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    ETR
    Earnings call· Mar 2026(Q1 FY26)

    ENTERGY CORP /DE/ Q1 FY26 earnings call ETR

    Apr 29, 2026 Source

    Executive summary

    Entergy Q1 FY26 — Meta ESA lifts capital plan to $57B and raises multi-year EPS outlook

    A signed Meta ESA reshapes Entergy's growth trajectory this quarter, converting large-load demand into a materially larger regulated capital plan and a stepped-up multi-year earnings outlook while management leans on minimum-bill structures and Fair Share Plus to protect existing customers and credit. The regulated build cycle — gas CCCTs, transmission, storage and prospective renewables/new nuclear — is the thesis, with a still-uncontracted 7-12 GW pipeline framing upside management defers to its June Investor Day.

    Highlights

    6
    • Q1 adjusted EPS of $0.86, with 2026 adjusted EPS guidance affirmed and firmly on track

    • Retail sales outlook raised to ~8.5% compound annual growth through 2029, driven by 16% industrial growth; Q1 industrial sales growth was very strong at 15% (overall retail +6%)

    • New Meta North Louisiana data-center ESA carrying ~$2B of Fair Share value (part of the estimated $7B total customer benefits) plus 20-year Meta commitments of $140M energy efficiency and $60M Power to Care ($120M with Entergy match)

    • Forward 4-year capital plan raised to $57B, up $14B, primarily 7 new CCCTs and battery storage tied to the Meta agreement

    • Multi-year adjusted EPS outlook raised — +$0.20 in 2027 growing ratably to +$0.50 in 2029 to reach $6.40; 2028-2029 YoY growth of 12% with ~same expected for 2030

    • Signed ESAs totaling over 1,000 MW YTD beyond Meta across multiple industries and all operating companies, with a 7-12 GW data-center pipeline still outside the plan

    Concerns

    5
    • Q1 retail sales earnings contribution was essentially neutral as strong industrial revenue was offset by weather, including favorable weather in Q1 last year

    • Q2 2026 other O&M expected ~$0.15 higher YoY on higher vegetation spending and timing of nuclear maintenance

    • Winter Storm Fern (ice storm) cost estimated in the ~$200M range, to be securitized in Mississippi

    • $4.7B of equity still to be sourced (of the $6.6B 4-year need) in late 2027 through 2029, plus $3B of planned hybrids

    • New nuclear carries significant cost and construction-cost uncertainty; management says its balance sheet is not big enough to cover the whole risk alone

    Guidance & targets

    16
    CategoryTargetConfidence
    Full-year 2026 adjusted EPS
    affirmed / firmly on track
    high materiality
    High
    Retail sales growth (2026-2029 CAGR)
    approximately 8.5% compound annual growth through 2029
    high materiality
    High
    Industrial sales growth (through 2029)
    16%
    high materiality
    High
    4-year forward capital plan
    $57 billion
    high materiality
    High
    2027 adjusted EPS outlook
    $0.20 higher than prior outlook
    high materiality
    High
    2029 adjusted EPS
    $6.40 (raised by $0.50)
    high materiality
    High
    Adjusted EPS growth rate (2028-2029, preview of 2030)
    12% YoY in 2028-2029; approximately the same for 2030
    high materiality
    Medium
    4-year equity financing need
    $6.6B total (low end of 10%-15% of plan); $4.7B still to be sourced
    high materiality
    Medium
    FFO to debt
    at or above 15% (Moody's basis) throughout the period
    high materiality
    High
    Dividend growth rate
    ~6% historical growth maintained (balanced against faster earnings growth)
    medium materiality
    Medium
    Q2 2026 other O&M
    approximately $0.15 higher than same quarter last year
    medium materiality
    High
    Louisiana (Meta) regulatory capital request
    more than $15B requested, about $14B in the 4-year plan; decision targeted at the December B&E meeting
    high materiality
    Medium
    Orange County Advanced Power Station in-service
    fully online in late summer 2026
    medium materiality
    High
    Meta agreement CCCT in-service dates
    all 7 CCCT units in-service in 2030 and 2031
    high materiality
    Medium
    Additional renewables pursuit (Meta clean energy)
    another 2.5 GW of renewables (plus CCS, nuclear upgrades and new nuclear under investigation)
    medium materiality
    Low
    Winter Storm Fern cost securitization
    ~$200M storm cost; filing by October 5, decision expected within 60 days
    medium materiality
    Medium

