Nov 6 (Reuters) - NRG Energy NRG.N on Thursday forecast standalone core profit for full-year 2026 over its updated range for 2025 on the back of surging power demand, sending the utility firm's shares up 1% in premarket trading.
NRG is positioned to benefit from surging electricity demand in Texas, driven in part by a boom in data centers, which require steady, large-scale power supplies to support artificial intelligence and cloud computing operations.
The utility expects 2026 core profit in the range of $3.93 billion and $4.18 billion, compared to its updated 2025 guidance of $3.88 billion to $4.03 billion.
Late in the reported quarter, NRG secured a $562 million low-interest loan from the Texas Public Utility Commission to support construction of its 689 megawatt (MW) Cedar Bayou power plant, with funding that began in September 2025 and will continue through 2028.
NRG expanded its data center partnership in the reported quarter, signing two new long-term retail power deals totaling 150 MW for PJM sites.
This brings its total agreements to 445 MW across Electric Reliability Council of Texas (ERCOT) and PJM sites, with new facilities expected online between 2028 and 2032.
NRG's board authorized a new $3 billion share buyback program through 2028 and approved an 8% dividend increase to $1.90 per share, aligning with its 7-9% long-term growth target.
The company reaffirmed its recently raised current-year profit forecast of $7.55 per share to $8.15 per share.
Adjusted core profits in the utility's Texas unit rose 38% to $807 million from last year.
The Houston, Texas-based firm posted an adjusted profit of $2.78 per share in the quarter ended September 30, compared with analysts' estimate of $2.10 per share, according to data compiled by LSEG.
(Reporting by Pranav Mathur in Bengaluru; Editing by Shailesh Kuber)
((Pranav.Mathur@thomsonreuters.com;))