NRG Energy Triples Profit, Beats Estimates and Agrees $4 Billion Sale of Six Plants to LS Power

After closing, NRG would own 20 gigawatts nationwide. That splits evenly between ERCOT in Texas and PJM.

Closing is expected in the second quarter of 2027. It needs Hart-Scott-Rodino and Federal Energy Regulatory Commission approvals.

The New York State Public Service Commission must also approve it. Those approvals are conditions, not formalities already cleared.

Proceeds support $3 billion of buybacks across 2026 and 2027. An incremental $1 billion is expected to begin before year-end.

On closing, NRG plans $2 billion more of debt reduction. Total planned 2027 debt reduction would reach $3 billion.

The remaining roughly $1 billion of proceeds stays flexible. NRG may use it for growth investments or more debt reduction.

Reuters reported shares up more than 7% in premarket trading. That move is premarket only, not a settled reaction.

Guidance holds for 2026 and starts for 2027

NRG reaffirmed its 2026 guidance in the release. Adjusted EBITDA stays at $5.33 billion to $5.83 billion.

Adjusted EPS guidance stays at $7.90 to $9.90. Free Cash Flow before Growth Investments stays at $2.8 billion to $3.3 billion.

For 2027, NRG initiated Adjusted EBITDA guidance of $5.5 billion to $6 billion. Adjusted EPS guidance is $8.05 to $10.05.

The 2027 ranges do not reflect the asset sale. NRG said so in the release, and promised updated guidance after closing.

The 2027 Adjusted EPS midpoint is $9.05 a share. The Wall Street Journal put analyst views at $10.19, above that midpoint.

The 2027 base plan carries $1 billion of debt reduction. It also carries $1 billion of buybacks and a higher dividend.

The annual dividend rises 8% to $2.05 a share under that plan. That rise is part of the base plan, before sale proceeds.

Texas and the East drove the quarter

Texas Adjusted EBITDA rose to $1.02 billion. That compares with $807 million a year earlier.

East Adjusted EBITDA jumped to $614 million, from $107 million. NRG tied the jump to the LS Power portfolio and capacity prices.

GAAP revenue rose to $9.47 billion from $7.64 billion. The gain works out to 24.0%, a TickerGrove calculation.

GAAP cash from operations reached $1.1 billion. Vivint Smart Home Adjusted EBITDA reached $317 million, from $278 million.

"Our 17,000 employees delivered strong third quarter results," President and Chief Executive Robert Gaudette said.

NRG declared a quarterly dividend of $0.475 a share on October 19. It is payable November 16 to holders of record November 2.

For 2026, NRG plans $1.0 billion of buybacks. It also plans about $407 million of dividends for the year.

Through October 31, it had already completed $977 million of buybacks. It had also distributed $302 million of dividends by then.

The costs behind the beat

The quarter carried a $155 million mark-to-market loss on economic hedges. Adjusted figures exclude those fair-value swings on derivatives.

Interest expense rose to $302 million, from $187 million. Depreciation and amortization rose to $510 million, from $360 million.

Both rises trace to the earlier LS Power acquisition. They are the cost side of the portfolio behind the beat.

Total liquidity fell to $6.03 billion, from $9.63 billion at year-end. NRG tied the drop mainly to funding that acquisition.

What remains unknown

What remains unknown starts with the sale closing. Regulators could still slow or reshape the second-quarter 2027 timetable.

What the sale does to 2027 earnings is also unknown. NRG has not yet issued guidance that includes the transaction.

No settled market reaction exists yet for the shares. Only the premarket move reported by Reuters is known.

Whether East capacity prices stay this strong is unknown. They supplied much of this quarter's earnings jump.

The approvals path is the next test

What to watch: the regulatory filings for the LS Power sale. The HSR, FERC and New York approvals set the closing path.

The incremental $1 billion buyback comes next, before year-end. So does the November 16 dividend payment.

Updated 2027 guidance after closing is the real test. It will show the earnings NRG keeps after the sale.