NRG Energy, Inc. Reports Full Year 2025 Financial Results

HOUSTON--( BUSINESS WIRE)--NRG Energy, Inc. (NYSE: NRG) today reported GAAP Net Income of $66 million for the three months ended December 31, 2025 and $0.9 billion for the full year 2025. GAAP EPS — basic was $4.09, Cash Provided by Operating Activities was $1.9 billion, Adjusted Net Income was $1.6 billion, Adjusted EPS was $8.24, Adjusted EBITDA was $4.1 billion, and Free Cash Flow before Growth (FCFbG) was $2.2 billion for the full year 2025.

“We've doubled our generation footprint, advanced 1.5 GW of new generation through three Texas Energy Fund projects, and expanded our demand response and residential VPP capabilities,” said Larry Coben, NRG Chair and Chief Executive Officer. “This enhances NRG’s ability to provide resilient and affordable solutions to our customers during this power demand supercycle. We expect to add significant new capacity for data centers through our bring your own power strategy and new innovative, affordable products for everyone from the household to the hyperscaler.”

Consolidated Financial Results

Table 1

Three Months Ended

Twelve Months Ended

(In millions, except per share amounts)

12/31/25

12/31/24

12/31/25

12/31/24

GAAP Net Income

643

864

1,125

Adjusted Net Income a b

200

316

1,606

1,408

GAAP EPS — basic c

0.26

3.10

4.09

5.14

Adjusted EPS a d

1.04

1.56

8.24

6.83

Adjusted EBITDA a

847

902

4,087

3,789

Cash Provided/(Used) by Operating Activities

123

952

1,913

2,306

Free Cash Flow Before Growth Investments (FCFbG) a

175

624

2,210

2,062

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 Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives

b Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see Appendix tables A-1 through A-4

c GAAP Income per Weighted Average Common Share - Basic

d Adjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic

NRG's GAAP Net Income for the full year 2025 was $261 million lower than prior year. The year-over-year change was primarily driven by unrealized non-cash mark-to-market losses on open positions related to economic hedges compared to gains in 2024. Certain economic hedge positions that impact NRG’s GAAP Net Income are required to be marked-to-market every period, while the customer contracts related to these items are not, resulting in temporary unrealized non-cash losses or gains on the economic hedges that are not reflective of the expected economics at future settlement. The decrease was also driven by the sale of Airtron in 2024 and the termination of the Cottonwood lease in 2025, partially offset by strong Texas and Vivint Smart Home performance in 2025 and a loss on debt extinguishment recorded in 2024.

Adjusted Net Income for the full year 2025 was $1.6 billion, $198 million higher than prior year, primarily driven by $298 million improvement in Adjusted EBITDA described in the segment results below. This was partially offset by increased interest expense primarily driven by the funding of the acquisition of assets and CPower from LS Power. Adjusted EPS was $8.24 for full year 2025, $1.41 higher than prior year as a result of strong financial and operating performance, as well as reduction of 11 million in the weighted average number of basic common shares outstanding.

Reaffirming 2026 Guidance

On February 2, 2026, NRG announced updated guidance following the close of its acquisition of a portfolio of assets and CPower from LS Power on January 30, 2026. The updated guidance reflects approximately 11 months of ownership of these assets in 2026.

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,b

2026

(In millions, except per share amounts)

Guidance

Guidance Midpoint

Adjusted Net Income

$1,685 - $2,115

$1,900

Adjusted EPS

$7.90 - $9.90

$8.90

Adjusted EBITDA

$5,325 - $5,825

$5,575

FCFbG

$2,800 - $3,300

$3,050

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

b Reflects the Company’s previously communicated 2026 outlook, updated to incorporate approximately 11 months of ownership of the portfolio acquired from LS Power. The updated guidance therefore includes approximately 90% of the acquired portfolio’s estimated full-year 2026 contribution.

Capital Allocation

In 2025, the Company returned $1.6 billion to shareholders through $1.3 billion in share repurchases and $344 million in common stock dividends. On October 8, 2025, the Company issued $4.9 billion of Notes to partially fund the acquisition of assets and CPower from LS Power and refinance its Senior Secured First Lien Notes due in 2025. In addition, the Company executed $310 million in liability management.

For 2026, the Company reiterates its previously announced capital allocation plan, which includes $1.0 billion in share repurchases, and common stock dividends of approximately $400 million. As of January 31, 2026, the Company has executed $100 million in share repurchases.

On January 23, 2026, NRG declared a quarterly dividend of $0.475 per common share, or $1.90 per share on an annualized basis. This dividend represented an 8% increase, in line with the Company's annual dividend target growth rate of 7-9% per share. The dividend was paid on February 17, 2026, to common stockholders of record as of February 2, 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 NRG’s 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

Completed Acquisition of 13 GW of Power Generation Assets and CPower from LS Power

On January 30, 2026, NRG closed on the acquisition of assets and CPower from LS Power. The transaction included 18 natural-gas and dual fuel facilities totaling 13 GW across nine states and CPower's C&I demand response platform. Combined, this highly accretive transaction doubles NRG's generation capacity, boosts upside opportunities from the power demand supercycle, and expands the Company's broad range of affordable and resilient solutions for customers large and small.

Texas Energy Fund (TEF)

On November 20, 2025, NRG entered into a $370 million loan agreement with the Public Utility Commission of Texas (PUCT) under the TEF for a low-interest rate loan at 3% to support development of its 443 MW Greens Bayou generation facility. Initial disbursement of funds occurred in November 2025 and is expected to continue through the projected mid-2028 commercial operations date.

NRG now has three projects funded through the program totaling 1.5 GW of new generation in Texas, supported by $1.15 Bn in low-interest financing. Construction is underway, with all three projects on time and on budget. The Company expects commercial operations at the first project, T.H. Wharton, in June 2026. These projects underscore NRG's commitment to delivering high-quality dispatchable generation to meet the growing energy needs of Texas consumers.

