Constellation Energy Corporation
CEG · Nasdaq
Next quarter
Reports Nov 6, 2026.
Consensus is $3.96 EPS for Sep 2026 across 3 estimates, ranging $3.52 to $4.40.
CEG Jun 2026
- 8.05%
- $2.36
- $2.55
- —
- $5.84B
Reported results
- $5.84B
- $580.00M
- 9.93%
- $513.00M
- $1.42
Highlights
- Adjusted earnings: Adjusted operating EPS was $2.55, ahead of the $2.36 consensus by 8.05% and up from $1.91 a year ago; GAAP diluted EPS was $1.42 versus $2.67.
- Guidance: Constellation raised its full-year 2026 adjusted operating EPS outlook to $11.50-$12.50 from its prior range.
- Calpine contribution: The January acquisition added $1.91 billion of operating revenue and $1.03 billion of RNF in the quarter, while the Calpine segment generated $2.15 billion of revenue net of purchased power and fuel for the first six months.
- Commercial momentum: The company signed 920 MW of additional 15-20 year nuclear PPAs with investment-grade customers, beginning between 2029 and 2032; the 176 MW Walmart agreement supports a 30 MW Dresden expansion.
- Crane restart: FERC approved transferring capacity interconnection rights to the Crane Clean Energy Center, and the NRC approved its fuel-license amendment, advancing the planned 2027 restart.
- Asset divestitures: Constellation agreed to sell the 606 MW Brazos Valley gas plant to LS Power for $860 million before closing adjustments, completing the asset sales required by the Calpine acquisition's regulatory commitments.
- Operations: Nuclear generation fell to 44,160 GWh from 45,170 GWh, while the operated fleet's capacity factor declined to 93.0% from 94.8% because planned refueling outage days rose to 86 from 41.
- Cash and leverage: Six-month operating cash flow was $1.55 billion versus $1.58 billion a year ago, while capital spending rose to $2.52 billion and long-term debt increased to $19.1 billion from $7.25 billion at year-end.
Analysis
Constellation's second quarter was an earnings beat shaped by the first full quarter contribution from Calpine, stronger market and portfolio conditions, and nuclear outage pressure. Adjusted operating EPS was $2.55, 8.05% above the $2.36 consensus and 34% above $1.91 a year ago. GAAP diluted EPS was $1.42, down from $2.67 in the prior-year quarter and $4.49 in the first quarter. Operating revenue was $7.50 billion, up 23% year over year but below the $7.54 billion reported in the prior quarter; operating income fell to $580 million from $951 million a year ago and $2.33 billion in Q1.
The print therefore separates underlying earnings from GAAP volatility and integration accounting. Calpine contributed $1.91 billion of revenue after its January acquisition, but the quarter also included $149 million of after-tax amortization of acquired commodity contracts and $84 million of after-tax merger and integration costs in the reconciliation. Nuclear output and capacity factor declined as refueling outages more than doubled, although favorable markets and the expanded fleet supported adjusted earnings. Management raised full-year adjusted EPS guidance to $11.50-$12.50 and used the quarter to advance the longer-term platform through 920 MW of new nuclear PPAs, Crane restart approvals, New York license-renewal filings, and the final required Calpine-related divestiture.
Earnings and guidance
Adjusted operating earnings increased despite lower GAAP profitability, reflecting the Calpine addition and favorable market and portfolio conditions. GAAP results were affected by fair-value movements, decommissioning items, acquired contract amortization, and merger-related costs.
- Adjusted result: Adjusted operating earnings rose to $920 million, or $2.55 per diluted share, from $599 million, or $1.91 per share, in Q2 2025.
- GAAP bridge: Net income attributable to common shareholders fell to $513 million from $839 million. The reconciliation included a $340 million unrealized fair-value loss, $221 million of decommissioning-related credits, $149 million of acquired commodity-contract amortization, and $84 million of Calpine merger and integration costs.
- Sequential comparison: GAAP diluted EPS declined from $4.49 in Q1, while operating income fell from $2.33 billion to $580 million; the first-quarter result included materially different fair-value and other accounting effects.
- Outlook: Full-year adjusted operating EPS guidance was raised to $11.50-$12.50 per share.
Calpine integration
Calpine is now a separate reportable segment and materially changed the scale and mix of Constellation's results. The acquisition added dispatchable generation, retail load, and market diversification, but also increased depreciation, financing costs, integration expenses, and balance-sheet complexity.
- Scale: Calpine contributed $1.91 billion of operating revenue after the January 7 acquisition date and produced $2.15 billion of quarterly revenue net of purchased power and fuel in the segment presentation.
- Fleet: Calpine's generation and purchased-power operations supplied 27,642 GWh in the quarter, including 24,914 GWh from natural gas, oil, and renewable assets and 2,728 GWh of purchased power.
- Accounting: The acquisition was recorded at $21.84 billion of consideration, including $17.60 billion of stock and $4.34 billion of cash, and created $11.11 billion of provisional goodwill.
- Funding: Constellation assumed approximately $12.6 billion of Calpine debt, issued $5.0 billion of senior notes during the first half, and reported $19.1 billion of long-term debt at June 30 versus $7.25 billion at December 31.
Nuclear operations
Nuclear availability was a clear operating headwind. Generation declined modestly year over year, but the larger increase in planned refueling outages reduced the operated fleet's capacity factor. Constellation is simultaneously extending the commercial and regulatory life of its nuclear platform.
- Production: Nuclear generation, including owned output from Salem and South Texas Project, was 44,160 GWh versus 45,170 GWh a year earlier.
- Availability: The operated nuclear fleet achieved a 93.0% capacity factor versus 94.8%; planned refueling outage days increased to 86 from 41, while non-refueling outage days decreased to 20 from 22.
- Crane: FERC approved the transfer of existing capacity interconnection rights from Eddystone to Crane, and the NRC approved a fuel-license amendment. Constellation expects the Crane restart to support operations in 2027.
- License life: Renewal applications were filed for Ginna and Nine Mile Point Unit 1, which would extend both licenses by 20 years to 2049 if approved.
Long-term customer demand
The quarter added contracted visibility for clean, reliable generation as Constellation positioned nuclear assets to serve rising electricity demand. The new PPAs are long-dated and begin well beyond the current reporting period.
- New contracts: Constellation signed 920 MW of nuclear PPAs with investment-grade customers, with 15-20 year terms beginning from 2029 through 2032.
- Walmart agreement: A 176 MW PPA with Walmart supports a 30 MW capacity expansion at the Dresden Clean Energy Center and additional local investment and hiring.
- Remaining obligations: Fixed and determinable remaining performance obligations totaled $11.86 billion at June 30, including $5.16 billion for 2031 and thereafter.
Divestitures and liquidity
Constellation continued to reshape the acquired Calpine portfolio while funding elevated investment and integration needs. The Brazos transaction is the final asset sale required by the DOJ resolution, but closing remains subject to approval and customary conditions.
- Brazos sale: The 606 MW Brazos Valley Energy Center is being sold to LS Power for $860 million before closing adjustments, with closing expected by year-end subject to DOJ approval and other conditions.
- Cash generation: Six-month operating cash flow was $1.55 billion versus $1.58 billion in the prior-year period. Capital expenditures rose to $2.52 billion from $1.57 billion, and the Calpine acquisition used $2.54 billion of cash.
- Capital returns: Constellation repurchased $1.97 billion of stock and paid $309 million of common dividends during the first six months.
- Liquidity: Cash and cash equivalents were $697 million at June 30 versus $3.64 billion at year-end, while total available capacity under credit facilities was $7.00 billion.
