Raised full-year EPS guidance by $0.50
Guidance tone
Constellation Energy reported a strong Q2 with EPS of $2.55, raised its full-year guidance by $0.50 to $11.50-$12.50, and highlighted significant progress on regulatory clarity, including the signing of ~920MW of long-term nuclear PPAs and a favorable FERC push on co-location rules. Constellation signed ~920MW of long-term nuclear PPAs with investment-grade customers across various industries, averaging 18.5 years in duration.
Constellation Energy reported a strong Q2 with EPS of $2.55, raised its full-year guidance by $0.50 to $11.50-$12.50, and highlighted significant progress on regulatory clarity, including the signing of ~920MW of long-term nuclear PPAs and a favorable FERC push on co-location rules. Constellation signed ~920MW of long-term nuclear PPAs with investment-grade customers across various industries, averaging 18.5 years in duration.
Guidance tone
Signed ~920 MW of long-term nuclear contracts with investment-grade customers (average 18.5 years), contracting ~30% of clean baseload output; pipeline robust and active, with customer sophistication improving.
Raised FY2026 EPS guidance to $11.50-$12.50 from $11.00-$12.00, citing commercial performance and capital allocation benefits.
Progress on the Calpine integration includes the $860 million sale of Brazos Valley to LS Power, satisfying remaining DOJ obligations.
Management discussed growing demand from data centers and AI, emphasizing the need to connect large loads efficiently, with regulatory progress enabling contracting for around-the-clock carbon-free power for customers like Walmart.
Signed ~920 MW of long-term nuclear contracts with investment-grade customers (average 18.5 years), contracting ~30% of clean baseload output; pipeline robust and active, with customer sophistication improving.
Capital allocation focused on $2.2B share repurchases year-to-date, with potential for additional buybacks; also preparing sites for new nuclear development, though no imminent major capex.
Management emphasized strong operational performance, raised guidance, and highlighted accelerating regulatory clarity and robust deal flow.
“PJM has also established a clear target of 6.8 gigawatts for the RBP and we are currently in the bilateral matchmaking process... PJM has proposed conducting the procurement option this fall with results expected by year end.”
“Constellation and other stakeholders are urging EPA to make clear that any curtailments ultimately directed by FERC tariffs should be excluded from the 50-hour annual limit for the use of backup generators at data centers.”
“What we're seeing in Texas is what we fully anticipated. The battery storage and other things you're talking about started earlier and they're arriving on the grid earlier than the load is.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | $11.50–$12.50 | $12.00 | RAISED |
Walmart's first nuclear PPA validates corporate demand for 24/7 clean power and positions it as a leader in decarbonization procurement, likely signaling follow-on deals with other large retailers.
“Walmart is helping to define how corporate customers think about nuclear energy, reflecting a growing recognition that achieving ambitious decarbonization goals requires access to around-the-clock carbon-free generations.”
… and our transactional pipeline for future deals is both robust and active. Taking an additional moment on the deal that was announced this quarter with our partner Walmart, I wanted to mention that Walmart has a long history of supporting clean energy development. But this agreement represents their first nuclear power purchase agreement and the first transaction of its kind for a major retailer. Walmart is helping to define how corporate customers think about nuclear energy, reflecting a growing recognition that achieving ambitious decarbonization goals requires access to around-the-clock carbon-free generations. This transaction is only the beginning of a wonderful partnership with this iconic American company. A Walmart deal taken together with the others this quarter reinforces the broad appeal of our products and capabilities to customers of all kinds. Moving to slide seven, I want to provide some additional context on regulatory developments that are improving the backdrop for customer contracting. In June, we received strong validation from PERC which made clear its desire to move more quickly in establishing new pathways for serving large loads. PERC ordered …
While the 920MW of deals are undisclosed, Anduril's publicized presence in data center and defense AI load growth aligns with the customer types (data centers) that are likely signing these long-term nuclear PPAs.
