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NYSE: NRG · Independent Power Producers & Energy Traders

NRG Energy

NRG Energy, based in Houston, sells electricity, natural gas and smart-home services to about 8 million residential customers (6 million retail energy, 2 million Vivint Smart Home) plus commercial, industrial, data center and wholesale customers, backed by its own power plants. It sold 154 TWh of electricity in 2025, calls itself one of the largest competitive energy retailers in the U.S., and says its retail brands have the largest share of competitively served residential electric customers in Texas. 2025 revenue was $30,713 million (East $14,263 million, Texas $11,139 million, West/Other $3,202 million, Vivint Smart Home $2,144 million) and net income $864 million. In January 2026 NRG completed the purchase of LS Power’s LSP Portfolio — 18 gas-fired and dual-fuel plants totaling about 13 GW in nine states plus the CPower demand-response platform — for $6.4 billion in cash, 24.25 million shares and about $3.2 billion of assumed debt, roughly doubling its generation fleet from about 12 GW.

Last updated

Analysis last edited: October 30, 2026 · Financial data fetched: October 30, 2026 14:38 (SEC EDGAR) · Source 10-K filed: February 24, 2026

Built on10-K FY2025 · filed 2026-02-2410-Q (quarter ended 2026-06-30) · filed 2026-08-04Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
27.6%

Higher than 92% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
6.0%

Higher than 18% of 311 non-financial companies

Latest fiscal year (FY2025)

ROIC minus WACC
-0.2 pts

Higher than 29% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
3.7x

Higher than 79% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
2.21x

Higher than 79% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
5 of 5

Years the dividend per share rose, of the last 5

P/E today
19.6x

Latest close 2026-11-04; trailing 12 months to 2026-06-30

Beta
1.30

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$87.32close on 2026-11-04

Market cap$16.62B

P/E today
19.6x

At FY2025 year-end: 39.7x

Earnings: trailing 12 months to 2026-06-30

P/B today
9.9x

At FY2025 year-end: 18.0x

Book value at FY2025 year-end

EV/EBITDA today
8.8x

At FY2025 year-end: 13.0x

EBITDA for FY2025

FCF yield today
4.6%

At FY2025 year-end: 2.5%

Free cash flow for FY2025

Dividend yield today
2.0%

Dividends per share for FY2025

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Jun 30, 2026.

  • Revenue↑ +11.0%$6.74B → $7.48B (vs. a year earlier)
  • Operating margin↑ +13.0 pts0.0% → 13.0% (vs. a year earlier)
  • Net income↑ $506M−$104M → $506M (vs. a year earlier)
  • Diluted EPS↑ $2.31$-0.62 → $2.31 (vs. a year earlier)
  • Cash↓ −9.0%$178M → $162M (vs. previous quarter-end)
  • Long-term debt↑ +0.9%$23.18B → $23.39B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Aug 4, 2026.

Management outlook → Reaffirmed

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

Key changes

  • Q2 GAAP net income $506M, up $610M. Source sentence
    NRG reported GAAP Net Income of $506 million for the second quarter of 2026, an increase of $610 million from the prior year.

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
NRG ENERGY, INC.
Headquarters
HOUSTON, TX
Incorporated in
Delaware
Fiscal year end
12/31
Exchange & ticker
NYSE: NRG
Industry
Independent Power Producers & Energy Traders
CIK
1013871

Workforce (as of FY2025 year-end)

  • Employees

    16,702

Source: Form 10-K (FY2025) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q3 FY2026

