NRG Energy, Inc. (NRG) AI Stock Analysis

NRG Energy, Inc. operates as an integrated power company in the United States through three segments: Texas, East, and West. It produces, sells, and delivers electricity and related products and services to approximately 6 million residential, commercial, industrial, and wholesale customers. The company generates power using natural gas, coal, oil, solar, nuclear, and battery storage, holding approximately 18,000 megawatts of capacity across 25 plants as of December 31, 2021. It also provides energy efficiency, demand response, and advisory services, while trading electric power, natural gas, commodities, and financial products. Retail brands include NRG, Reliant, Direct Energy, Green Mountain Energy, Stream, and XOOM Energy.

Revenue rose from $26.99B in FY2021 to $30.71B in FY2025, recording a 5-year revenue CAGR of 27.6% from FY2020 to FY2025. Annual profitability has fluctuated, shifting from net income of $2.19B in FY2021 down to -$202.0M in FY2023, before rebounding to $1.12B in FY2024 and $864.0M in FY2025. Operating margin was 6.0% in FY2025, lower than 12.4% achieved in FY2021. For the trailing twelve months ended June 30, 2026, revenue stood at $33.12B with a profit margin of 2.6%. In the latest quarter, revenue grew 11.0% year-over-year, while quarterly earnings declined 85.6%.

As of June 30, 2026, NRG Energy held $162.0M in cash and short-term investments against $23.47B in total debt, resulting in net debt of $23.30B. Shareholders' equity was $4.86B, bringing debt-to-equity to 4.83 and the current ratio to 0.97. In FY2025, operating cash flow reached $1.91B and free cash flow stood at $766.0M. Capital allocation in FY2025 included $1.15B in capital expenditures, $1.40B spent on share buybacks, and $411.0M paid in dividends.

NRG trades at a trailing P/E of 27.2x, above the 20.9x median of its S&P 500 Utilities peers. However, its forward P/E of 9.0x sits below the peer median of 16.0x, and its PEG ratio is 0.39. Enterprise value is $45.13B, with an EV/EBITDA multiple of 12.1x compared to the peer median of 12.2x. Over the past year, NRG shares fell 38.2%, trailing the S&P 500 return of 16.8%. Over a 5-year period, NRG returned 187.0% compared to 83.0% for the index.

NRG pays a quarterly dividend with an annual forward payout of $1.90, representing a dividend yield of 1.83%. The payout ratio is 27.4%, and the company has paid dividends for 15 consecutive years. Over the past 5 years, the dividend grew at an annualized rate of 8.0%. The last ex-dividend date occurred on August 3, 2026.

Wall Street coverage consists of 10 Strong Buy, 3 Buy, and 3 Hold ratings. The mean price target is $184.76, representing 78.1% upside over the last close of $103.75. For the fiscal year ending December 31, 2026, analysts estimate EPS of $8.79 on revenue of $35.40B. For the following year, 12 analysts project EPS of $11.12 on revenue of $36.63B. NRG beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of NRG Energy, Inc. (NRG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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