Key Highlights

  • Adjusted operating EPS was USD 5.06 and GAAP EPS was USD 5.19 for the quarter.
  • Full year adjusted operating EPS guidance was raised to USD 12.50 to USD 12.80.
  • Revenue was USD 9.55 billion against an estimate of USD 9.23 billion.
  • The nuclear fleet delivered a 97.2% capacity Factor in the third quarter.

Constellation Energy Corporation (NASDAQ:CEG) reported third quarter 2026 adjusted operating Earnings of USD 5.06 per share and GAAP earnings of USD 5.19 per share. Revenue was USD 9.55 billion. Estimates for the quarter stood at EPS of USD 3.90 and revenue of USD 9.23 billion.

The company's chief financial officer said adjusted operating Earnings Per Share were USD 2.02 higher than in the third quarter of last year, with accretion from Calpine as the key driver. Higher capacity prices in PJM and commercial performance also contributed, partly offset by lower production tax Credit revenue than a year earlier.

Long-Term Agreements and Nuclear Operations

Since the prior quarter's announcement of 920 megawatts of long-term nuclear agreements, the company signed three more totaling about 4,560 megawatts. Nearly 3,500 megawatts support the existing fleet and roughly 1,100 megawatts support new nuclear capacity through uprates. Year to date, the company has contracted more than 8,500 megawatts into the 2040s, including agreements with Google and Amazon. A separate 20-year agreement with an unnamed investment-grade customer covers 270 megawatts under the Constellation Peak+ offering in PJM.

The nuclear fleet recorded a 97.2% capacity factor in the quarter, with 20 planned refueling outage days. Across June, July and August, the capacity factor was 99.2% with no unplanned outage days. The Byron Unit 2 low-pressure turbine upgrade was completed in late October, and the company projects the Crane restart in the second half of 2027.

Capital Allocation and Financing

The nuclear uprate projects total nearly 1,200 megawatts, most of them scheduled for completion between 2029 and 2032. Total project costs are approximately USD 4.3 billion, of which USD 3 billion is incremental growth Capital from 2028 through 2032 and USD 1.3 billion was already in the March outlook. A conditional Loan Commitment from the U.S. Department of Energy of up to USD 5 billion would cover up to 80% of eligible project costs, with a 30-year tenor at U.S. Treasuries plus 37.5 basis points.

The company has repurchased about USD 3 billion of its stock since its March Business update, including USD 800 million in the third quarter, or approximately 11 million shares in total. A USD 5 billion repurchase authorization is targeted for completion by year-end 2027. The company also agreed to acquire the 609-megawatt Rhode Island State Energy Center.

Full Year Guidance

The company raised and narrowed full year adjusted operating EPS guidance to USD 12.50 to USD 12.80 per share. The low end of the new range equals the top of the range given with second quarter results, and is USD 0.50 above the top of the original March range. The chief financial officer noted a modest operating and maintenance headwind from additional compensation related expense.

Dates and Decision Points

The company is scheduled to update 2027 and 2028 guidance, along with a refreshed growth outlook through 2030, on its year-end call. A capital allocation update, including the buyback plan, is scheduled on or before that call. Management also pointed to FERC action on colocation in the first half of next year and to the delayed PJM backstop auction, which it said allowed more time to complete bilateral agreements.