Quarter end: September 2026. In past years, Q3 results were released 33–39 days after quarter end (Nov 6, 2025; Nov 8, 2024; Nov 2, 2023). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around December 31.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 33–59 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q2 FY2026Jun 30, 2026Aug 4, 2026 (+35 days)Aug 4, 2026 10-Q (+35 days)
Q1 FY2026Mar 31, 2026May 6, 2026 (+36 days)May 6, 2026 10-Q (+36 days)
Q4 FY2025Dec 31, 2025Feb 24, 2026 (+55 days)Feb 24, 2026 10-K (+55 days)
Q3 FY2025Sep 30, 2025Nov 6, 2025 (+37 days)Nov 6, 2025 10-Q (+37 days)
Q2 FY2025Jun 30, 2025Aug 6, 2025 (+37 days)Aug 6, 2025 10-Q (+37 days)
Q1 FY2025Mar 31, 2025May 12, 2025 (+42 days)May 12, 2025 10-Q (+42 days)
Q4 FY2024Dec 31, 2024Feb 26, 2025 (+57 days)Feb 26, 2025 10-K (+57 days)
Q3 FY2024Sep 30, 2024Nov 8, 2024 (+39 days)Nov 8, 2024 10-Q (+39 days)
Q2 FY2024Jun 30, 2024Aug 8, 2024 (+39 days)Aug 8, 2024 10-Q (+39 days)
Q1 FY2024Mar 31, 2024May 7, 2024 (+37 days)May 7, 2024 10-Q (+37 days)
Q4 FY2023Dec 31, 2023Feb 28, 2024 (+59 days)Feb 28, 2024 10-K (+59 days)
Q3 FY2023Sep 30, 2023Nov 2, 2023 (+33 days)Nov 2, 2023 10-Q (+33 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Texas / East / West

    Retail electricity and natural gas

    Retail power and gas to homes and businesses in 25 states, D.C. and 8 Canadian provinces.

  • Texas / East / West

    Wholesale generation

    Gas, coal, oil and renewable plants selling into ERCOT, PJM and other markets.

  • Vivint Smart Home

    Smart home

    Home security, automation and monitoring for about 2 million customers.

From the Form 10-K, FY2025.

U.S., worldwide and country/regional share of flagship products/services

Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.

  • Residential retail electricity

    Texas competitive residential electricity

    U.S. share

    —

    Not disclosed

    Worldwide share

    —

    Not disclosed

    Texas

    Largest share

    Company-disclosed

    “NRG’s retail brands, collectively, have the largest share of competitively served residential electric customers in Texas.”

  • Retail energy

    U.S. competitive energy retail

    U.S. share

    One of the largest

    Company-disclosed

    Sold 154 TWh of electricity and 1,857 MMDth of gas in 2025, “making it one of the largest competitive energy retailers in the U.S.”

    Worldwide share

    —

    Not disclosed

Sources:

No percentage share is given.

07

Recent strategic focusSite analysis

Recent developments.

  1. LSP acquisition

    Closed January 30, 2026; ~13 GW across nine states plus CPower.

    Source: Form 8-K (2026-01-30) — Items 1.01/2.01 (LSP Portfolio acquisition closed)

  2. PJM capacity

    6,839 MW cleared in the 2028–2029 PJM auction at $325/MW-day.

    Source: Form 8-K (2026-07-15) — Item 8.01 (PJM capacity auction results)

  3. CEO change

    Robert Gaudette became CEO on April 30, 2026, succeeding Lawrence Coben.

    Source: Form 8-K (2026-01-07) — Item 5.02 (CEO succession)

Capex ÷ D&A (FY2025)

0.82x

Roughly matches depreciation — mostly maintenance/replacement

formulacapital expenditures ÷ depreciation & amortization

e.g.$1,147M ÷ $1,406M = 0.82x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Where the money goes, over time

Unit: $M. Capex went from $230M in FY2020 to $1.15B in FY2025

  • Capex
  • R&D

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24

08

Key figures at a glanceFrom SEC data

FY2020–FY2025, 6 years.

Revenue (FY2025)

$30.71B

As reported in the 10-K

Revenue CAGR (5 years)

+27.6%▲favorable

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($30,713M ÷ $9,093M) ^ (1÷5) − 1 = 27.6%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2025)

6.0%▼caution

-6.1pt vs. 5 years ago

formulaoperating income ÷ revenue × 100

e.g.$1,845M ÷ $30,713M × 100 = 6.0%

termsOperating income · Revenue (net sales)

ROE (FY2025)

41.5%▲favorable

6-year average: 37.2%

As reported in the 10-K

P/B (FY2025 end)

18.03x

formulafiscal year-end closing price ÷ book value per share

e.g.$159.24 ÷ $8.83 = 18.03x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2025 end)

13.0x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($30,316M + $16,600M − $4,708M) ÷ ($1,845M + $1,406M) = 13.0x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ▲

    Revenue grew +27.6% a year over 5 years (strong growth)

    From $9.09B in FY2020 to $30.71B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▼

    Operating margin declined: 12.2% → 6.0%

    How much operating profit is left per $100 of revenue. It moved -6.1 points over 5 years — pricing power, cost control, and product mix all show up here.

