01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
Entergy (ETR) reported 2025 net income attributable to the company of $1.76 billiona, or $3.91 diluted EPS, up from $1.06 billion ($2.45) in 2024, which was depressed by a $320 million non-cash pension settlement charge and about $151 million in Louisiana formula-rate-plan regulatory charges.
Utility net income rose to $2.29 billionb from $1.83 billion, driven by higher volume/weather, retail pricing, and capital-investment-driven returns. Operating revenues grew 9% to $12.9 billion on 3% higher electric sales, led by industrial load growth, including large data-center-related demand. The effective tax rate fell to 21.9% from 26.4%.
The main investor story is the scale of the capital plan and the financing it requires. Planned construction and capital investment totals roughly $11.6 billionc in 2026 and $13.0 billion in 2027, with generation the largest category. Long-term debt rose to about $30.3 billion, and debt-to-capital was 64.3% at year-end.
Entergy is funding this partly through equity, including forward sale agreements and about $4.4 billiond of expected issuances through 2029, which raises dilution risk. The company also flagged Winter Storm Fern costs of roughly $460–560 million, most of it capital, with recovery expected through established regulatory mechanisms. Regulatory and commercial risk is elevated.
Several large projects depend on data-center customers and pending approvals, including Louisiana's Meta-linked generation, the Arkansas Jefferson and Cypress Solar filings, and the Entergy Texas Legend Power Station build-to-suit lease. Other items include the Entergy Arkansas opportunity-sales loss, the OBBBA's effect on clean-energy tax credits, and potential exposure to the corporate alternative minimum tax in 1 to 3 years.
02—Key points
Key Highlights
- 2025 EPS of $3.91 diluted vs. $2.45 in 2024; the 2024 base was depressed by a $320M pension settlement charge and ~$151M Louisiana regulatory charges.
- Utility segment net income rose 25% to $2.29B; operating revenues grew 9% to $12.9B on 3% higher electric sales, led by industrial load (up 7%).
- Planned capital investment of ~$11.6B in 2026 and ~$13.0B in 2027, with generation the largest component, pointing to continued rate base growth.
- Debt-to-capital ratio of 64.3% at year-end 2025 (65.3% in 2024); Entergy plans to issue about $4.4B of equity through 2029, with ~$1.9B already contracted under forward sales.
- Winter Storm Fern (January 2026) restoration cost estimated at $460M–$560M, mostly capital, with regulatory recovery mechanisms expected to apply.
- Large data-center-linked projects (Louisiana Meta generation, Arkansas Google special rate contract and Cypress Solar) depend on pending regulatory approvals and customer commitments.
- Effective tax rate fell to 21.9% from 26.4%; company may become subject to the corporate alternative minimum tax in the next one to three years.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $12.95B$11.88B | +9.0% |
| Operating Expenses | $9.74B$9.23B | +5.6% |
| Operating Income | $3.20B$2.65B | +20.8% |
| Interest Expense | $1.41B$1.20B | +17.4% |
| Net Income | $1.77B$1.06B | +67.1% |
| EPS (Basic) | $3.98$2.47 | +61.1% |
| EPS (Diluted) | $3.91$2.45 | +59.6% |
| Shares Outstanding (Basic) | 442.03M427.71M | +3.3% |
| Shares Outstanding (Diluted) | 450.15M431.58M | +4.3% |
05—Questions
Frequently Asked Questions
Why did Entergy's net income rise so sharply in 2025?
Net income attributable to Entergy was $1.76B in 2025 versus $1.06B in 2024. 2024 included a $320M non-cash pension settlement charge and about $151M of Louisiana regulatory charges, which did not recur in 2025. Higher Utility volume/weather, retail pricing, and a lower effective tax rate also contributed, partly offset by higher interest expense and O&M.
How will Entergy fund its large capital plan?
Entergy plans roughly $11.6B of capital spending in 2026 and $13.0B in 2027. It intends to fund this through operating cash flow, debt issuances by the Utility operating companies, and equity, including about $4.4B expected through 2029 under its at-the-market program and forward sale agreements. Equity issuance could dilute existing shareholders, and debt-to-capital is already above 64%.
What are the main risks tied to data-center growth?
Growth depends heavily on a small number of large data-center customers. If demand falls, contracts terminate early, or projects are delayed or cost more, Entergy and its utilities could face stranded costs and unrecovered investment. Several key approvals are still pending, including Louisiana's Meta-related generation and transmission projects and Arkansas's special rate contract and Cypress Solar filing, and a Louisiana motion has been filed to investigate the customer's financing.
What is the financial impact of Winter Storm Fern?
Entergy estimates mobilization and restoration costs of about $460M to $560M, primarily at Entergy Louisiana and Entergy Mississippi, with most of the costs classified as capital. Natural gas purchases in January 2026 were $483M, which the utilities' fuel recovery mechanisms are designed to recover. The company plans to work with regulators to limit customer bill impacts.
How have tax law changes affected Entergy?
The One Big Beautiful Bill Act of 2025 preserved some nuclear and storage credits but shortened the window for solar and wind credits and added foreign-entity restrictions. Entergy sold 2024 nuclear production tax credits for $547M, with proceeds largely flowing through to customers, and it expects to face the corporate alternative minimum tax in one to three years. The effective tax rate fell to 21.9% in 2025 from 26.4%.
06—Continue