This article first appeared on GuruFocus.
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Adjusted EPS: $1.98 for Q3 2026, driven by growth in a hot summer and strong residential and industrial sales.
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2026 Adjusted EPS Guidance: Range narrowed, with the bottom raised by $0.10.
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Long-Term EPS Outlook: Greater than 8% trajectory expected, with outlooks unchanged beyond 2026.
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Equity Forward Settlements: Just over $900 million settled in September.
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Junior Subordinated Notes: $1.5 billion issued, receiving 50% equity treatment.
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Entergy Louisiana Bonds: $1 billion issued, split between 10- and 30-year tenures at an average rate of less than 6%.
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Production Tax Credit Sale: $256 million in cash received in October from the sale of 2025 production tax credits.
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Capital Plan Increase: Approximately $1.5 billion added for 2027 through 2030, including ~$600 million for the Google expansion.
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Equity Needs: Just below the targeted range of 10% to 15% of the total capital plan for 20272030; more than 40% already contracted.
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FFO to Debt: Moody’s FFO to debt metric expected at 15% or better in all years.
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Peak Demand: More than 24,000 megawatt hours of coincident peak demand in August, up 2% from the previous peak; Entergy Mississippi up 11% from data center ramping.
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Fair Share Plus Customer Bill Savings: Increased by at least $500 million from the Google expansion, bringing the total to at least $7.5 billion across Entergy’s utility companies.
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Arkansas Rate Case Settlement: Terms result in essentially no rate change; includes 9.7% ROE and a 47.5% equity capital structure after adjusting for deferred taxes.
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Generation Pipeline: 23 gigawatts across 31 natural gas plants in the queue; 10 plants in various stages of construction and 9 in regulatory review in Louisiana.
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Transmission Investment: More than 1,000 miles of lines planned, 85% of which are 500 kV; approximately 70% of the investment already approved.
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Natural Gas Transportation Agreements: Signed for 1.325 billion cubic feet per day in Q3, enough to supply fuel to 10 new combined cycles in Louisiana.
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Resilience Programs: $2 billion Phase 1 accelerated resilience programs underway, including a $270 million grid resilience project in Louisiana.
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DOE Spark Program Award: $14 million awarded to deploy advanced dynamic line rating technology across more than 1,000 miles of existing transmission lines.
Release Date: November 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Entergy Corp (NYSE:ETR) reported strong Q3 2026 adjusted EPS of $1.98, driven by growth in a hot summer and industrial sales.
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The company narrowed its 2026 adjusted EPS guidance range, raising the bottom by $0.10, reflecting confidence in its financial outlook.
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Entergy Corp (NYSE:ETR) expanded its service agreement with Google for the West Memphis campus, ensuring Google covers its fair share and bringing total customer bill savings to at least $7.5 billion.
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The company has a strong pipeline of projects, including 7 to 12 gigawatts of data center interest and 3 to 5 gigawatts of traditional industrial discussions, with potential to convert within 24 months.
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Entergy Corp (NYSE:ETR) completed the Orange County Advanced Power Station (OCAPS), delivering 1,200 megawatts of efficient power to Texas customers, and has 23 gigawatts of natural gas plants in the queue.
Negative Points
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Higher other O&M expenses, including vegetation management and maintenance, increased costs in the quarter.
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Higher interest expense at the parent company and a higher share count from settling equity forwards impacted earnings.
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The company faces rising labor costs and material cost pressure across the industry, though it is mitigating these through standardized designs and innovations.
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Regulatory outcomes in Louisiana and Texas may not achieve flat base rates like Arkansas due to significant resilience investments and traditional sales growth requiring generation and transmission additions.
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Entergy Corp (NYSE:ETR) has not yet added approximately $1.4 billion of transmission investment related to the Entergy Louisiana transaction pending regulatory approval, representing potential upside but also uncertainty.
Q & A Highlights
Q: Does the new four-year capital plan fully account for data center deals and clean generation options, or is there additional upside beyond the plan? A: CFO Kimberly Fontan explained that the $1.5 billion increase includes $600 million for the Arkansas Google expansion (primarily two batteries) plus normal capital puts and takes in transmission and generation. Notably, it does not include roughly $1.4 billion of transmission tied to the pending Entergy Louisiana transaction, nor the clean generation opportunity, both of which represent potential upside to be added as decisions are made.
Q: Should we expect the equity needs to remain below the targeted 10% to 15% range going forward, given consistent CapEx additions? A: CFO Kimberly Fontan said the current 9% to 9.5% level is a function of timing around capital adds, but the company still expects to target 10% to 15% of the total capital plan over time as more capital is added.
Q: Could the 7 to 12 gigawatts of data center and 3 to 5 gigawatts of traditional industrial projects convert and ramp within the current plan through 2030, or is that post-2030? A: CFO Kimberly Fontan said the answer is both. Some ramping could occur in the current period, while full assets such as the available combined cycle turbines would come online afterward, extending the growth rate well beyond 2030.
Q: What is the status of self-build capabilities in renewables and CCS, and how does that enhance competitiveness in RFPs? A: CEO Drew Marsh said the company is making good progress in both solar and CCS, with particular innovation in CCS to lower constructio
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
