NRG Energy, Inc. (NYSE:NRG) stock is trading higher after the company reported mixed fourth-quarter 2024 results.
NRG reported a revenue increase of 1.3% year-over-year to $6.858 billion, missing the consensus of $7.59 billion. Adjusted EPS stood at $1.52, beating the consensus of $1.29.
“NRG had a stellar year, executing across all our strategic priorities. Our Adjusted EPS exceeded the top end of raised guidance, we announced the first-of-its-kind residential VPP of scale through our Renew Home and Google Cloud partnerships, and we delivered on our capital allocation commitments,” said Larry Coben, NRG Chair, President and Chief Executive Officer.
Operating cash flow for the quarter was $952 million, compared to $241 million a year ago. Free Cash Flow Before Growth Investments was $624 million, and the fiscal year totaled $2.065 billion.
Adjusted EBITDA rose 4.7% YoY to $902 million, and the margin expanded 43 bps YoY to 13.2%.
As of Dec. 31,, NRG’s unrestricted cash was $1.0 billion, and $4.5 billion was available under the credit facilities. Total liquidity was $5.4 billion.
In 2024, the company returned $1.263 billion to shareholders, including $925 million in share repurchases—$100 million above target—and $338 million in dividends.
NGR executed $342 million in liability management and achieved its 2.50x – 2.75x Net Debt to Adjusted EBITDA target a full year ahead of schedule.
Additionally, NRG Energy, GE Vernova, and TIC – The Industrial Company launched a U.S.-based venture to accelerate electricity generation for the growing computing and GenAI demand. This collaboration leverages expertise in power generation, manufacturing, and construction to streamline development and expand capacity.
The venture plans to develop 4+ projects totaling 5GW of natural gas power for ERCOT & PJM, with 1.2GW set to launch in 2029 using GE Vernova 7HA turbines. Additional projects will come online through 2032, with potential expansion to 10-15GW nationwide.
NRG also signed LOIs with Menlo Equities and PowLan to provide 400MW of retail power, scalable to 6.5GW, starting in 2026. Pricing will reflect site value and NRG’s supply optimization expertise.
2025 Guidance: The company reaffirmed its 2025 guidance, reinforcing its growth strategy and capital allocation framework.
NRG sees Adjusted EPS of $6.75-$7.75 versus the $7.37 consensus and Adjusted EBITDA of $3.725 billion—$3.975 billion.
Price Action: NRG shares are trading higher by 7.13% at $109.74 at Wednesday’s last check.
Now Read:
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.