Entergy reports first quarter 2025 financial results
Company affirms guidance and outlooks
"We had a productive start to the year with progress on our key objectives," said
Business highlights included the following:
-
Entergy Texas received approval to place$137 million of transmission investments into rates through the TCRF rider. - The state of
Arkansas passed legislation to allow recovery for certain generation and transmission investments outside of the formula rate plan four percent cap. -
Entergy Louisiana received approval from the LPSC for theWest Bank 230kV transmission project. -
Entergy Louisiana received the final approval needed for the sale of its gas distribution business fromEast Baton Rouge parish. -
Entergy Mississippi filed its annual formula rate plan. -
Entergy Corporation completed an approximately$1.5 billion common stock offering with a forward component. - EEI awarded its Emergency Response Award to Entergy in recognition of restoration work after Hurricane Francine.
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Consolidated earnings (GAAP and non-GAAP measures) |
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|
First quarter 2025 vs. 2024 (See Appendix A for reconciliation of GAAP to non- |
|||
|
|
First quarter |
||
|
|
2025 |
2024 |
Change |
|
(After-tax, $ in millions) |
|
|
|
|
As-reported earnings |
361 |
75 |
285 |
|
Less adjustments |
- |
(155) |
155 |
|
Adjusted earnings (non-GAAP) |
361 |
230 |
131 |
|
Estimated weather impact |
22 |
(26) |
48 |
|
|
|
|
|
|
(After-tax, per share in $) |
|
|
|
|
As-reported earnings |
0.82 |
0.18 |
0.64 |
|
Less adjustments |
- |
(0.36) |
0.36 |
|
Adjusted earnings (non-GAAP) |
0.82 |
0.54 |
0.28 |
|
Estimated weather impact |
0.05 |
(0.06) |
0.11 |
|
|
|
|
|
|
Calculations may differ due to rounding |
Consolidated results
For first quarter 2025, the company reported earnings of
Summary discussions of results by business follow. Additional details, including information on operating cash flow by business, are provided in Appendix A. A more detailed analysis of earnings per share variances by business is provided in Appendix B.
Business results
Utility
For first quarter 2025, the Utility business reported earnings attributable to
The primary drivers for the quarter's earnings increase included:
- higher retail sales volume, including the impacts of weather;
- the net effect of regulatory actions across the operating companies;
- other income (deductions); and
- lower other O&M.
These drivers were partially offset by higher interest expense as well as higher depreciation and amortization.
First quarter 2024 results also reflected items that were considered adjustments and excluded from adjusted earnings:
-
Entergy Arkansas recorded a write off of$(132 million) ($(97 million ) after tax) for a regulatory asset related to the opportunity sales proceeding. -
Entergy New Orleans recorded a regulatory charge of$(79 million) ($(57 million ) after tax) to reflect the company's agreement to share additional income tax benefits from the 2016–2018IRS audit resolution with customers.
On a per share basis, first quarter 2025 results reflected higher diluted average number of common shares outstanding primarily due to the dilutive effect from unsettled equity forwards as a result of an increase in the stock price and option exercises under the company's stock-based compensation plans.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For first quarter 2025, Parent & Other reported a loss attributable to
On a per share basis, first quarter 2025 results reflected higher diluted average number of common shares outstanding (see details in Utility section).
Earnings per share guidance
Entergy affirmed its 2025 adjusted earnings per share guidance range of
The company has provided 2025 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP financial measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include, among other things, the exclusion of significant income tax items, certain items recorded as a result of regulatory settlements or decisions, and certain unusual costs or expenses.
Earnings teleconference
A teleconference will be held at
investors.entergy.com/investors/events-and-presentations or by dialing 888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy's website concurrent with this news release. A replay of the teleconference will be available on Entergy's website at investors.entergy.com/investors/events-and-presentations and by telephone. The telephone replay will be available through
Entergy produces, transmits and distributes electricity to power life for 3 million customers through our operating companies in
Details regarding Entergy's results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the
Entergy maintains a web page as part of its Investor Relations website entitled Regulatory and other information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix E.
