Reaffirming 2026 guidance ranges
Advancing Bring Your Own Power strategy with hyperscaler for 1.2 GW CCGT in Texas
Achieved commercial operations at 415 MW T.H. Wharton facility, NRG's first new build generation asset in nearly a decade; remaining two Texas Energy Fund projects on time and on budget

NRG Energy, Inc. (NYSE:NRG) today announced financial results for the second quarter ended June 30, 2026, and reports GAAP Net Income of $506 million, GAAP Earnings per Share (EPS) — basic of $2.32, and GAAP Cash Provided by Operating Activities of $1,117 million. The Company's non-GAAP metrics are Adjusted Net Income of $315 million, Adjusted EPS of $1.49, Adjusted EBITDA of $1,217 million, and Free Cash Flow before Growth Investments (FCFbG) of $1,025 million for the second quarter of 2026.

"Today we provided a progress update on our Bring Your Own Power data center strategy," said Robert Gaudette, President & CEO. "This is the model for how large load growth should work. The customer supports the investment, with reliability and affordability protected for all. We also delivered a solid second quarter and are reaffirming our 2026 guidance. I am confident in the discipline and execution that continue to drive NRG forward."

Consolidated Financial Results

Table 1:

	Three Months Ended					Six Months Ended
(In millions, except per share amounts)	6/30/2026		6/30/2025			6/30/2026		6/30/2025
GAAP Net Income/(Loss)	$	506	$	(104	)	$	631	$	646
Adjusted Net Income^{a b}	$	315	$	339		$	623	$	870
GAAP EPS — basic^c	$	2.32	$	(0.62	)	$	2.86	$	3.11
Adjusted EPS^{a d}	$	1.49	$	1.73		$	2.98	$	4.42
Adjusted EBITDA^a	$	1,217	$	909		$	2,297	$	2,035
GAAP Cash Provided by Operating Activities	$	1,117	$	451		$	948	$	1,306
Free Cash Flow Before Growth Investments (FCFbG)^a	$	1,025	$	914		$	959	$	1,207
^a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-1 through A-6 for GAAP reconciliations. Adjusted EPS, Adjusted Net Income, and Adjusted EBITDA exclude fair value adjustments related to derivatives
^bAdjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see Appendix tables A-1 through A-4
^cGAAP Net Income/(Loss) per Weighted Average Common Share - Basic
^dAdjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic

NRG reported GAAP Net Income of $506 million for the second quarter of 2026, an increase of $610 million from the prior year. The improvement was due to the addition of the portfolio of assets acquired from LS Power and higher realized capacity prices in the East, partially offset by milder weather and higher supply costs. Results also benefited from unrealized, non-cash gains on economic hedges, primarily in the East, compared to losses in the prior year. These hedge positions are adjusted to market value each period, while the related customer contracts are not. As a result, the accounting treatment can result in temporary unrealized gains or losses that may differ from expected results when the contracts settle.

Adjusted Net Income for the second quarter 2026 is $315 million, $24 million lower than prior year, primarily driven by higher interest expense and depreciation and amortization related to the acquisition of the portfolio of assets acquired from LS Power, partially offset by a $308 million increase in Adjusted EBITDA, the impacts of which are described in the segment results below. Adjusted EPS is $1.49 for the second quarter 2026, $0.24 lower than prior year. The second quarter 2026 Adjusted EPS results include the financial impacts from Adjusted Net Income and impacts of shares issued as part of the completed acquisition of generation assets and CPower from LS Power.

Reaffirming 2026 Guidance

NRG is reaffirming its guidance for 2026 as set forth below.

Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2026^a

		2026
(In millions, except per share amounts)		Guidance
Adjusted Net Income		$1,685 - $2,115
Adjusted EPS		$7.90 - $9.90
Adjusted EBITDA		$5,325 - $5,825
FCFbG		$2,800 - $3,300
^a Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-8 and A-9 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year.

2026 Capital Allocation

The Company plans to return $1.0 billion to shareholders through share repurchases and approximately $407 million through common stock dividends in 2026, as part of its previously announced 2026 capital allocation plan. Through July 31, 2026, the Company completed $932 million in share repurchases and distributed $202 million in common stock dividends.

On July 22, 2026, NRG declared a quarterly dividend of $0.475 per common share, or $1.90 per share on an annualized basis. The dividend is payable on August 17, 2026 to common stockholders of record as of August 3, 2026.

NRG's share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of common stock repurchased under the share repurchase authorization will be determined by NRG’s management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company’s ability to maintain satisfactory credit ratings.