Texas Residential VPP

On August 6, 2025, NRG raised its 2025 Texas Residential Virtual Power Plant target to 150 MW, up from 20 MW, following strong customer adoption of the Home Essentials and other offerings. The program exceeded its 2025 target and remains on track to achieve 650 MW in Texas by 2030 and 1 GW by 2035.

Segment Results

Table 3: Adjusted EBITDA a

(In millions)

Three Months Ended

Twelve Months Ended

Segment

12/31/25

12/31/24

12/31/25

12/31/24

Texas

259

327

1,877

1,582

East

301

282

981

1,006

West/Other b

137

190

Vivint Smart Home

275

1,092

1,011

Adjusted EBITDA

847

902

4,087

3,789

a Adjusted 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

b Includes Corporate activities

Texas: Full year 2025 Adjusted EBITDA was $1,877 million, $295 million higher than the prior year. The increase is primarily driven by improved margins and supply cost optimization, partially offset by higher planned plant maintenance expenditure.

East: Full year 2025 Adjusted EBITDA was $981 million, $25 million lower than prior year. This decrease is primarily driven by higher cost to serve retail load, higher planned plant maintenance expenditure, and retirement of the Indian River facility, partially offset by higher natural gas wholesale margins and higher capacity prices for owned generation.

West/Other: Full year 2025 Adjusted EBITDA was $137 million, $53 million lower than prior year. This decrease is primarily driven by the sale of Airtron in September 2024 and termination of the Cottonwood lease in May 2025, partially offset by higher retail power margins.

Vivint Smart Home: Full year Adjusted EBITDA was $1,092 million, $81 million higher than prior year. The increase is attributable to growth in customer count, driven by record new customer adds and continued strong customer retention, and an increase in monthly recurring service margin per customer.

Liquidity and Capital Resources

Table 4: Corporate Liquidity

(In millions)

12/31/25

12/31/24

Cash and Cash Equivalents

4,708

966

Restricted Cash

Total

4,738

974

Total credit facility availability

4,890

4,469

Total Liquidity, excluding collateral received

9,628

5,443

As of December 31, 2025, NRG's unrestricted cash was $4.7 billion, and $4.9 billion was available under the Company’s credit facilities. Total liquidity was $9.6 billion, which was $4.2 billion higher than December 31, 2024. The increase was driven by $4.9 billion of newly-issued secured and unsecured corporate debt primarily to fund the acquisition of assets and CPower from LS Power.

Earnings Conference Call

On February 24, 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. Visit nrg.com for more information, and connect with us on Facebook, Instagram, LinkedIn, and X.

Safe Harbor

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 and Section 21E of the Exchange Act. 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 and escalation of international trade disputes (and inflationary impacts resulting therefrom), risks associated with the integration of the 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, 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 the Company’s products and services and limit its ability to recover costs, 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 market operations and 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 proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, the inability to maintain or create successful partnering relationships, NRG’s ability to operate its business efficiently, NRG’s ability to retain retail customers, the ability to successfully integrate businesses of acquired assets or companies, 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 SEC.

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 Net Income, Adjusted EPS, Adjusted EBITDA and Free Cash Flow before Growth guidance are estimates as of February 24, 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 Securities and Exchange Commission 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

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Year Ended December 31,

(In millions, except per share amounts)

2025

2024

2023

Revenue

30,713

28,130

28,823

Operating Costs and Expenses

Cost of operations (excluding depreciation and amortization shown below)

24,761

22,100

26,483

Depreciation and amortization

1,406

1,403

1,295

Impairment losses

—

Selling, general and administrative costs (excluding amortization of customer acquisition costs of $295, $204 and $125, respectively, which are included in depreciation and amortization shown separately above)

2,602

2,345

2,094

Acquisition-related transaction and integration costs

119

Total operating costs and expenses

28,843

25,914

30,017

(Loss)/Gain on sale of assets

(25

)

208

1,578

Operating Income

1,845

2,424

384

Other Income/(Expense)

Equity in earnings of unconsolidated affiliates

Impairment losses on investments

(39

)

(102

)

Other income, net

(Loss)/Gain on debt extinguishment

(10

)

(382

)

109

Interest expense

(741

)

(651

)

(667

)

Total other expense

(711

)

(976

)

(597

)

Income/(Loss) Before Income Taxes

1,134

1,448

(213

)

Income tax expense/(benefit)

270

323

(11

)

Net Income/(Loss)

864

1,125

(202

)

Less: Cumulative dividends attributable to Series A Preferred Stock

Net Income/(Loss) Available for Common Stockholders

797

1,058

(256

)

Income/(Loss) Per Share

Weighted average number of common shares outstanding — basic

195

206

228

Income/(Loss) per Weighted Average Common Share — Basic

4.09

5.14

(1.12

)

Weighted average number of common shares outstanding — diluted

199

212

228

Income/(Loss) per Weighted Average Common Share — Diluted

4.01

4.99

(1.12

)

NRG ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

For the Year Ended December 31,

(In millions)

2025

2024

2023

Net Income/(Loss)

864

1,125

(202

)

Other Comprehensive Income/(Loss), net of tax

Foreign currency translation adjustments

(22

)

Defined benefit plans

)

Other comprehensive income/(loss)

(26

)

Comprehensive Income/(Loss)

900

1,099

(163

)

NRG ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of December 31,

(In millions)