Non-GAAP financial measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of adjusted earnings, which excludes the effect of certain "adjustments." Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant income tax items, certain items recorded as a result of regulatory settlements or decisions, and certain unusual costs or expenses. In addition to reporting GAAP earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted ROE, adjusted ROE excluding affiliate preferred, FFO to adjusted debt, gross liquidity, net liquidity, adjusted Parent debt to total adjusted debt, adjusted debt to adjusted capitalization, and adjusted net debt to adjusted net capitalization are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the utility sector. These metrics are defined in Appendix E.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary note regarding forward-looking statements
In this news release, and from time to time,
Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent or on the timeline anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with (1) realizing the benefits of its resilience plan, including impacts of the frequency and intensity of future storms and storm paths, as well as the pace of project completion and (2) efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including (1) strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized, and (2) Entergy's ability to meet the rapidly growing demand for electricity, including from hyperscale data centers and other large customers, and to manage the impacts of such growth on customers and Entergy's business, or the risk that contracted or expected load growth does not materialize or is not sustained; (h) direct and indirect impacts to Entergy or its customers from pandemics, terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (i) effects on Entergy or its customers of (1) changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, international trade, or energy policies; (2) changes in commodity markets, capital markets, or economic conditions; and (3) technological change, including the costs, pace of development, and commercialization of new and emerging technologies.
First quarter 2025 earnings release appendices and financial statements
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: Consolidated financial measures
E: Definitions and abbreviations and acronyms
F: Other GAAP to non-GAAP reconciliations
Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements
A: Consolidated results and adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
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Appendix A-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures |
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|
First quarter |
||
|
|
2025 |
2024 |
Change |
|
(After-tax, $ in millions) |
|
|
|
|
As-reported earnings (loss) |
|
|
|
|
Utility |
490 |
195 |
295 |
|
Parent & Other |
(129) |
(120) |
(9) |
|
Consolidated |
361 |
75 |
285 |
|
|
|
|
|
|
Less adjustments |
|
|
|
|
Utility |
- |
(155) |
155 |
|
Parent & Other |
- |
- |
- |
|
Consolidated |
- |
(155) |
155 |
|
|
|
|
|
|
Adjusted earnings (loss) (non-GAAP) |
|
|
|
|
Utility |
490 |
350 |
140 |
|
Parent & Other |
(129) |
(120) |
(9) |
|
Consolidated |
361 |
230 |
131 |
|
Estimated weather impact |
22 |
(26) |
48 |
|
|
|
|
|
|
Diluted average number of common shares outstanding (in millions) (a) |
441 |
428 |
13 |
|
|
|
|
|
|
(After-tax, per share in $) (a) (b) |
|
|
|
|
As-reported earnings (loss) |
|
|
|
|
Utility |
1.11 |
0.46 |
0.66 |
|
Parent & Other |
(0.29) |
(0.28) |
(0.01) |
|
Consolidated |
0.82 |
0.18 |
0.64 |
|
|
|
|
|
|
Less adjustments |
|
|
|
|
Utility |
- |
(0.36) |
0.36 |
|
Parent & Other |
- |
- |
- |
|
Consolidated |
- |
(0.36) |
0.36 |
|
|
|
|
|
|
Adjusted earnings (loss) (non-GAAP) |
|
|
|
|
Utility |
1.11 |
0.82 |
0.29 |
|
Parent & Other |
(0.29) |
(0.28) |
(0.01) |
|
Consolidated |
0.82 |
0.54 |
0.28 |
|
Estimated weather impact |
0.05 |
(0.06) |
0.11 |
|
Calculations may differ due to rounding |
|
|
(a) |
Entergy executed a two-for-one forward stock split that was effective with trading on |
