NRG Energy : First Quarter 2026 Non-GAAP Reconciliations and Supplemental Data (a4b805)

Published: 2026-05-06 07:44:16 ET NRG

Published on 05/06/2026 at 07:44 am EDT

NRG Energy, Inc. ("NRG") reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP) and supplements those results with certain non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow before Growth Investments (FCFbG), Adjusted Net Income, Adjusted Earnings per Share, and Adjusted Cash Provided / (Used) by Operating Activities. These non-GAAP financial measures are not calculated in accordance with GAAP and should not be viewed in isolation or as an alternative to GAAP measures of performance. In addition, other companies may calculate non-GAAP financial measures differently than NRG does, limiting their usefulness as comparative measures. NRG believes that these non-GAAP financial measures are useful to investors and other users of its financial statements in evaluating its operating performance and growth. They provide an additional tool to compare business performance across periods and adjust for items that management does not consider indicative of NRG's future operating performance.

Reconciliations of NRG's non-GAAP measures to their most directly comparable GAAP financial measures are provided below, together with selected supplemental data.

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

(In millions, except per share amounts)

Texas

East

West/ Other

Vivint Smart Home

Corp/ Elim

Total

Earnings Per Share, Basic 6, 7

Earnings Per Share, Diluted 6, 7

Net Income/(Loss) Available for Common Stockholders

$ 29

$ 238

$ 45

$ 75

$ (279)

$ 108

$ 0.52

Cumulative dividends attributable to Series A Preferred Stock

0.08

Net Income/(Loss)

$ 29

$ 238

$ 45

$ 75

$ (262)

$ 125

$ 0.60

Plus:

Interest expense, net

241

1.16

Income tax (benefit)

(42)

(0.20) (0.20)

Depreciation and amortization

108

102

200

432

2.09

2.08

ARO expense

0.03

Contract and emission credit amortization, net

0.05

Stock-based compensation1

0.21

Acquisition and divestiture integration and transaction costs

0.22

Cost to achieve

0.04

Deactivation costs

Other and non-recurring charges

(1)

0.01

Mark to market (MtM) loss on economic hedges2

100

205

0.99

Adjusted EBITDA

$ 216

$ 464

$ 108

$ 294

$ (2)

$ 1,080

$ 5.22

$ 5.19

Adjusted interest expense, net3

(247)

(1.19) (1.19)

Depreciation and amortization

(108)

(102)

(8)

(200)

(14)

(432)

(2.09) (2.08)

Adjusted Income before income taxes

108

362

100

(263)

401

1.94

1.93

Adjusted income tax expense4

(76)

(0.37) (0.37)

Adjusted Net Income before Preferred Stock dividends

108

362

100

(339)

325

1.57

1.56

Cumulative dividends attributable to Series A Preferred Stock

(17)

(0.08) (0.08)

Adjusted Net Income5

$ 108

$ 362

$ 100

$ 94

$ (356)

$ 308

$ 1.49

$ 1.48

1 Stock-based compensation includes employee stock purchase plan expense

2 Loss of $205 million was primarily driven by unrealized non-cash mark-to-market losses on economic hedges in East and West due to decreases in natural gas prices and CAISO and Alberta power prices

3 Excludes mark-to-market gain on interest hedges of $6 million

4 Income tax calculated using Adjusted effective tax rate (ETR) on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG's tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

5 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

6 Items may not sum due to rounding

7 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 207 million and on weighted average number of common shares outstanding - diluted of 208 million for the three months ended March 31, 2026

The following table reconciles the Condensed Consolidated Results of Operations to Adjusted EBITDA and Adjusted Net Income:

(In millions)

Condensed Consolidated Results of Operations

Interest, tax, depr.,

amort. MtM Deact. Other adj.2

Adjusted EBITDA

Adj. to arrive at Adj Net Income3

Adjusted Net Income4

Revenue

$ 10,256

$ (6) $ 42 $ - $ -

$ 10,292

Cost of operations (excluding depreciation and amortization shown below)1

8,321

(17) (163) - -

8,141

Depreciation and Amortization

432

(432) - - -

432

Gross margin

1,503

443 205 - -

2,151

(432)

1,719

Operations & maintenance and other cost of operations

537

- - (1) (12)

524

Selling, marketing, general & administrative

593

- - - (47)

546

Other

248

(199) - - (48)

323

324

Net Income

$ 125

$ 642 $ 205 $ 1 $ 107

$ 1,080

$ (755)

$ 325

Less: Cumulative dividends attributable to Series A Preferred Stock

(17)

