Constellation Reports Fourth Quarter and Full Year 2025 Results
BALTIMORE--( BUSINESS WIRE)--Constellation Energy Corporation (Nasdaq: CEG) today reported its financial results for the fourth quarter and full year 2025.
“Constellation enters 2026 well positioned to meet the nation’s growing demand for reliable, clean electricity. This past year, we welcomed Calpine to our company – expanding our generation portfolio, strengthening our commercial platform and enhancing our ability to serve customers nationwide,” said Joe Dominguez, president and CEO of Constellation. “With the nation’s largest nuclear fleet at the core of our strategy, we’re pairing the grid’s most reliable power with flexible resources to meet accelerating demand driven by electrification and the data economy. Our long-term agreements with Microsoft, Meta and most recently CyrusOne demonstrate how we’re putting that expanded portfolio to work while maintaining reliability for customers and keeping costs stable. And none of this happens without our people, who deliver outstanding performance every day. We’re at a pivotal moment for American competitiveness, and Constellation is ready to meet it.”
“For the fourth consecutive year, Constellation delivered full-year earnings that exceeded the midpoint of our guidance range, reflecting strong commercial execution and industry-leading performance from our nuclear fleet,” said Shane Smith, executive vice president and chief financial officer. “After closing the Calpine transaction, we enter 2026 with the financial strength and flexibility to continue investing in growth and extending the life of our portfolio while delivering long-term value for shareholders. We look forward to sharing our financial outlook and strategy for 2026 and beyond with you on our March 31st conference call.”
Fourth Quarter 2025
Our GAAP Net Income (Loss) for the fourth quarter of 2025 decreased to $1.38 per share from $2.71 per share in the fourth quarter of 2024. Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2025 decreased to $2.30 per share from $2.44 per share in the fourth quarter of 2024. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation section below.
Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2025 primarily reflects:
Full Year 2025
Our GAAP Net Income for 2025 decreased to $7.40 per share compared to $11.89 per share in 2024. Adjusted (non-GAAP) Operating Earnings for 2025 increased to $9.39 per share from $8.67 per share in 2024. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation section below.
Adjusted (non-GAAP) Operating Earnings for the full year 2025 primarily reflects:
Recent Developments and Highlights
GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation
The table below provides a reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings. Adjusted (non-GAAP) Operating Earnings is not a standardized financial measure and may not be comparable to other companies’ presentations of similarly titled measures.
Unless otherwise noted, the income tax impact of each reconciling adjustment between GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part, which may result in an effective tax rate that differs from the marginal rate. The marginal statutory income tax rate was 25.6% and 25.5% for the three and twelve months ended December 31, 2025 and 2024, respectively. The following table provides a reconciliation between GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings for the three and twelve months ended December 31, 2025 compared to the same period in 2024.
Three Months Ended December 31,
2025
2024
(In millions, except per share data)
Earnings Per
Share (a)
Earnings Per
Share (a)
GAAP Net Income (Loss) Attributable to Common Shareholders
$
432
$
1.38
$
852
$
2.71
Unrealized (Gain) Loss on Fair Value Adjustments (net of taxes $80 and $82, respectively) (b)
231
0.74
(241
)
(0.77
)
Plant Retirements and Divestitures (net of taxes $1 and $14, respectively)
2
0.01
(40
)
(0.13
)
Decommissioning-Related Activities (net of taxes $109 and $99, respectively) (c)
(13
)
(0.04
)
177
0.56
Pension & OPEB Non-Service (Credits) Costs (net of taxes $4 and $1, respectively)
11
0.04
4
0.01
Acquisition-Related Costs (net of taxes ($13) and $2, respectively) (d)
47
0.15
6
0.02