|
(b) |
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common |
|
See Appendix B for detailed earnings variance analysis. |
|
Appendix A-2 and Appendix A-3 detail adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
|
Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS) |
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|
First quarter 2025 vs. 2024 |
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|
First quarter |
||
|
|
2025 |
2024 |
Change |
|
(Pre-tax except for income tax effect and totals; $ in millions) |
|
|
|
|
Utility |
|
|
|
|
1Q24 E-AR write-off of a regulatory asset related to the opportunity sales proceeding |
- |
(132) |
132 |
|
1Q24 E-NO increase in customer sharing of income tax benefits as a result of |
- |
(79) |
79 |
|
Income tax effect on Utility adjustments above |
- |
56 |
(56) |
|
Total Utility |
- |
(155) |
155 |
|
|
|
|
|
|
Total adjustments |
- |
(155) |
155 |
|
|
|
|
|
|
(After-tax, per share in $) (c), (d) |
|
|
|
|
Utility |
|
|
|
|
1Q24 E-AR write-off of a regulatory asset related to the opportunity sales proceeding |
- |
(0.23) |
0.23 |
|
1Q24 E-NO increase in customer sharing of income tax benefits as a result of |
- |
(0.13) |
0.13 |
|
Total Utility |
- |
(0.36) |
0.36 |
|
|
|
|
|
|
Total adjustments |
- |
(0.36) |
0.36 |
|
Calculations may differ due to rounding |
|
|
(c) |
Entergy executed a two-for-one forward stock split that was effective with trading on |
|
(d) |
Per share amounts are calculated by multiplying the corresponding earnings (loss) by the estimated income tax rate that is expected to apply and dividing by the diluted average number of common shares outstanding for the period. |
|
Appendix A-3: Adjustments by income statement line item (shown as positive/ (negative) impact on earnings) |
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|
First quarter 2025 vs. 2024 |
|||
|
(Pre-tax except for income taxes and totals; $ in millions) |
|||
|
|
First quarter |
||
|
|
2025 |
2024 |
Change |
|
Utility |
|
|
|
|
Asset write-offs, impairments, and related charges |
- |
(132) |
132 |
|
Other regulatory charges (credits) – net |
- |
(79) |
79 |
|
Income taxes |
- |
56 |
(56) |
|
Total Utility |
- |
(155) |
155 |
|
|
|
|
|
|
Total adjustments |
- |
(155) |
155 |
|
|
|
|
|
|
Calculations may differ due to rounding |
Appendix A-4 provides a comparative summary of OCF by business.
|
Appendix A-4: Consolidated operating cash flow |
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|
First quarter 2025 vs. 2024 |
|||
|
($ in millions) |
|||
|
|
First quarter |
||
|
|
2025 |
2024 |
Change |
|
Utility |
565 |
515 |
50 |
|
Parent & Other |
(29) |
6 |
(35) |
|
Consolidated |
536 |
521 |
15 |
|
|
|
|
|
|
Calculations may differ due to rounding |
OCF increased year-over-year primarily due to the timing of payments to vendors and advance payments related to customer agreements. The increase was partially offset by higher fuel and purchased power payments, higher interest payments, and the timing of recovery of fuel and purchased power costs.
B: Earnings variance analysis
Appendix B provides details of current quarter 2025 versus 2024 as-reported and adjusted earnings per share variances.
|
Appendix B: As-reported and adjusted earnings per share variance analysis (e), (f), (g), (h) |
|
||||||||
|
First quarter 2025 vs. 2024 |
|
||||||||
|
(After-tax, per share in $) |
|
||||||||
|
|
Utility |
|
Parent & Other |
|
Consolidated |
|
|||
|
|
As- reported |
Adjusted |
|
As- reported |
Adjusted |
|
As- reported |
Adjusted |
|
|
2024 earnings (loss) |
0.46 |
0.82 |
|
(0.28) |
(0.28) |
|
0.18 |
0.54 |
|
|
Operating revenue less: |
0.59 |
0.45 |
(i) |
0.01 |
0.01 |
|
0.60 |
0.47 |
|
|
Nuclear refueling outage expenses |
0.01 |
0.01 |
|
- |
- |
|
0.01 |
0.01 |
|
|
Other O&M |
0.03 |
0.03 |
(j) |
(0.01) |
(0.01) |
|
0.02 |
0.02 |
|
|
Asset write-offs, impairments, and related charges |
0.23 |
- |
(k) |
- |
- |
|
0.23 |
- |
|
|
Decommissioning |
- |
- |
|
- |
- |
|
- |
- |
|
|
Taxes other than income taxes |
(0.01) |
(0.01) |
|
- |
- |
|
(0.01) |
(0.01) |
|
|
Depreciation and amortization |
