Constellation Energy forecasts annual profit above estimates
Aug 6 (Reuters) -Electric utility Constellation Energy CEG.O on Tuesday raised its annual adjusted profit forecast above analysts' expectations, sending its shares up more than 3% in premarket trading.
The Baltimore, Maryland-based firm expects full-year adjusted profit in the range of $7.60 to $8.40 per share, the midpoint of which is above analysts' estimate of $7.81 per share, according to LSEG data.
The utility had previously forecast full-year adjusted earnings of $7.23 to $8.03 per share.
The company also expects operating earnings to be boosted by 25 cents per share in 2025, and $1.25 per share in 2026 from the new rates offered in the latest PJM interconnection auction .
PJM is the largest U.S. electrical grid operator and covers parts of 13 states from Illinois to New Jersey. The auction secured 135,684 megawatts (MW) of generation capacity for June 1, 2025, through May 31, 2026, of which 21% is nuclear.
Constellation, which operates nuclear, hydro, wind, and solar assets, is expected to benefit from the U.S. government's push for big technology firms to invest in new climate-friendly energy generation to cater to surging AI power needs.
The company's nuclear fleet produced 45,314 gigawatt hours (GWhs) during the quarter, an uptick from the 41,895 GWhs produced last year during the same period.
It also saw fewer outage days during the quarter, which helped lower refueling costs.
However, the utility posted a fall in second-quarter profit, hurt by higher interest costs. Higher-for-longer interest rates continue to weigh on the utilities sector, as they drive up borrowing costs.
The company's interest costs rose to $142 million in the quarter from $103 million last year.
Constellation said its net income fell to $814 million in the quarter ended June 30, from $833 million a year earlier.
Reporting by Vallari Srivastava in Bengaluru; Editing by Maju Samuel
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