CENTERPOINT ENERGY INC (NYSE:CNP), a major utility holding company, reported financial results for the fourth quarter and full year of 2025 that surpassed analyst revenue expectations, while earnings per share came in largely as anticipated. The company also provided an accelerated growth forecast for its key Houston service territory, signaling confidence in future demand.
Quarterly Performance Versus Estimates
The company's fourth-quarter results demonstrated solid operational performance, particularly on the top line. Revenue significantly exceeded the consensus forecast, while adjusted earnings per share met expectations almost precisely.
- Reported Revenue (Q4 2025): $2.505 billion
- Analyst Estimated Revenue: $2.263 billion
- Reported Non-GAAP EPS: $0.45
- Analyst Estimated EPS: $0.455
The strong revenue beat was primarily driven by growth and regulatory recovery, which contributed a $0.12 per share favorability compared to the prior-year quarter. This was partially offset by increased operations and maintenance expenses and higher interest costs.
Full-Year Results and Capital Plan Expansion
For the full year 2025, CenterPoint reported non-GAAP earnings of $1.76 per share, up from $1.62 in 2024. The company highlighted that it has delivered industry-leading 9% non-GAAP EPS growth in four of the last five years.
A significant announcement accompanying the earnings was a $500 million increase to its 10-year capital investment plan. The plan now totals $65.5 billion of planned investment from 2026 through 2035, with the incremental amount earmarked for electric transmission projects. This underscores management's commitment to infrastructure investment to support future growth.
Accelerated Load Growth Forecast
A central theme of the earnings release was an updated and accelerated forecast for electric demand in the Greater Houston area. CEO Jason Wells announced that the company now expects to deliver 10 gigawatts of new load by the end of 2029, a target reached two years ahead of previous forecasts. This projection is based on strong demand from industrial, life sciences, and technology customers.
Management emphasized its "speed to power" as a competitive advantage in attracting new business to the region, stating it can connect large customers "far faster and far more cost-effectively than other regions." The company believes this growth can be accommodated while keeping the residential customer bill portion essentially flat in Texas.
Market Reaction and Forward Outlook
The initial market reaction to the report appears muted. In pre-market trading following the release, the stock showed slight negative movement. This tepid response suggests that while the results were solid and the long-term growth narrative was strengthened, there may have been little in the report to surprise investors expecting a strong performance.
Looking ahead, analyst estimates for CenterPoint project continued growth. For the full year 2026, the consensus sales estimate stands at approximately $9.74 billion. The company, in its release, reiterated its full-year 2026 guidance, aligning with this forward-looking confidence.
Key Takeaways from the Report
- Financials: A strong revenue beat with EPS in line with estimates for Q4 2025.
- Growth Trajectory: Demonstrated consistent mid-to-high single-digit EPS growth over a multi-year period.
- Capital Commitment: Significantly increased long-term investment plan to $65.5 billion, focusing on grid infrastructure.
- Demand Forecast: Accelerated timeline for adding 10 GW of new electric load in Houston to 2029, highlighting robust economic development.
- Guidance: Reiteration of 2026 full-year guidance, providing near-term certainty.
For a detailed breakdown of future earnings estimates and historical performance, investors can review the data available on the CNP earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
