Constellation Energy Corp (CEG) Q3 2025 Earnings Call Highlights: Strong Earnings and Strategic ...

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GAAP Earnings: $2.97 per share for the third quarter. Adjusted Operating Earnings: $3.04 per share, $0.30 higher than the previous year. Nuclear Fleet Capacity Factor: 96.8%, consistently about 4% higher than the industry average. Full Year Adjusted Operating Earnings Guidance: Narrowed to $9.05 to $9.45 per share. Liquidity Post-Calpine Transaction: $14 billion. Dividend Growth Target: At least 10% annual growth. Stock Performance: Over 50% appreciation year-to-date. Remaining Stock Buyback Program: $600 million.

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Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Constellation Energy Corp (NASDAQ:CEG) reported third quarter GAAP earnings of $2.97 per share and adjusted operating earnings of $3.04 per share, surpassing last year's third quarter results. The company's nuclear plants achieved near-perfect reliability during the summer, contributing to strong operational performance. Constellation Energy Corp (NASDAQ:CEG) has reached a landmark agreement with the state of Maryland for the continued operation of Conowingo Dam for the next 50 years, ensuring a vital source of clean energy. The company is actively engaged in the data economy market, with a growing number of sophisticated and knowledgeable customers interested in nuclear energy solutions. Constellation Energy Corp (NASDAQ:CEG) is well-positioned to benefit from the increasing public and governmental support for nuclear energy, with plans for new nuclear reactors and extended licenses for existing plants.

Negative Points

The company faces nonrecurring O&M headwinds due to stock compensation plans triggered by strong stock performance. Interconnection processes for large transactions in the data economy are often delayed, impacting the speed of deal completion. ZEC prices in both the Midwest and New York were lower compared to the third quarter of last year, affecting revenue. The company is experiencing O&M headwinds from stock compensation, offsetting much of the gross margin favorability this year. There is uncertainty regarding the cost and execution of new nuclear projects, requiring clear pricing and strong partnerships to mitigate risks.

Q & A Highlights

Q: Joe, regarding your hyperscaler comment, are you confident in announcing another hyperscale deal by year-end, and will these deals be structured in front of the meter? A: Joseph Dominguez, CEO: Yes, we are focused on front-end meter deals, which makes the interconnection process a gating function. I expect deals to be completed soon, hopefully before our next call. However, I can't guarantee the timing due to customer approval processes.

Story Continues

Q: Are you seeing convergence in pricing between front-of-meter (FOM) and behind-the-meter (BTM) deals, especially with gas versus nuclear? A: Joseph Dominguez, CEO: Gas has capabilities but doesn't meet long-term sustainability goals for some customers. Pricing for gas is harder to predict due to future gas prices and potential compliance costs. Our nuclear offerings are economically attractive and available now.

Q: There were stories about a potential delay in the Calpine asset sale process. Should we be concerned? A: Joseph Dominguez, CEO: We initiated the asset sale process early to ensure enough time post-regulatory approvals. We feel confident about having sufficient time and want to ensure we target the right assets for divestiture. The market is supportive of asset sales.

Q: Could you provide an update on Three Mile Island and its progress? A: Joseph Dominguez, CEO: Progress is going well. We've completed critical items, and the plant is in good condition. We haven't encountered any unexpected challenges, which gives us confidence in the project's success.

Q: What are your thoughts on the power market's recent energy price movements, and how does it impact contract discussions? A: Joseph Dominguez, CEO: Strategically, the market environment is favorable for asset sales and supports our pricing expectations. Jim McHugh, EVP and CCO, noted that power prices have been strong due to load growth and supply-demand fundamentals, which is positive for our business.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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