Why does the reported EPS growth look so different on an as-reported basis versus an adjusted basis?

The 2024 as-reported EPS of $2.45 included about $1.21 per share of after-tax adjustments, mainly a $320 million pension settlement charge tied to a group annuity purchase, plus regulatory write-offs and settlements. Excluding those items, 2024 adjusted EPS was $3.65. Because 2025 had no adjustments, as-reported and adjusted EPS are both $3.91, so the adjusted comparison ($3.65 to $3.91, about 7%) is the more meaningful measure of underlying growth.

What does the 2026 guidance of $4.25 to $4.45 imply for investors?

The guidance range implies adjusted EPS growth of about 9% to 14% over the 2025 adjusted base of $3.91. It is a non-GAAP measure, and the company has not provided a GAAP reconciliation because it cannot reliably predict future adjustments such as tax items, regulatory settlements, or unusual costs. Investors should also consider the higher share count, since the equity forwards settled in 2025 raise the diluted share base that the guidance will be divided by.

What is driving the Utility business earnings?

Utility earnings of $2.28 billion ($5.06 per share) rose on regulatory actions across the operating companies, including formula rate plans and rider recovery, along with higher retail sales volume. Industrial volume grew 6.7% on a weather-adjusted basis, driven by primary metals, petroleum refining, chlor-alkali, and technology customers. Return on construction work in progress and higher AFUDC-equity also contributed, while higher interest expense, O&M, depreciation, and property taxes partly offset these gains.

How is Entergy funding its growth, and what are the balance sheet risks?

Entergy is funding growth through debt and equity. Total debt rose about $2.0 billion to $31.1 billion, junior subordinated debentures increased to $2.5 billion, and the company issued common stock of about $1.1 billion during 2025. Credit metrics improved, with FFO to adjusted debt at 17.2% and total debt to total capitalization at 64%. The filing also discloses a $1.45 billion build-to-suit lease arrangement tied to a counterparty commitment. Heavy capital spending and rising debt raise execution and financing risk if load growth from data centers and other large customers falls short of expectations.

What risks in the forward-looking statements matter most for the outlook?

The release cites risks including rate case and formula rate plan outcomes, the ability to recover costs on expected timelines, storm frequency and resilience plan execution, nuclear operating and decommissioning costs, and regulatory or legislative changes. A key growth-specific risk is whether contracted or expected data center and large-customer load growth materializes and is sustained. Commodity price, interest rate, and cybersecurity risks are also flagged.

ETR 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.

Entergy reported fourth quarter 2025 earnings of $236 million^a, or $0.51 per share, flat on an as-reported and adjusted basis, versus $0.65 as-reported ($0.66 adjusted) in the prior-year quarter.

For full year 2025, the company earned $1,758 million^b, or $3.91 per share, on both an as-reported and adjusted basis, up from $2.45 as-reported and $3.65 adjusted in 2024. Because 2024 included roughly $522 million of after-tax adjustments (largely a pension settlement charge and regulatory write-offs), the headline 7% adjusted EPS growth ($3.65 to $3.91) is the cleaner comparison. Adjusted EPS was driven mainly by the Utility segment, which earned $5.06 per share, reflecting regulatory actions across the operating companies, higher retail volume (weather-adjusted retail sales up 3.9%, with industrial volume up 6.7%), and higher AFUDC-equity from construction work in progress.

Those gains were partly offset by higher interest expense, O&M, depreciation, and property taxes, and by dilution from a higher share count (450 million diluted shares versus 432 million), which reduced per-share growth. Management also initiated 2026 adjusted EPS guidance of $4.25 to $4.45^c, implying roughly 9% to 14% growth over the 2025 adjusted base of $3.91. The company highlighted large-scale growth tied to data center and industrial electric service agreements, along with transmission and generation projects approved in Arkansas, Louisiana and Texas.

Investors should weigh the growth narrative against a sharp increase in capital spending (about $7.7 billion^d in 2025 versus $4.8 billion in 2024), rising debt (total debt of $31.1 billion, up about $2.0 billion), and a $1.45 billion build-to-suit lease arrangement disclosed in the appendix. Liquidity improved, with gross liquidity of $6.3 billion and FFO to adjusted debt of 17.2%, up from 14.7%. As-reported ROE rose to 11.0% from 7.1%, while adjusted ROE was steady at 11.0%.