    Operational metrics

    10
    Adjusted EPS
    $0.86not stated (YoY per-share up on customer investments/regulatory actions, partly offset by higher share count from settling equity forwards)
    Q1 FY26

    Primary driver described as effects of investments made for customers; retail sales earnings contribution essentially neutral due to weather.

    Estimated customer benefits (Fair Share)
    $7 billion
    cumulative / into the future

    Fair Share portion lowers existing customers' bills versus what they otherwise would have been.

    Meta agreement Fair Share value
    $2 billionincluded within the $7B total benefits
    20-year agreement

    Fair Share value from the new North Louisiana Meta data-center ESA.

    Renewables and storage in negotiation
    over 4,500 MWfrom prior RFP selections in AR, LA, MS
    as of Q1 FY26

    Post-selection negotiation volume across Arkansas, Louisiana and Mississippi.

    Active renewables and storage RFPs
    more than 1,600 MW
    as of Q1 FY26

    Active RFPs for renewables and storage across the system; separate from the ~4,500 MW in negotiation.

    Transmission project capital savings
    more than $30 million
    Q1 FY26

    Engineering redesign lowered material costs and enabled faster customer delivery.

    ESAs signed year-to-date (ex-Meta)
    over 1,000 MW
    YTD 2026

    Indicates customer growth beyond data centers remains robust in the region.

    Winter Storm Fern estimated cost
    ~$200 million
    early 2026 ice storm

    Securitization to lower overall cost for customers.

    AWS Super Power capital (Mississippi)
    $300 million
    ongoing

    Cited as an example of Fair Share embedded-cost coverage enabling investment without incremental customer cost.

    Arkansas base rate case ask
    $45 millionless than 2% (residential impact under 1%)
    filed late February 2026

    Entergy Arkansas base rate case; Entergy Mississippi filed annual formula rate plan with no change requested.

    Industry KPIs

    5
    MetricValueDetails
    Ffo to debtat or above 15%%
    Retail sales growthQ1 industrial +15%, overall retail +6%; outlook ~8.5% CAGR through 2029 (industrial 16%)%
    New gas generation builds upgrades7 new combined-cycle units (CCCTs)units
    Nuclear capacity uprates ptc gearingRiver Bend nuclear upgrade and new nuclear under investigation (AP-1000 study)
    Contracted large load capacity esas loasMeta ESA executed (North Louisiana); over 1,000 MW additional ESAs signed YTDMW / GW

    Deals & partnerships

    4
    Metacustomer contract (Electric Service Agreement) with clean-energy commitments$2B Fair Share value; plus 20-year $140M energy efficiency and $60M Power to Care (matched to $120M)20 years

    New North Louisiana data center; Entergy Louisiana filed LPSC application for 7 CCCTs, transmission and battery storage; agreement also includes pursuit of 2.5 GW renewables and investigation of CCS, nuclear upgrades and new nuclear (AP-1000 study referenced).

    AWS (Amazon)customer contract (data center / Super Power, Mississippi)$300M of capital deployed without incremental cost to customers

    Cited as an example of Fair Share embedded-cost coverage in Mississippi.

    Multiple industrial customers (steel, petrochemicals, others)customer contracts (ESAs across all operating companies)over 1,000 MW combined

    Many projects under 20 MW; indicates customer growth beyond data centers remains robust.

    Cottonwood (generation asset)acquisition

    Management noted limited remaining generator M&A opportunities in the region; does not expect asset M&A to be a significant part of capital outlay beyond Cottonwood.

