted EBITDA: $2,035 MM, +11% YoY $4.42 +48% • $1.3 Bn ’25 share repurcha
Slide 6: Executing High-Value Data Center Power Agreements
EXECUTING HIGH-VALUE DATA CENTER POWER AGREEMENTS Announcing 295 MW of Long-Term Data Center Agreements Data Center Retail Power Agreements and Pipeline First Run-Rate Locations Capacity Term Capex Delivery Full Capacity Stage Capacity Texas 295 MW 10-20 years <$5 MM 2H26 2030 Signed Agreements 295
Slide 7: Texas Development Update
TEXAS DEVELOPMENT UPDATE Texas Energy Fund Development Portfolio • T.H. Wharton - 415 MW1 CT ✓ Due diligence complete ✓ TEF financing closed and first loan disbursement received T.H. Wharton TEF Loan Key Terms ✓ On-track for mid-2026 COD • Cedar Bayou 5 (689 MW1 CCGT) - due diligence phase (2028 COD
Slide 8: Texas Residential VPP Exceeding Expectations
TEXAS RESIDENTIAL VPP EXCEEDING EXPECTATIONS 2025 CAPACITY TARGET INCREASED 7.5X Strong Start Following Spring Launch Path to 1 GW of Capacity by 2035 • Activating new Nest thermostat customer enrollments through Renew Targeting 650 MW by 2030 & 1,000 MW by 2035 Home partnership (Total MW from Texas
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS NRG 2Q25 Earnings 9
Slide 10: 2Q25 Financial Update
2Q25 FINANCIAL UPDATE ($ millions, except per share amounts) Three Months Ended Six Months Ended 6/30/2025 6/30/2024 6/30/2025 6/30/2024 Adjusted EBITDA $909 $962 $2,035 $1,832 Adjusted Net Income $339 $353 $870 $658 Adjusted EPS1 $1.73 $1.70 $4.42 $3.15 Free Cash Flow Before Growth (FCFbG) $914 $66
Slide 11: 2025 Capital Allocation
2025 CAPITAL ALLOCATION ($ millions) $2,625 385 No change from Previously Disclosed Indicates change from Previously Disclosed 110 1,355 $2,100 FCFbG (midpoint) 345 130 265 $525 - 2024 Remaining CAFA $35 2025 Liability Management Integration Share Common Revenue Synergy Other 2025 Excess Cash1 & Pre
Slide 12: Closing Remarks
CLOSING REMARKS NRG 2Q25 Earnings 12
Slide 13: 2025 Priorities
2025 PRIORITIES ❑ Deliver Financial, Operational, Safety, and Sustainability Objectives ❑ Deliver on Cost and Growth Initiatives $750 MM Adjusted EBITDA organic growth plan (2025-2029) Launch Home Virtual Power Plant (VPP) energy management Develop 1.5 GW shovel-ready dispatchable Texas capaci
Slide 14: Appendix: Upside Opportunities
APPENDIX: UPSIDE OPPORTUNITIES NRG 2Q25 Earnings 14
Slide 15: NRG, GE Vernova & Kiewit Venture
NRG, GE VERNOVA & KIEWIT VENTURE POWERING THE FUTURE OF DATA CENTERS U.S.-Based Fully Integrated Venture Signed Project Development Agreement GE Vernova, Kiewit-TIC, NRG: Developer, Operator, OEM and EPC Venture Benefits Status ✓ Coordinated development, power equipment and EPC ✓ 1.2 GW CCGTs in-ser
Slide 16: Texas Generation Fleet
TEXAS GENERATION FLEET SIGNIFICANT UPSIDE OPPORTUNITY FROM RISING POWER PRICES ($ millions) Illustrative Mark-to-Market for Texas Generation-Only Portfolio Gas Sensitivity Year 1 Year 2 Year 3 Open +$0.25 -$0.25 Forward Curves Do Not Reflect Demand Outlook Guidance Date Current Sept. 2024 07/31/2025
Slide 17: NRG Texas Energy Fund Development Portfolio
NRG TEXAS ENERGY FUND DEVELOPMENT PORTFOLIO Power Market Review – Texas Benefits from Texas Legislation • Texas has approved legislation to incentivize new dispatchable • Low-interest rate (3%) loans from the Texas Energy generation resources Fund – SB 2627 • Completion Bonus Grants of $80-120k per