The filing is a Form 8-K that furnishes the earnings release under Items 2.02 and 7.01. The information is furnished rather than filed, so it is not subject to the liability of filed documents.

The release also includes a Feb. 12, 2026 earnings call and forward-looking risk factors covering rate proceedings, storms, nuclear operations, and data center load growth that may not materialize.

02—Key points

Key Highlights

Q4 2025 EPS of $0.51 (as-reported and adjusted) versus $0.65 as-reported and $0.66 adjusted in Q4 2024; net income of $236 million versus $286 million.
Full-year 2025 EPS of $3.91 on both as-reported and adjusted bases, compared with $2.45 as-reported and $3.65 adjusted in 2024, a 7% increase on an adjusted basis.
Utility segment EPS of $5.06 for 2025, driven by regulatory actions, higher retail volume (weather-adjusted retail sales up 3.9%), and return on CWIP; partly offset by higher interest, O&M, and depreciation.
2026 adjusted EPS guidance initiated at $4.25 to $4.45, implying roughly 9% to 14% growth over 2025 adjusted EPS of $3.91.
Capital spending rose to about $7.7 billion in 2025 from $4.8 billion in 2024, while total debt increased to $31.1 billion from $29.0 billion.
Balance sheet and credit metrics improved: FFO to adjusted debt rose to 17.2% from 14.7%, gross liquidity reached $6.3 billion, and as-reported ROE increased to 11.0% from 7.1%.
Share count rose to about 450 million diluted shares from 432 million, following equity forward settlements in May and October 2025, which diluted per-share growth.

03—Questions

Frequently Asked Questions

Why does the reported EPS growth look so different on an as-reported basis versus an adjusted basis?
The 2024 as-reported EPS of $2.45 included about $1.21 per share of after-tax adjustments, mainly a $320 million pension settlement charge tied to a group annuity purchase, plus regulatory write-offs and settlements. Excluding those items, 2024 adjusted EPS was $3.65. Because 2025 had no adjustments, as-reported and adjusted EPS are both $3.91, so the adjusted comparison ($3.65 to $3.91, about 7%) is the more meaningful measure of underlying growth.
What does the 2026 guidance of $4.25 to $4.45 imply for investors?
The guidance range implies adjusted EPS growth of about 9% to 14% over the 2025 adjusted base of $3.91. It is a non-GAAP measure, and the company has not provided a GAAP reconciliation because it cannot reliably predict future adjustments such as tax items, regulatory settlements, or unusual costs. Investors should also consider the higher share count, since the equity forwards settled in 2025 raise the diluted share base that the guidance will be divided by.
What is driving the Utility business earnings?
Utility earnings of $2.28 billion ($5.06 per share) rose on regulatory actions across the operating companies, including formula rate plans and rider recovery, along with higher retail sales volume. Industrial volume grew 6.7% on a weather-adjusted basis, driven by primary metals, petroleum refining, chlor-alkali, and technology customers. Return on construction work in progress and higher AFUDC-equity also contributed, while higher interest expense, O&M, depreciation, and property taxes partly offset these gains.
How is Entergy funding its growth, and what are the balance sheet risks?
Entergy is funding growth through debt and equity. Total debt rose about $2.0 billion to $31.1 billion, junior subordinated debentures increased to $2.5 billion, and the company issued common stock of about $1.1 billion during 2025. Credit metrics improved, with FFO to adjusted debt at 17.2% and total debt to total capitalization at 64%. The filing also discloses a $1.45 billion build-to-suit lease arrangement tied to a counterparty commitment. Heavy capital spending and rising debt raise execution and financing risk if load growth from data centers and other large customers falls short of expectations.
What risks in the forward-looking statements matter most for the outlook?
The release cites risks including rate case and formula rate plan outcomes, the ability to recover costs on expected timelines, storm frequency and resilience plan execution, nuclear operating and decommissioning costs, and regulatory or legislative changes. A key growth-specific risk is whether contracted or expected data center and large-customer load growth materializes and is sustained. Commodity price, interest rate, and cybersecurity risks are also flagged.

04—Continue

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