Constellation Energy — 2026Q3 earnings

reported 2026-08-06

EPS $2.55 vs $2.28 est — beat

Revenue $7.5B vs $7.6B est — miss

next session +3.4% (close 2026-08-06 → 2026-08-07)

Source

Summary

Constellation beat on adjusted EPS in its first full quarter owning Calpine — $2.55 versus $1.91 a year ago — and raised full-year guidance by $0.50 to $11.50–$12.50 per share, even as revenue came in below Street forecasts. The report and the call told the same story: the platform is steadily contracting its clean output, with 920 MW of new long-term nuclear PPAs (including Walmart's first) bringing roughly 30% of clean baseload production under long-term agreements; the Crane restart cleared its FERC capacity-rights and NRC fuel-license hurdles on the way to a 2027 return; the $860 million Brazos Valley sale to LS Power closes out the DOJ divestiture obligations from the Calpine deal; and an IRS inflation adjustment lifted the projected 2030 nuclear PTC strike price to $50.88/MWh, adding roughly $0.30 to the 2030 base-earnings view. Buybacks of about $2.2 billion since late March underline the capital-return side of the story.

Earnings call

Earnings call webcast ↗

Transcript ↗

Review

From the report

A strong first full quarter with Calpine in the fold: adjusted operating EPS of $2.55 rose sharply from $1.91 a year ago even as GAAP EPS fell to $1.42 on fair-value and acquisition-related adjustments, and management raised full-year adjusted EPS guidance to $11.50–$12.50. Beyond the numbers, the quarter cleared both remaining regulatory hurdles for the Crane restart, added 920 MW of long-term nuclear PPAs including Walmart's first, and lined up the $860 million Brazos Valley sale that completes the Calpine-related divestiture commitments.

Adjusted operating EPS increased to $2.55 from $1.91 a year earlier, while GAAP EPS declined to $1.42 from $2.67, the gap driven by non-operating adjustments such as unrealized fair-value losses and Calpine acquisition items. show quote

“Our GAAP Net Income for the second quarter of 2026 decreased to $1.42 per share from $2.67 per share in the second quarter of 2025. Adjusted (non-GAAP) Operating Earnings for the second quarter of 2026 increased to $2.55 per share from $1.91 per share in the second quarter of 2025.”
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Management raised full-year adjusted operating earnings guidance to $11.50–$12.50 per share. show quote

“Raising full-year Adjusted (non-GAAP) Operating Earnings guidance range to $11.50 – $12.50 per share”
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The Crane Clean Energy Center restart cleared two regulatory milestones in the quarter: FERC approved the waiver to transfer capacity interconnection rights from Eddystone, and the NRC approved Crane's fuel license amendment ahead of a targeted 2027 restart. show quote

“FERC approved our waiver request to transfer CIRs from the dual fuel Eddystone Units 3 and 4 in Pennsylvania to the Crane Clean Energy Center. This decision clears a critical regulatory hurdle for the plant restart, we expect the transfer to expedite its ability to deliver reliable emissions-free power to the grid. Additionally, the NRC has approved a fuel license amendment request for the Crane Clean Energy Center — a major milestone moving us closer to restarting operations in 2027.”
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Constellation signed an additional 920 MW of long-term nuclear power purchase agreements with investment-grade customers, 15-20 years in duration beginning 2029 through 2032, including a 176 MW deal with Walmart that enables a 30 MW capacity expansion at Dresden. show quote

“We have signed an additional 920 megawatts (MW) of long-term power purchase agreements (PPA) for clean, reliable nuclear generation with a diverse set of investment grade customers. These agreements are for 15-20 years in duration and are set to begin in 2029 through 2032. Among these PPAs, our 176 MW agreement with Walmart will enable a 30 MW capacity expansion at our Dresden Clean Energy Center in Illinois”
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The company agreed to divest the 606 MW Brazos Valley Energy Center to LS Power for $860 million before closing adjustments — the last asset sale required by the regulatory commitments tied to the Calpine acquisition. show quote

“In August 2026, we entered into an agreement with LS Power to divest the Brazos Valley Energy Center (f/k/a Jack A. Fusco Energy Center), a 606 MW natural gas-fired plant in ERCOT for $860 million before closing adjustments, a key step in satisfying regulatory commitments related to our acquisition of Calpine earlier this year. This marks the last asset sale required by our regulatory commitments under the acquisition.”
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From the call

Management framed the $0.50 guidance raise as the product of commercial and operational outperformance, noting the new midpoint sits where the old top end was. The contracting engine was the centerpiece: roughly 30% of clean baseload output is now under long-term agreements with a robust pipeline behind it. The CFO added a quiet structural positive — the IRS inflation adjustment lifts the projected 2030 PTC strike price to $50.88/MWh, worth about $0.30 of 2030 base EPS — while about $2.2 billion of buybacks since late March leaves $2.8 billion of authorization, and Calpine integration is described as progressing well.

CEO Joe Dominguez announced a $0.50 guidance raise to $11.50–$12.50 per share on top of the quarter's $2.55 adjusted EPS, noting the new midpoint equals the old top of the range. show quote

“We delivered second quarter GAAP earnings of $1.42 per share and adjusted operating earnings of $2.55 per share. Given our team's strong commercial and operational performance year-to-date, we are increasing our operational earnings guidance range by $0.50 to $11.50 to $12.50 per share. Our midpoint is now what used to be the top end of the guide, and we still have many opportunities to deliver more value this year.”
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After the quarter's deal signings, roughly 30% of clean baseload output is now contracted under long-term agreements, and management described the forward deal pipeline as robust and active. show quote

“After a successful quarter in signing deals, we have now contracted roughly 30% of our clean baseload output under long-term agreements, and our transactional pipeline for future deals is both robust and active.”
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CFO Shane Smith said the IRS 2025 inflation adjustment raises the projected 2030 nuclear PTC strike price from $49.88 to $50.88 per MWh, lifting the company's view of 2030 base earnings by approximately $0.30 per share. show quote

“the projected 2030 PTC strike price will increase from $49.88 to $50.88 per megawatt hour. This change will increase our view of 2030 base earnings by approximately $0.30 per share.”
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Capital return has accelerated: about $2.2 billion of share repurchases in the four months since the late-March outlook, with $2.8 billion of buyback authorization remaining. show quote

“Together, with the $335 million we shared on the Q1 call, we have allocated about $2.2 billion to accretive share repurchase in the 4 months since our business and earnings outlook at the end of March. We will continue to be opportunistic as we deploy the remaining $2.8 billion of available authorization.”
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Management characterized the Calpine integration as progressing well, with the combined organization identifying additional value-creation opportunities. show quote

“Integration with Calpine is progressing well, and we are seeing strong collaboration across the combined organization as teams identify opportunities to create additional value for you.”
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as of 2026-08-13