Slide 18: Appendix: Operations
APPENDIX: OPERATIONS NRG 2Q25 Earnings 18
Slide 19: Energy & Smart Home Performance
ENERGY & SMART HOME PERFORMANCE HALF YEAR REVIEW Texas Continues to Realize Load Growth Business Highlights Hit 6 New Record Peaks in Last 12 Months 90 • 8% Smart Home customer growth YoY Peak Demand (GW) 80 70 • Strong energy performance driven by resilient plant 60 operations and enhanced supply s
Slide 20: Committed to Sustainability
COMMITTED TO SUSTAINABILITY Progress U.S. CO2e Emissions (MMtCO2e)2 Highlights1 NRG Targets3 Carbon Reduction Target: 50% by 20251 Net-Zero by 2050 58 57% Reduction in CO2e 25 29 Net-Zero emissions (2024) 2014 2024 2025 2050 75% Reduction in SO2 emissions (2024) Social Leadership: • Consistent top d
Slide 21: Home Integrated Retail Supply Procurement
HOME INTEGRATED RETAIL SUPPLY PROCUREMENT Net Home Position1 (Avg. On-Peak MWh) Supply Position Highlights Texas East/Other Total Expected Load2 ✓ Balance net generation and market (normal weather) purchases against priced load 93% 89% ✓ Manage current financial exposure while planning for physical
Slide 22: Mature Risk Strategy
MATURE RISK STRATEGY MANAGING THROUGH-CYCLE STABILITY 1 Forecast & Price 2 Retail Sale & Hedge 3 Optimize • Proprietary forecasting program models • Fully hedge priced load to firm gross • Enhance hedge profile to incorporate expected load and variability margin additional data (i.e. weather) • Data
Slide 23: Appendix: Finance
APPENDIX: FINANCE NRG 2Q25 Earnings 23
Slide 24: Historical Consolidated Metrics
HISTORICAL CONSOLIDATED METRICS1 (millions except per share amounts) 1Q24 2Q24 3Q24 4Q24 2024 1Q25 2Q25 Adjusted EBITDA $870 $962 $1,055 $902 $3,789 $1,126 $909 Adjusted Net Income $305 $353 $434 $316 $1,408 $531 $339 Adjusted EPS2 $1.46 $1.70 $2.10 $1.56 $6.83 $2.68 $1.73 Basic Share Count – Averag
Slide 25: Pro Forma Corporate Credit Profile
PRO FORMA CORPORATE CREDIT PROFILE ROCKLAND ACQUISITION 2025 ($ millions) Guidance Corporate Debt1 $10,892 Term Loan B Payments (18) Credit Rating Debt for Rockland Acquisition2 560 Debt for Texas New Builds2 200 Agency Rating TEF Loan3 200 S&P BB / Stable Minimum Cash Balance (750) Corporate Net De
Slide 26: Debt Maturity Schedule
DEBT MATURITY SCHEDULE BALANCE AS OF 7/31/2025 ($ millions) Debt as of 7/31/25 Principal 5.75% Senior Notes, due 2028 $821 5.25% Senior Notes, due 2029 733 3.375% Senior Notes, due 2029 500 5.75% Senior Notes, due 2029 798 3.625% Senior Notes, due 2031 1,030 Key Actions Taken Since 6/30/2025 3.875%
Slide 27: Key Assumptions for Outlook
KEY ASSUMPTIONS FOR OUTLOOK 2025 2026-2029 Guidance Pro Forma Outlook Power Price - ERCOT ATC ($/MWh) $47 $47 flat, see sensitivity table (slide 16) Power Price - PJM ATC ($/MWh) $50 $50 flat for all periods PJM Capacity Prices ($/MW-Day) $190 $275 flat for all periods Effective Tax Rate for Adjuste
Slide 28: Energy Modeling Aid
ENERGY MODELING AID 2025 METRICS 2025E East/West/ Texas1 Other (EWO2) Operational Statistics Additional Commentary-Power Retail Energy Sales3: Home Power Expected Load (TWh) ~40 ~17 Home Load served primarily by owned Business Power Expected Load (TWh) ~40 ~65 generation and supplemented with Total
Slide 29: Energy KPIs Indicators and Modeling Data