Net Income available for common stockholders

$ 108

$ 642 $ 205 $ 1 $ 124

$ 1,080

$ (772)

$ 308

1 Excludes operations & maintenance and other cost of operations of $537 million

2 Other adj. includes acquisition and divestiture integration and transaction costs of $45 million, stock-based compensation of $43 million, cost to achieve of $9 million, ARO expense of $7 million, and other and non-recurring charges of $3 million

3 Other includes adjusted interest expense, net of $247 million and adjusted income tax expense of $76 million

4 See previous table for details

The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss) Available for Common Stockholders:

(In millions, except per share amounts)

Texas

East

West/ Other

Vivint Smart Home

Corp/ Elim

Total

Earnings Per Share, Basic 7, 8

Earnings Per Share, Diluted 7, 8

Net Income/(Loss) Available for Common Stockholders

$ 337

$ 705

$ 66

$ 54

$ (429)

$ 733

$ 3.70

$ 3.61

Cumulative dividends attributable to Series A Preferred Stock

0.09

0.08

Net Income/(Loss)

$ 337

$ 705

$ 66

$ 54

$ (412)

$ 750

$ 3.79

$ 3.69

Plus:

Interest expense, net

149

0.75

0.73

Income tax expense

235

1.19

1.16

Depreciation and amortization

186

326

1.65

1.61

ARO expense/(gain)

(14)

(10)

(0.05) (0.05)

Contract and emission credit amortization, net

0.15

Stock-based compensation1

0.14

0.13

Acquisition and divestiture integration and transaction costs1

0.06

0.05

Cost to achieve1

0.02

0.01

Deactivation costs

0.03

0.02

Loss on sale of assets

0.04

0.03

Other and non-recurring charges2

(100)

(3)

(76)

(0.38) (0.37)

Mark to market (MtM) (gain) on economic hedges3

(38)

(289)

(4)

(331)

(1.67) (1.63)

Adjusted EBITDA

$ 299

$ 474

$ 80

$ 280

$ (7)

$ 1,126

$ 5.69

$ 5.55

Adjusted interest expense, net4

(140)

(0.71) (0.69)

Depreciation and amortization

(83)

(37)

(9)

(186)

(11)

(326)

(1.65) (1.61)

Adjusted Income before income taxes

216

437

(158)

660

3.33

3.25

Adjusted income tax expense5

(112)

(0.57) (0.55)

Adjusted Net Income before Preferred Stock dividends

216

437

(270)

548

2.77

2.70

Cumulative dividends attributable to Series A Preferred Stock

(17)

(0.09) (0.08)

Adjusted Net Income6

$ 216

$ 437

$ 71

$ 94

$ (287)

$ 531

$ 2.68

$ 2.62

1 Stock-based compensation of $1 million is reflected in acquisition and divestiture integration and transaction costs and $1 million in cost to achieve. Stock-based compensation includes employee stock purchase plan expense

2 Includes $(100) million of property insurance proceeds and reserves for legal matters

3 Gain of $(331) million was primarily driven by unrealized non-cash mark-to-market gains on economic hedges in the East due to large movements in natural gas and power prices

4 Excludes mark-to-market loss on interest hedges of $9 million

5 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG's tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

6 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

7 Items may not sum due to rounding

8 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 198 million and on weighted average number of common shares outstanding - diluted of 203 million for the three months ended March 31, 2025

The following table reconciles the Condensed Consolidated Results of Operations to Adjusted EBITDA and Adjusted Net Income:

(In millions)

Condensed Consolidated Results of Operations

Interest, tax, depr.,

amort. MtM Deact. Other adj.2

Adjusted EBITDA

Adj. to arrive at Adj Net Income3

Adjusted Net Income4

Revenue

$ 8,585

$ 5 $ 15 $ - $ -

$ 8,605

$ -

$ 8,605

Cost of operations (excluding depreciation and amortization shown below)1

6,195

(25) 346 - -

6,516

Depreciation and amortization

326

(326) - - -

326

Gross margin

2,064

356 (331) - -

2,089

(326)

1,763

Operations & maintenance and other cost of operations

366

- - (5) 107

468

Selling, marketing, general & administrative

549

- - - (47)

502

Other

399

(384) - - (22)

(7)

252

245

Net Income/(Loss)

$ 750

$ 740 $ (331) $ 5 $ (38)

$ 1,126

$ (578)

$ 548

Less: Cumulative dividends attributable to Series A Preferred Stock

(17)

Net Income/(Loss) available for common stockholders

$ 733

$ 740 $ (331) $ 5 $ (21)

$ 1,126

$ (595)

