Constellation Energy raises guidance midpoint as quarterly profit grows
The power producer now expects adjusted earnings of US$12.50 to US$12.80 a share, lifting the midpoint by US$0.65.
Ines Halvorsen
For 2026, adjusted earnings guidance rose to US$12.50 to US$12.80 a share as Constellation Energy Corporation NASDAQCEG reported third-quarter results on Monday. The new midpoint is US$12.65 a share, an increase of US$0.65.
The power producer's Aug. 6 outlook put full-year adjusted operating earnings at US$11.50 to US$12.50 a share. The revised floor now equals the previous ceiling, while the midpoint rises by about 5.4 per cent, calculated from the two ranges. The change lifts the bottom of the expected annual earnings range by US$1 a share and the top by US$0.30.
Third-quarter 2026 net income per share under generally accepted accounting principles rose to US$5.19 from US$2.97 a year earlier. Adjusted operating earnings increased to US$5.06 a share from US$3.04.
Shares closed at US$249.95, up 4.30 per cent, on Nasdaq at 4 p.m. EST on Nov. 6 NASDAQCEG. That close preceded Monday's earnings release and does not show a reaction to the results.
The adjusted result exceeded the US$3.90 consensus estimate for the September quarter displayed on Nasdaq's earnings page ahead of the Nov. 9 report. Constellation's adjusted operating earnings are a company-defined non-GAAP measure.
Management attributed the improvement to favourable market and portfolio conditions and its January acquisition, partly offset by adverse interest and nuclear production tax-credit portfolio effects.
"This strong performance allowed us to raise the midpoint of our adjusted operating earnings guidance range for the second time this year," Constellation chief financial officer Shane Smith said in the release.
The increase follows Vistra Corp. NYSEVST, which on Nov. 6 raised its 2026 ongoing operations adjusted EBITDA midpoint and narrowed the range to US$7.1 billion to US$7.5 billion. That measure describes earnings before interest, taxes, depreciation and amortization.
Read more: Vistra reports US$2.38B adjusted EBITDA and sets 2027 outlook
Nuclear Output Rises As Loan Remains Conditional
Constellation's nuclear fleet produced 46,677 gigawatt-hours in the third quarter of 2026, including owned output from Salem and South Texas Project. That compares with 46,477 gigawatt-hours in the same quarter of 2025. Operated sites recorded 20 planned refuelling outage days during the quarter, compared with 23 a year earlier.
Excluding those two stations, nuclear plants at ownership achieved a capacity factor of 97.2 per cent in the third quarter of 2026, up from 96.8 per cent a year earlier.
The Nov. 9 release also described a signed 20-year agreement for 270 megawatts of energy, capacity and nuclear attributes from the existing fleet, beginning in 2028. It is the first transaction under Peak+, the company's offering combining new capacity with energy products. The release did not identify the customer or disclose a price per megawatt-hour.
Financing for nuclear uprates remains conditional. Under an October commitment described in Monday's release, the U.S. Department of Energy would guarantee a loan of up to US$5 billion from the Federal Financing Bank, subject to execution of a loan agreement. The proposed term is 30 years.
The next scheduled event is Constellation's third-quarter earnings conference call at 9 a.m. EST on Nov. 9.
