01—Abstract
Summary
Summary of the 8-K filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Vistra Corp. (NYSE: VST) reported second quarter 2026 results on August 7, 2026, with Ongoing Operations Adjusted EBITDA of $1,767 milliona, up more than 30% (about $418 million) from $1,349 million in Q2 2025.
The gain was driven mainly by higher realized energy and capacity prices and three months of contribution from the Lotus plants. GAAP net income was $305 millionb, down $22 million year over year, largely because of a $472 million unrealized hedging loss tied to positions that settle in future years. Management reaffirmed 2026 Ongoing Operations Adjusted EBITDA guidance of $6.8-$7.6 billion and Adjusted FCF before Growth guidance of $3.925-$4.725 billion, and reiterated a 2027 Adjusted EBITDA midpoint opportunity of $7.4-$7.8 billion, excluding the pending Cogentrix acquisition and the Meta power purchase agreements.
Hedging coverage is high: about 100% of expected 2026 generation, 94% for 2027, and 72% for 2028. Capital returns remain a priority, with roughly $6.5 billionc of buybacks since November 2021, about 336 million shares outstanding (a roughly 30% reduction), and about $1.2 billion of authorization remaining that management expects to complete by year-end 2027. Liquidity was approximately $6.3 billion at June 30, 2026.
Growth initiatives include the Helix Digital Infrastructure formation with KKR, KIA, and NVIDIA (Vistra commitment of up to $1.0 billiond), FERC approval of the Cogentrix acquisition, and the Permian Basin gas units and solar projects. The headline GAAP figure is noisy because of mark-to-market accounting. Investors should focus on Adjusted EBITDA, the reaffirmed guidance, and the strength of hedged 2027 volumes.
Note that the reconciliation tables show a $1,744 million consolidated Adjusted EBITDA figure for the quarter, which differs from the $1,767 million Ongoing Operations figure because Asset Closure is excluded from the latter. Vistra also reported $2,222 million of operating cash flow for the first half, up from $1,171 million a year earlier, though this reflects working capital and mark-to-market adjustments.
02—Key points
Key Highlights
- Ongoing Operations Adjusted EBITDA rose to $1,767M in Q2 2026 from $1,349M in Q2 2025, an increase of more than 30%, driven by higher realized energy and capacity prices and the Lotus plant acquisition.
- GAAP net income was $305M, down $22M year over year, mainly due to a $472M unrealized hedging loss on positions expected to settle in future years.
- 2026 guidance was reaffirmed: Ongoing Operations Adjusted EBITDA of $6.8B-$7.6B and Adjusted FCF before Growth of $3.925B-$4.725B.
- Hedging is highly advanced: about 100% of 2026 expected generation, 94% of 2027, and 72% of 2028 are hedged as of August 3, 2026.
- The 2027 Adjusted EBITDA midpoint opportunity of $7.4B-$7.8B was reiterated, excluding the pending Cogentrix acquisition and Meta PPAs.
- Share repurchases total about $6.5B since November 2021, with about $1.2B of authorization remaining, expected to be completed by year-end 2027; shares outstanding are about 336M.
- Helix Digital Infrastructure was announced with KKR, KIA, and NVIDIA, with an initial Vistra commitment of up to $1.0B, and Vistra is designated as its preferred power provider. FERC approved the Cogentrix acquisition.
03—Questions
Frequently Asked Questions
Why did GAAP net income fall even though Adjusted EBITDA grew more than 30%?
GAAP results include a $488M year-over-year increase in unrealized mark-to-market losses on derivatives, including a $472M loss on hedges expected to settle in future years. These are non-cash timing effects that offset the operating improvement. Adjusted EBITDA strips out these hedging gains and losses, so it better reflects operating performance.
Is Vistra on track to meet its 2026 guidance?
Management reaffirmed 2026 Ongoing Operations Adjusted EBITDA guidance of $6.8B-$7.6B and Adjusted FCF before Growth guidance of $3.925B-$4.725B. With roughly 100% of expected 2026 generation hedged, the company has high visibility, though the guidance excludes the pending Cogentrix acquisition and the Meta PPAs.
How much of Vistra's 2027 and 2028 generation is hedged, and why does it matter?
As of August 3, 2026, about 94% of expected 2027 generation and 72% of 2028 generation were hedged. High hedge coverage reduces exposure to power price volatility and supports the 2027 Adjusted EBITDA midpoint opportunity of $7.4B-$7.8B, although that figure is an estimate based on October 2025 market curves and is not formal guidance.
What is Vistra's capital return position and liquidity?
Vistra has repurchased about $6.5B of stock since November 2021, cutting shares outstanding by about 30% to roughly 336M. About $1.2B of authorization remains, which the company expects to complete by year-end 2027. Total available liquidity was about $6.3B at June 30, 2026, including $435M of cash.
What are the main growth catalysts and risks highlighted?
Growth catalysts include the Helix Digital Infrastructure venture (up to $1.0B initial commitment), the pending Cogentrix acquisition (now FERC-approved), Meta power purchase agreements expected to contribute to 2027 EBITDA, and new Permian Basin gas units and solar projects. Key risks include power price movements, weather severity, the ability to close and integrate acquisitions, and credit rating actions, as noted in the forward-looking statements.
04—Continue