Is CenterPoint on track to meet its 2026 earnings guidance?

Management reiterated its 2026 non-GAAP EPS guidance of at least the midpoint of $1.89-$1.91 after delivering $0.96 non-GAAP EPS through the first half of 2026. Guidance assumes normal weather, customer growth, timely capital recovery, and stable financing costs, and it excludes ZENS mark-to-market effects, merger and divestiture impacts, and TEEEF-related items.

How significant is the large-load pipeline for long-term growth?

It is potentially very significant. Approximately 14 GW of Batch Zero submissions are expected to be eligible as base or studied load, equal to more than a 65% increase over Houston Electric's current 21 GW peak. However, ERCOT will determine base-load allocation in August 2026 and studied-load allocation in April 2027, and actual demand may be less than the interconnection requests, so timing and volume remain uncertain.

What is driving the increase in the capital plan and how is it funded?

The plan increased by $1.2 billion to about $66.7 billion for 2026-2035, reflecting incremental large-load demand in Houston and refined estimates for the Downtown Houston Revitalization project. Funding is planned through operating cash flow, asset recycling (including the Ohio sale), securitization proceeds, and roughly $4 billion of common equity through 2035, with about $1.1 billion of forward sales to settle by February 2027.

What do the GAAP and non-GAAP results differ on in Q2 2026?

The $0.03 gap between GAAP ($0.37) and non-GAAP ($0.40) EPS reflects a $0.18 per share mark-to-market loss on equity securities tied to ZENS hedging, offset by a $0.18 gain on indexed debt securities, plus $0.03 from TEEEF units removed from rate base and a negligible merger-related impact. Management excludes these items because it views them as not reflective of fundamental operating performance.

What does the Ohio natural gas LDC sale mean for investors?

The sale, with a gross price of about $2.62 billion and net proceeds of roughly $2.4 billion after taxes and costs, would be redeployed into other jurisdictions for near-term capital needs. The company also holds a seller's note earning 6.5% that matures in October 2027. Regulatory approval has been received, and closing is targeted for October 2026.

CNP 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.

CenterPoint Energy (CNP) reported second quarter 2026 results on July 28, 2026, with GAAP diluted EPS of $0.37^a (net income of $244 million) and non-GAAP diluted EPS of $0.40, up from $0.29 non-GAAP in Q2 2025.

The quarter's growth was driven mainly by growth and regulatory recovery ($0.10^b per share), with O&M contributing $0.02, partially offset by weather/usage and higher interest expense ($0.01 each). The company reiterated its 2026 non-GAAP EPS guidance of at least the midpoint of $1.89-$1.91, which at the midpoint implies roughly 8% growth over 2025 non-GAAP results, and it is targeting top-decile non-GAAP EPS growth in 2026 along with a 6% dividend per share growth target. The most significant development is the expansion of the long-term growth story tied to Houston Electric's large-load pipeline.

CenterPoint submitted over 17 GW of projects through ERCOT's Batch Zero process, of which about 14 GW are expected to be eligible as base or studied load, a potential increase of more than 65% over the current 21 GW Houston Electric peak. The 10-year capital investment plan rose by $1.2 billion^c to approximately $66.7 billion (2026-2035), and management says at least $10 billion of further incremental opportunities exist beyond that plan. Important caveats include that ERCOT's base-load determination is expected in August 2026 and studied-load allocation in April 2027, so energization timing could shift, and the plan relies on roughly $4 billion of common equity through 2035.

Balance sheet metrics and the Ohio divestiture also matter for investors. Trailing-twelve-month FFO/Debt was 13.4% on a Moody's basis (adjusted for one-time items), and the company has approximately $3.5 billion^d of available liquidity.

The Ohio natural gas LDC sale, with a gross price of about $2.62 billion, has received regulatory approval and is expected to close in October 2026. The 2026 non-GAAP EPS guidance excludes ZENS mark-to-market effects, merger and divestiture impacts, and TEEEF-related items, while GAAP results in the quarter were lowered by a $0.18 per share mark-to-market loss on equity securities offset by a $0.18 gain on indexed debt.

02—Key points

Key Highlights

Q2 2026 GAAP diluted EPS of $0.37 (net income $244M) vs. $0.30 in Q2 2025; non-GAAP diluted EPS of $0.40 vs. $0.29 a year earlier
2026 non-GAAP EPS guidance reiterated at least the midpoint of $1.89-$1.91, implying about 8% growth over 2025 delivered results
Batch Zero submissions exceed 17 GW, with approximately 14 GW expected to be eligible as base or studied load (over 65% above the 21 GW Houston Electric peak)
10-year capital investment plan increased by $1.2 billion to ~$66.7 billion (2026-2035), with at least $10 billion of additional incremental opportunities identified
Trailing-twelve-month FFO/Debt of 13.4% (Moody's, adjusted for one-time items) with ~$3.5 billion of available liquidity
Ohio natural gas LDC sale (~$2.62 billion gross) received regulatory approval and is targeted to close in October 2026
Management projects at least $5 billion in cumulative residential and commercial delivery charge reductions for Houston Electric customers over the next decade from new large-load connections

03—Questions

Frequently Asked Questions

Is CenterPoint on track to meet its 2026 earnings guidance?
Management reiterated its 2026 non-GAAP EPS guidance of at least the midpoint of $1.89-$1.91 after delivering $0.96 non-GAAP EPS through the first half of 2026. Guidance assumes normal weather, customer growth, timely capital recovery, and stable financing costs, and it excludes ZENS mark-to-market effects, merger and divestiture impacts, and TEEEF-related items.
How significant is the large-load pipeline for long-term growth?
It is potentially very significant. Approximately 14 GW of Batch Zero submissions are expected to be eligible as base or studied load, equal to more than a 65% increase over Houston Electric's current 21 GW peak. However, ERCOT will determine base-load allocation in August 2026 and studied-load allocation in April 2027, and actual demand may be less than the interconnection requests, so timing and volume remain uncertain.
What is driving the increase in the capital plan and how is it funded?
The plan increased by $1.2 billion to about $66.7 billion for 2026-2035, reflecting incremental large-load demand in Houston and refined estimates for the Downtown Houston Revitalization project. Funding is planned through operating cash flow, asset recycling (including the Ohio sale), securitization proceeds, and roughly $4 billion of common equity through 2035, with about $1.1 billion of forward sales to settle by February 2027.
What do the GAAP and non-GAAP results differ on in Q2 2026?
The $0.03 gap between GAAP ($0.37) and non-GAAP ($0.40) EPS reflects a $0.18 per share mark-to-market loss on equity securities tied to ZENS hedging, offset by a $0.18 gain on indexed debt securities, plus $0.03 from TEEEF units removed from rate base and a negligible merger-related impact. Management excludes these items because it views them as not reflective of fundamental operating performance.
What does the Ohio natural gas LDC sale mean for investors?
The sale, with a gross price of about $2.62 billion and net proceeds of roughly $2.4 billion after taxes and costs, would be redeployed into other jurisdictions for near-term capital needs. The company also holds a seller's note earning 6.5% that matures in October 2027. Regulatory approval has been received, and closing is targeted for October 2026.

04—Continue

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