“This transaction is only the beginning of a wonderful partnership with this iconic American company. A Walmart deal taken together with the others this quarter reinforces the broad appeal of our products”
… has a long history of supporting clean energy development. But this agreement represents their first nuclear power purchase agreement and the first transaction of its kind for a major retailer. Walmart is helping to define how corporate customers think about nuclear energy, reflecting a growing recognition that achieving ambitious decarbonization goals requires access to around-the-clock carbon-free generations. This transaction is only the beginning of a wonderful partnership with this iconic American company. A Walmart deal taken together with the others this quarter reinforces the broad appeal of our products and capabilities to customers of all kinds. Moving to slide seven, I want to provide some additional context on regulatory developments that are improving the backdrop for customer contracting. In June, we received strong validation from PERC which made clear its desire to move more quickly in establishing new pathways for serving large loads. PERC ordered every RTO to justify how their existing tariffs provide for the just and reasonable interconnection of large loads to the grid or propose revisions to their tariffs. FERC also called balls and strikes on the rules for …
OpenAI and other AI developers' data center demands likely underpin the 920MW of long-term contracts signed, reinforcing their reliance on round-the-clock nuclear power to meet AI training loads.
“The concerns underlying the opposition to data centers are far from unsolvable. Indeed, I would suggest to you that if we can restart Crane at Three Mile Island and earn overwhelming political and public support, then we can certainly earn”
… have some wood to chop here, but the direction and the speed are very promising. We urge PJM to keep it up. Turning to slide eight, I'm going to conclude my remarks on this slide and return back to the point that are made at the top about business values and our focus on communities. This slide talks about the fantastic progress we've made at Crane by creating a win-win-win for Pennsylvanians, the local communities, and our customer. I'm not going to drain the slide. You can read the words yourself. Instead, I want to draw a parallel between what it takes to build, operate, Thank you for joining us. The concerns underlying the opposition to data centers are far from unsolvable. Indeed, I would suggest to you that if we can restart Crane at Three Mile Island and earn overwhelming political and public support, then we can certainly earn the public support to build a 21st century data economy in our communities. It comes down to the trust we earn with the right business values focused on making our communities better and stronger. It's all about the things on this slide, jobs, tax base, and community contribution. When it's done right, it works. With that, I'll turn it over to Shane.
Microsoft's earlier PPA with Constellation sets the precedent for hyperscaler demand; the latest undisclosed deals likely mirror that structure, showing continued enterprise appetite for nuclear power.
“the Walmart deal taken together with the others this quarter reinforces the broad appeal of our products and capabilities to customers of all kinds.”
Battery storage additions in ERCOT are arriving earlier than the corresponding data center load, suppressing power prices as expected; markets will tighten as the load materializes. — Texas generators are absorbing the current oversupply, but the eventual data center load growth will tighten the market, supporting future spark spreads.
Absolutely. Yeah, it's really helpful. Thanks. And curious if you could also maybe give your view on the outlook for just on the power market side of things for ERPOD outlook for power prices and spark spreads from here. The market's been under pressure. And curious your view on that and maybe also just the battery storage, how that's impacted the market from here too.
Thanks for the question, David. This was one that came up last quarter. I think Jim and Andrew talked a bit about it. What we're seeing in Texas is what we fully anticipated. The battery storage and other things you're talking about started earlier and they're arriving on the grid earlier than the load is. We talk a lot about data centers in Texas, but if you really take a look at where the construction of that build-out lies, you'd find that You know, the vast majority of the data centers that are anticipated are still at some stage of construction and not on the grid. So, you know, Andrew, I think, was the one that mentioned we would expect to see, depending on weather, and if you don't have the right weather, you're not going to see a lot of price action in Texas. And that's what we've seen this year. It was completely, completely expected by us at Constellation, completely expected by Calpine, and we positioned ourselves in the market accordingly. I think the market will start to tighten up as the data centers get built and you start to see the market come into more or less equilibrium.