NRG Energy stock drops 16.7% on weak Q2 earnings and Texas power price concerns

NRG Energy shares fell 16.7% in afternoon trading after the Houston-based power producer reported second-quarter 2026 adjusted earnings per share of $1.49, well below Wall Street's consensus estimate of about $1.82 and down from $1.73 a year earlier. The miss was largely driven by higher interest and depreciation costs tied to the company's large-scale acquisition of the LS Power portfolio, which weighed heavily on per-share profitability despite adjusted EBITDA rising 34% year-over-year to $1.217 billion. Management confirmed its full-year 2026 adjusted EPS guidance of $7.90–$9.90 but warned results would likely come in below the midpoint due to weaker Texas power prices, increased delivery costs from Winter Storm Uri, and an estimated $70 million headwind from Virginia rejoining the Regional Greenhouse Gas Initiative. The company also said financing for its new $3.2 billion, 1.2-gigawatt gas plant in Texas would push its leverage ratio target timeline from 2028 to 2029. Scotiabank maintained its Sector Outperform rating but cut its price target to $211 from $226. The stock hit a new 52-week low of $112.50, contrasting sharply with broad market gains as the S&P 500 rose 1.9% and the Nasdaq advanced 2.7%.