2025

2024

ASSETS

Current Assets

Cash and cash equivalents

4,708

966

Funds deposited by counterparties

260

199

Restricted cash

Accounts receivable, net

4,065

3,488

Inventory

461

478

Derivative instruments

2,189

2,686

Cash collateral paid in support of energy risk management activities

365

309

Prepayments and other current assets

1,069

830

Total current assets

13,147

8,964

Property, plant and equipment, net

3,632

2,021

Other Assets

Equity investments in affiliates

Operating lease right-of-use assets, net

130

151

Goodwill

5,017

5,011

Customer relationships, net

1,203

1,538

Other intangible assets, net

1,106

1,370

Derivative instruments

1,568

1,710

Deferred income taxes

1,843

2,067

Other non-current assets

1,478

1,145

Total other assets

12,361

13,037

Total Assets

29,140

24,022

NRG ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Continued)

As of December 31,

(In millions, except share data)

2025

2024

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Current portion of long-term debt and finance leases

996

Current portion of operating lease liabilities

Accounts payable

2,834

2,513

Derivative instruments

2,257

2,297

Cash collateral received in support of energy risk management activities

260

199

Deferred revenue current

748

711

Accrued expenses and other current liabilities

1,864

2,031

Total current liabilities

8,029

8,813

Other Liabilities

Long-term debt and finance leases

16,412

9,812

Non-current operating lease liabilities

144

117

Derivative instruments

1,103

1,107

Deferred income taxes

Deferred revenue non-current

895

862

Other non-current liabilities

861

821

Total other liabilities

19,430

12,731

Total Liabilities

27,459

21,544

Commitments and Contingencies

Stockholders' Equity

Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at December 31, 2025 and 2024 (aggregate liquidation preference $650)

650

Common stock; $0.01 par value; 500,000,000 shares authorized; 199,828,615 and 205,064,058 shares issued; and 190,376,607 and 198,604,003 shares outstanding at December 31, 2025 and 2024, respectively

Additional paid-in capital

215

705

Retained earnings

1,982

1,535

Treasury stock, at cost; 9,452,008 and 6,460,055 shares at December 31, 2025 and 2024, respectively

(1,087

)

(297

)

Accumulated other comprehensive loss

(81

)

(117

)

Total Stockholders' Equity

1,681

2,478

Total Liabilities and Stockholders' Equity

29,140

24,022

NRG ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year Ended December 31,

(In millions)

2025

2024

2023

Cash Flows from Operating Activities

Net Income/(Loss)

864

1,125

(202

)

Adjustments to reconcile net income/(loss) to cash provided by operating activities:

Depreciation of property, plant and equipment and amortization of customer relationships and other intangible assets

896

1,071

1,127

Amortization of capitalized contract costs

510

332

168

Accretion of asset retirement obligations

Provision for credit losses

272

314

251

Amortization of nuclear fuel

—

Amortization of financing costs and debt discounts

Loss/(gain) on debt extinguishment

382

(109

)

Amortization of in-the-money contracts and emissions allowances

105

137

Amortization of unearned equity compensation

134

102

101

Net loss/(gain) on sale of assets and disposal of assets

(192

)

(1,559

)

Gain on proceeds from insurance recoveries for property, plant and equipment, net

(100

)

—

(164

)

Impairment losses

128

Changes in derivative instruments

450

(337

)

2,455

Changes in current and deferred income taxes and liability for uncertain tax benefits

213

165

(92

)

Changes in collateral deposits in support of risk management activities

245

(1,806

)

Equity in and distributions from earnings of unconsolidated affiliates

)

(13

)

Cash (used)/provided by changes in other working capital:

Accounts receivable - trade

(760

)

(366

)

1,004

Inventory

111

189

Prepayments and other current assets

(757

)

(539

)

(401

)

Accounts payable

192

170

(1,455

)

Accrued expenses and other current liabilities

136

360

Other assets and liabilities

(309

)

(621

)

(473

)

Cash provided/(used) by operating activities

1,913

2,306

(221

)

Cash Flows from Investing Activities

Payments for acquisitions of businesses and assets, net of cash acquired

(596

)

(38

)

(2,523

)

Capital expenditures

(1,147

)

(472

)

(598

)

Proceeds from sales of assets, net of cash disposed

501

2,007

Net purchases of emissions allowances

)

(18

)

(24

)

Proceeds from insurance recoveries for property, plant and equipment, net

100

240

Investments in nuclear decommissioning trust fund securities

—

(367

)

Proceeds from the sale of nuclear decommissioning trust fund securities

—

355

Cash used by investing activities

(1,638

)

(24

)

(910

)

Cash Flows from Financing Activities

Proceeds from issuance of preferred stock, net of fees

—

635

Equivalent shares purchased in lieu of tax withholdings

(92

)

(50

)

(22

)

Payments for share repurchase activity and excise tax (a)

(1,311

)

(935

)

(1,150

)

Payment for settlement of capped call options (b)

(292

)

—

Payments of dividends to preferred and common stockholders

(411

)

(405

)

(381

)

Proceeds from issuance of long-term debt

6,676

3,200

731

Repayments of long-term debt and finance leases

(1,005

)

(3,255

)

(523

)

Payments for debt extinguishment costs

—

(262

)

—

Payments of deferred financing costs

(78

)

(45

)

(32

)

Net receipts/(payments) from settlement of acquired derivatives that include financing elements

)

342

Proceeds from credit facilities

1,575

1,050

3,020

Repayments to credit facilities

(1,575

)

(1,050

)

(3,020

)

Cash provided/(used) by financing activities

3,546

(1,755

)

(400

)

Effect of exchange rate changes on cash and cash equivalents

)

Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash

3,825

524

(1,529

)

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period

1,173

649

2,178

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period

4,998

1,173

649

(a) Includes excise tax paid of $9 million during the year ended December 31, 2025

(b) Includes $16 million of payments for shares received from the exercise of the Capped Call Options.