NRG Strategic Developments

Advanced BYOP Data Center Strategy

NRG advanced its Bring Your Own Power (BYOP) strategy with a leading global cloud and AI hyperscaler. The parties are aligned on principal commercial terms for the development of a 1.2 GW combined cycle natural gas generation facility in Texas and remains subject to final documentation and approvals. This update highlights NRG's BYOP strategy of meeting large load growth through customer-backed generation investment to support grid reliability, energy affordability, and local communities.

Texas Energy Fund (TEF)

On May 26, 2026, NRG achieved commercial operations at its first project, the 415 MW T.H. Wharton facility. The project satisfied the eligibility requirements for the completion bonus grant program, and on June 17, 2026, the Company entered into a completion bonus grant agreement with the PUCT for T.H. Wharton for up to $54.72 million, to be paid in ten annual installments, subject to performance of the facility, beginning after the initial test period ends on May 31, 2027. NRG's two additional TEF projects remain on time and on budget. Through the program, NRG plans to bring online a total of 1.5 GW of new, reliable, affordable power generation by mid-2028 to support the increasing energy demands of Texas consumers.

Segment Results

Table 3: Adjusted EBITDA^a

(In millions)	Three Months Ended				Six Months Ended
Segment	6/30/2026		6/30/2025		6/30/2026		6/30/2025
Texas	$	381	$	512	$	597	$	811
East		469		99		933		573
West/Other^b		66		39		172		112
Vivint Smart Home		301		259		595		539
Adjusted EBITDA	$	1,217	$	909	$	2,297	$	2,035
^aAdjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1 through A-4 for GAAP reconciliation of Adjusted EBITDA (by operating segment) to GAAP Net Income (by operating segment). Adjusted EBITDA excludes fair value adjustments related to derivatives
^bIncludes Corporate activities

Texas: Second quarter 2026 Adjusted EBITDA was $381 million, $131 million lower than the prior year. For the first six months of 2026, Adjusted EBITDA was $597 million, $214 million lower than prior year. Results were primarily driven by higher supply costs, mild winter weather, including a ~30% decrease in heating degree days as compared to prior year leading to lower retail load, and additional operating expenses for the new generation assets.

East: Second quarter 2026 Adjusted EBITDA was $469 million, $370 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $933 million, $360 million higher than prior year. Results were primarily driven by contribution of the new generation assets and CPower and higher capacity prices for owned generation, partially offset by higher power supply costs during Winter Storm Fern and lower natural gas margins.

West/Other: Second quarter 2026 Adjusted EBITDA was $66 million, $27 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $172 million, $60 million higher than prior year. The increase was primarily driven by lower operating expenses associated with a lease expiration in May 2025.

Vivint Smart Home: Second quarter 2026 Adjusted EBITDA was $301 million, $42 million higher than the prior year. For the first six months of 2026, Adjusted EBITDA was $595 million, $56 million higher than prior year. The increase for both the quarter and the first six months of 2026 is attributable to higher new customer adds and an increase in monthly recurring service margin per customer.

Liquidity and Capital Resources

Table 4: Corporate Liquidity

(In millions)	6/30/26		12/31/25
Cash and Cash Equivalents	$	162	$	4,708
Restricted Cash		50		30
Total	$	212	$	4,738
Total availability under revolving credit facility and collective collateral facilities^a		5,068		4,890
Total liquidity, excluding funds deposited by counterparties	$	5,280	$	9,628
^aTotal capacity of the revolving credit facility and collective collateral facilities was $9.0 billion and $7.7 billion as of June 30, 2026 and December 31, 2025, respectively

As of June 30, 2026, NRG's unrestricted cash was approximately $0.2 billion, and $5.1 billion was available under the Company’s credit facilities. Total liquidity was $5.3 billion, which was $4.3 billion lower than December 31, 2025, primarily driven by funding of the acquisition of generation assets and CPower from LS Power.

Earnings Conference Call

On August 4, 2026, NRG will host a conference call at 9:00 a.m. Eastern (8:00 a.m. Central) to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials through the investor relations website under "presentations and webcasts" on investors.nrg.com. The webcast will be archived on the site for those unable to listen in real-time.

About NRG

NRG is a leading provider of electricity, natural gas, and smart home solutions to eight million customers across North America. The company operates a customer-first platform supported by a diversified supply strategy and the safe, reliable operation of approximately 25 GW of power generation. NRG plays a meaningful role in competitive energy markets and our innovative team is creating the flexible and affordable solutions that households and large businesses need today and in the future.