    Capital programs

    4
    4-year forward capital planunderway$57 billion
    Funding: operating cash flow, continuous debt issuance, $6.6B equity (10-15% of plan), and $3B parent hybrids
    Start: current 4-year horizon

    Benefit: regulated rate base growth supporting ~8.5% retail sales CAGR through 2029

    Raised $14B versus prior plan, primarily 7 new CCCTs plus battery storage from the Meta agreement; transmission, renewables and River Bend nuclear upgrade not yet included.

    Louisiana Meta data-center supply investment (LPSC filing)pending regulatory approvalmore than $15 billion (about $14B in the 4-year plan)
    Funding: covered by payments from Meta (tariff or other contributions); transmission financing options still being worked
    Start: filed 2026 under Louisiana Lightning Initiative

    Benefit: 7 new combined-cycle units, transmission infrastructure and battery storage; reliability, resilience and lower fuel costs for all customers

    Procedural schedule directed toward a decision at the December B&E meeting; renewables and River Bend nuclear upgrade to be added as projects firm up.

    Orange County Advanced Power Station (Texas)nearing completion
    Spent to date: first fire milestone achieved

    Benefit: reliable power for Texas customers (spinning generation capacity)

    Entergy Texas also issued a February RFP for combined-cycle capacity and energy following commission feedback.

    Additional renewables/storage buildout (RFPs and self-build)underway
    Start: over the next several years

    Benefit: 2,500 MW solar (Meta) and 1,500 MW (prior agreement) framing; ~4,500 MW in negotiation (2/3 owned); batteries

    Roughly half of negotiated volume not yet in the plan; filled via open RFPs, Louisiana Accelerated Renewable Review Process and self-build.

    Risks & headwinds

    7
    Q2 2026 other O&M step-upQ2 2026

    ~$0.15 higher than Q2 2025

    Mitigation: timing-driven (vegetation spending and nuclear maintenance); within full-year guidance

    Weather variability on reported sales/earningsQ1 FY26 / ongoing

    Q1 retail sales earnings contribution essentially neutral as industrial revenue offset by weather (positive weather in Q1 last year)

    Mitigation: minimum bills and demand charges on industrial/hyperscale customers limit volume-driven downside

    Winter Storm Fern (ice storm) costsearly 2026 event; filing by Oct 5, 2026

    ~$200 million estimated

    Mitigation: securitization under new Mississippi legislation to lower overall customer cost

    New nuclear construction cost and cost uncertaintylong-term (needed before ~2050)

    unquantified; management says balance sheet not big enough to cover the whole construction risk alone

    Mitigation: will not enter agreements creating existential risk; pursuing risk-sharing frameworks and cost-reduction ideas to be discussed at Investor Day

    Equity/financing executionlate 2027 through 2029

    $4.7B of $6.6B 4-year equity still to be sourced; $3B hybrids planned

    Mitigation: proactive ATM forwards and block transactions (~30%/$1.9B already contracted); AFUDC recovery and constructive mechanisms

    Hyperscaler/data-center customer concentrationthrough construction/ramp (to ~2031)

    unquantified; large-load growth concentrated in a few hyperscalers

    Mitigation: minimum bills, minimum builds/contract lengths, termination and strong credit terms under Fair Share Plus

    Regulatory fatigue / rate case risk given rapid capital growthongoing

    unquantified

    Mitigation: customer/community benefits, Louisiana Lightning Initiative accelerating reviews; management sees adequate mechanisms and expects continued support

    Q&A highlights

    8

    Does today's $14B CapEx increase fully capture the Meta deal, or is there additional CapEx and earnings accretion still to come at the June Analyst Day?

