Entergy Corp (ETR) Q1 2025 Earnings Call Highlights: Strong Start with Robust Sales Growth and ...

In This Article:

  • Adjusted Earnings Per Share (EPS): $0.82 for the first quarter.

  • Retail Sales Growth: Weather-adjusted retail sales growth at 5.2%.

  • Industrial Sales Increase: 9.3% increase in industrial sales.

  • Interest Expense and Depreciation: Higher due to investments.

  • Equity Transactions: $1.5 billion block equity forward executed, securing equity needs into 2027.

  • Tax Credits: Potential positive impact from nuclear production tax credits not included in outlooks.

  • Capital Plan: More than $5 billion of renewable investments through 2028.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Entergy Corp (NYSE:ETR) reported strong adjusted earnings per share of $0.82 for the first quarter, keeping them on track for their 2025 guidance.

  • The company announced significant industrial growth with new investments from Hyundai Motor Group, CF Industries, and Woodside, expected to boost economic development in Louisiana.

  • Entergy Corp (NYSE:ETR) is executing on its capital plan, with projects like the Orange County Advanced Power Station and Delta Blues Advanced Power Station on schedule and budget.

  • The company received regulatory approvals for several key projects, including a $0.5 billion transmission project in Louisiana and a combined cycle gas plant in Mississippi.

  • Entergy Corp (NYSE:ETR) has secured its equity needs into 2027, ensuring access to capital needed to execute its capital plan.

Negative Points

  • Higher interest expenses and depreciation due to investments partially offset the favorable effects of higher retail sales volume.

  • The company faces potential impacts from tariffs, which could affect capital expenditures, though they estimate the impact to be approximately 1% of their $37 billion, four-year capital plan.

  • There is macroeconomic uncertainty that might weigh on industrial activity, although Entergy Corp (NYSE:ETR) remains optimistic about long-term growth.

  • The timing of new customer ramps and potential volatility in sales could affect the company's financial performance.

  • Entergy Corp (NYSE:ETR) is managing potential risks related to the availability and transferability of renewable tax credits, which could impact their financial outlook.

Q & A Highlights

Q: With the Arkansas generation bill, do you feel the state is now fully competitive on the data center front, and have there been any inbounds thus far? A: Andrew Marsh, CEO: We feel that Arkansas is fully competitive now, and we are in discussions with potential customers. There is significant interest in the state.