FX.co ★ NRG Energy Boosts Repurchase Allocation, Lifts FY Profit Outlook Above View

NRG Energy, Inc. (NRG), an electricity provider, announced on Friday an increase in its 2024 share buyback allocation to $925 million, up from $825 million. The company anticipates completing the entire $925 million worth of 2024 repurchases by the end of the fourth quarter.

The Board has also approved an expansion of the company's share repurchase authorization through 2025, raising it to $3.7 billion from $2.7 billion. As part of its capital allocation strategy for 2025, the company plans to allocate $1.3 billion for share repurchases and has approved an 8% increase in the annual dividend, bringing it to $1.76 per share.

Moreover, NRG revised its annual earnings guidance upward and provided its full-year 2025 outlook. For the current year, NRG now forecasts net income ranging from $925 million to $1.075 billion, surpassing the earlier projection of $750 million to $1 billion. Excluding certain items, the projected income is now expected to be between $1.235 billion, or $5.95 per share, and $1.385 billion, or $6.75 per share. This is an increase from the previous guidance of $1.040 billion, or $5 per share, to $1.290 billion, or $6.30 per share.

On average, five analysts surveyed by Thomson Reuters anticipate that the company will achieve earnings of $6.67 per share for the year, excluding special items. Looking ahead to 2025, NRG expects net earnings between $1.025 billion and $1.225 billion, with adjusted earnings projected at $1.330 billion, or $6.75 per share, to $1.530 billion, or $7.75 per share. On average, analysts expect the company's earnings per share to be $6.8 for the full-year 2025.