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.