Appendix Table A-1: Fourth 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 7,8

Earnings

Per Share,

Diluted 7,8

Net Income/(Loss) Available for Common Stockholders

106

228

(69

)

(249

)

0.26

Cumulative dividends attributable to Series A Preferred Stock

0.08

Net Income/(Loss)

106

228

(69

)

(233

)

0.34

Plus:

Interest expense, net

—

191

0.99

0.98

Income tax (benefit)

—

)

(0.01

)

(0.01

)

Depreciation and amortization

103

218

376

1.96

1.94

ARO expense

—

0.04

Contract and emission credit amortization, net

—

0.06

Stock-based compensation 1

—

0.28

0.27

Acquisition and divestiture integration and transaction costs

—

0.08

Cost to achieve 1

—

0.04

Deactivation costs

—

0.03

Loss on sale of assets

—

0.09

Other and non-recurring charges 2

—

(24

)

0.20

Impairments

—

0.20

Mark-to-market (MtM) (gain)/loss on economic hedges 3

)

(42

)

—

0.09

Adjusted EBITDA

259

301

275

(14

)

847

4.41

4.37

Adjusted interest expense, net 4

—

(194

)

(194

)

(1.01

)

(1.00

)

Depreciation and amortization

(103

)

(38

)

(218

)

(376

)

(1.96

)

(1.94

)

Adjusted Income before income taxes

156

263

(217

)

277

1.44

1.43

Adjusted income tax expense 5

—

(61

)

(61

)

(0.32

)

(0.31

)

Adjusted Net Income before Preferred Stock dividends

156

263

(278

)

216

1.13

1.11

Cumulative dividends attributable to Series A Preferred Stock

—

(16

)

(16

)

(0.08

)

(0.08

)

Adjusted Net Income 6

156

263

(294

)

200

1.04

1.03

1 Stock-based compensation of $2 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense

2 Includes reserves for legal matters

3 Loss of $18 million was primarily driven by unrealized non-cash mark-to-market losses on economic hedges due to decreases in natural gas and power prices in the West

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

5 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

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 192 million and on weighted average number of common shares outstanding - diluted of 194 million for the three months ended December 31, 2025

Fourth Quarter 2025 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart Home

Corp/Elim

Total

Revenue 1

2,479

3,925

804

559

)

7,761

Cost of fuel, purchased energy and other cost of sales 2

1,674

3,316

722

)

5,763

Economic gross margin

805

609

507

)

1,998

Operations & maintenance and other cost of operations 3

306

145

549

Selling, marketing, general and administrative 4

240

162

157

610

Other

—

)

—

)

Adjusted EBITDA

259

301

275

(14

)

847

Adjusted interest expense, net 5

—

(194

)

(194

)

Depreciation and amortization

(103

)

(38

)

(218

)

(376

)

Adjusted Income before income taxes

156

263

(217

)

277

Adjusted income tax expense 5

—

(61

)

(61

)

Adjusted Net Income before Preferred Stock dividends

156

263

(278

)

216

Cumulative dividends attributable to Series A Preferred Stock

—

(16

)

(16

)

Adjusted Net Income 5

156

263

(294

)

200

Weighted average number of common shares outstanding - basic

192

Adjusted EPS

1.04

1 Excludes MtM loss of $6 million and contract amortization of $2 million

2 Includes TDSP expense, capacity and emission credits

3 Excludes ARO expense of $7 million, deactivation costs of $6 million, stock-based compensation of $4 million and other and non-recurring charges of $(21) million

4 Excludes stock-based compensation of $49 million, other and non-recurring charges of $49 million, cost to achieve of $8 million and acquisition and divestiture integration and transaction costs of $1 million

5 See previous table for details

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

Income 3

Adjusted

Net

Income 4

Revenue

7,753

—

7,761

—

7,761

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

5,785

(10

)

(12

)

—

5,763

—

5,763

Depreciation and Amortization

376

(376

)

—

376

Gross margin

1,592

388

—

1,998

(376

)

1,622

Operations & maintenance and other cost of operations

545

—

)

549

—

549

Selling, marketing, general & administrative

717

—

(107

)

610

—

610

Other

264

(189

)

—

(83

)

255

247

Net Income/(Loss)

577

180

847

(631

)

216

Less: Cumulative dividends attributable to Series A Preferred Stock

(16

)

—

Net Income/(Loss) available for common stockholders

577

196

847

(647

)

200

1 Excludes operations & maintenance and other cost of operations of $545 million

2 Other adj. includes stock-based compensation of $53 million, other and non-recurring charges of $39 million, impairments of $39 million, loss on sale of assets $18 million, acquisition and divestiture integration and transaction costs of $16 million, cost to achieve of $8 million, and ARO expense of $7 million

3 Other includes adjusted interest expense, net of $194 million and adjusted income tax expense of $61 million

4 See previous table for details

Appendix Table A-2: Fourth Quarter 2024 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 7,8

Earnings

Per Share,

Diluted 7,8

Net Income/(Loss) Available for common stockholders

273

686

(350

)

627

3.10

3.01

Cumulative Dividends attributable to Series A Preferred Stock

0.08

Net Income/(Loss)

273

686

(334

)

643

3.18

3.09

Plus:

Interest expense, net

—

109

0.54

0.52

Income tax expense

—

0.36

0.35

Loss on debt extinguishment

—

122

0.60

0.59

Depreciation and amortization

210

358

1.77

1.72

ARO Expense

—

0.02

Contract and emission credit amortization, net

—

0.05

Stock-based compensation

—

0.10

Acquisition and divestiture integration and transaction costs

—

0.04

Cost to achieve

—

0.02

Deactivation costs

—

0.03

Loss on sale of assets 1

—

0.02

Other and non-recurring charges 2

(23

)

