NRG Beats Q3 Estimates and Agrees to Sell Six Gas Plants to LS Power for $4 Billion

NRG reported third-quarter adjusted earnings of $4.68 per share, $1.52 above the $3.16 analyst estimate, on revenue of about $9.5 billion versus a $9.33 billion consensus. Adjusted EPS rose from $2.78 a year earlier and adjusted EBITDA climbed to $2.01 billion from $1,205 million, according to the company's earnings release. Zacks, measuring against a $3.44 consensus, attributed the beat partly to gains from the assets NRG bought from LS Power.

Alongside the results, NRG agreed to sell six natural gas-fired generation assets totaling 4.9 GW to LS Power for $4 billion in cash, subject to closing adjustments. The deal is targeted to close in the second quarter of 2027, pending antitrust, FERC and New York regulatory approvals. NRG keeps its entire PJM portfolio and CPower, both acquired in January 2026.

Most of the proceeds go back to shareholders and lenders. NRG now plans $3 billion of buybacks across 2026 and 2027, including an extra $1 billion starting before the end of the fourth quarter, plus $2 billion of additional debt reduction at closing. Management estimates the sale will reduce annualized adjusted EBITDA by about $500 million. NRG reaffirmed 2026 adjusted EPS guidance of $7.90 to $9.90 and initiated 2027 guidance of $8.05 to $10.05, which does not reflect the sale.

Shares were up about 10.8% by mid-afternoon on Monday, well above the 4.2% gain reported early in the session. What to watch: regulatory approvals for the LS Power sale, the pace of the added buybacks, and the 1.2 GW data center power project management says is on track.