  • ▼

    Equity ratio is 5.8% (relatively heavy reliance on debt)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ―

    Free cash flow was positive in 4 of 6 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 37.2% over 6 years (latest: 41.5%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Pairs retail electricity and gas sales with its own generation fleet to hedge supply, and sells recurring smart-home security and automation services through Vivint.

How money and goods flow at NRG Energy
  1. 01 what it draws on

    Inputs & resources

    • 16,702 employees (incl. 7,929 Vivint direct sales and installation staff)
    • About 12 GW of generation at 23 plants (end-2025) plus about 13 GW from the LSP Portfolio
    • Retail brands and Vivint smart home platform
  2. 02 what it does

    Activities

    • Retail electricity and natural gas sales
    • Wholesale power generation (Texas, East, West)
    • Vivint Smart Home services
    • Demand response (CPower)
  3. 03 who it serves

    Customers

    • About 8 million residential customers
    • Commercial, industrial and data center customers
    • Wholesale markets (ERCOT, PJM)
  4. 04 how money comes in

    How it earns

    • East $14,263M (2025)
    • Texas $11,139M
    • West/Other $3,202M
    • Vivint Smart Home $2,144M

How the business makes money

  • No customer exceeded 10% of revenue.
  • Annual dividend raised 8% to $1.90 in 2026.
  • $3.0B buyback authorized October 2025 (through 2028).

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

NRG’s generation business benefits from Texas grant programs for new dispatchable generation.

  • Government funding & tax credits

    Texas generation grants

    The PUCT completion bonus program offers grants of $120,000 per MW for dispatchable generation interconnected before June 1, 2026.

    Supports the businessTouches: Inputs & resources

    Source: Form 10-K (FY2025)

  • Political engagement

    Stakeholder backlash

    May face criticism from government entities and advocacy groups over company positions.

    Constrains the businessTouches: Activities

    Source: Form 10-K (FY2025)

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • East

    14,263 (46%)
  • Texas

    11,139 (36%)
  • West/Other

    3,202 (10%)
  • Vivint Smart Home

    2,144 (7%)

Source: Form 10-K (FY2025) Segment revenue for 2025 before eliminations; total $30,713M.

10

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

11

Alliances & capital tiesSite analysisShow

Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.

12

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

About 8 million residential customers plus commercial, industrial, data center and wholesale customers.

Named by the company

No customer exceeded 10% of consolidated revenues in 2025.

Suppliers

Natural gas, coal and purchased power suppliers; equipment vendors.

Named by the company

No material supplier is named.

13

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

In Texas, NRG competes with other retail electric providers; elsewhere, retailers compete with incumbent utilities and other providers. NRG may also face competition from other energy service providers and nationally branded consumer companies. The 10-K names no specific competitors.

Competitors named in the 10-K

Peer group the company chose

Performance peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

The 2026 proxy uses the S&P 500 constituents as the relative TSR peer group and the UTY Index for pay-versus-performance; no named compensation peer list.

Source: Proxy statement (2026)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