Forward-Looking Statements

In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as "may," "should," "could," "objective," "projection," "forecast," "goal," "guidance," "outlook," "expect," "intend," "seek," "plan," "think," "anticipate," "estimate," "predict," "target," "potential" or "continue" or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about NRG's future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, the imposition of tariffs, the escalation of international trade disputes, and the occurrence or re-escalation of geopolitical conflicts (including the hostilities with Iran and the conflicts in the Middle East) and inflationary impacts resulting therefrom, risks associated with the integration of the portfolio of assets acquired from LS Power, including potential disruption to ongoing operations and other transition difficulties, the inability of the combined company to realize expected synergies and benefits of integration (or that it takes longer than expected) which may result in the combined company not operating as effectively as expected, the emergence of hazards customary in the power industry, weather conditions and extreme weather events, competition in wholesale power, gas and smart home markets, the volatility of energy and fuel prices, the volatility in demand for power and gas, customer affordability concerns that may constrain the pricing of NRG's products and services and limit its ability to recover costs, the failure of customers or counterparties to perform under contracts, changes in the wholesale power and gas markets, the failure of NRG’s expectations regarding load growth to materialize, changes in government or market regulations, the condition of capital markets generally and NRG’s ability to access capital markets, NRG’s ability to execute its supply strategy, risks related to data privacy, cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated outages at NRG’s generation facilities, operational and reputational risks related to the use of artificial intelligence and the adherence to developing laws and regulations related to the use thereof, NRG’s ability to achieve its net debt targets, adverse results in current and future litigation, complaints, product liability claims and/or adverse publicity, failure to identify, execute or successfully implement acquisitions or asset sales, risks of the smart home and security industry, including risks of and publicity surrounding the sales, customer origination and retention process, the impact of changes in consumer spending patterns, consumer preferences, geopolitical tensions, demographic trends, supply chain disruptions, NRG’s ability to implement value enhancing improvements to plant operations and company wide processes, NRG’s ability to achieve or maintain investment grade credit metrics, NRG’s ability to execute definitive agreements for, and proceed with or complete, proposed projects (including the data center project) on the contemplated terms, timeline and budget, the inability to maintain or create successful partnering relationships, NRG’s ability to operate its business efficiently, NRG’s ability to retain customers, the ability to successfully integrate businesses of acquired assets or companies (including the portfolio acquisition from LS Power), NRG’s ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, NRG’s ability to execute its capital allocation plan, and the other risks and uncertainties discussed in this release and in our Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC"). Achieving investment grade credit metrics is not an indication of or guarantee that NRG will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Adjusted EBITDA, adjusted cash provided by operating activities, Free Cash Flow before Growth Investments, Adjusted Net Income, and Adjusted EPS guidance are estimates as of August 4, 2026. These estimates are based on assumptions NRG believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the SEC at www.sec.gov. For a more detailed discussion of these factors, see the information under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in NRG’s most recent Annual Report on Form 10-K, and in subsequent SEC filings. NRG’s forward-looking statements speak only as of the date of this communication or as of the date they are made.

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three months ended June 30,						Six months ended June 30,
(In millions, except per share amounts)		2026			2025			2026			2025
Revenue
Revenue	$	7,481		$	6,740		$	17,737		$	15,325
Operating Costs and Expenses
Cost of operations (excluding depreciation and amortization shown below)		5,470			5,629			14,328			12,190
Depreciation and amortization		494			344			926			670
Selling, general and administrative costs (excluding amortization of customer acquisition costs of $93, $68, $180, and $133 respectively, which are included in depreciation and amortization shown separately above)		562			724			1,155			1,273
Acquisition-related transaction and integration costs		16			43			61			51
Total operating costs and expenses		6,542			6,740			16,470			14,184
Gain/(Loss) on sale of assets		37			—			37			(7	)
Operating Income		976			—			1,304			1,134
Other Income/(Expense)
Other income, net		6			5			46			19
Loss on debt extinguishment		(9	)		(10	)		(9	)		(10	)
Interest expense		(310	)		(148	)		(595	)		(311	)
Total other expense		(313	)		(153	)		(558	)		(302	)
Income/(Loss) Before Income Taxes		663			(153	)		746			832
Income tax expense/(benefit)		157			(49	)		115			186
Net Income/(Loss)	$	506		$	(104	)	$	631		$	646
Less: Cumulative dividends attributable to Series A Preferred Stock		17			17			34			34
Net Income/(Loss) Available for Common Stockholders	$	489		$	(121	)	$	597		$	612
Income/(Loss) per Share
Weighted average number of common shares outstanding — basic		211			196			209			197
Income/(Loss) per Weighted Average Common Share — Basic	$	2.32		$	(0.62	)	$	2.86		$	3.11
Weighted average number of common shares outstanding — diluted		212			196			210			203
Income/(Loss) per Weighted Average Common Share — Diluted	$	2.31		$	(0.62	)	$	2.84		$	3.01

