10-QPeriod: Q1 FY2026

Vistra Corp. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 8, 2026For Securities:VST

Summary

Vistra Corp. (VST) reported a significant turnaround in its financial performance for the first quarter of 2026 compared to the same period in 2025. The company swung from a net loss of $268 million in Q1 2025 to a net income of $1.029 billion in Q1 2026. This dramatic improvement was driven by a substantial increase in operating revenues, primarily from higher realized capacity and energy prices in the East and Texas segments, alongside favorable unrealized mark-to-market gains on commodity hedging transactions. Operationally, the company benefited from the addition of assets acquired in the Lotus Acquisition and stronger energy margins. However, the Retail segment experienced a net loss due to increased unrealized mark-to-market losses and unfavorable weather impacts on customer consumption. Looking ahead, Vistra has made substantial progress in its strategic initiatives, including significant debt refinancing and the pending acquisition of Cogentrix Energy, which is expected to close in the second half of 2026.

Financial Highlights

49 data points
Beta

Revenue

$5.64B

Net Income

$1.03B

18.2% Net Margin

EPS (Diluted)

$2.87

Total Assets

$41.31B

Cash & Equivalents

$634.00M

Free Cash Flow

$316.00M

Financial Statements
Beta
Revenue$5.64B
SG&A Expenses$427.00M
Operating Income$1.50B
Net Income$1.03B
EPS (Basic)$2.90
EPS (Diluted)$2.87
Shares Outstanding (Basic)337.82M
Shares Outstanding (Diluted)341.86M

Key Highlights

  • 1Vistra Corp. reported a substantial increase in Net Income, reaching $1.029 billion for the three months ended March 31, 2026, a significant improvement from a net loss of $268 million in the prior year period.
  • 2Operating revenues surged to $5.640 billion in Q1 2026, up from $3.933 billion in Q1 2025, driven by higher energy prices and realized capacity revenues.
  • 3The company successfully repaid $2.444 billion under its Term Loan B-3 facility and also saw the release of collateral on its Senior Secured Notes due to achieving investment-grade credit ratings.
  • 4Vistra announced definitive agreements to acquire Cogentrix Energy for approximately $2.3 billion in cash and 5 million shares of common stock, expected to close in the second half of 2026.
  • 5The Lotus Acquisition, completed in October 2025, added seven natural gas generation facilities totaling 2,600 MW and contributed to increased revenues and operating costs in the current quarter.
  • 6Shareholders are being rewarded with consistent dividends, with a quarterly dividend of $0.2290 per common share declared in April 2026, and the company continued its share repurchase program, buying back 2.37 million shares in Q1 2026.
  • 7The company's liquidity position strengthened, with total available liquidity increasing to $4.173 billion as of March 31, 2026, providing ample resources for upcoming debt maturities and strategic investments.

Frequently Asked Questions

The substantial increase in net income to $1.029 billion in Q1 2026, from a loss of $268 million in Q1 2025, was primarily driven by a significant increase in operating revenues due to higher realized capacity prices and energy margins, especially in the East and Texas segments. Favorable unrealized mark-to-market gains on commodity hedging transactions also played a crucial role. The addition of assets from the Lotus Acquisition also contributed to revenue growth.

Vistra is actively pursuing several strategic initiatives. These include the pending acquisition of Cogentrix Energy, which is expected to close in the second half of 2026 and will add approximately 5,500 MW of natural gas generation capacity. They have also completed the Lotus Acquisition, adding 2,600 MW. Additionally, Vistra has entered into long-term power purchase agreements (PPAs) with Meta for carbon-free power from its PJM nuclear plants and with AWS for power from its Comanche Peak Nuclear Power Plant. The company is also advancing plans to add dispatchable, natural gas-fueled capacity in Texas and is exploring nuclear uprates.

Vistra has actively managed its debt and liquidity. In April 2026, they issued $4.0 billion in senior unsecured notes, using the proceeds to repay $1.3 billion of 5.625% Senior Notes due 2027 and the $2.444 billion Term Loan B-3 facility. The company also achieved investment-grade credit ratings, leading to the release of collateral on its Senior Secured Notes and Credit Facilities. As of March 31, 2026, Vistra's total available liquidity stood at $4.173 billion, indicating a strong position to meet its financial obligations and fund future growth.

Vistra faces ongoing risks and challenges, including supply chain constraints and labor shortages impacting equipment availability and labor costs. They are also monitoring geopolitical events like the Iran and Russia/Ukraine conflicts for potential indirect impacts on commodity markets and supply chains. Environmental regulations and potential changes to them, such as Greenhouse Gas (GHG) emissions rules, are also a factor. Additionally, the company is involved in various legal and regulatory proceedings, though they believe they have valid defenses and adequate reserves where applicable.