—

Impairments

—

0.14

0.13

Mark-to-market (MtM) (gain) on economic hedges 3

(23

)

(450

)

(16

)

—

(489

)

(2.42

)

(2.35

)

Adjusted EBITDA

327

282

275

(11

)

902

4.47

4.34

Adjusted interest expense, net 4

—

(143

)

(143

)

(0.71

)

(0.69

)

Depreciation and amortization

(83

)

(41

)

(14

)

(210

)

(10

)

(358

)

(1.77

)

(1.72

)

Adjusted Income before income taxes

244

241

(164

)

401

1.99

1.93

Adjusted income tax expense 5

—

(69

)

(69

)

(0.34

)

(0.33

)

Adjusted Net Income before Preferred Stock dividends

244

241

(233

)

332

1.64

1.60

Cumulative dividends attributable to Series A Preferred Stock

—

(16

)

(16

)

(0.08

)

(0.08

)

Adjusted Net Income 6

244

241

(249

)

316

1.56

1.52

1 Excludes sale of land not associated with a generating asset

2 Includes reserves for legal matters, offset by one-time gain from change in benefits in 2024

3 Gain of $(489) 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 gain on interest hedges of $34 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 202 million and on weighted average number of common shares outstanding - diluted of 208 million for the three months ended December 31, 2024

Fourth Quarter 2024 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart Home

Corp/Elim

Total

Revenue 1

2,356

3,102

898

514

(12

)

6,858

Cost of fuel, purchased energy and other cost of sales 2

1,549

2,536

772

)

4,890

Economic gross margin

807

566

126

476

)

1,968

Operations & maintenance and other cost of operations 3

253

128

)

490

Selling, marketing, general & administrative 4

229

159

133

574

Other

)

—

Adjusted EBITDA

327

282

275

(11

)

902

Adjusted interest expense, net 5

—

(143

)

(143

)

Depreciation and amortization

(83

)

(41

)

(14

)

(210

)

(10

)

(358

)

Adjusted Income before income taxes

244

241

(164

)

401

Adjusted income tax expense 5

—

(69

)

(69

)

Adjusted Net Income before Preferred Stock dividends

244

241

(233

)

332

Cumulative dividends attributable to Series A Preferred Stock

—

(16

)

(16

)

Adjusted Net Income 5

244

241

(249

)

316

Weighted average number of common shares outstanding - basic

202

Adjusted EPS

1.56

1 Excludes MtM loss of $35 million and contract amortization of $4 million

2 Includes TDSP expense, capacity and emission credits

3 Excludes deactivation costs of $7 million, ARO expense of $5 million, stock-based compensation of $2 million and other and non-recurring charges of $(5) million

4 Excludes stock-based compensation of $18 million and acquisition, other and non-recurring charges of $9 million and cost to achieve of $5 million

5 See previous table for details

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

Income 3

Adjusted

Net

Income 4

Revenue

6,819

—

6,858

—

6,858

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

4,372

)

524

—

4,890

—

4,890

Depreciation and amortization

358

(358

)

—

358

Gross margin

2,089

368

(489

)

—

1,968

(358

)

1,610

Operations & maintenance and other cost of operations

499

—

)

490

—

490

Selling, marketing, general & administrative

606

—

(32

)

574

—

574

Other

341

(181

)

—

(158

)

212

214

Net Income/(Loss)

643

549

(489

)

192

902

(570

)

332

Less: Cumulative dividends attributable to Series A Preferred Stock

(16

)

—

Net Income/(Loss) available for common stockholders

627

549

(489

)

208

902

(586

)

316

1 Excludes operations & maintenance and other cost of operations of $499 million

2 Other adj. includes loss on debt extinguishment of $122 million, impairments of $28 million, stock-based compensation of $20 million, acquisition and divestiture integration and transaction costs of $8 million, cost to achieve of $5 million, ARO expense of $5 million, and loss on sale of assets of $4 million

3 Other includes adjusted interest expense, net of $143 million and adjusted income tax expense of $69 million

4 See previous table for details

Appendix Table A-3: Full Year 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 7,8

Earnings

Per Share,

Diluted 7,8

Net Income/(Loss) Available for common stockholders

1,112

710

120

(1,178

)

797

4.09

4.01

Cumulative Dividends attributable to Series A Preferred Stock

0.34

Net Income/(Loss)

1,112

710

120

(1,111

)

864

4.43

4.34

Plus:

Interest expense, net

—

658

3.37

3.31

Income tax expense

—

270

1.38

1.36

Loss on debt extinguishment

—

0.05

Depreciation and amortization

374

148

810

1,406

7.21

7.07

ARO expense

—

0.15

Contract and emission credit amortization, net

—

0.30

Stock-based compensation 1

—

129

0.66

0.65

Acquisition and divestiture integration and transaction costs 1

—

0.38

Cost to achieve 1

—

0.09

Deactivation costs

—

0.15

Loss on sale of assets

—

0.13

Other and non-recurring charges 2

(100

)

(17

)

201

)

131

0.67

0.66

Impairments

—

0.20

Mark-to-market (MtM) loss/(gain) on economic hedges 3

370

)

(16

)

—

346

1.77

1.74

Adjusted EBITDA

1,877

981

180

1,092

(43

)

4,087

20.96

20.54

Adjusted interest expense, net 4

—

(648

)

(648

)

(3.32

)

(3.26

)

Depreciation and amortization

(374

)

(148

)

(32

)

(810

)

(42

)

(1,406

)

(7.21

)

(7.07

)

Adjusted Income before income taxes

1,503

833

148

282

(733

)

2,033

10.43

10.22

Adjusted income tax expense 5

—

(360

)

(360

)

(1.85

)

(1.81

)

Adjusted Net Income before Preferred Stock dividends

1,503

833

148

282

(1,093

)

