01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
NRG Energy, Inc. reported first-quarter 2026 net income of $125 milliona, down from $750 million a year earlier, and diluted income per share of $0.52 versus $3.61.
Revenue rose to $10.256 billionb from $8.585 billion, but operating income fell to $328 million from $1.134 billion, largely because cost of operations rose and interest expense increased to $285 million from $163 million. Results include an income tax benefit of $42 million on pre-tax income of $83 million, with an effective tax rate of (50.6)%. The quarter was dominated by the January 30, 2026 acquisition of the LSP Portfolio from LS Power, which added 18 natural gas-fired and dual fuel facilities totaling approximately 13 GW and the CPower demand response platform.
Consideration was 24.25 million NRG shares and $6.4 billionc in cash, plus $483 million of working capital and other adjustments, for a total preliminary consideration of $10.583 billion. Total assets grew to $40.053 billion from $29.140 billion, goodwill rose to $8.881 billion, and total debt and finance leases reached about $23.2 billion, with the current portion at $3.375 billion. Cash and cash equivalents fell to $178 million from $4.708 billion, and operating cash flow was negative $169 million, compared with $855 million a year earlier.
Subsequent to quarter end, NRG issued $2.1 billiond of unsecured notes and $500 million of secured notes on April 28, 2026, entered a $900 million incremental term loan, and launched a tender offer for Lightning's 7.250% notes. The company also repurchased shares during the quarter and into April, and the Board has authorized up to $3.0 billion of additional repurchases through 2028.
02—Key points
Key Highlights
- Revenue of $10.256 billion for the quarter, up from $8.585 billion, while net income declined to $125 million from $750 million.
- Operating income fell to $328 million from $1.134 billion, and interest expense rose to $285 million from $163 million.
- Completed the LSP Portfolio acquisition on January 30, 2026: approximately 13 GW across 18 facilities plus CPower, with preliminary consideration of $10.583 billion.
- Total assets increased to $40.053 billion from $29.140 billion, and goodwill increased to $8.881 billion from $5.017 billion.
- Cash and cash equivalents dropped to $178 million from $4.708 billion, and operating cash flow was negative $169 million versus $855 million in the prior year.
- Post-quarter financing included $2.1 billion of senior unsecured notes and $500 million of senior secured first lien notes issued April 28, 2026, plus a $900 million incremental term loan.
- Dividend increased to $1.90 per share annualized from $1.76, with a targeted 7%-9% annual growth rate in subsequent years.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $10.14B$8.49B | +19.4% |
| SG&A Expenses | $593.00M$549.00M | +8.0% |
| Operating Expenses | $9.93B$7.44B | +33.4% |
| Operating Income | $328.00M$1.13B | −71.1% |
| Net Income | $125.00M$750.00M | −83.3% |
| EPS (Basic) | $0.52$3.70 | −85.9% |
| EPS (Diluted) | $0.52$3.61 | −85.6% |
| Shares Outstanding (Basic) | 207.00M198.00M | +4.5% |
| Shares Outstanding (Diluted) | 208.00M203.00M | +2.5% |
05—Questions
Frequently Asked Questions
Why did net income decline so sharply compared with the first quarter of 2025?
Net income was $125 million versus $750 million. Operating income fell to $328 million from $1.134 billion, driven by higher cost of operations, which rose to $8.858 billion from $6.561 billion. Interest expense also increased by $122 million to $285 million, primarily due to debt used to fund the LSP Portfolio acquisition. The income tax line swung to a benefit of $42 million from an expense of $235 million.
What did NRG acquire, and how was it paid for?
NRG acquired the LSP Portfolio from LS Power on January 30, 2026, comprising 18 natural gas-fired and dual fuel facilities totaling approximately 13 GW across nine states, plus CPower. Consideration consisted of 24.25 million NRG common shares valued at $3.728 billion and $6.855 billion in cash, including working capital and other adjustments, for total preliminary consideration of $10.583 billion. The cash portion was funded with about $4.4 billion of senior notes and secured notes and $2.5 billion drawn on the Revolving Credit Facility.
How did the company's liquidity and cash position change?
Cash and cash equivalents declined to $178 million at March 31, 2026 from $4.708 billion at December 31, 2025. Total liquidity excluding funds deposited by counterparties was approximately $3.3 billion, compared with $9.6 billion at year-end. Cash used by investing activities was $7.072 billion, mainly for acquisitions, while financing activities provided $2.652 billion, including $4.850 billion of credit facility proceeds.
What debt activity occurred after the quarter ended?
On April 28, 2026, NRG issued $1.05 billion of 5.875% senior notes due 2034, $1.05 billion of 6.125% senior notes due 2036, and $500 million of 4.955% senior secured first lien notes due 2031. It also entered a Sixteenth Amendment providing $900 million of incremental term loans. Proceeds were used to fund a tender offer for Lightning's 7.250% senior secured notes due 2032, under which $1.495 billion of principal was tendered by the early deadline, and to repay part of the Revolving Credit Facility.
How much did NRG return to shareholders in the quarter?
During the quarter NRG repurchased 2,976,169 shares for $481 million at an average price of $161.16, and it paid common and preferred dividends totaling $135 million in cash. The Board's $3.0 billion repurchase authorization, approved October 16, 2025 and running through 2028, had roughly $2.8 billion remaining at March 31, 2026. Through April 30, 2026, an additional $338 million of repurchases had been executed.
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