(0.02) |
(0.02) |
(l) |
- |
- |
|
(0.02) |
(0.02) |
|
|
Other income (deductions) |
(0.04) |
(0.04) |
(m) |
(0.01) |
(0.01) |
|
(0.05) |
(0.05) |
|
|
Interest expense |
(0.10) |
(0.10) |
(n) |
(0.01) |
(0.01) |
|
(0.11) |
(0.11) |
|
|
Income taxes – other |
0.01 |
0.01 |
|
(0.01) |
(0.01) |
|
0.01 |
0.01 |
|
|
Preferred dividend requirements and |
- |
- |
|
- |
- |
|
- |
- |
|
|
Share effect |
(0.03) |
(0.03) |
|
0.01 |
0.01 |
|
(0.02) |
(0.02) |
(o) |
|
2025 earnings (loss) |
1.11 |
1.11 |
|
(0.29) |
(0.29) |
|
0.82 |
0.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ due to rounding |
|
|
(e) |
Utility operatingrevenue and Utility income taxes – other variances exclude the following for the return/collection of |
|
|
1Q25 |
1Q24 |
|
Utility operating revenue |
(2) |
8 |
|
Utility income taxes – other |
2 |
(8) |
|
(f) |
Utility regulatory charges (credits) – net and Utility preferred dividend requirements and noncontrolling interests variances exclude the following for the effects of HLBV accounting and the approved deferral (net effect was neutral to earnings) ($ in millions): |
|
|
1Q25 |
1Q24 |
|
Utility regulatory charges (credits) – net |
(3) |
(3) |
|
Utility preferred dividend requirements and noncontrolling interests |
3 |
3 |
|
(g) |
Entergy executed a two-for-one forward stock split that was effective with trading on |
|
(h) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period. Income taxes – other represents income tax differences other than the income tax effect of individual line items. Share effect captures the per share impact from the change in diluted average number of common shares outstanding. |
|
Utility as-reported operating revenue less fuel, fuel-related |
|
|
|
1Q |
|
Electric volume / weather |
0.20 |
|
Retail electric price |
0.16 |
|
1Q24 E-NO provision for increased income tax sharing |
0.13 |
|
Reg. provisions for decommissioning items |
0.12 |
|
Grand Gulf recovery |
(0.03) |
|
Other |
0.01 |
|
Total |
0.59 |
|
(i) |
The first quarter earnings increase reflected several drivers, including higher volume (including the effects of weather), and regulatory actions including: E-AR's FRP, E-LA's FRP (including riders), E-MS's FRP, various E-MS's riders, and E-TX's DCRF. The increase also reflected a first quarter 2024 |
|
(j) |
The first quarter earnings increase from lower Utility other O&M was largely due to a decrease in contract costs related to operational performance, customer service, and organizational health initiatives and a decrease in compensation and benefits costs primarily due to a true up to estimated incentive-based compensation expenses. |
|
(k) |
The first quarter as-reported earnings increase from Utility asset write-offs and impairments was due to the first quarter 2024 write off of an E-AR |
|
(l) |
The first quarter earnings decrease from higher Utility depreciation and amortization was primarily due to higher plant in service and an increase in E-LA's nuclear depreciation rates effective |
|
(m) |
The first quarter earnings decrease from lower Utility other income (deductions) was primarily due to lower nuclear decommissioning trust returns, including portfolio rebalancing in first quarter 2024 (based on regulatory treatment, decommissioning-related variances are offset in other line items and are largely earnings neutral). The decrease was partially offset by higher AFUDC–equity due to higher construction work in progress and an increase in the amortization of tax gross ups on customer advances for construction. |
|
(n) |
The first quarter earnings decrease from higher Utility interest expense was primarily due to higher interest rates, higher debt balances, and higher carrying costs on customer advances for construction. |
|
(o) |
The first quarter earnings per share impact from share effect was primarily due to the dilutive effect of unsettled equity forwards under the company's ATM program as a result of an increase in the stock price, and option exercises under the company's stock-based compensation plans. |
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial measures.