$ 531

1 Excludes operations & maintenance and other cost of operations of $366 million

2 Other adj. includes stock-based compensation of $27 million, acquisition and divestiture integration and transaction costs of $11 million, loss on sale of assets of $7 million, cost to achieve of $3 million, ARO gain of $(10) million, and other and non-recurring charges of $(76) million

3 Other includes adjusted interest expense, net of $140 million and adjusted income tax expense of $112 million

4 See previous table for details

The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:

(In millions)

3/31/26

3/31/25

Adjusted EBITDA

1,080

1,126

Interest payments, net

(182)

(138)

Income tax payments

(29)

(7)

Gross capitalized contract costs

(205)

(175)

Collateral/working capital/other assets and liabilities

(833)

Cash (used)/provided by operating activities

(169)

855

Net receipts from settlement of acquired derivatives that include financing elements

Acquisition and divestiture integration and transaction costs1

Adjustment for change in collateral

142

(623)

Other

(21)

Adjusted cash provided by operating activities

272

Maintenance capital expenditures, net2

(94)

Environmental capital expenditures

(5)

Cost of acquisition

Free Cash Flow before Growth Investments (FCFbG)

(66)

293

1 Three months ended 3/31/26 includes $45 million from acquisition and divestiture integration and transaction costs and $9 million cost to achieve payments (see Appendix table A-1), less $2 million non-cash adjustments; three months ended 3/31/25 includes $11 million from acquisition and divestiture integration and transaction costs and $3 million cost to achieve payments (see Appendix table A-2), less $2 million non-cash adjustments

2 Three months ended 3/31/25 is presented net of W.A. Parish Unit 8 insurance recoveries related to property, plant, and equipment of $100 million

The following table summarizes the 2026 Guidance calculations of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income:

(In millions, except per share amounts)

2026

Guidance8,9

Net Income1

$1,325 - $1,755

Interest expense, net

1,195

Income tax expense2

490 - 560

Depreciation and amortization3

1,955

ARO expense

Stock-based compensation

120

Acquisition and divestiture integration and transaction costs

110

Other4

100

Adjusted EBITDA

$5,325 - $5,825

Adjusted interest expense, net5

(1,195)

Depreciation and amortization3

(1,955)

Adjusted Income before income taxes

$2,175 - $2,675

Adjusted income tax expense6

(423) - (493)

Adjusted Net Income before Preferred Stock dividends

$1,752 - $2,182

Cumulative dividends attributable to Series A Preferred Stock

(67)

Adjusted Net Income7

$1,685 - $2,115

Weighted average number of common shares outstanding - basic

214

Adjusted EPS

$7.90 - $9.90

1 The Company does not guide to Net Income due to the impact of fair value adjustments related to derivatives in a given year. For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero

2 Represents anticipated GAAP income tax

3 Estimates for the acquired LS Power assets are provisional and subject to revisions until evaluations are completed to assess the fair value of long-lived assets

4 Includes adjustments for sale of assets, deactivation costs, and other and non-recurring charges

5 Excludes mark-to-market gains/losses on interest hedges

6 Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG's tax credits as well as non-recurring tax items, using CAMT rate to accrue tax. Other adjustments are shown on pre-tax basis

7 Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

8 Items may not sum due to rounding

9 Includes 11 months of ownership of the portfolio acquired from LS Power

The following table summarizes the calculation of FCFbG providing a reconciliation from Adjusted EBITDA and Cash provided by operating activities:

(In millions)

2026

Guidance4,5

Adjusted EBITDA

$5,325 - $5,825

Interest payments, net1

(1,100)

Income tax payments

(70) - (90)

Gross capitalized contract costs

(1,020)

Working capital/other assets and liabilities2

(135)

Cash provided by operating activities3

$3,000 - $3,480

Acquisition and other costs2

110

Adjusted cash provided by operating activities

$3,110 - $3,590

Maintenance capital expenditures

(450) - (480)

Environmental capital expenditures

(10) - (20)

Cost of acquisition

180

Free Cash Flow before Growth Investments (FCFbG)

$2,800 - $3,300

1 Interest payments, net represents Interest expense, net of $(1,195) million on Appendix table A-4 plus $95 million accrued interest expense not yet paid

2 Working capital/other assets and liabilities includes payments for Acquisition and divestiture integration and transaction costs, which is adjusted in Acquisition and other costs, and includes net deferred revenues

3 Excludes fair value adjustments related to derivatives and changes in collateral deposits in support of risk management activities

4 Items may not sum due to rounding

5 Includes 11 months of ownership of the portfolio acquired from LS Power

Disclaimer

NRG Energy Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 11:43 UTC.