Key Highlights

  • Non-GAAP EPS was USD 0.53 against USD 0.50 a year earlier, and net income rose 13% to USD 331 million.
  • Guidance for 2026 non-GAAP EPS rose to USD 1.90 to 1.92, with 2027 initiated at USD 2.07 to 2.09.
  • The 10-year capital plan grew by USD 4 billion to USD 70.7 billion through 2035.
  • Houston Electric submitted 14 gigawatts of large-load demand to the ERCOT Batch Zero process, 10 gigawatts of it baseload.

Earnings and Guidance

CenterPoint Energy (NYSE:CNP) reported third-quarter non-GAAP earnings of USD 0.53 per diluted share on Tuesday, up from USD 0.50 a year earlier. Net income was USD 331 million against USD 293 million. The Electric segment earned USD 362 million against USD 293 million, while Natural Gas earned USD 44 million against USD 71 million. Corporate and Other lost USD 75 million against USD 71 million, with borrowing costs USD 6 million higher. Nine-month net income was USD 891 million against USD 788 million.

Management raised 2026 non-GAAP EPS guidance to USD 1.90 to USD 1.92, citing year-to-date execution, and initiated 2027 guidance of USD 2.07 to USD 2.09, about 9% growth at the midpoint. Financing costs were USD 0.04 per share unfavorable, reflecting USD 3 billion of new debt net of maturities. Operations and maintenance expense is down 1% year to date, against a full-year reduction goal of 1% to 2%.

Capital Plan and Funding

The 10-year capital plan rose USD 4 billion to USD 70.7 billion through 2035, and USD 1.5 billion of projects originally slated after 2030 were moved into the first five years. Management projects enterprise rate base growth above 14% annually through 2030 and sees at least USD 10 billion of further opportunity through 2035. The company invested USD 4.1 billion in the first nine months.

The equity financing guide rose USD 1.6 billion to USD 4.5 billion, with USD 500 million to USD 700 million of common equity planned for 2027. The Ohio natural gas distribution sale closed on Oct. 1 for about USD 1.4 billion of proceeds. Adjusted funds from operations to debt was 13.7% on the Moody's method for the 12 months ended Sept. 30, and a corporate alternative minimum tax refund adds 60 basis points to full-year 2026 credit metrics.

Houston Demand and Regulatory Items

Houston Electric originally submitted about 14 gigawatts of demand into the ERCOT Batch Zero process, and it estimates 10 gigawatts of base load and about 2 gigawatts of studied load remain. In the third quarter customers provided about USD 290 million in contributions in aid of construction and about USD 600 million of financial security, of which about USD 135 million was returned. Chair and Chief Executive Jason Wells noted that about 2 gigawatts of studied load was withdrawn during the audit. Industrial and commercial leasing in Houston rose more than 30% year over year.

Management identified USD 5.5 billion of transmission projects, about 85% on brownfield sites, and plans 765 kilovolt filings in the first half of 2027. In Indiana, 700 megawatts of existing capacity is available for large industrial customers, with potential to reach 1.4 gigawatts. A pending settlement would remove 15 large and five medium temporary generation units from rates, reducing the revenue requirement by USD 112 million if approved. The finance chief called higher rates a headwind for the sector.

Utility Markers to Follow

Tracking points include ERCOT decisions on the 10 gigawatts of base load demand, the Public Utility Commission of Texas ruling on the USD 112 million revenue requirement reduction, and progress on the equity issuance of USD 500 million to USD 700 million in 2027.

Further items are adjusted funds from operations to debt against 13.7%, transmission filings in the first half of 2027, and operations and maintenance expense against the 1% to 2% reduction goal.