Constellation Energy Stock Jumps on $1 Billion in Deals With Federal Government

Aaron McDade

Thu, Jan 2, 2025, 1:06 PM 2 min read

Lauren Petracca / Bloomberg / Getty Images A reactor operator in the control room at the Constellation Nine Mile Point Nuclear Station in Scriba, New York. — Lauren Petracca / Bloomberg / Getty Images
A reactor operator in the control room at the Constellation Nine Mile Point Nuclear Station in Scriba, New York.

Key Takeaways

Constellation Energy shares jumped Thursday after the company and the U.S. General Services Administration announced a pair of contracts worth over $1 billion.
Constellation will supply over a dozen government agencies with nuclear energy over the next decade as part of a 10-year, $840 million contract.
The company also won a $172 million contract to perform a number of energy conservation upgrades across several government buildings.

Shares of Constellation Energy (CEG) surged Thursday after the company announced a pair of contracts with the federal government worth over $1 billion.

One of the contracts between Constellation and the General Services Administration (GSA) is a 10-year, $840 million deal for Constellation to supply over a dozen government departments across five states with nuclear power. The power will come from Constellation's existing facilities, along with investments the company plans to make to increase its production capacity.

Additionally, Constellation was has been awarded a $172 million deal to perform "energy savings and conservation measures" at five buildings in Washington, D.C. and Maryland. The measures will include energy conservation projects like new lighting, HVAC systems, and more.

Federal Government Joins Big Tech's Nuclear Push

The deals mean the federal government is joining the push into investing in nuclear energy that has also reached the tech industry in recent months. Constellation has agreed to restart one of the Three Mile Island reactors in Pennsylvania to provide power to Microsoft (MSFT), while Amazon (AMZN) and Google parent Alphabet (GOOGL) have also recently reached deals to buy nuclear energy.

"This agreement is another powerful example of how things have changed," Constellation CEO Joe Dominguez said. "Under this agreement, the United States government joins Microsoft and other entities to support continued investment in reliable nuclear energy that will allow Constellation to relicense and extend the lives of these critical assets."

Constellation shares were up more than 6% in late trading Thursday, just over double where they were a year ago.