Entergy Q1 2025 slides: 52% EPS growth, equity needs secured through 2027

Introduction & Market Context

Entergy Corporation (NYSE:ETR) presented its first quarter 2025 earnings results on April 29, showing substantial year-over-year growth and strategic financial positioning. The utility company, which serves approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas, reported significant improvements in its financial metrics while maintaining its positive outlook for the remainder of the year.

Following a strong close to 2024, where Entergy beat earnings expectations with Q4 adjusted EPS of $0.66 versus a forecasted $0.63, the company has continued its positive momentum into 2025. ETR shares closed at $85.09 on April 28, 2025, showing a 0.57% increase, with the stock having recovered substantially from its 52-week low of $52.07.

Quarterly Performance Highlights

Entergy reported first quarter 2025 adjusted earnings per share of $0.82, representing a remarkable 52% increase from the $0.54 reported in the same period last year. The company also reported operating cash flow of $536 million for the quarter.

As shown in the following detailed breakdown of the quarter’s performance:

The waterfall chart illustrates the key drivers behind Entergy’s EPS growth. The most significant positive contributor was utility operating revenue (less fuel, purchased power, and regulatory charges), which added $0.33 to EPS. Other notable positive factors included utility other income, contributing $0.09, and improvements in operations and maintenance adding $0.03. These gains were partially offset by increased utility interest expense (-$0.10) and share effect/other (-$0.03).

Industrial sales growth was particularly strong at 9.3%, continuing the trend seen in Q4 2024, when the company reported 15% industrial sales growth. This robust industrial performance underscores Entergy’s strong position in markets with expanding industrial activity.

Financial Strategy and Equity Plan

A centerpiece of Entergy’s presentation was its equity financing strategy, which has successfully secured the company’s equity needs through 2027. This approach provides financial stability and clarity for investors.

The company’s equity plan is illustrated in the following slide:

Entergy has completed $1.5 billion through a forward offering in Q1 2025 and an additional $1.6 billion through forwards using at-the-market (ATM) offerings. The remaining need stands at $1.6 billion, with equity for 2025-2026 already contracted. This proactive approach to securing financing supports the company’s ambitious capital investment plans while maintaining its credit metrics.

The company’s credit ratings remain stable, with Entergy maintaining key credit metrics that exceed agency thresholds. The company projects CFO pre-working capital to debt greater than 14% and FFO to debt greater than 13% through its 2025-2028 outlook period.

Generation Mix and Growth Investments

Entergy continues to diversify its generation portfolio, with a significant portion of its energy coming from natural gas combined cycle turbines (42% of 2024 energy sources) and nuclear (27%). The company is also expanding its renewable energy footprint through strategic investments.

To meet growing demand, Entergy has several new generation projects either approved or pending regulatory review:

The company’s approved projects include two 200 MW solar power purchase agreements in Arkansas (Flat Fork Solar and Forgeview Solar), both scheduled to come online in 2025. Additionally, Entergy has pending regulatory reviews for owned solar projects in Texas: the 170 MW Segno Solar project (targeted for 2027) and the 141 MW Votaw Solar project (targeted for 2028). Further projects in Louisiana (Vacherie Solar and St. Jacques Solar) are also under consideration.

These investments align with Entergy’s strategy to meet increasing demand while transitioning to cleaner energy sources. The company serves a diverse customer base, with industrial customers accounting for 46% of its retail sales, followed by residential (29%) and commercial (23%) customers.

Forward-Looking Statements

Entergy has affirmed its guidance and outlook, projecting greater than 8% compound annual growth rate (CAGR) in adjusted EPS through 2028. The company’s specific guidance for upcoming years is illustrated in the following chart:

For 2025, Entergy maintains its adjusted EPS guidance of $3.75-3.95, consistent with the outlook provided in its Q4 2024 earnings report. The guidance then progresses to $4.25-4.45 for 2026, $4.65-4.95 for 2027, and $5.10-5.40 for 2028.

The strong first quarter performance, with adjusted EPS of $0.82, positions Entergy well to achieve its full-year guidance. This represents a solid start toward meeting the company’s long-term growth targets while executing on its strategic initiatives in generation capacity expansion and financial management.

Entergy’s continued focus on industrial sales growth, strategic equity financing, and investments in new generation capacity demonstrates the company’s commitment to sustainable growth and shareholder value creation in an evolving utility landscape.

Full presentation:

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