ENERGY KPIs INDICATORS AND MODELING DATA Operational KPIs1 2Q25 2Q24 Change Texas EWO2 Texas EWO2 Texas EWO2 Home Power Load (TWh) 10 4 11 4 (1) 0 Business Power Load (TWh) 10 14 10 15 0 (1) Total Power Load (TWh) 20 18 21 19 (1) (1) Total Natural Gas Sales (MMDths) -- 364 -- 395 -- (31) Total Owned
Slide 30: Smart Home KPIs and Modeling Data
SMART HOME KPIs AND MODELING DATA Key Metrics1 2Q25 2Q24 Change Portfolio Customers (MM)2 2.27 2.11 +8% Customer Lifetime (years)2 ~9 ~9 -- Retention (%)3 90.1% 89.2% +90 bps Bad Debt as % of Revenue ~2% ~2% -- Per Customer Monthly Rec. Revenue per Customer $75.25 $73.52 +2% Monthly Rec. Service Rev
Slide 31: Appendix: Reg. G Schedules
APPENDIX: REG. G SCHEDULES NRG 2Q25 Earnings 31
Slide 32: Reg. G: 2025 Guidance
REG. G (millions, except per share amounts) Appendix Table A-1: 2025 Guidance The following table summarizes the 2025 Guidance calculations of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income1 2025 7 Guidance 1 Net Income $1,025 - $1,225 Interest ex
Slide 33: Reg. G: 2025 Guidance FCFbG
REG. G ($ millions) Appendix Table A-2: 2025 Guidance The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities 2025 Guidance Adjusted EBITDA $3,725 - $3,975 Interest payments, net1 (610) 2 Income tax payments (1
Slide 34: Reg. G: Three Months Ended 6/30/25
REG. G ($ millions, except per share amounts) Appendix Table A-3: Three months ended 6/30/25 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
Slide 35: Reg. G: Three Months Ended 6/30/24
REG. G ($ millions, except per share amounts) Appendix Table A-4: Three months ended 6/30/24 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
Slide 36: Reg. G: Six Months Ended 6/30/25
REG. G ($ millions, except per share amounts) Appendix Table A-5: Six months ended 6/30/25 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 a
Slide 37: Reg. G: Six Months Ended 6/30/24
REG. G ($ millions, except per share amounts) Appendix Table A-6: Six months ended 6/30/24 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 a
Slide 38: Reg. G: Three Months Free Cash Flow before Growth
REG. G ($ millions) Appendix Table A-7: Three months ended 6/30/25 and 6/30/24 Free Cash Flow before Growth The following table summarizes the calculation of FCFbG and provides a reconciliation from Adjusted EBITDA and Cash provided by operating activities Three Months Ended 6/30/2025 6/30/2024 Adju
Slide 39: Reg. G: Six Months Free Cash Flow before Growth
REG. G ($ millions) Appendix Table A-8: Six months ended 6/30/25 and 6/30/24 Free Cash Flow before Growth The following table summarizes the calculation of FCFbG and provides a reconciliation from Adjusted EBITDA and Cash provided by operating activities Six Months Ended 6/30/2025 6/30/2024 Adjusted
Slide 40: Reg. G: Definitions
REG. G DEFINITIONS Non-GAAP Financial Measures NRG reports its financial results in accordance with the accounting principles generally accepted in the United States (GAAP) and supplements with certain non-GAAP financial measures. These measures are not recognized in accordance with GAAP and should
Slide 41: Smart Home Performance Metrics
SMART HOME PERFORMANCE METRICS DEFINITIONS • New Customers is the aggregate number of new smart home and security customers originated during a given period. This metric excludes new customers acquired by the transfer of a service contract from one customer to another. • Average Monthly Customers is