|
Appendix C: Utility operating and financial measures |
|||||
|
First quarter 2025 vs. 2024 |
|||||
|
|
First quarter |
||||
|
|
2025 |
2024 |
% Change |
% Weather |
|
|
GWh sold |
|
|
|
|
|
|
Residential |
8,784 |
7,758 |
13.2 |
4.5 |
|
|
Commercial |
6,243 |
6,223 |
0.3 |
(1.1) |
|
|
Governmental |
560 |
572 |
(2.1) |
(2.5) |
|
|
Industrial |
13,833 |
12,661 |
9.3 |
9.3 |
|
|
Total retail |
29,420 |
27,214 |
8.1 |
5.2 |
|
|
Wholesale |
1,634 |
3,958 |
(58.7) |
|
|
|
Total |
31,054 |
31,172 |
(0.4) |
|
|
|
|
|
|
|
|
|
|
Number of electric retail customers |
|
|
|
|
|
|
Residential |
2,606,590 |
2,585,994 |
0.8 |
|
|
|
Commercial |
370,544 |
369,918 |
0.2 |
|
|
|
Governmental |
17,982 |
18,136 |
(0.8) |
|
|
|
Industrial |
42,716 |
43,849 |
(2.6) |
|
|
|
Total |
3,037,832 |
3,017,897 |
0.7 |
|
|
|
|
|
|
|
|
|
|
Other O&M and nuclear refueling outage exp. |
|
|
(2.9) |
|
|
|
|
|
|
|
|
|
|
Calculations may differ due to rounding |
|
|
(p) |
The effects of weather were estimated using heating degree days and cooling degree days for the period from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
For the quarter, weather-adjusted retail sales increased 5.2 percent. The increase was primarily due to a 9.3 percent increase in industrial volume driven by higher sales to petroleum refining, chlor-alkali, and primary metals customers. Residential sales increased 4.5 percent. The increase was partially offset by a commercial sales decline of (1.1) percent.
D: Consolidated financial measures
Appendix D provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
|
Appendix D: GAAP and non-GAAP financial measures |
|||
|
2025 vs. 2024 (See Appendix F for reconciliation of GAAP to non-GAAP financial measures) |
|||
|
|
|
||
|
For 12 months ending |
2025 |
2024 |
Change |
|
GAAP measure |
|
|
|
|
As-reported ROE |
9.0 % |
15.4 % |
(6.4) % |
|
|
|
|
|
|
Non-GAAP financial measure |
|
|
|
|
Adjusted ROE |
11.5 % |
10.4 % |
1.1 % |
|
|
|
|
|
|
As of |
2025 |
2024 |
Change |
|
GAAP measures |
|
|
|
|
Cash and cash equivalents |
1,513 |
1,295 |
218 |
|
Available revolver capacity |
4,345 |
4,245 |
100 |
|
Commercial paper |
1,330 |
1,914 |
(584) |
|
Total debt |
31,041 |
28,493 |
2,548 |
|
Junior subordinated debentures |
1,200 |
- |
1,200 |
|
Securitization debt |
240 |
263 |
(23) |
|
Debt to total capital |
67 % |
66 % |
0.9 % |
|
Storm escrows |
300 |
328 |
(28) |
|
|
|
|
|
|
Non-GAAP financial measures ($ in millions, except where noted) |
|
|
|
|
FFO to adjusted debt |
14.5 % |
13.4 % |
1.1 % |
|
Adjusted debt to adjusted capitalization |
65 % |
66 % |
0 % |
|
Adjusted net debt to adjusted net capitalization |
64 % |
65 % |
(1) % |
|
Gross liquidity |
5,858 |
5,540 |
318 |
|
Net liquidity |
7,904 |
4,380 |
3,524 |
|
Adjusted Parent debt to total adjusted debt |
20 % |
21 % |
(1) % |
|
Calculations may differ due to rounding |
E: Definitions and abbreviations and acronyms
Appendix E-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
|
Appendix E-1: Definitions |
|
|
Utility operating and financial measures |
|
|
GWh sold |
Total number of GWh sold to retail and wholesale customers |
|
Number of electric retail |
Average number of electric customers over the period |
|
Other O&M and refueling |
Other operation and maintenance expense plus nuclear refueling outage expense per |
|
Financial measures – GAAP |
|
|
As-reported ROE |
Last twelve months net income attributable to |
|
Debt to capital |
Total debt divided by total capitalization |
|
Available revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers |
|
Securitization debt |
Debt on the balance sheet associated with securitization bonds that is secured by certain |
|
Total debt |
