CenterPoint Energy Q2 profit beats estimates, raises capital plan

Overview

• Texas utility's Q2 adjusted EPS beat analyst expectations, driven by growth and regulatory recovery

• Company increased 10-year capital investment plan by $1.2 bln to $66.7 bln

• CenterPoint reiterated full-year 2026 non-GAAP EPS guidance

Outlook

• CenterPoint reiterates 2026 non-GAAP EPS guidance range of $1.89-$1.91

• Company increases 10-year capital investment plan by $1.2 bln to $66.7 bln

• CenterPoint expects strong customer demand to reduce Houston Electric delivery charges by at least $5 bln over next decade

Result Drivers

• GROWTH AND REGULATORY RECOVERY - Co said Q2 results were primarily driven by growth and regulatory recovery, contributing $0.10 per share of favorability compared to Q2 2025

• O&M EXPENSES - Lower operations and maintenance expenses contributed $0.02 per share of favorable variance year-over-year

• WEATHER, USAGE AND INTEREST - Unfavorable weather and usage, and increased interest expense, each reduced results by $0.01 per share

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline utilities peer group is "buy"

• Wall Street's median 12-month price target for CenterPoint Energy Inc is $46.50, about 5.7% above its July 27 closing price of $44.01

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• July 26 - US Energy Department orders more power resources for western electric grid

• July 28 - Dutch grid operator Enexis gets €500 million financing from EIB

• July 27 - EPA says power for data centers can sidestep pollution laws

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)