1,673

8.58

8.41

Cumulative dividends attributable to Series A Preferred Stock

—

(67

)

(67

)

(0.34

)

(0.34

)

Adjusted Net Income 6

1,503

833

148

282

(1,160

)

1,606

8.24

8.07

1 Stock-based compensation of $6 million is reflected in acquisition and divestiture integration and transaction costs and $3 million is reflected in cost to achieve. Stock-based compensation includes employee stock purchase plan expense

2 Includes $(100) million of property insurance proceeds and $210 million of reserves for legal matters

3 Loss of $346 million was primarily driven by reversal of previously recognized unrealized gains on contracts that settled during the period and unrealized non-cash mark-to-market losses on economic hedges due to decreases in CAISO power prices, partially offset by increases in Northeast and ERCOT power prices

4 Excludes mark-to-market loss on interest hedges of $10 million

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 195 million and on weighted average number of common shares outstanding - diluted of 199 million for the twelve months ended December 31, 2025

Full Year 2025 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart Home

Corp/Elim

Total

Revenue 1

11,139

14,262

3,192

2,144

(30

)

30,707

Cost of fuel, purchased energy and other cost of sales 2

7,267

12,155

2,773

201

)

22,389

Economic gross margin

3,872

2,107

419

1,943

(23

)

8,318

Operations & maintenance and other cost of operations 3

1,098

532

107

265

2,015

Selling, marketing, general and administrative 4

896

598

146

586

2,235

Other

)

(14

)

—

)

(19

)

Adjusted EBITDA

1,877

981

180

1,092

(43

)

4,087

Adjusted interest expense, net 5

—

(648

)

(648

)

Depreciation and amortization

(374

)

(148

)

(32

)

(810

)

(42

)

(1,406

)

Adjusted Income before income taxes

1,503

833

148

282

(733

)

2,033

Adjusted income tax expense 5

—

(360

)

(360

)

Adjusted Net Income before Preferred Stock dividends

1,503

833

148

282

(1,093

)

1,673

Cumulative dividends attributable to Series A Preferred Stock

—

(67

)

(67

)

Adjusted Net Income 5

1,503

833

148

282

(1,160

)

1,606

Weighted average number of common shares outstanding - basic

195

Adjusted EPS

8.24

1 Excludes MtM gain of $(12) million and contract amortization of $6 million

2 Includes TDSP expense, capacity and emission credits

3 Excludes ARO expense of $29 million, deactivation costs of $29 million, stock-based compensation of $10 million and other and non-recurring charges of $(122) million

4 Excludes other and non-recurring charges of $230 million, stock-based compensation of $119 million, cost to achieve of $17 million and acquisition and divestiture integration and transaction costs of $1 million

5 See previous table for details

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

Income 3

Adjusted

Net

Income 4

Revenue

30,713

(12

)

—

30,707

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

22,800

(53

)

(358

)

—

22,389

Depreciation and amortization

1,406

(1,406

)

—

1,406

Gross margin

6,507

1,465

346

—

8,318

(1,406

)

6,912

Operations & maintenance and other cost of operations

1,961

—

(29

)

2,015

Selling, marketing, general & administrative

2,602

—

(367

)

2,235

Other

1,080

(928

)

—

(171

)

(19

)

1,008

989

Net Income/(Loss)

864

2,393

346

455

4,087

(2,414

)

1,673

Less: Cumulative dividends attributable to Series A Preferred Stock

(67

)

—

Net Income/(Loss) available for common stockholders

797

2,393

346

522

4,087

(2,481

)

1,606

1 Excludes operations & maintenance and other cost of operations of $1,961 million

2 Other adj. includes other and non-recurring charges of $131 million, stock-based compensation of $129 million, acquisition and divestiture integration and transaction costs of $75 million, impairments of $39 million, ARO expenses of $29 million, loss on sale of assets $25 million, cost to achieve of $17 million and loss on debt extinguishment of $10 million

3 Other includes adjusted interest expense, net of $648 million and adjusted income tax expense of $360 million

4 See previous table for details

Appendix Table A-4: Full Year 2024 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

534

1,805

101

109

(1,491

)

1,058

5.14

4.99

Cumulative dividends attributable to Series A Preferred Stock

0.33

0.32

Net Income/(Loss)

534

1,805

101

109

(1,424

)

1,125

5.46

5.31

Plus:

Interest expense, net

—

595

2.89

2.81

Income tax expense

—

323

1.57

1.52

Loss on debt extinguishment

—

382

1.85

1.80

Depreciation and amortization

323

158

782

1,403

6.81

6.62

ARO Expense

—

0.17

0.16

Contract and emission credit amortization, net

—

0.38

0.37

Stock-based compensation 1

—

0.48

0.47

Acquisition and divestiture integration and transaction costs 1

—

0.17

Cost to achieve 1

—

0.14

0.13

Deactivation costs

—

0.11

0.10

Loss/(gain) on sale of assets 2

—

(204

)

—

(200

)

(0.97

)

(0.94

)

Other and non-recurring charges 3

(22

)

—

)

0.14

0.13

Impairments

—

0.21

0.20

Mark to market (MtM) loss/(gain) on economic hedges 4

684

(1,060

)

170

—

(206

)

(1.00

)

(0.97

)

Adjusted EBITDA

1,582

1,006

230

1,011

(40

)

3,789

18.39

17.87

Adjusted interest expense, net 5

—

(598

)

(598

)

(2.90

)

(2.82

)

Depreciation and amortization

(323

)

(158

)

(99

)

(782

)

(41

)

(1,403

)

(6.81

)

(6.62

)

Adjusted Income before income taxes

1,259

848

131

229

(679

)

1,788

8.68

8.43

Adjusted income tax expense 6

—

(313

)

