CenterPoint Energy, Inc. (CNP) Earnings & Analysis

Latest quarter

CenterPoint Energy reported Q3 FY2026 revenue of $2.2 billion, up 10.2% from a year earlier and 1.89% above the consensus, although both reported revenue and the estimate round to $2.2 billion. Adjusted earnings per share were $0.53, above the $0.50 consensus. Diluted earnings per share rose to $0.50 from $0.45 a year earlier.

The company reported electric transmission and distribution revenue of $1.6 billion, up 13.5%, while natural gas distribution revenue rose 3.10% to $641.0 million. Its filing attributed an increase in net income to the Electric segment, partly offset by a decline in Natural Gas segment net income and a larger Corporate and Other loss.

CenterPoint’s operating margin rose to 30.4% from 25.3% a year earlier. Free cash flow was −$611.0 million, compared with −$480.0 million in the prior-year quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Jason Wells said customer demand in Greater Houston drove the increase in CenterPoint’s capital plan. He said the company expects to energize at least 14 gigawatts of demand by the end of 2030, including smaller transmission and distribution customers. CFO Chris Foster said growth and rate recovery contributed 9 cents per share to the quarter’s year-over-year earnings comparison, while higher financing costs were $0.04 unfavorable.

Asked about Houston’s load-submission process, Wells said customers withdrew approximately two gigawatts of studied load during the state’s audit process. He said he remained confident in 10 gigawatts of baseload demand and that distribution growth more than offset the withdrawn studied load. Wells also said the transmission work announced on the call would serve about half the capacity anticipated for the next round of requests; CenterPoint plans another study update in the first half of next year.

Wells said existing rights-of-way would help limit disruption from the transmission work. Foster said approximately 85% of the initial projects identified in the study were on existing sites or rights-of-way. He expects CenterPoint to recover the investments through existing transmission and distribution capital trackers.

On financing, Foster said the company increased its remaining 10-year equity financing plan by $1.6 billion to $4.5 billion, including an expected $500 million to $700 million of common equity in 2027. He said a sublease or sale of temporary generation units, portfolio changes and reduced regulatory lag could affect future financing needs.

Foster said Houston Electric had implemented interim rates for a distribution tracker seeking a $73 million revenue requirement increase and expected a final order in November. He also said CenterPoint planned to file gas rate cases in Minnesota and Indiana.

Guidance

CenterPoint raised its 2026 non-GAAP earnings guidance to $1.90 to $1.92 per share from $1.89 to $1.91 and set 2027 guidance at $2.07 to $2.09. Foster said the company now expects annual non-GAAP EPS growth at the mid to high end of its 7% to 9% range through 2030; its prior outlook extended that expectation through 2028.

CenterPoint increased its capital plan to $70.7 billion through 2035 from $66.7 billion. Foster said 2026 investment would be modestly below the $6.8 billion target because of project timing, with the spending expected to be recovered in the first quarter of 2027.