01—Abstract
Summary
Summary of the 10-Q filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
NRG Energy's second-quarter 2026 results reflect the integration of the LSP Portfolio, acquired January 30, 2026 for a preliminary total consideration of $10.583 billiona (24.25 million shares plus $6.4 billion in cash, before $483 million of working capital and other adjustments).
Revenue for the three months ended June 30, 2026 was $7.481 billionb, up from $6.740 billion a year earlier, and net income was $506 million compared with a net loss of $104 million in the prior-year quarter. For the six months, net income was $631 million versus $646 million. Operating income for the quarter was $976 million, and interest expense rose to $310 million from $148 million, driven by acquisition financing and refinancing.
Management attributes the higher capacity revenue and gross margin mainly to the LSP Portfolio and PJM auction prices. Balance sheet and liquidity moved significantly. Total assets rose to $39.940 billionc from $29.140 billion at year-end 2025, and long-term debt and finance leases increased to $21.744 billion (plus $1.512 billion current).
Cash and cash equivalents fell to $162 milliond from $4.708 billion, and total liquidity excluding counterparty deposits was about $5.3 billion versus $9.6 billion at December 31, 2025. Cash used in investing activities was $7.709 billion for the six months, mainly acquisition payments. Stockholders' equity increased to $4.855 billion, reflecting the 24.25 million shares issued for the acquisition.
The company repurchased $921 million of shares in the six months and declared a quarterly dividend of $0.475 per share. The filing describes the company as serving approximately 8 million residential customers and holding about 25 GW of competitive generation, including about 13 GW from the LSP Portfolio. Management also highlights a PJM 2028/2029 Base Residual Auction that cleared at the $325/MW-day cap, with expected capacity revenue of approximately $811 million from its PJM fleet, and the commercial operation of T.H.
Wharton in May 2026. The company reported no material changes to its risk factors and concluded that its disclosure controls were effective.
02—Key points
Key Highlights
- Revenue rose to $7.481 billion for Q2 2026 from $6.740 billion, and six-month revenue reached $17.737 billion versus $15.325 billion.
- Net income was $506 million for Q2 2026 versus a net loss of $104 million in Q2 2025; diluted EPS was $2.31 versus a loss of $0.62.
- Interest expense more than doubled to $310 million in Q2 2026 from $148 million, attributed to LSP acquisition financing and refinancing.
- The LSP Portfolio acquisition (about 13 GW across 18 facilities plus CPower) carried preliminary consideration of $10.583 billion and added $3.802 billion of goodwill.
- Total debt and finance leases (including current portion) rose to about $23.4 billion from $16.6 billion at December 31, 2025, following $2.1 billion of unsecured notes, $500 million of secured notes, and a $900 million Term Loan B add-on.
- Cash and cash equivalents declined to $162 million from $4.708 billion, and total liquidity excluding counterparty deposits was about $5.3 billion versus $9.6 billion at year-end 2025.
- PJM's 2028/2029 BRA cleared at the $325/MW-day cap, with NRG clearing about 6,839 MW and expecting approximately $811 million in capacity revenue from its PJM fleet.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 4, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $7.32B$6.67B | +9.7% |
| SG&A Expenses | $562.00M$724.00M | −22.4% |
| Operating Expenses | $6.54B$6.74B | −2.9% |
| Operating Income | $976.00M$0 | — |
| Net Income | $506.00M-$104.00M | +586.5% |
| EPS (Basic) | $2.32$-0.62 | +474.2% |
| EPS (Diluted) | $2.31$-0.62 | +472.6% |
| Shares Outstanding (Basic) | 211.00M196.00M | +7.7% |
| Shares Outstanding (Diluted) | 212.00M196.00M | +8.2% |
05—Questions
Frequently Asked Questions
What drove the swing from a Q2 2025 net loss to Q2 2026 net income?
Net income was $506 million in Q2 2026 compared with a net loss of $104 million in Q2 2025. The filing attributes the improvement mainly to higher gross margin, including $264 million from increased capacity following the LSP Portfolio acquisition and Midwest Generation, and a $568 million increase in mark-to-market gains for economic hedging. Selling, general and administrative costs fell $162 million, mainly due to lower legal reserves, partly offset by higher depreciation and amortization of $150 million and interest expense of $310 million.
How was the LSP Portfolio acquisition financed, and what does it mean for leverage?
The cash portion of the consideration was funded with about $4.4 billion of proceeds from senior and secured notes and $2.5 billion drawn on the Revolving Credit Facility. NRG also issued 24.25 million common shares. Long-term debt including current portion increased to about $23.4 billion at June 30, 2026, from $16.6 billion at December 31, 2025, and interest expense rose substantially as a result.
How much liquidity does NRG have after the acquisition?
Total liquidity excluding funds deposited by counterparties was approximately $5.3 billion at June 30, 2026, comprising $212 million of cash and restricted cash and $5.068 billion of availability under the Revolving Credit Facility and collateral facilities. This was $4.3 billion lower than the $9.6 billion at December 31, 2025, primarily because of acquisition funding. Total capacity under the Revolving Credit Facility and collateral facilities was $9.0 billion.
What are the key regulatory and market developments to watch?
The PJM 2028/2029 capacity auction cleared at the $325/MW-day cap, and PJM has opened a process to procure capacity for an approximately 6,800 MW shortfall, with results expected between October 22 and December 2, 2026. Texas developments include the commercial operation of T.H. Wharton in May 2026 and a proposed large-load interconnection rule expected by the end of Q3 2026. The filing also notes that Illinois coal retirement deadlines were extended to May 31, 2031 by PJM's reliability exceptions.
06—Continue