14

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24

Line itemFY202010-K on EDGAR ↗FY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue9,09326,98931,54328,82328,13030,713
Operating income1,1053,3412,0183842,4241,845
Pretax income7612,8591,663-2131,4481,134
Net income (attributable)5102,1871,221-2021,125864
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—196.8%16.9%-8.6%-2.4%9.2%
Operating margincalcoperating income ÷ revenue × 10012.2%12.4%6.4%1.3%8.6%6.0%
Net margincalcnet income attributable to the company ÷ revenue × 1005.6%8.1%3.9%-0.7%4.0%2.8%
Balance sheet ($M)
Total assets14,90223,18229,14626,03824,02229,140
Total equity1,6803,6003,8282,9062,4781,681
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable8,8558,1008,10010,94010,89216,600
Equity ratio11.3%15.5%13.1%11.2%10.3%5.8%
ROE30.4%82.8%32.9%-6.0%41.8%41.5%
Cash flow ($M)
Operating CF1,837493360-2212,3061,913
Investing CF-494-3,039-332-910-24-1,638
Financing CF2,204-2721,043-400-1,7553,546
Free cash flowcalccash flow from operations − capital expenditures1,607224-7-8191,834766
Cash and equivalents3,9052504305419664,708
Per share & other
EPS ($)2.078.935.17-1.124.994.01
BVPS ($)6.8814.7716.6813.9612.488.83
Dividend per share ($)1.201.301.401.511.631.76
Payout ratiocalcdividend per share ÷ diluted EPS × 10058.0%14.6%27.1%—32.7%43.9%
P/E (x)18.14.86.2—18.139.7
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)9.24.45.512.67.313.0
P/B (x)calcfiscal year-end closing price ÷ book value per share5.462.921.913.707.2318.03

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueOperating incomeNet incomeDiluted EPS
2026-06-30$7.48B+11.0%$976M$506M$2.31
2026-03-31$10.26B+19.5%$328M-71.1%$125M-83.3%$0.52
2025-12-31 †$7.75B+13.7%$297M-68.9%$66M-89.7%—
2025-09-30$7.64B+5.7%$414M$152M$0.69
2025-06-30$6.74B$0−$104M$-0.62
2025-03-31$8.59B$1.13B$750M$3.61
2024-12-31 †$6.82B$954M$643M—
2024-09-30$7.22B−$812M−$767M$-3.79

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

15

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2025)

8.8%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$1,845M × (1 − 24.5%) ÷ $15,826M × 100 = 8.8%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

9.01%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $30.32B ÷ ($30.32B + $16.6B) = 64.6%

e.g.Debt weight: $16.6B ÷ ($30.32B + $16.6B) = 35.4%

e.g.WACC: 12.1% × 64.6% + 4.5% × (1 − 24.5%) × 35.4% = 9.01%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

-0.2pt▼caution

Falling short of the cost of capital (ROIC > WACC in only 3 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 7.6%–10.7% and ROIC − WACC runs −1.9 to +1.2 points. The sign flips inside this range, so the result depends on the assumptions. This describes the latest year and does not predict future value creation.

WACC 9.01% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4.95% (10-year Treasury, 2026-11-03)
β
1.30 (price-derived adjusted beta)
Equity risk premium
5.5%
Cost of equity
12.10%
Cost of debt
4.46%
Tax rate
24.5% (effective rate, FY2022–FY2025)
Capital structure (equity : debt)
65% : 35%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 9.01%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).

Initial β: 1.30 (price-derived adjusted beta. Raw β 1.45, R² 0.19, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 1.452 + 0.33 = 1.303

termsβ (beta)

Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity12.10%

formularisk-free rate + β × equity risk premium

e.g.5.0% + 1.3 × 5.5% = 12.1%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$30.32B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$16.6B
Cost of debt4.46%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)65% : 35%

16

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

6.3%

Perpetual FCF growth: g = r − FCF ÷ EV = 9.0% − 2.7%

Past FCF growth (FY2020–FY2025)

-13.8%

Compound annual rate, 5 years

Past revenue growth (FY2020–FY2025)

+27.6%

Compound annual rate, 5 years

Inputs (FY2025): free cash flow $766M (operating CF − capex); enterprise value $28.52B = market cap $16.62B (latest close, 2026-11-04) + debt $16.6B − cash and short-term investments $4.71B; r = WACC of 9.0% using this page’s default assumptions (β 1.30, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$28.37B

FCF $766M ÷ (9.0% − 6.3%)

Theoretical ÷ actual enterprise value

0.99x

Below 1x: these assumptions value the business below the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r7.0%8.0%9.0%10.0%11.0%
0%0.38x0.34x0.30x0.27x0.24x
2%0.54x0.45x0.38x0.34x0.30x
4%0.90x0.67x0.54x0.45x0.38x
6%2.69x1.34x0.90x0.67x0.54x
8%——2.69x1.34x0.90x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

17

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.68x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -3.9%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 163%

    Most profit comes from core operations.