Sum of short-term and long-term debt, notes payable, and commercial paper |
|
Financial measures – non-GAAP |
|
|
Adjusted capitalization |
Capitalization excluding securitization debt |
|
Adjusted debt |
Debt excluding securitization debt and 50% of junior subordinated debentures |
|
Adjusted debt to adjusted |
Adjusted debt divided by adjusted capitalization |
|
Adjusted EPS |
As-reported earnings minus adjustments, divided by the diluted average number of |
|
Adjusted net capitalization |
Adjusted capitalization minus cash and cash equivalents |
|
Adjusted net debt |
Adjusted debt minus cash and cash equivalents |
|
Adjusted net debt to adjusted |
Adjusted net debt divided by adjusted net capitalization |
|
Adjusted Parent debt |
|
|
Adjusted Parent debt to total adjusted debt |
Adjusted Parent debt divided by consolidated adjusted debt |
|
Adjusted ROE |
Last twelve months adjusted earnings divided by average common equity |
|
Adjusted ROE excluding affiliate preferred |
Last twelve months adjusted earnings, excluding dividend income from affiliate preferred |
|
Adjustments |
Unusual or non-recurring items or events or other items or events that management |
|
FFO |
OCF minus preferred dividend requirements of subsidiaries, working capital items in OCF |
|
FFO to adjusted debt |
Last twelve months FFO divided by end of period adjusted debt |
|
Gross liquidity |
Sum of cash and cash equivalents plus available revolver capacity |
|
Net liquidity |
Sum of cash and cash equivalents, available revolver capacity, escrow accounts available |
Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix E-2: Abbreviations and acronyms |
|||
|
ADIT
AFUDC – AMS APSC ATM B&E bps CAGR CCCT CCN CCNO CCS CFO COD CT DCRF
DRM
E-LA E-MS E-NO E-TX EEI EPS ETR FFO FRP GAAP GCRR
Grand Gulf or HLBV |
Accumulated deferred income taxes
Allowance for equity funds used Advanced metering system
At the market equity issuance program Business and Executive Session Basis points Compound annual growth rate Combined cycle combustion turbine Certificate for convenience and necessity
Cash from operations Commercial operation date Combustion turbine Distribution cost recovery factor
Distribution Recovery Mechanism (rider within
Earnings per share
Funds from operations Formula rate plan
Generation Cost Recovery Rider
Unit 1 of Hypothetical liquidation at book value |
LCPS LDC LPSC LTM MISO Moody's MPSC NDT NYSE O&M OCAPS OCF OpCo Other O&M P&O PMR
PPA PUCT RECs RFP RSHCR ROE RPCR RSP S&P
SERI SETEX TCRF TRAM
TRM WACC |
Local distribution company
Last twelve months
Moody's Ratings
Nuclear decommissioning trust
Operation and maintenance
Net cash flow provided by operating activities Utility operating company Other non-fuel operation and maintenance expense Parent & Other Performance Management Rider
Power purchase agreement or purchased power
Renewable Energy Certificates Request for proposals Resilience and storm hardening cost recovery Return on equity Resilience plan cost recovery rider Rate Stabilization Plan (E-LA gas)
Transmission cost recovery factor Tax reform adjustment mechanism
Transmission Recovery Mechanism (rider within Weighted-average cost of capital |
F: Other GAAP to non-GAAP reconciliations
Appendix F-1, Appendix F-2, and Appendix F-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
|
Appendix F-1: Reconciliation of GAAP to non-GAAP financial measures – ROE |
|||
|
(LTM $ in millions except where noted) |
|
First quarter |
|
|
|
|
2025 |
2024 |
|
As-reported net income attributable to |
(A) |
1,341 |
2,121 |
|
Adjustments |
(B) |
(367) |
695 |
|
|
|
|
|
|
Adjusted earnings (non-GAAP) |
(C)=(A-B) |
1,708 |
1,426 |
|
|
|
|
|
|
Average common equity (average of beginning and ending balances) |
