NRG

LONG

NRG ENERGY INC

Funds

Score

4.00

vs SPY

-24.3%

Stock return (since Q-end)

-8.0%

SPY return (since Q-end)

+16.3%

Current price

$134.08

News Summary

Negative

NRG completed its transformative $12B LS Power acquisition (doubling generation fleet to ~26 GW) and maintains strong 2026-2030 guidance with 14%+ EPS growth targets, but Q1 2026 earnings significantly missed consensus ($1.49 EPS vs. $1.76–$2.78 est.), driven by mild weather and low Texas price volatility that offset LS Power contribution gains. Leadership transition to new CEO Robert Gaudette is complete, and upcoming catalysts include the 415 MW T.H. Wharton facility and anticipated data center agreements tied to AI/cloud demand.

Red flags

•Q1 2026 Adjusted EPS of $1.49 missed consensus estimates by 15–46% ($1.76–$2.78 range)
•Adjusted EPS declined 44% year-over-year ($1.49 vs. $2.68 prior year) despite LS Power acquisition
•Stock plunged 13% in week following earnings announcement; 52-week low of $135.36
•Q1 2026 Free Cash Flow before Growth was negative at $(66) million despite $1.08B Adjusted EBITDA
•Earnings miss attributed to external factors (mild weather, low price volatility) that may persist

Funds Buying (3)

Fund	Manager	Shares Held	∆ Shares	Position Value	QoQ	Status
Appaloosa LP	David Tepper	1.7M	+94K	$253.5B	+6%	Existing
Point72	Steve Cohen	275K	+275K	$40.2B	—	NEW
Maverick Capital	Lee Ainslie	11K	+11K	$1.5B	—	NEW

Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.