NRG Energy Beats Q3 Targets, Unveils $4 Billion Asset Sale and Buyback Boost

NRG Energy delivered stronger-than-expected third-quarter financial results alongside an agreement to divest six natural gas generation facilities to LS Power for $4 billion in cash. Adjusted earnings reached $4.68 per share, outpacing analyst projections of $3.35, while quarterly revenue grew 24% year over year to approximately $9.47 billion. Management reaffirmed full-year 2026 targets, projecting adjusted EBITDA to conclude slightly below the midpoint of its guidance range despite regional Texas power prices running almost 40% below initial company expectations.

The divestment involves nearly 4.9 gigawatts of capacity across sites in Texas, New York, and New England. Chief Executive Officer Robert Gaudette noted that LS Power initiated the transaction through an unsolicited offer priced at 8.0 times the assets' anticipated 2027 adjusted EBITDA. The transaction is projected to close in the second quarter of 2027 pending regulatory consent. Upon completion, NRG plans to direct $2 billion of the cash proceeds toward debt reduction and hold $1 billion for growth or further liability paydowns.

Capital returns are also set to increase. The board approved an additional $1 billion for share buybacks, lifting total repurchases planned across 2026 and 2027 to $3 billion. Management stated plans to start the fresh buyback tranche before year-end, pointing to undervaluation in the stock. NRG also intends to implement an 8% dividend boost for 2027, lifting the annual payout to about $2.05 per share.

Looking further ahead, the company introduced 2027 financial guidance, forecasting adjusted EBITDA between $5.5 billion and $6.0 billion, adjusted earnings per share of $8.05 to $10.05, and free cash flow before growth between $2.9 billion and $3.4 billion. The midpoint for adjusted earnings falls below the consensus analyst projection of $10.19. In addition, NRG expects to finalize approved agreements by the end of 2026 for a 1.2-gigawatt data center venture in Texas, with financing arrangements targeted for completion in early 2027.

Shares of NRG surged 10.3% to close at $97.40 on November 9, 2026, marking the stock's largest single-day gain in the past 365 days. The jump followed a low close of $80.55 on November 5, 2026. Despite the sharp relief rally, shares remain down approximately 39% year to date and 41.9% over the past twelve months, having traded between a 52-week low of $79.65 and a high of $189.96.