    Kimberly said $14B was added versus ~$15B in the filing (CCCTs close outside the period); renewables under the agreement and nuclear pieces are NOT in the plan, so there is more opportunity in and beyond the period. Drew added the Investor Day preview through '29 was largely given today given the 6-week window.

    what's not in the plan is the renewables that are under the agreement as well as some of the nuclear pieces. So certainly, there is more opportunity, both in the period and beyond.

    asked by Shahriar Pourreza · answered by Kimberly Fontan

    3 min read6 chapters

    Detailed Narrative

    01

    Fair Share Plus pledge and the Meta North Louisiana ESA

    Entergy formalized its data-center framework as the Fair Share Plus pledge, aligned with the White House Rate Payer Protection Pledge, ensuring data centers cover incremental costs plus a portion of existing customers' fixed costs — a source of the estimated $7B of customer benefits. In late March it signed a new Meta ESA for a North Louisiana data center carrying ~$2B of Fair Share value (part of the $7B). Meta also committed, over 20 years, $140M to energy-efficiency programs and $60M to the Power to Care program, which Entergy Louisiana will match to $120M — a 5x annual increase over 2025 levels. The associated assets (7 combined-cycle units, transmission and battery storage) are to be paid for by Meta via tariff or other contributions while all customers get reliability, resilience and lower fuel-cost benefits.

    02

    Capital plan expansion and financing

    The forward 4-year capital plan rose to $57B, up $14B, driven primarily by the 7 CCCTs and battery storage from the Meta agreement; the LPSC filing totals more than $15B with ~$14B inside the 4-year horizon, and transmission, renewables and the River Bend nuclear upgrade are not yet included pending financing decisions. Equity for the 4-year plan is now $6.6B (low end of the 10-15% target), with $1.9B already contracted (~30%) and $4.7B to be sourced in late 2027 through 2029; the plan also assumes $3B of parent hybrids. Management stresses proactive ATM/forward funding and constructive mechanisms (AFUDC recovery, forward mechanisms, pension funding) keep equity at 10-15% of the plan without structural change.

    03

    Customer growth pipeline beyond Meta

    Beyond Meta, Entergy signed ESAs totaling over 1,000 MW YTD across steel, petrochemicals and other Gulf South industries and all operating companies, with many projects under 20 MW and non-data-center loads probability-weighted (not booked at 100%). Even after all signed agreements including Meta, the data-center pipeline outside the plan remains 7-12 GW; Meta moved through that pipeline and was backfilled by fresh interest. Hyperscale data centers only enter the plan once an ESA is signed, and are included at minimum-bill levels for revenue certainty.

    04

    Renewables, generation and operational excellence

    Entergy has active RFPs for more than 1,600 MW of renewables and storage and over 4,500 MW in various stages of negotiation from prior RFPs in Arkansas, Louisiana and Mississippi, with roughly two-thirds of the negotiated megawatts to be owned (about half not yet in the plan). Orange County Advanced Power Station achieved first fire and is expected fully online in late summer 2026, and Entergy Texas issued a February RFP for combined-cycle capacity. Power delivery identified more than $30M in capital savings on the Commodore-to-Churchill 230 kV project via a design improvement applicable to future large transmission projects.

    05

    Regulatory activity across jurisdictions

    Entergy Arkansas filed a base rate case in late February requesting a $45M change (less than 2%; residential impact under 1%), including an optional time-of-use rate and a 50% customer-charge discount for LIHEAP-qualifying low-income households, and elected to resume its formula rate plan after resolution. Entergy Mississippi filed its annual formula rate plan with no change requested and updated its interim facilities rate adjustment; Entergy Arkansas filed its first Generating Arkansas Jobs Act rider. Mississippi passed legislation authorizing securitization of Winter Storm Fern costs (~$200M). Louisiana's request falls under the new Louisiana Lightning Initiative with a targeted December B&E meeting decision.

    06

    New nuclear posture

    Management views new nuclear as needed in the long term (not reaching ~2050 without it) and the Meta agreement moves exploration forward, including a study referencing AP-1000 technology. Entergy states it is largely technology-agnostic — comfortable with the AP-1000 given its completed design and familiarity — but the central concern is construction-cost uncertainty and risk-sharing. Management repeatedly stressed it will not enter any agreement that creates existential balance-sheet risk, noting its balance sheet is not big enough to cover the whole construction risk alone; it will share ideas at Investor Day on managing cost and risk.

    AI-generated summary of the company’s earnings call. Not investment advice.