Entergy: Entergy Corp (ETR) Q1 2025 Earnings Call Highlights: Strong Start with Robust Sales Growth and ...

In This Article: Adjusted Earnings Per Share (EPS): $0.82 for the first quarter. Retail Sales Growth: Weather-adjusted retail sales growth at 5.2%. Industrial Sales Increase: 9.3% increase in industrial sales. Interest Expense and Depreciation: Higher due to investments. Equity Transactions: $1.5 billion block equity forward executed, securing equity needs into 2027. Tax Credits: Potential positive impact from nuclear production tax credits not included in outlooks. Capital Plan: More than $5 billion of renewable investments through 2028. Warning! GuruFocus has detected 12 Warning Signs with ETR. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript . Positive Points Entergy Corp ( NYSE:ETR ) reported strong adjusted earnings per share of $0.82 for the first quarter, keeping them on track for their 2025 guidance. The company announced significant industrial growth with new investments from Hyundai Motor Group, CF Industries, and Woodside, expected to boost economic development in Louisiana. Entergy Corp ( NYSE:ETR ) is executing on its capital plan, with projects like the Orange County Advanced Power Station and Delta Blues Advanced Power Station on schedule and budget. The company received regulatory approvals for several key projects, including a $0.5 billion transmission project in Louisiana and a combined cycle gas plant in Mississippi. Entergy Corp ( NYSE:ETR ) has secured its equity needs into 2027, ensuring access to capital needed to execute its capital plan. Negative Points Higher interest expenses and depreciation due to investments partially offset the favorable effects of higher retail sales volume. The company faces potential impacts from tariffs, which could affect capital expenditures, though they estimate the impact to be approximately 1% of their $37 billion, four-year capital plan. There is macroeconomic uncertainty that might weigh on industrial activity, although Entergy Corp ( NYSE:ETR ) remains optimistic about long-term growth. The timing of new customer ramps and potential volatility in sales could affect the company's financial performance. Entergy Corp ( NYSE:ETR ) is managing potential risks related to the availability and transferability of renewable tax credits, which could impact their financial outlook. Q & A Highlights Q : With the Arkansas generation bill, do you feel the state is now fully competitive on the data center front, and have there been any inbounds thus far? A : Andrew Marsh, CEO: We feel that Arkansas is fully competitive now, and we are in discussions with potential customers. There is significant interest in the state. Q : Regarding the financing updates, does the acceleration of equity imply an improvement in credit metrics or other changes? A : Kimberly Fontan, CFO: There hasn't been a significant change in the timing of equity needs. We contracted forward into 2027, and our credit metrics through 2028 continue to build towards 15%. The forward volume in Q1 was about taking risk off the table amid volatility. Q : Can you discuss the drivers behind the residential sales increase and any macro factors affecting industrial activity? A : Kimberly Fontan, CFO: Residential sales are expected to grow about 1% for the full year, with overall sales at 5.5%. Industrial sales have shown over 5% growth for 15 years, and recent customer announcements underscore ongoing opportunities despite macro uncertainties. Q : How quickly can you offer service to new large load customers, and what is the tariff exposure's impact on earnings? A : Andrew Marsh, CEO: We have queue positions to provide generation, with opportunities for customers in the 2028-2029 timeframe. Kimberly Fontan, CFO: Most tariff exposure is tied to new generation components in 2027-2028, giving us time to mitigate impacts, so we don't see a significant earnings effect. Q : Are you trending higher in the fiscal 2025 plan given the strong start, and what about the potential for settling issues in the new customer generation transmission filing? A : Kimberly Fontan, CFO: We had a good start, but we use that flexibility to manage business uncertainty. We are comfortable with our outlooks. Andrew Marsh, CEO: There is potential to settle, and we prefer that, but we are confident in managing the process for a beneficial outcome. For the complete transcript of the earnings call, please refer to the full earnings call transcript . This article first appeared on GuruFocus .