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited)

	Three months ended June 30,						Six months ended June 30,
(In millions)		2026			2025			2026			2025
Net Income/(Loss)	$	506		$	(104	)	$	631		$	646
Other Comprehensive (Loss)/Income
Foreign currency translation adjustments		(3	)		13			(4	)		15
Defined benefit plans		—			1			(2	)		1
Other comprehensive (loss)/income		(3	)		14			(6	)		16
Comprehensive Income/(Loss)	$	503		$	(90	)	$	625		$	662

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2026			December 31, 2025
(In millions, except share data)	(Unaudited)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	162		$	4,708
Funds deposited by counterparties		167			260
Restricted cash		50			30
Accounts receivable, net		3,534			4,065
Inventory		793			461
Derivative instruments		3,188			2,189
Cash collateral paid in support of energy risk management activities		441			365
Prepayments and other current assets		1,318			1,069
Total current assets		9,653			13,147
Property, plant and equipment, net		14,076			3,632
Other Assets
Operating lease right-of-use assets, net		142			130
Goodwill		8,815			5,017
Customer relationships, net		1,177			1,203
Other intangible assets, net		963			1,106
Derivative instruments		1,617			1,568
Deferred income taxes		1,725			1,843
Other non-current assets		1,772			1,494
Total other assets		16,211			12,361
Total Assets	$	39,940		$	29,140

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt and finance leases	$	1,512		$	31
Current portion of operating lease liabilities		41			35
Accounts payable		2,579			2,834
Derivative instruments		3,120			2,257
Cash collateral received in support of energy risk management activities		167			260
Deferred revenue current		837			748
Accrued expenses and other current liabilities		1,719			1,864
Total current liabilities		9,975			8,029
Other Liabilities
Long-term debt and finance leases		21,744			16,412
Non-current operating lease liabilities		170			144
Derivative instruments		1,327			1,103
Deferred income taxes		15			15
Deferred revenue non-current		984			895
Other non-current liabilities		870			861
Total other liabilities		25,110			19,430
Total Liabilities		35,085			27,459
Commitments and Contingencies
Stockholders’ Equity
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at June 30, 2026 and December 31, 2025, aggregate liquidation preference of $650; at June 30, 2026 and December 31, 2025		650			650
Common stock; $0.01 par value; 500,000,000 shares authorized; 225,198,900 and 199,828,615 shares issued and 210,307,902 and 190,376,607 shares outstanding at June 30, 2026 and December 31, 2025, respectively		2			2
Additional paid-in-capital		3,880			215
Retained earnings		2,374			1,982
Treasury stock, at cost; 14,890,998 shares and 9,452,008 shares at June 30, 2026, and December 31, 2025, respectively		(1,964	)		(1,087	)
Accumulated other comprehensive loss		(87	)		(81	)
Total Stockholders’ Equity		4,855			1,681
Total Liabilities and Stockholders’ Equity	$	39,940		$	29,140