  • ✓

    Days sales outstanding: 36 → 45 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24

Profit bridge (FY2025)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding
  • Days inventory outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$1,913M ÷ $864M = 2.21x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$1,845M ÷ $1,134M × 100 = 163%

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

e.g.($3,488M + $4,065M) ÷ 2 ÷ $30,713M × 365 = 45 days

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

e.g.($478M + $461M) ÷ 2 ÷ $24,761M × 365 = 7 days

termsInventory · Cost of revenue (COGS)

18

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
94.5%
Directors & officers (shares)
<1%
Everyone else (est.)
5.5%

individuals and other non-13F holders

Directors & officers (voting power)
<1%

no separate voting figure; shown as shares

Institutional-ownership rank
126 of 416

1 = most institutional; 30% of covered companies have more

Beta (adjusted)
1.30

above 1 = swings more than the market

  • 198.6M shares reported by 1,019 13F filers ÷ 210.2M shares outstanding on 2026-07-31. Option positions are excluded.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-18 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-31)

19

Strengths & weaknessesSite analysis

Strengths

  1. 1. Retail scale

    Largest share of competitively served residential electric customers in Texas.

    Evidence: Form 10-K (FY2025)

  2. 2. Integrated model

    Owned generation supplies part of retail load, reducing transaction costs and stabilizing cash flows.

    Evidence: Form 10-K (FY2025)

  3. 3. Shareholder returns

    Dividend raised from $1.20 (2020) to $1.76 (2025) and $1.90 for 2026, plus large buybacks.

    Evidence: Form 10-K (FY2025)

Weaknesses

  1. 1. High leverage

    Debt rose to $16.6B at end-2025 ahead of the LSP acquisition (plus ~$3.2B assumed).

    Evidence: Form 10-K (FY2025)

  2. 2. Thin equity

    Stockholders’ equity fell from $3,828M (2022) to $1,681M (2025) after buybacks.

    Evidence: Form 10-K (FY2025)

  3. 3. Volatile earnings

    Net loss of $202M in 2023 versus net income of $2,187M in 2021.

    Evidence: Form 10-K (FY2025)

20

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

39.7x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

1.11%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

44%

Dividends per share ÷ diluted EPS

FCF yield (FY2025)

2.5%

(Operating CF − capex) ÷ market cap

  1. 1. Power demand growth

    Larger generation fleet positioned for data center and load growth.

    What has to hold
    Power prices and capacity payments stay firm.
    The other side
    Leverage and integration risk.

    Evidence: Form 10-K (FY2025)

  2. 2. Capital returns

    Dividend growth of 8% a year plus a $3.0B buyback through 2028.

    What has to hold
    Free cash flow grows with LSP.
    The other side
    Debt reduction needs.

    Evidence: Form 10-K (FY2025)

2021 revenue jump follows the Direct Energy acquisition. 2026 figures will include the LSP Portfolio.

21

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

Cash & short-term investments ÷ debt due within a year

100x+

$4.71B vs. $31M

Interest coverage (operating income ÷ interest expense)

2.5x

$1.85B vs. $741M

Free cash flow ÷ dividends paid

1.9x

$766M vs. $411M (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
Revenue-8.6% in FY2023 ($31.54B → $28.82B)Not yet, as of FY2025
Operating income-81.0% in FY2023 ($2.02B → $384M)Yes, by FY2024

Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Loss year

    Net loss of $202M in 2023; profitable in the other years 2020–2025.

    Source: Form 10-K (FY2025)

23

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
1
Med
2345
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Demand & macro

    Power prices and weather

    Company disclosure (summarized from the 10-K)
    Retail and wholesale margins swing with weather and energy prices.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact High / Likelihood High
  2. 2Law & regulation

    Market rules

    Company disclosure (summarized from the 10-K)
    ERCOT, PJM and state retail rules (e.g., Texas SB 6 large-load rules, NYSPSC orders).
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  3. 3M&A & integration

    LSP integration

    Company disclosure (summarized from the 10-K)
    Integrating 13 GW of plants and CPower.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  4. 4FX & interest rates

    Leverage

    Company disclosure (summarized from the 10-K)
    Higher debt after the LSP acquisition.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5Governance & quality

    Sales practices

    Company disclosure (summarized from the 10-K)
    Door-to-door and telemarketing practices have led to investigations and class actions.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med

24

What changed in the risk factorsFrom SEC data

Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.

