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FY2025 Q4
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Entergy Corporation earnings call
Buzzberg read
Retail sales CAGR raised to 8% through 2029
Entergy reported strong 2025 results, with adjusted EPS at $3.91, and reaffirmed a very bullish long-term growth outlook of >8% EPS CAGR through 2029. The company is on a massive $43 billion capex plan, driven by unprecedented data center demand. FY2025 Adjusted EPS: $3.91 (top half of guidance).
Buzzberg read Retail sales CAGR raised to 8% through 2029 Entergy reported strong 2025 results, with adjusted EPS at $3.91, and reaffirmed a very bullish long-term growth outlook of >8% EPS CAGR through 2029. The company is on a massive $43 billion capex plan, driven by unprecedented data center demand. FY2025 Adjusted EPS: $3.91 (top half of guidance). Read full analysisCollapse analysis
Entergy reported strong 2025 results, with adjusted EPS at $3.91, and reaffirmed a very bullish long-term growth outlook of >8% EPS CAGR through 2029. The company is on a massive $43 billion capex plan, driven by unprecedented data center demand. FY2025 Adjusted EPS: $3.91 (top half of guidance).
- Reaffirmed >8% EPS CAGR through 2029.
- Capital plan increased by ~$2B to $43B through 2029, largely due to the pending Cottonwood facility acquisition.
- Reiterated retail sales growth of 8% CAGR via 15% industrial growth; data centers are the primary driver.
Revenue$2.9589BReported
EPS$0.51Reported
Gross margin22.53%Reported
Operating margin16.25%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
Data center contracts to offset customer bills by $5 billion
Capex
8 GW of turbine equipment secured for growth
Show 3 more callouts
Balance Sheet
45% of equity needs already contracted through 2029
Capex
Cottonwood acquisition adds capacity at lower cost
Other
Preliminary winter storm Fern costs up to $560 million
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $2.9589B | Reported |
| EPS | $0.51 | Reported |
| Gross margin | 22.53% | Reported |
| Operating margin | 16.25% | Reported |
| Free cash flow | $-0.9965B | Reported |
| Capex | $2.2146B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2029 | $43B | $43B | Raised |
AI, capex & demand read
Management read
Confident
Management reiterates strong growth targets, highlights record economic development wins and constructive regulatory progress, and expresses confidence in the pipeline and execution capabilities.
Investment and capacity
Management raised the four-year capital plan to $43 billion through 2029, up $2 billion from the preliminary plan, with 2026 capital of $11.6 billion. The increase largely reflects the proposed Cottonwood acquisition, and the plan funds new gas, solar, battery storage, and transmission investments to support customer growth.
all 6 named companies below
Companiesreturns since call
Customers
Customers
Drew Marsh
A special rate contract with Google was approved, indicating Google's cloud/data center expansion in Arkansas will proceed, providing a firm revenue base for Entergy.
Evidence
“The Arkansas Public Service Commission approved the special rate contract for Google.”
Customers
Drew Marsh
Hyundai Steel's large planned investment is starting to move forward, highlighting the industrialization of the Gulf South beyond data centers.
Evidence
“with Hyundai Steel's $5.8 billion planned investment in Ascension Parish, Louisiana earned Business Facilities' Platinum Deal of the Year”
ANDURIL
Customers
Drew Marsh
Mentions of development milestones in petrochemical and other industrial sectors may relate to classified or non-public customers, potentially including Anduril; high uncertainty, but the context of new large industrial loads fits the profile.
Evidence
“Customers achieved important development milestones, including those in the steel, petrochem, and LNG sectors.”
Customers
Drew Marsh
Entergy has secured 8 GW of gas turbine capacity for potential incremental load, and expects to deploy it despite risks due to customer reimbursement agreements. — This secures the supply chain for data center growth in the region and mitigates execution risk, but also implies a strong commitment to building that capacity.
Evidence
“with Hyundai Steel's $5.8 billion planned investment in Ascension Parish, Louisiana earned Business Facilities' Platinum Deal of the Year, the first state to accomplish the feat two years in a row after the Meta AI Data Center project in”
Supply chain
Supply chain
Drew Marsh
Entergy has secured 8 GW of gas turbine capacity for potential incremental load, and expects to deploy it despite risks due to customer reimbursement agreements. — This secures the supply chain for data center growth in the region and mitigates execution risk, but also implies a strong commitment to building that capacity.
Evidence
“We have clear line of sight on equipment to serve 8 gigawatts of incremental load above our current plan.”
External signals
Supply-chain alpha · 4returns since call
Entergy has secured 8 GW of gas turbine capacity for potential incremental load, and expects to deploy it despite risks due to customer reimbursement agreements.
Winter Storm Fern caused damages comparable to a hurricane, with restoration costs estimated at up to $560M, largely classified as capital investment.
Evidence
“Our preliminary estimate for restoration costs is up to $300 million for Louisiana, up to $200 million for Mississippi, and approximately $60 million for Arkansas, the majority of the cost being capital.”
Management's 8% retail sales CAGR outlook implies a significant step-up in expected gas demand, likely higher than previously forecast, based on data center load additions.
Evidence
“We expect 8% retail sales compound annual growth, driven by 15% industrial growth through 2029.”
Entergy is exploring new rate offerings like demand response and time-of-use rates, indicating a shift towards more complex, load-management based revenue models.
Methodology & coverage
Management-only analysis. All 6 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.