NRG to Double Capacity With $12B LS Power Buy

NRG Energy reported record first-quarter 2025 results, with adjusted earnings per share exceeding analyst expectations and revenue rising over 15% year-over-year to $8.59 billion, driven by strong retail, generation, and smart-home segments. The company announced a $12 billion acquisition of natural gas generation assets and a virtual power plant platform from LS Power, which will double NRG's generation capacity to approximately 24.3 GW and expand its presence in Texas and the Northeast. The deal, financed through a mix of debt, equity, and assumed liabilities, is expected to close in early 2026 and be immediately accretive to earnings. S&P Global Ratings revised NRG's outlook to stable, citing a stronger risk profile and improved geographic diversification, though leverage will remain high until post-acquisition cash flow reduces debt. NRG reaffirmed its 2025 financial guidance, including adjusted EPS of $6.75–$7.75, and plans continued shareholder returns via buybacks and dividends. The company's shares surged over 26% on the announcement, reaching new all-time highs.