New or substantially reworded (8)

  • The integration of NRG and the LSP Portfolio may disrupt or have a negative impact on the Company’s business.

  • The LSP Portfolio is comprised of 13 GW of natural gas-fired generation and dual fuel assets and a demand response platform. Read more

    The acquisition significantly increases NRG’s owned generation capacity and operational footprint. The acquisition is large and complex, and the Company will need to devote significant time and resources to integrating the plants, equipment, personnel, operations, and fuel arrangements with NRG’s existing generation, retail and commercial businesses. Any difficulties encountered in the transition and integration process could adversely affect the Company’s business, results of operations and financial condition.

  • • difficulties in implementing and maintaining uniform processes, systems, standards, controls, procedures, practices, and policies pertaining to commercial, operational, financial, legal, regulatory, and/or accounting matters;

  • • the inability to timely implement and enact effective internal control over financial reporting for the acquired assets, including harmonizing the LSP Portfolio’s accounting policies and internal controls with the Company’s;

  • • unforeseen expenses, unknown liabilities, or adverse changes arising from events, conditions, or actions occurring prior to or in connection with the acquisition, as well as unanticipated capital investments, environmental upgrades, or decommissioning liabilities;

  • • the risk that the Company may not realize all the expected benefits of the acquisition, including enhanced generation capabilities, if the assets and businesses cannot be integrated in an efficient and effective manner, which could result in increased costs or lower-than-expected revenues.

  • If the Company is not successful in addressing these risks effectively, the business could be impacted. Read more

    Many of these factors will be outside of the Company’s control, and any one of them could result in delays, increased costs, decreases in the amount of expected revenues and diversion of management’s time and energy, which could materially affect NRG’s business, results of operations and financial condition. Similar risks may apply to any future acquisitions or dispositions the Company may undertake.

  • Inflation and customer affordability concerns may limit the Company’s ability to recover costs, constrain its pricing and reduce market demand for its products and services.

No longer in the text (4)

  • Because NRG owns less than a majority of the ownership interests of some of its project investments, the Company cannot exercise complete control over their operations.

  • NRG has limited control over the operation of some project investments and joint ventures because the Company's investments are in projects where it beneficially owns less than a majority of the ownership interests. Read more

    NRG seeks to exert a degree of influence with respect to the management and operation of projects in which it owns less than a majority of the ownership interests by negotiating to obtain positions on management committees or to receive certain limited governance rights, such as rights to veto significant actions. However, the Company may not always succeed in such negotiations. NRG may be dependent on its co-venturers to operate such projects. The Company's co-venturers may not have the level of experience, technical expertise, human resources management or other attributes necessary to operate these projects optimally. The approval of co-venturers also may be required for…

  • The Company has made investments focused on consumer products that may not be successful, may not achieve the intended financial results or may result in product liability and reputational risk that could adversely affect the Company.

  • issues, unintended biases and discriminatory outcomes, or may create content that appears correct but is actually inaccurate or flawed. Read more

    If the recommendations, content, or analyses that AI applications produce are or are alleged to be deficient or inaccurate, NRG could be subjected to potential legal liability and business harm, including brand or reputational harm and operational interruptions and ultimately have a material adverse effect on NRG’s results of operations. In addition, the evolving nature of AI may cause new laws and regulations to be enacted which may require significant resources and costs to modify and maintain business practices in order to comply with these new laws and regulations.

11 more paragraphs differ; the filings below have the full text.

Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 24, 2026 ↗ with the 10-K filed Feb 26, 2025 ↗.

25

What to watch going forwardSite analysis

  • LSP Portfolio integration and PJM capacity revenue.
  • Data center contracts in Texas.
  • Debt reduction versus buybacks.
  • New CEO Robert Gaudette’s strategy.

26

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: October 30, 2026 · Financial data fetched: October 30, 2026 14:38 (SEC EDGAR) · Source 10-K filed: February 24, 2026

Built on10-K FY2025 · filed 2026-02-24Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent NRG Energy’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.