CenterPoint Energy Stays On Track: EPS Rises 25%, Grid Upgrade Planned And More

CenterPoint Energy, Inc. CNP shares are trading lower on Thursday after the company reported adjusted EPS of 40 cents, which is in line with the consensus. 

Adjusted EPS increased 25% year-over-year, driven by growth, regulatory recovery, and lower O&M, each adding 5 cents per share. Also, weather and usage contributed an additional 2 cents per share. 

Jason Wells, President & CEO of CenterPoint, said, “Through our GHRI work, we’ve made significant progress on our goal of building the most resilient coastal grid in the nation. Our recently filed $5.75 billion Systemwide Resiliency Plan will provide the next significant step change in our long-term hardening work and will accelerate our delivery of a self-healing grid, all for the benefit of our customers and communities.” 

Outlook: CenterPoint increased its 10-year capital plan through 2030 to $47.5 billion, adding $500 million for grid resiliency in the Houston region.

Also, CenterPoint updated its forecast for electric demand growth in its Houston Electric service territory, expecting nearly a 50% increase by 2031.

The company reaffirmed its 2025 non-GAAP EPS guidance of $1.74-$1.76 (vs. consensus of $1.75), reflecting 8% growth at the midpoint over 2024, and maintained its long-term EPS growth target of 6%-8% annually through 2030.

CenterPoint plans to efficiently fund its capital investment plan with around $3 billion in asset recycling and securitization proceeds starting in 2025, along with $2.65 billion in equity or equity-like proceeds through 2030.

Investors can gain exposure to the stock via Virtus Reaves Utilities ETF UTES and Invesco S&P 500 Equal Weight Utilities ETF RSPU.

Price Action: CNP shares are down 1.26% at $33.66 at the last check Thursday.

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