Change in Environmental Liabilities (net of taxes $1 and $2, respectively)
3
0.01
5
0.02
ERP System Implementation Costs (net of taxes $— and $—, respectively)
—
—
1
—
Income Tax-Related Adjustments (e)
9
0.03
3
0.01
Noncontrolling Interests (f)
(3
)
(0.01
)
(2
)
(0.01
)
Adjusted (non-GAAP) Operating Earnings
$
719
$
2.30
$
765
$
2.44
Twelve Months Ended December 31,
2025
2024
(In millions, except per share data)
Earnings Per
Share (a)
Earnings Per
Share (a)
GAAP Net Income (Loss) Attributable to Common Shareholders
$
2,319
$
7.40
$
3,749
$
11.89
Unrealized (Gain) Loss on Fair Value Adjustments (net of taxes $243 and $346, respectively) (b)
709
2.26
(1,026
)
(3.25
)
Plant Retirements and Divestitures (net of taxes $5 and $9, respectively)
15
0.05
28
0.09
Decommissioning-Related Activities (net of taxes $535 and $244, respectively) (c)
(254
)
(0.81
)
(50
)
(0.16
)
Pension & OPEB Non-Service (Credits) Costs (net of taxes $13 and $2, respectively)
38
0.12
5
0.02
Acquisition-Related Costs (net of taxes $4 and $2, respectively) (d)
97
0.31
6
0.02
Change in Environmental Liabilities (net of taxes $2 and $22, respectively)
5
0.02
65
0.21
Separation Costs (net of taxes $— and $3, respectively)
—
—
9
0.03
ERP System Implementation Costs (net of taxes $— and $3, respectively)
—
—
8
0.02
Income Tax-Related Adjustments (e)
22
0.07
(52
)
(0.17
)
Noncontrolling Interests (f)
(7
)
(0.02
)
(7
)
(0.02
)
Adjusted (non-GAAP) Operating Earnings
$
2,944
$
9.39
$
2,735
$
8.67
________
Amounts may not sum due to rounding. Earnings per share amount is based on average diluted common shares outstanding of 313 million and 314 million for the three months ended December 31, 2025 and 2024, respectively and 314 million and 315 million for the twelve months ended December 31, 2025 and 2024, respectively.
Includes unrealized gains and losses on economic hedges, interest rate swaps, and fair value adjustments related to gas imbalances and equity investments.
Reflects all gains and losses associated with Nuclear Decommissioning Trusts (NDTs), Asset Retirement Obligation (ARO) accretion, Asset Retirement Cost (ARC) depreciation, ARO remeasurement, and impacts of contractual offset for Regulatory Agreement Units. The tax effects of Regulatory Agreement Units result in a 100% effective tax rate under contractual offset accounting. Additionally, the tax effects of NDT investment returns result in different effective tax rates depending on whether the underlying funds are held within qualified or non-qualified trusts.
Reflects acquisition-related costs associated with the Calpine merger. The majority of these expenses are not tax deductible.
Adjustment to deferred income taxes due to changes in forecasted apportionment.
Represents elimination of the noncontrolling interest portion of certain adjustments included above.
Constellation Energy Corporation
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
Three Months Ended December 31, 2025
Three Months Ended December 31, 2024
GAAP (a)
Non-GAAP
Adjustments
GAAP (a)
Non-GAAP
Adjustments
Operating revenues
$
6,074
$
437
(b),(c)
$
5,382
$
453
(b),(c)
Operating expenses
Purchased power and fuel
3,598
161
(b)
2,591
609
(b)
Operating and maintenance
1,486
(105
)
(c),(f),(h),(i)
1,493
(78
)
(c),(e),(f),(h),(i)
Depreciation and amortization
242
(24
)
(c)
255
(38
)
(c),(f)
Taxes other than income taxes
150
—
140
—
Total operating expenses
5,476
4,479
Gain (loss) on sales of assets and businesses
—
—
69
(69
)
(f)
Operating income (loss)
598
972
Other income and (deductions)
Interest expense, net
(113
)
(17
)
(b)
(90
)
(36
)
(b)
Other, net
207
(144
)
(b),(c),(d)
(23
)
66
(b),(c),(d)
Total other income and (deductions)
94
(113
)
Income (loss) before income taxes
692
859
Income tax (benefit) expense
259
(46
)
(b),(c),(d),(f),(h),(i),(j)
6
6
(b),(c),(d),(f),(h),(i),(j)
Equity in income (losses) of unconsolidated affiliates
(1
)
—
(3
)
—
Net income (loss)
432
850
Net income (loss) attributable to noncontrolling interests
—
3
(g)
(2
)
2
(g)
Net income (loss) attributable to common shareholders
$
432
$
852
Effective tax rate
37.4
%
0.7
%
Earnings per average common share
Basic
$
1.38
$
2.72
Diluted
$
1.38
$
2.71
Average common shares outstanding
Basic
313
314
Diluted
313
314
_________
Results reported in accordance with GAAP.