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six months ended June 30,
(In millions)		2026			2025
Cash Flows from Operating Activities
Net income	$	631		$	646
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property, plant and equipment and amortization of customer relationships and other intangible assets		602			444
Amortization of capitalized contract costs		324			226
Accretion of asset retirement obligations		17			20
Provision for credit losses		104			113
Amortization of financing costs and debt discounts/premiums		10			13
Loss on debt extinguishment		9			10
Amortization of in-the-money contracts and emissions allowances		47			51
Amortization of unearned equity compensation		72			62
Net (gain)/loss on sale of assets and disposal of assets		(38	)		10
Gain on proceeds from insurance recoveries for Property, plant and equipment, net		—			(100	)
Changes in derivative instruments		(61	)		18
Changes in current and deferred income taxes and liability for uncertain tax benefits		(33	)		126
Changes in collateral deposits in support of risk management activities		14			197
Changes in other working capital:
Accounts receivable, net		910			(17	)
Inventory		(156	)		16
Prepayments and other current assets		(441	)		(368	)
Accounts payable		(780	)		(39	)
Accrued expenses and other current liabilities		(164	)		(120	)
Other assets and liabilities		(119	)		(2	)
Cash provided by operating activities	$	948		$	1,306
Cash Flows from Investing Activities
Payments for acquisitions of businesses and assets, net of cash acquired	$	(7,101	)	$	(586	)
Capital expenditures		(655	)		(595	)
Proceeds from sales of assets, net		44			6
Purchases of emissions allowances		(41	)		(10	)
Sales of emissions allowances		44			3
Proceeds from insurance recoveries for Property, plant and equipment, net		—			100
Cash used in investing activities	$	(7,709	)	$	(1,082	)
Cash Flows from Financing Activities
Equivalent shares purchased in lieu of tax withholdings	$	(99	)	$	(77	)
Payments for share repurchase activity and excise tax		(931	)		(603	)
Payments of dividends to preferred and common stockholders		(235	)		(207	)
Proceeds from issuance of long-term debt		3,652			—
Repayments of long-term debt and finance leases		(1,619	)		(10	)
Payments for debt extinguishment costs		(9	)		—
Payments of deferred financing costs		(84	)		(31	)
Net receipts from settlement of acquired derivatives that include financing elements		16			38
Proceeds from credit facilities		8,675			865
Repayments to credit facilities		(7,226	)		(730	)
Cash provided by/(used in) financing activities	$	2,140		$	(755	)
Effect of exchange rate changes on cash and cash equivalents		2			1
Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash		(4,619	)		(530	)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period		4,998			1,173
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period	$	379		$	643

Appendix Table A-1: Second Quarter 2026 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

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	$	289		$	506		$	155		$	71		$	(532	)	$	489		$	2.32		$	2.31
Cumulative dividends attributable to Series A Preferred Stock		—			—			—			—			17			17			0.08			0.08
Net Income/(Loss)	$	289		$	506		$	155		$	71		$	(515	)	$	506		$	2.40		$	2.39
Plus:
Interest expense, net		—			—			—			—			305			305			1.45			1.44
Income tax expense		—			—			—			—			157			157			0.74			0.74
Loss on debt extinguishment		—			—			—			—			9			9			0.04			0.04
Depreciation and amortization		123			134			7			216			14			494			2.34			2.33
ARO expense		6			4			—			—			—			10			0.05			0.05
Contract and emission credit amortization, net		1			(10	)		1			—			—			(8	)		(0.04	)		(0.04	)
Stock-based compensation¹		12			7			1			8			—			28			0.13			0.13
Acquisition and divestiture integration and transaction costs		—			—			—			—			16			16			0.08			0.08
Cost to achieve¹		3			—			—			5			12			20			0.09			0.09
Deactivation costs		1			2			—			—			—			3			0.01			0.01
Loss/(gain) on sale of assets		—			6			(43	)		—			—			(37	)		(0.18	)		(0.17	)
Other and non-recurring charges		2			—			1			1			(1	)		3			0.01			0.01
Mark to market (MtM) (gain) on economic hedges²		(56	)		(180	)		(53	)		—			—			(289	)		(1.37	)		(1.36	)
Adjusted EBITDA	$	381		$	469		$	69		$	301		$	(3	)	$	1,217		$	5.77		$	5.74
Adjusted interest expense, net³		—			—			—			—			(313	)		(313	)		(1.48	)		(1.48	)
Depreciation and amortization		(123	)		(134	)		(7	)		(216	)		(14	)		(494	)		(2.34	)		(2.33	)
Adjusted Income before income taxes		258			335			62			85			(330	)		410			1.94			1.93
Adjusted income tax expense⁴		—			—			—			—			(78	)		(78	)		(0.37	)		(0.37	)
Adjusted Net Income before Preferred Stock dividends		258			335			62			85			(408	)		332			1.57			1.57
Cumulative dividends attributable to Series A Preferred Stock		—			—			—			—			(17	)		(17	)		(0.08	)		(0.08	)
Adjusted Net Income⁵	$	258		$	335		$	62		$	85		$	(425	)	$	315		$	1.49		$	1.49
¹Stock-based compensation of $1 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense
² Gain of $(289) million was primarily driven by the reversal of previously recognized unrealized losses on contracts that settled during the period as well as an increase in the value of open positions in East as a result of increases in RGGI prices
³ Excludes mark-to-market gain on interest hedges of $8 million
⁴Income 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
⁵Adjusted 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 211 million and on weighted average number of common shares outstanding - diluted of 212 million for the three months ended June 30, 2026