(D) |
14,822 |
13,758 |
|
|
|
|
|
|
As-reported ROE |
(A/D) |
9.0 % |
15.4 % |
|
Adjusted ROE (non-GAAP) |
( |
11.5 % |
10.4 % |
|
|
|
|
|
|
Calculations may differ due to rounding |
|
Appendix F-2: Reconciliation of GAAP to non-GAAP financial measures – FFO to adjusted debt |
|||
|
($ in millions except where noted) |
|
First quarter |
|
|
|
|
2025 |
2024 |
|
Total debt |
(A) |
31,041 |
28,493 |
|
Securitization debt |
(B) |
240 |
263 |
|
50% junior subordinated debentures |
(C) |
600 |
- |
|
Adjusted debt (non-GAAP) |
(D)=(A-B-C) |
30,201 |
28,230 |
|
|
|
|
|
|
Net cash flow provided by operating activities, LTM |
(E) |
4,504 |
3,856 |
|
|
|
|
|
|
Preferred dividend requirements of subsidiaries, LTM |
(F) |
(18) |
(18) |
|
|
|
|
|
|
50% of the interest expense associated with junior subordinated debentures, LTM |
(G) |
(37) |
- |
|
|
|
|
|
|
Working capital items in net cash flow provided by operating activities, LTM: |
|
|
|
|
Receivables |
|
(53) |
(63) |
|
Fuel inventory |
|
20 |
(10) |
|
Accounts payable |
|
210 |
(83) |
|
Taxes accrued |
|
(9) |
13 |
|
Interest accrued |
|
27 |
18 |
|
Deferred fuel costs |
|
(187) |
409 |
|
Other working capital accounts |
|
165 |
(215) |
|
Securitization regulatory charges, LTM |
|
20 |
28 |
|
Total |
(H) |
193 |
98 |
|
|
|
|
|
|
FFO, LTM (non-GAAP) |
(I)=(E-F-G-H) |
4,366 |
3,776 |
|
|
|
|
|
|
FFO to adjusted debt (non-GAAP) |
(I/D) |
14.5 % |
13.4 % |
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ due to rounding |
|
Appendix F-3: Reconciliation of GAAP to non-GAAP financial measures – adjusted debt ratios; gross liquidity; and net liquidity |
|||
|
($ in millions except where noted) |
|
First quarter |
|
|
|
|
2025 |
2024 |
|
Total debt |
(A) |
31,041 |
28,493 |
|
Securitization debt |
(B) |
240 |
263 |
|
50% junior subordinated debentures |
(C) |
600 |
- |
|
Adjusted debt (non-GAAP) |
(D)=(A-B-C) |
30,201 |
28,230 |
|
Cash and cash equivalents |
(E) |
1,513 |
1,295 |
|
Adjusted net debt (non-GAAP) |
(F)=(D-E) |
28,688 |
26,935 |
|
|
|
|
|
|
Commercial paper |
(G) |
1,330 |
1,914 |
|
|
|
|
|
|
Total capitalization |
(H) |
46,542 |
43,287 |
|
Securitization debt |
(B) |
240 |
263 |
|
Adjusted capitalization (non-GAAP) |
(I)=( |
46,302 |
43,024 |
|
Cash and cash equivalents |
(E) |
1,513 |
1,295 |
|
Adjusted net capitalization (non-GAAP) |
(J)=( |
44,789 |
41,729 |
|
|
|
|
|
|
Total debt to total capitalization |
(A/H) |
67 % |
66 % |
|
Adjusted debt to adjusted capitalization (non-GAAP) |
(D/I) |
65 % |
66 % |
|
Adjusted net debt to adjusted net capitalization (non-GAAP) |
(F/J) |
64 % |
65 % |
|
|
|
|
|
|
Available revolver capacity |
(K) |
4,345 |
4,245 |
|
|
|
|
|
|
Storm escrows |
(L) |
300 |
328 |
|
Equity sold forward, not yet settled (q) |
(M) |
3,075 |
426 |
|
|
|
|
|
|
Gross liquidity (non-GAAP) |
(N)=(E+K) |
5,858 |
5,540 |
|
Net liquidity (non-GAAP) |
(N-G+L+M) |
7,904 |
4,380 |
|
|
|
|
|
|
|
|
|
|
|
Due |
|
800 |
800 |
|
Due |
|
750 |
750 |
|
Due |
|
650 |
650 |
|
Due |
|
600 |
600 |
|
Due |
|
650 |
650 |
|
Due |
|
600 |
600 |
|
Junior subordinated debentures due |
|
1,200 |
- |
|
Total Parent long-term debt |
(O) |
5,250 |
4,050 |
|
Revolver draw |
(P) |
- |
- |
|
Unamortized debt issuance costs and discounts |
(Q) |
(44) |
(36) |
|
Total Parent debt |
(R)=(G+O+P+Q) |
6,536 |
5,928 |
|
|
|
|
|
|
Adjusted Parent debt (non-GAAP) |
(S)=(R-C) |
5,936 |
5,928 |
|
|
|
|
|
|
Adjusted Parent debt to total adjusted debt (non-GAAP) |
(S/D) |
20 % |
21 % |
|
|
|
|
|
|
Calculations may differ due to rounding |
|
|
(q) |
Reflects adjustments, including for common dividends between contracting and settlement. |
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