(313

)

(1.52

)

(1.48

)

Adjusted Net Income before Preferred Stock dividends

1,259

848

131

229

(992

)

1,475

7.16

6.96

Cumulative dividends attributable to Series A Preferred Stock

—

(67

)

(67

)

(0.33

)

(0.32

)

Adjusted Net Income 7

1,259

848

131

229

(1,059

)

1,408

6.83

6.64

1 Stock-based compensation of $2 million is reflected in cost to achieve and $1 million is reflected in acquisition and divestiture integration and transaction costs

2 Excludes sale of land not associated with a generating asset

3 Includes reserves for legal matters, offset by one-time gain from change in benefits in 2024

4 Gain of $(206) million was primarily driven by roll-off of 2024 positions as well as gains on economic hedges in the East due to large movements in natural gas and power prices, partially offset by losses on economic hedges in Texas and West due to movements in power prices

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

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 Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 206 million and on weighted average number of common shares outstanding - diluted of 212 million for the twelve months ended December 31, 2024

Full Year 2024 condensed financial information by Operating Segment:

(In millions, except per share amounts)

Texas

East

West/

Other

Vivint

Smart Home

Corp/Elim

Total

Revenue 1

10,651

11,759

3,805

1,991

(44

)

28,162

Cost of fuel, purchased energy and other cost of sales 2

7,230

9,714

3,188

151

(22

)

20,261

Economic gross margin

3,421

2,045

617

1,840

(22

)

7,901

Operations & maintenance and other cost of operations 3

1,007

455

213

253

1,929

Selling, marketing, general & administrative 4

832

585

211

576

2,210

Other

—

)

(37

)

—

(27

)

Adjusted EBITDA

1,582

1,006

230

1,011

(40

)

3,789

Adjusted interest expense, net 5

—

(598

)

(598

)

Depreciation and amortization

(323

)

(158

)

(99

)

(782

)

(41

)

(1,403

)

Adjusted Income before income taxes

1,259

848

131

229

(679

)

1,788

Adjusted income tax expense 5

—

(313

)

(313

)

Adjusted Net Income before Preferred Stock dividends

1,259

848

131

229

(992

)

1,475

Cumulative dividends attributable to Series A Preferred Stock

—

(67

)

(67

)

Adjusted Net Income 5

1,259

848

131

229

(1,059

)

1,408

Weighted average number of common shares outstanding - basic

206

Adjusted EPS

6.83

1 Excludes MtM loss of $3 million and contract amortization of $29 million

2 Includes TDSP expenses, capacity and emissions credits

3 Excludes ARO expense of $34 million, deactivation costs of $22 million, stock-based compensation of $9 million and other and non-recurring charges of $5 million

4 Excludes stock-based compensation of $90 million, cost to achieve of $28 million, other and non-recurring charges of $12 million and acquisition and divestiture integration and transaction costs of $5 million

5 See previous table for details

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

Income 3

Adjusted

Net

Income 4

Revenue

28,130

—

28,162

—

28,162

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

20,101

(49

)

209

—

20,261

—

20,261

Depreciation and amortization

1,403

(1,403

)

—

1,403

Gross margin

6,626

1,481

(206

)

—

7,901

(1,403

)

6,498

Operations & maintenance and other cost of operations

1,999

—

(22

)

(48

)

1,929

—

1,929

Selling, marketing, general & administrative

2,345

—

(135

)

2,210

—

2,210

Other

1,157

(918

)

—

(266

)

(27

)

911

884

Net Income/(Loss)

1,125

2,399

(206

)

449

3,789

(2,314

)

1,475

Less: Cumulative dividends attributable to Series A Preferred Stock

(67

)

—

Net Income/(Loss) available for common stockholders

1,058

2,399

(206

)

516

3,789

(2,381

)

1,408

1 Excludes operations & maintenance and other cost of operations of $1,999 million

2 Other adj. includes loss on debt extinguishment $382 million, stock-based compensation of $99 million, impairments of $43 million, acquisition and divestiture integration and transaction costs of $35 million, ARO expense of $34 million, cost to achieve of $28 million, other and non-recurring charges of $28 million and gain on sale of assets of $(200) million

3 Other includes adjusted interest expense, net of $598 million and adjusted income tax expense of $313 million

4 See previous table for details

Appendix Table A-5: Three Months Ended December 31, 2025 and 2024 Free Cash Flow before Growth Investments (FCFbG)

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

Three Months Ended

(In millions)

12/31/25

12/31/24

Adjusted EBITDA

847

902

Interest payments, net

(67

)

(118

)

Income tax payments

(10

)

(70

)

Gross capitalized contract costs

(183

)

(147

)

Collateral/working capital/other assets and liabilities

(464

)

385

Cash provided by operating activities

123

952

Net receipts/(payments) from settlement of acquired derivatives that include financing elements

)

Acquisition and divestiture integration and transaction costs 1

Adjustment for change in collateral

(325

)

Other 2

)

Adjusted cash provided by operating activities

280

675

Maintenance capital expenditures, net 3

(110

)

(62

)

Environmental capital expenditures

(12

)

Cost of acquisition

Free Cash Flow before Growth Investments (FCFbG)

175

624

1 Three months ended 12/31/25 includes $16 million acquisition and divestiture integration and transaction costs, $8 million cost to achieve payments (see Table A-1) less $4 million non-cash adjustments; three months ended 12/31/2024 includes $55 million cash taxes from the sale of Airtron, $8 million acquisition and divestiture integration and transaction costs and $5 million cost to achieve payments (see Table A-2), less $18 million non-cash adjustments

2 Three months ended 12/31/25 includes a $36 million payment for a legal matter

Appendix Table A-6: Twelve Months Ended December 31, 2025 and 2024 Free Cash Flow before Growth Investments (FCFbG)