Second Quarter 2026 condensed financial information by Operating Segment:

(In millions, except per share amounts)	Texas			East			West/ Other			Vivint Smart Home			Corp/ Elim			Total
Revenue¹	$	2,747		$	3,484		$	644		$	587		$	(13	)	$	7,449
Cost of fuel, purchased power and other cost of sales²		1,886			2,682			538			60			(6	)		5,160
Economic gross margin		861			802			106			527			(7	)		2,289
Operations & maintenance and other cost of operations³		294			180			11			75			(1	)		559
Selling, marketing, general and administrative⁴		187			152			27			151			(2	)		515
Other		(1	)		1			(1	)		—			(1	)		(2	)
Adjusted EBITDA	$	381		$	469		$	69		$	301		$	(3	)	$	1,217
Adjusted interest expense, net⁵		—			—			—			—			(313	)		(313	)
Depreciation and amortization		(123	)		(134	)		(7	)		(216	)		(14	)		(494	)
Adjusted Income before income taxes		258			335			62			85			(330	)		410
Adjusted income tax expense⁵		—			—			—			—			(78	)		(78	)
Adjusted Net Income before Preferred Stock dividends		258			335			62			85			(408	)		332
Cumulative dividends attributable to Series A Preferred Stock		—			—			—			—			(17	)		(17	)
Adjusted Net Income⁵	$	258		$	335		$	62		$	85		$	(425	)	$	315
Weighted average number of common shares outstanding - basic																	211
Adjusted EPS																$	1.49
¹ Excludes MtM gain of $(18) million and contract amortization of $(14) million
² Includes TDSP expense, capacity and emission credits
³ Excludes ARO expense of $10 million, deactivation costs of $3 million, stock-based compensation of $2 million and other and non-recurring charges of $1 million
⁴ Excludes stock-based compensation of $26 million, cost to achieve of $20 million and other and non-recurring charges of $1 million
⁵ See previous table for details

Appendix Table A-2: Second Quarter 2025 Adjusted EBITDA and Adjusted Net Income Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation

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 ^{8, 9}			Earnings Per Share, Diluted ^{8, 9}
Net Income/(Loss) Available for Common Stockholders	$	381		$	(346	)	$	142		$	(115	)	$	(183	)	$	(121	)	$	(0.62	)	$	(0.62	)
Cumulative dividends attributable to Series A Preferred Stock		—			—			—			—			17			17			0.09			0.09
Net Income/(Loss)	$	381		$	(346	)	$	142		$	(115	)	$	(166	)	$	(104	)	$	(0.53	)	$	(0.53	)
Plus:
Interest expense, net		—			—			—			—			141			141			0.72			0.70
Income tax (benefit)		—			—			—			—			(49	)		(49	)		(0.25	)		(0.24	)
Loss on debt extinguishment		—			—			—			—			10			10			0.05			0.05
Depreciation and amortization		93			36			9			195			11			344			1.76			1.70
ARO expense		14			16			—			—			—			30			0.15			0.15
Contract and emission credit amortization, net		3			(2	)		2			—			—			3			0.02			0.01
Stock-based compensation¹		9			3			1			15			—			28			0.14			0.14
Acquisition and divestiture integration and transaction costs¹		—			—			—			—			40			40			0.20			0.20
Cost to achieve		—			—			—			—			4			4			0.02			0.02
Deactivation costs		5			5			—			—			—			10			0.05			0.05
Other and non-recurring charges²		1			(1	)		3			164			2			169			0.86			0.84
Mark to market (MtM) loss/(gain) on economic hedges³		6			388			(111	)		—			—			283			1.44			1.40
Dilutive impact adjustment on Net (Loss) Available for Common Stockholders⁴																							0.02
Adjusted EBITDA	$	512		$	99		$	46		$	259		$	(7	)	$	909		$	4.64		$	4.50
Adjusted interest expense, net⁵		—			—			—			—			(136	)		(136	)		(0.69	)		(0.67	)
Depreciation and amortization		(93	)		(36	)		(9	)		(195	)		(11	)		(344	)		(1.76	)		(1.70	)
Adjusted Income before income taxes		419			63			37			64			(154	)		429			2.19			2.12
Adjusted income tax expense⁶		—			—			—			—			(73	)		(73	)		(0.37	)		(0.36	)
Adjusted Net Income before Preferred Stock dividends		419			63			37