Adjustment for unrealized gains and losses on economic hedges, interest rate swaps, and fair value adjustments related to gas imbalances and equity investments.
Adjustment for all gains and losses associated with Nuclear Decommissioning Trusts (NDT), Asset Retirement Obligation (ARO) accretion, Asset Retirement Cost (ARC) Depreciation, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.
Adjustment for Pension and Other Postretirement Employee Benefits (OPEB) Non-Service credits.
In 2024, adjustment for costs related to a multi-year Enterprise Resource Program (ERP) system implemented in the first quarter of 2024.
Adjustments related to plant retirements and divestitures.
Adjustment for elimination of the noncontrolling interest portion of certain adjustments included above.
Adjustment for changes in environmental liabilities.
Reflects acquisition-related costs associated with the Calpine merger.
Adjustment to deferred income taxes due to changes in forecasted apportionment.
Constellation Energy Corporation
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
Twelve Months Ended December 31, 2025
Twelve Months Ended December 31, 2024
GAAP (a)
Non-GAAP
Adjustments
GAAP (a)
Non-GAAP
Adjustments
Operating revenues
$
25,533
$
776
(b),(c)
$
23,568
$
(321
)
(b),(c)
Operating expenses
Purchased power and fuel
14,681
156
(b)
11,419
1,018
(b)
Operating and maintenance
6,159
(359
)
(c),(g),(i),(j),
6,159
(292
)
(c),(d),(f),(g),(i),(j),
Depreciation and amortization
985
(116
)
(c),(g)
1,123
(212
)
(c),(g)
Taxes other than income taxes
622
—
586
—
Total operating expenses
22,447
19,287
Gain (loss) on sales of assets and businesses
—
—
71
(71
)
(g)
Operating income (loss)
3,086
4,352
Other income and (deductions)
Interest expense, net
(511
)
22
(b)
(506
)
(19
)
(b)
Other, net
936
(775
)
(b),(c),(e)
670
(580
)
(b),(c),(e)
Total other income and (deductions)
425
164
Income (loss) before income taxes
3,511
4,516
Income tax (benefit) expense
1,187
(290
)
(b),(c),(e),(g),(i),(j),(k)
774
(498
)
(b),(c),(d),(e),(f),(g),(i),(j),(k)
Equity in income (losses) of unconsolidated affiliates
(1
)
—
(4
)
—
Net income (loss)
2,323
3,738
Net income (loss) attributable to noncontrolling interests
4
7
(h)
(11
)
7
(h)
Net income (loss) attributable to common shareholders
$
2,319
$
3,749
Effective tax rate
33.8
%
17.1
%
Earnings per average common share
Basic
$
7.40
$
11.91
Diluted
$
7.40
$
11.89
Average common shares outstanding
Basic
313
315
Diluted
314
315
_________
Results reported in accordance with GAAP.
Adjustment for unrealized gains and losses on economic hedges, interest rate swaps, and fair value adjustments related to gas imbalances and equity investments.
Adjustment for all gains and losses associated with NDTs, ARO accretion, ARC Depreciation, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.
In 2024, adjustment for certain incremental costs related to the separation (system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation), including a portion of the amounts billed to us pursuant to the transition services agreement (TSA).
Adjustment for Pension and OPEB Non-Service credits.
In 2024, adjustment for costs related to a multi-year ERP system implemented in the first quarter of 2024.
Adjustment related to plant retirements and divestitures.
Adjustment for elimination of the noncontrolling interest portion of certain adjustments included above.
Adjustment for changes in environmental liabilities.
Reflects acquisition-related costs associated with the Calpine merger.
Adjustment to deferred income taxes due to changes in forecasted apportionment.