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

Twelve Months Ended

(In millions)

12/31/25

12/31/24

Adjusted EBITDA

4,087

3,789

Interest payments, net

(489

)

(570

)

Income tax payments

(70

)

(184

)

Gross capitalized contract costs

(970

)

(846

)

Collateral/working capital/other assets and liabilities

(645

)

117

Cash provided by operating activities

1,913

2,306

Net receipts/(payments) from settlement of acquired derivatives that include financing elements

)

Acquisition and divestiture integration and transaction costs 1

113

Adjustment for change in collateral

)

(245

)

Other 2

269

Adjusted cash provided by operating activities

2,313

2,198

Maintenance capital expenditures, net 3

(229

)

(240

)

Environmental capital expenditures

(38

)

(21

)

Cost of acquisition

164

125

Free Cash Flow before Growth Investments (FCFbG)

2,210

2,062

1 Twelve months ended 12/31/25 includes $75 million acquisition and divestiture integration and transaction costs and $17 million cost to achieve payments (see table A-3), less $13 million non-cash adjustments; twelve months ended 12/31/24 includes $55 million cash taxes from the sale of Airtron, $35 million acquisition and divestiture integration and transaction costs and $28 million cost to achieve payments (see table A-4), less $5 million non-cash adjustments

2 Twelve months ended 12/31/2025 includes payment of $224 million for the satisfaction of the CPI legal matter and a $36 million payment for another legal matter; twelve months ended 12/31/24 primarily includes $21 million GenOn pension payments

3 Twelve months ended 12/31/25 is presented net of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment of $100 million; twelve months ended 12/31/24 is presented net of W.A. Parish Unit 8 insurance recoveries related to the property, plant and equipment of $3 million

Appendix Table A-7: Twelve Months Ended December 31, 2025 Sources and Uses of Liquidity

The following table summarizes the sources and uses of liquidity for the twelve months ending December 31, 2024:

($ in millions)

Twelve Months Ended

December 31, 2025

Sources:

Adjusted cash provided by operating activities

2,313

Proceeds from issuance of long-term debt

6,676

Increase and change in availability under revolving credit facility and collective collateral facilities

421

Proceeds from sale of assets, net of cash disposed

Uses:

Payments for share repurchase activity and excise tax

(1,311

)

Repayments of long-term debt and finance leases

(1,005

)

Investment and integration capital expenditures

(780

)

Payments for acquisitions of businesses and assets, net of cash acquired

(596

)

Payments of dividends to preferred and common stockholders

(411

)

Payment for settlement of capped call options

(292

)

Maintenance and environmental capital expenditures, net 1

(267

)

Payments for shares repurchased in lieu of tax withholdings

(92

)

Acquisition and divestiture integration and transaction costs 2

(79

)

Payments of deferred financing costs

(78

)

Cash collateral paid in support of energy risk management activities

(56

)

Net purchases of emission allowances

)

Other investing and financing 3

(263

)

Change in Total Liquidity

4,185

1 Net of $100 million of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment

2 Twelve months ended 12/31/25 includes $75 million acquisition and divestiture integration and transaction costs and $17 million cost to achieve payments (see table A-3), less $13 million non-cash acquisition costs and non-cash stock-based compensation

3 Includes payment of $224 million for the satisfaction of the CPI legal matter and a $36 million payment for another legal matter

Appendix Table A-8: 2026 Guidance Reconciliation

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

2026

(In millions, except per share amounts)

Guidance 8,9

Net Income 1

$1,325 - $1,755

Interest expense, net

1,195

Income tax expense 2

490 - 560

Depreciation and amortization 3

1,955

ARO expense

Stock-based compensation

120

Acquisition and divestiture integration and transaction costs

110

Other 4

100

Adjusted EBITDA

$5,325 - $5,825

Adjusted interest expense, net 5

(1,195)

Depreciation and amortization 3

(1,955)

Adjusted Income before income taxes

$2,175 - $2,675

Adjusted income tax expense 6

(423) - (493)

Adjusted Net Income before Preferred Stock dividends

$1,752 - $2,182

Cumulative dividends attributable to Series A Preferred Stock

(67)

Adjusted Net Income 7

$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

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

8 Items may not sum due to rounding

9 Reflects the Company’s previously communicated 2026 outlook, updated to incorporate approximately 11 months of ownership of the portfolio acquired from LS Power. The updated guidance therefore includes approximately 90% of the acquired portfolio’s estimated full-year 2026 contribution

Appendix Table A-9: 2026 Guidance Reconciliation

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

2026

(In millions)

Guidance

Adjusted EBITDA

$5,325 - $5,825

Interest payments, net 1

(1,100)

Income tax payments

(70) - (90)

Gross capitalized contract costs

(1,020)

Working capital/other assets and liabilities 2

(135)

Cash provided by operating activities 3

$3,000 - $3,480

Acquisition and other costs 2

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-8 plus $95 million accrued interest expense not yet paid

2 Working capital/other assets and liabilities includes payments for Acquisition and divestiture integration and transition 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

Non-GAAP Financial Measures

NRG reports its financial results in accordance with the accounting principles generally accepted in the United States (GAAP) and supplements with certain non-GAAP financial measures. These measures are not recognized 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 a comparative measure.

NRG uses the following non-GAAP measures to provide additional insight into financial performance:

Management believes these non-GAAP financial measures are useful to investors and other users of NRG's financial statements in evaluating the Company’s operating performance and growth, as well as the impact of the Company’s capital allocation program. 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. Management uses these non-GAAP financial measures to assist in comparing financial performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations, and for evaluating actual results against such expectations, and in communications with NRG's Board of Directors, shareholders, creditors, analysts and investors concerning its financial performance.