• Adjusted EPS for 2024: $3.65, in the top half of guidance range.
• Industrial Sales Growth: 8% for the year, 15% for the fourth quarter.
• Weather-Adjusted Retail Sales Growth: Approximately 4% for 2024.
• Book FFO to Adjusted Debt: 14.7% at the end of 2024.
• Capital Plan: $37 billion over the next four years (2025-2028), $2.7 billion higher than previous plan.
• Equity Needs: Increased by $300 million in 2026, with $1.4 billion already secured for 2025 and 2026.
• 2025 Adjusted EPS Guidance Range: $3.75 to $3.95.
• 2025 Weather-Adjusted Retail Sales Growth Forecast: 6%, with industrial growth at 11% to 12%.

• Warning! GuruFocus has detected 11 Warning Signs with ETR.

Release Date: February 18, 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 financial performance with 2024 adjusted EPS of $3.65, which is in the top half of their guidance range.
• The company is raising its capital outlook beyond 2025, with growth opportunities exceeding the previous range of 8% to 9%.
• Entergy Corp (NYSE:ETR) has seen significant growth in its industrial segment, with industrial sales up 8% for the year and 15% for the fourth quarter.
• The company plans to invest $37 billion over the next four years, focusing on expanding its renewables portfolio and modernizing gas plants.
• Entergy Corp (NYSE:ETR) has secured critical long lead time equipment and has strong partnerships with vendors, supporting additional growth potential.

Negative Points

• The company faces potential risks from regulatory processes, with a busy regulatory calendar in 2025 that includes several formula rate plan filings.
• There are challenges in managing credit metrics, although the company has made positive progress, maintaining a focus on healthy credit metrics.
• Entergy Corp (NYSE:ETR) is dealing with the aftermath of two hurricanes in 2024, which required significant restoration efforts.
• The company anticipates needing to clarify cost recovery for the 2024 storms, which could impact financial planning.
• There is uncertainty around new nuclear investments, with no imminent announcements expected, and the company is carefully managing financial risk in this area.

Q & A Highlights

Q: Can you elaborate on the core drivers of the $3 billion CapEx update, particularly regarding generation and renewables? A: Kimberly Fontan, Executive Vice President, CFO: The capital plan is largely focused on generation, including both past and renewables, with some distribution investment and incremental nuclear investments to support reliability. This is reflected in our updated outlook, which includes these investments and their earnings potential.

Q: What are your plans regarding new nuclear projects, and are you considering large-scale reactors or SMRs? A: Andrew Marsh, Chairman and CEO: We are exploring all forms of new nuclear, including large-scale reactors like the AP1000 and SMRs. Our focus is on finding the best risk profile and value for our stakeholders. Conversations are ongoing at both state and federal levels, with bipartisan interest in new nuclear.

Q: How do you plan to finance $3 billion of incremental CapEx with only $300 million of incremental equity? A: Kimberly Fontan, Executive Vice President, CFO: We optimize operating cash flow, manage against caps, and use mechanisms like cash and CWIP. Our pension is largely fully funded, providing additional credit space. Large customers pay their fair share, supporting us during ramp periods through mechanisms like minimum bills.

Q: Can you provide an update on the Amazon facility in Mississippi? A: Andrew Marsh, Chairman and CEO: The construction is ongoing, with the first substation live and serving Amazon. We hope this is the first phase of significant growth for Amazon in Mississippi.

Q: What is your approach to managing credit metrics, especially concerning the nuclear PTC? A: Kimberly Fontan, Executive Vice President, CFO: We have not included the nuclear PTC in our metrics as we await treasury guidance. It is viewed as credit positive, and we will decide how to proceed if it remains undefined later this year.

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