Entergy Q1 2025 Earnings Summary

Entergy Corporation reported solid financial performance for Q1 2025, with both reported and adjusted earnings of $0.82 per share, marking a significant year-over-year improvement. The company reaffirmed its full-year 2025 adjusted earnings guidance of $3.75 to $3.95 per share.

Key financial highlights:

- Q1 2025 consolidated earnings were $361 million, or $0.82 per share, up from $75 million, or $0.18 per share in Q1 2024.
- Adjusted earnings, which exclude one-time items, also totaled $361 million ($0.82 per share), up from $230 million ($0.54 per share) in Q1 2024.
- The estimated weather impact added $0.05 per share in Q1 2025, compared to a negative impact of $0.06 per share in the same period last year.

Segment results:

- The Utility segment earned $490 million, or $1.11 per share, both as reported and adjusted. This compares to $195 million ($0.46) as reported and $350 million ($0.82) adjusted in Q1 2024.
- The Parent & Other segment posted a loss of $129 million, or ($0.29) per share, similar to Q1 2024.

Earnings drivers:

- Higher retail sales volumes (including weather effects).
- Favorable regulatory actions across operating companies.
- Reduced other operation and maintenance costs.
- Gains in other income categories.
- Offset by increased interest expenses and higher depreciation/amortization costs.

Other key developments:

- Entergy Texas received approval for $137 million in transmission investments.
- Legislative changes in Arkansas now allow for recovery of certain investments outside of the rate cap.
- Entergy Louisiana gained approval for key transmission and gas business sale transactions.
- The company completed a $1.5 billion common stock offering and was recognized by EEI for storm recovery efforts.

Cash flow and financial metrics:

- Operating cash flow increased to $536 million (up $15 million from Q1 2024).
- GAAP return on equity (ROE) for the 12 months ended March 31, 2025, was 9.0%; adjusted ROE was 11.5%.
- FFO to adjusted debt improved to 14.5% from 13.4%.
- Gross liquidity rose to $5.9 billion; net liquidity reached $7.9 billion.
- Debt to capital stood at 67%; adjusted debt to adjusted capitalization was 65%.

Operational trends:

- Total retail sales increased 8.1% year-over-year, with industrial sales up 9.3% and residential sales up 13.2% (4.5% weather-adjusted).
- Wholesale sales declined 58.7%.
- Number of electric retail customers increased by 0.7%.

Guidance:

- Full-year 2025 adjusted EPS guidance is reaffirmed at $3.75 to $3.95.
- The company did not update GAAP guidance due to the unpredictability of potential adjustments.

Entergy COO Peter Norgeot to Retire, Kimberly Cook-Nelson Named Successor

On March 25, 2025, Entergy Corporation announced that Peter S. Norgeot, Jr., Executive Vice President and Chief Operating Officer, will retire on April 30, 2025, as part of a planned leadership transition. Norgeot also serves on the boards of Entergy's operating subsidiaries in Arkansas, Louisiana, Mississippi, New Orleans, and Texas.

Effective May 1, 2025, Kimberly Cook-Nelson will succeed Norgeot as Executive Vice President and Chief Operating Officer. Cook-Nelson currently serves as EVP and Chief Nuclear Officer and brings a breadth of experience, having held senior roles across nuclear operations and system planning since 2016.

In her new role, she will receive an annual base salary of $745,000, be eligible for a target annual bonus of 80% of base salary, and receive long-term equity awards under the company’s incentive plan. No related party transactions or family relationships were disclosed.

Cook-Nelson’s appointment continues Entergy’s focus on internal leadership development and operational continuity.

**Summary:**

On March 21, 2025, Entergy Corporation announced the closing of its public offering of 2,227,538 additional shares of common stock following the underwriters’ exercise of an over-allotment option. These shares were sold under previously disclosed forward sale agreements with four financial institutions: Morgan Stanley, Bank of America, JPMorgan Chase, and Mizuho. The agreements allow for physical, cash, or net share settlement by September 30, 2026, with an initial forward sale price of $81.87 per share, subject to daily adjustments. The company notes that issuing these shares may dilute earnings per share. The report also highlights related risks and forward-looking statements.

Entergy Corporation has entered into forward sale agreements for 15,568,863 shares of common stock with Morgan Stanley, Bank of America, JPMorgan Chase, and Mizuho. The company also executed an underwriting agreement to facilitate the public sale of these shares. The forward sale price was initially set at $81.87 per share, subject to daily adjustments. Settlement may occur by September 30, 2026, through physical, net share, or cash settlement options.

On March 19, 2025, the company completed the offering, with the shares borrowed from third parties and sold to underwriters. The offering was registered under the Securities Act, and a legal opinion regarding the validity of the shares was filed.

The forward sale agreements allow Entergy flexibility in issuing shares, with potential impacts on earnings per share depending on the chosen settlement method. Various conditions, such as stock loan availability and corporate actions, could trigger early settlement.

Forward-looking statements caution about risks including regulatory changes, storm recovery costs, nuclear facility operations, cybersecurity threats, and market fluctuations. The agreements aim to support Entergy’s financial strategy while maintaining operational stability.

Entergy Reports 2024 Financial Results, Initiates 2025 Guidance
February 18, 2025 – New Orleans

Entergy Corporation (NYSE: ETR) announced its financial results for 2024, reporting fourth-quarter earnings per share of 65 cents (GAAP) and 66 cents (adjusted). For the full year, earnings per share stood at $2.45 (GAAP) and $3.65 (adjusted). The company maintained strong performance, marking the ninth consecutive year of meeting the upper half of its guidance range.

CEO Drew Marsh highlighted 2024 as a “transformational year,” emphasizing financial strength and growth opportunities. Key developments included breaking ground on the Delta Blues Advanced Power Station, MISO’s approval of $1.7 billion in capital projects, and regulatory advancements in multiple states. Entergy also secured recognition from *Newsweek* and *Fortune* for corporate responsibility and industry leadership.

Looking ahead, Entergy issued its 2025 adjusted earnings per share guidance at $3.75 to $3.95. The company remains focused on infrastructure resilience, clean energy investments, and regulatory advancements to drive long-term growth. A teleconference to discuss earnings and future plans is scheduled for February 18, 2025.