Entergy (ETR) Q2 FY26 earnings call: guidance and Q&A

Asked about Entergy's participation in federal/state nuclear advancement initiatives and progress on the three legs of support (state, federal, hyperscaler) for new reactor deployment.

Drew Marsh confirmed conversations with the state and excitement about DOE's next phase for nuclear components. He reiterated that new nuclear deployment remains customer-led, with ongoing efforts to manage risk for customers and operating companies, but no firm timeline for announcements.

“our perspective on new nuclear deployment remains where it was at Investor Day. We are working with several parties to try and work through the various components of risk but making sure that our customers are protected and managed with that risk and that our -- the balance sheets of our operating companies are managed and protected from new nuclear risk is still going to be very, very important.”

asked by Shahriar Pourreza · answered by Andrew Marsh

Inquired about the likelihood of the Louisiana FRP extension and alternatives if it's not extended.

Drew Marsh expressed expectation for an extension, citing a long history of successful extensions in Louisiana, while acknowledging the need to work with regulators and stakeholders.

“I think that we have a long history of extending formula rate plans within Louisiana. And so our expectation is that we would probably be able to extend, of course, we have to work with the regulators and the staff and other folks that will be participating in the process to make sure that it works for everybody.”

asked by Shahriar Pourreza · answered by Andrew Marsh

Asked for an update on the potential for incremental data center expansions in Mississippi, given positive stakeholder tone.

Drew Marsh confirmed robust conversations in Mississippi, noting existing AWS and AVAIO investments and other interested customers. He stated the state is embracing the opportunity, but no specific updates or details could be provided at this time.

“we continue to have very robust conversations in Mississippi. Of course, you all know that AWS has a significant investment there and AVAIO is also looking to invest with us there. And there are other investments in other parts of the state.”

asked by Jeremy Tonet · answered by Andrew Marsh

Asked about the potential for Meta to reach 12 GW in Louisiana and the overall opportunity set in the state.

Drew Marsh stated he couldn't speak to Meta's specific appetite but noted all customers are interested in expanding. He confirmed the front-end funnel remains very active, with significant interest, though the 7-12 GW pipeline number remains unchanged.

“I can't speak to Meta's appetite specifically. Obviously, as we've said in the past that all of the customers that we have been working with. Every one of them has been interested in expanding beyond where they are.”

asked by Jeremy Tonet · answered by Andrew Marsh

Inquired about options to mitigate the bill impact on customers from the Cottonwood acquisition, potentially involving large load customers.

Drew Marsh explained that Cottonwood is the most economic option for existing customers and non-data center industrial growth, despite being an older plant. He confirmed they are working with stakeholders to mitigate upfront impacts, particularly due to timing, and are confident in finding a solution through the regulatory process.

“The -- we are working with folks to think about how to mitigate the impact. I mean the reality is that we know that Cottonwood isn't the shiniest new plant out there. But it is the most economic opportunity for our existing customers and the nondata center industrial growth that we are seeing because that load is coming on over the next few years.”

asked by Paul Zimbardo · answered by Andrew Marsh

Asked about any pushback or NIMBYism against data centers, how Entergy is reacting, and whether the risk is delays or cancellations.

Drew Marsh acknowledged pockets of concern, citing New Orleans' moratorium as an example. He stated their typical approach is to work with stakeholders to address concerns and lift moratoriums, emphasizing the significant benefits these investments bring to communities.

“A great example of that is just here in New Orleans. Currently, we're under a moratorium for data centers. And that's not unlike kind of pushback that we've seen for various technologies in the past, whether it's gas plants or solar facilities, batteries perhaps, and typically, what we have done is work with stakeholders to make sure that everybody understands the need, we work with them to address concerns and then we're able to move forward.”

asked by Andrew Weisel · answered by Andrew Marsh