Constellation Energy (NASDAQ:CEG), the US power producer, more than doubled third-quarter net income as stronger market conditions and its Calpine acquisition lifted earnings.
Net income attributable to common shareholders rose to US$1.84 billion in the three months to September 30, 2026, from US$930 million a year earlier.
Diluted earnings per share increased to US$5.19 from US$2.97, while adjusted operating earnings, which exclude certain exceptional and non-cash items, climbed to US$5.06 per share from US$3.04.
Revenue increased 45% to US$9.55 billion from US$6.57 billion, while operating income more than doubled to US$2.49 billion from US$1.09 billion.
The company attributed the improvement in adjusted earnings primarily to favourable market and portfolio conditions and the addition of Calpine, partly offset by higher interest costs and nuclear production tax credit effects.
Constellation raised the midpoint and narrowed its full-year adjusted operating earnings guidance to between US$12.50 and US$12.80 per share, marking the second increase in the midpoint this year.
Chief financial officer Shane Smith said the quarterly performance had supported the latest guidance increase, while the company’s investment strategy included nuclear plant upgrades, acquisitions and share repurchases.
The company also agreed to acquire the Rhode Island State Energy Center from Shell Energy North America for US$715 million, subject to regulatory approval and customary closing conditions.
The 609-megawatt natural gas-fired facility is expected to become part of Constellation’s merchant generation portfolio, expanding its presence in the competitive New England electricity market.
The results also follow a series of agreements aimed at expanding nuclear generation capacity and supplying electricity to large technology customers.
A 20-year agreement with Amazon will support more than US$3 billion of investment in the Calvert Cliffs nuclear facility, including a 190-megawatt expansion expected between 2030 and 2032.
A separate 20-year agreement with Google is expected to support more than US$4.3 billion of investment across 11 nuclear units, adding approximately 890 megawatts of generation capacity.
Constellation also secured a conditional US$5 billion Department of Energy loan commitment to support nuclear plant upgrades, subject to completion of a loan agreement.
Its nuclear fleet generated 46,677 gigawatt-hours during the quarter, compared with 46,477 gigawatt-hours a year earlier.
The nuclear fleet’s capacity factor, measuring the proportion of time plants operate at their maximum potential output, reached 97.2%, up from 96.8%.
Operating cash flow for the first nine months of 2026 increased to US$4.98 billion from US$3.43 billion in the corresponding period last year.
The latest results underline the contribution of the enlarged generation portfolio as Constellation pursues further investment in nuclear capacity and long-term electricity supply agreements.
Source: www.proactiveinvestors.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
