Entergy Corp
SWB:ETY
Entergy Corp
Entergy Corporation, a prominent energy company in the United States, operates with a distinct focus on both regulated and unregulated business sectors. At its core lies a formidable network of electric power production facilities, strategically distributed across Arkansas, Louisiana, Mississippi, and Texas. These facilities harness a mix of fuels, including natural gas, nuclear, and renewables, underscoring Entergy's commitment to diverse energy generation. The company provides power to nearly three million customers through its regulated business, which involves the generation and retail distribution of electricity. This regulated arm ensures a steady flow of revenue, supported by regulatory frameworks that allow for the recovery of investments and operational costs through customer billing rates approved by state regulatory commissions.
Simultaneously, Entergy complements its regulated operations with a competitive, non-regulated wholesale business. This segment primarily engages in selling electricity generated at its facilities to other utilities, municipalities, and power marketers. By leveraging its substantial production capacity, Entergy can capitalize on market opportunities, including the sale of surplus electricity in the open market under conditions that optimize profitability. Through its dual operations, Entergy adeptly navigates the complexities of the energy market, balancing secure, regulated returns with the potential volatility—and opportunity—of wholesale competition. This strategic positioning within the energy sector enables Entergy to effectively deliver value to its shareholders while maintaining its focus on sustainable and reliable power supply for its customers.
Entergy Corporation, a prominent energy company in the United States, operates with a distinct focus on both regulated and unregulated business sectors. At its core lies a formidable network of electric power production facilities, strategically distributed across Arkansas, Louisiana, Mississippi, and Texas. These facilities harness a mix of fuels, including natural gas, nuclear, and renewables, underscoring Entergy's commitment to diverse energy generation. The company provides power to nearly three million customers through its regulated business, which involves the generation and retail distribution of electricity. This regulated arm ensures a steady flow of revenue, supported by regulatory frameworks that allow for the recovery of investments and operational costs through customer billing rates approved by state regulatory commissions.
Simultaneously, Entergy complements its regulated operations with a competitive, non-regulated wholesale business. This segment primarily engages in selling electricity generated at its facilities to other utilities, municipalities, and power marketers. By leveraging its substantial production capacity, Entergy can capitalize on market opportunities, including the sale of surplus electricity in the open market under conditions that optimize profitability. Through its dual operations, Entergy adeptly navigates the complexities of the energy market, balancing secure, regulated returns with the potential volatility—and opportunity—of wholesale competition. This strategic positioning within the energy sector enables Entergy to effectively deliver value to its shareholders while maintaining its focus on sustainable and reliable power supply for its customers.
EPS Result: Entergy reported 2025 adjusted EPS of $3.91, in the top half of its guidance range.
Growth Outlook: Management reiterated expectations for greater than 8% annual adjusted EPS growth and 8% compound annual retail sales growth through 2029, led by 15% industrial growth.
Data Center Impact: Significant growth is being driven by data centers; contracts are expected to generate $5 billion in rate offsets, saving residential customers over $5 per month on average.
Capital Plan: Entergy increased its 4-year capital plan to $43 billion, up $2 billion, primarily due to the planned $1.5 billion Cottonwood facility acquisition.
Strong Credit Metrics: Credit metrics remain above rating agency thresholds, supported by monetized production tax credits and a conservative approach to large load growth.
Resilience & Reliability: $3.5 billion invested in energy delivery and resilience projects in 2025, with ongoing initiatives to improve system reliability and manage storm costs.
Regulatory Support: New legislative and regulatory measures, such as the Louisiana Lightning Initiative, are facilitating faster growth and project approvals.
Investor Day Announced: Entergy will host an Investor Day on June 9 in New York to provide further business updates and a 5-year outlook.
