Why do as-reported and adjusted EPS differ so much for 2024?

The as-reported 2024 EPS of $2.45 includes roughly $1.21 per share of adjustments that management excludes from adjusted EPS. The largest is a $320 million pre-tax (about $253 million after tax) non-cash pension settlement charge from a group annuity purchase in May 2024. Other items include a $151 million Entergy Louisiana customer-credit agreement, a $132 million Entergy Arkansas regulatory asset write-off, and an $79 million Entergy New Orleans tax-sharing charge. Investors should weigh both GAAP and adjusted figures.

What is the outlook for 2025 earnings?

Entergy guided 2025 adjusted EPS to $3.75–$3.95, which compares with $3.65 in 2024. The company did not reconcile this non-GAAP guidance to GAAP, citing difficulty predicting adjustments such as tax items and regulatory settlements. The guidance reflects continued capital investment and growth from large customers.

What is driving Entergy's growth?

Growth is coming mainly from the Utility segment, where regulatory actions across the operating companies, higher retail volume (particularly industrial load), and higher allowance for equity funds used during construction contributed. Depreciation and interest expense rose with higher plant in service and debt balances, partially offsetting the gains. Management also cited strong interest from large customers, including hyperscale data centers, and updated its capital plan to support this demand.

Is Entergy's balance sheet getting more leveraged?

Leverage is broadly stable. Total debt rose to $29.0 billion from $26.3 billion, mostly from $1.2 billion of junior subordinated debentures and higher long-term borrowings to fund capital spending. Adjusted debt to adjusted capitalization held at 64%, and FFO to adjusted debt improved slightly to 14.7%. Cash rose to $860 million, and gross liquidity increased to $5.2 billion.

What did the 2-for-1 stock split mean for shareholders?

Entergy executed a two-for-one forward stock split effective with trading on December 13, 2024. All per-share figures in the release are restated for the higher share count. Diluted shares outstanding for the full year averaged about 432 million, compared with 425 million in 2023, reflecting the split and equity issuance. The split changes per-share comparisons but does not alter total shareholder value.

ETR 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed February 18, 2025. Cited figures are marked; the original filing is the authoritative source.

Entergy (ETR) reported fourth quarter 2024 as-reported EPS of $0.65^a (net income of $286 million) and adjusted EPS of $0.66, versus $2.32 and $0.26 a year earlier; the year-ago quarter was inflated by a $568 million IRS audit-related tax benefit.

For full year 2024, as-reported EPS was $2.45^b (down from $5.55 on the same one-time item comparison) and adjusted EPS was $3.65, up from $3.39, a 7.7% increase. Management said results landed in the top half of guidance for the ninth consecutive year. The Utility segment drove the adjusted growth, earning $4.90 per share adjusted, helped by higher retail sales (weather-adjusted retail volume up 3.7%, led by 8.1% industrial growth), regulatory actions across its operating companies, and lower non-service pension costs.

Parent & Other remained a drag, with adjusted losses of $(1.25) per share, largely from higher interest expense tied to $1.2 billion^c of junior subordinated debentures and commercial paper. The company initiated 2025 adjusted EPS guidance of $3.75 to $3.95, implying roughly 3% to 8% growth over 2024's $3.65. It also updated its four-year capital plan and longer-term outlooks, and the release highlights large-load growth from hyperscale data centers, including an increased planned load for a north Louisiana data center.

Reported 2024 capital expenditures were about $4.8 billion^d, and operating cash flow rose 4.5% to $4.49 billion. Leverage metrics remained stable, with adjusted debt to adjusted capitalization at 64% and FFO to adjusted debt at 14.7%, and adjusted ROE edged up to 10.6%. Investors should note the as-reported GAAP figures are depressed by a $(317)–$(320) million non-cash pension settlement charge and other items excluded from adjusted earnings, and that the company executed a two-for-one stock split effective December 13, 2024.

02—Key points

Key Highlights

Q4 2024 adjusted EPS of $0.66 vs. $0.26 in Q4 2023; as-reported EPS of $0.65 vs. $2.32 (prior year inflated by a $568M IRS audit tax benefit)
FY2024 adjusted EPS of $3.65, up 7.7% from $3.39; as-reported EPS of $2.45 vs. $5.55 prior year
Initiated 2025 adjusted EPS guidance of $3.75–$3.95, implying roughly 3%–8% growth over 2024
Utility segment adjusted EPS of $4.90 (up from $4.46); Parent & Other adjusted loss of $(1.25) per share
Weather-adjusted retail sales up 3.7% for FY2024, led by 8.1% industrial growth from petroleum refining, chlor-alkali, and technology customers
Updated four-year capital plan; 2024 capex about $4.8B and operating cash flow up 4.5% to $4.49B
Balance sheet metrics stable: adjusted debt to capitalization 64%, FFO to adjusted debt 14.7%, adjusted ROE 10.6%

03—Questions

Frequently Asked Questions

Why do as-reported and adjusted EPS differ so much for 2024?
The as-reported 2024 EPS of $2.45 includes roughly $1.21 per share of adjustments that management excludes from adjusted EPS. The largest is a $320 million pre-tax (about $253 million after tax) non-cash pension settlement charge from a group annuity purchase in May 2024. Other items include a $151 million Entergy Louisiana customer-credit agreement, a $132 million Entergy Arkansas regulatory asset write-off, and an $79 million Entergy New Orleans tax-sharing charge. Investors should weigh both GAAP and adjusted figures.
What is the outlook for 2025 earnings?
Entergy guided 2025 adjusted EPS to $3.75–$3.95, which compares with $3.65 in 2024. The company did not reconcile this non-GAAP guidance to GAAP, citing difficulty predicting adjustments such as tax items and regulatory settlements. The guidance reflects continued capital investment and growth from large customers.
What is driving Entergy's growth?
Growth is coming mainly from the Utility segment, where regulatory actions across the operating companies, higher retail volume (particularly industrial load), and higher allowance for equity funds used during construction contributed. Depreciation and interest expense rose with higher plant in service and debt balances, partially offsetting the gains. Management also cited strong interest from large customers, including hyperscale data centers, and updated its capital plan to support this demand.
Is Entergy's balance sheet getting more leveraged?
Leverage is broadly stable. Total debt rose to $29.0 billion from $26.3 billion, mostly from $1.2 billion of junior subordinated debentures and higher long-term borrowings to fund capital spending. Adjusted debt to adjusted capitalization held at 64%, and FFO to adjusted debt improved slightly to 14.7%. Cash rose to $860 million, and gross liquidity increased to $5.2 billion.
What did the 2-for-1 stock split mean for shareholders?
Entergy executed a two-for-one forward stock split effective with trading on December 13, 2024. All per-share figures in the release are restated for the higher share count. Diluted shares outstanding for the full year averaged about 432 million, compared with 425 million in 2023, reflecting the split and equity issuance. The split changes per-share comparisons but does not alter total shareholder value.

04—Continue

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