- Reports Q1 2025 earnings of $0.45 per diluted share on a GAAP basis and $0.53 earnings per diluted share on a non-GAAP basis (“non-GAAP EPS”)
- Reiterates 2025 non-GAAP EPS guidance range of $1.74-$1.76, which, at the midpoint, represents 8% growth over full-year 2024 non-GAAP EPS and further maintains non-GAAP EPS growth target of the mid-to-high end of 6%-8% annually thereafter through 20301
- Provides update that current interconnection queue is up ~7GWs since the end of 2024, strengthening conviction in 50% load growth forecast by 2031
- Increases 10-year capital investment plan to $48.5 billion, a $1 billion increase through 2030
CenterPoint Energy, Inc. (NYSE: CNP) or “CenterPoint” reported net income of $297 million, or $0.45 per diluted share on a GAAP basis for the first quarter of 2025, compared to $0.55 per diluted share in the comparable period of 2024. This quarter over quarter unfavorable GAAP EPS variance was primarily driven by the loss on sale related to the Louisiana and Mississippi gas local distribution company (“LDC”) sale.
Non-GAAP EPS for the first quarter of 2025 was $0.53, versus $0.55 for the comparable quarter of 2024. These first quarter results were driven by growth and regulatory recovery, which contributed $0.03 per share of favorability. This lower relative impact was driven by the timing of recoveries from interim capital mechanisms not available during recent rate case activity that is now largely completed.
Weather and usage were also favorable, contributing $0.05 per share when compared to the first quarter of 2024. These favorable drivers were offset by an unfavorable variance of $0.08 per share attributable to increased financing costs of $0.04 per share and increased operating and maintenance expense of $0.02 per share. In addition, the $0.08 per share of unfavorability also includes $0.02 per share of dilution as a result of the 2024 common equity issuances, when compared to the comparable quarter of 2024.
“We continue to make significant investments and upgrades in our electric infrastructure as part of our Greater Houston Resiliency Initiative as we endeavor to build the most resilient, self-healing coastal grid in the nation. We expect to greatly expand this vital work in the latter half of the year as we begin implementation of our System Resiliency Plan. Houston also continues to be the economic engine driving Texas as we’ve seen requests for new connections grow by nearly 7GW or 20% since the end of January alone. This only strengthens our conviction in the robust economic outlook for the region and the capital investment increase we announced today,” said Jason Wells, President & CEO of CenterPoint.
“We are proud to start the year with a solid foundation of financial results that put us right on track to meet our full-year 2025 financial guidance. We have confidence in our ability to execute through the remainder of 2025 and beyond for the benefit of our customers, communities and shareholders,” said Wells.
Earnings Outlook
In addition to presenting its financial results in accordance with GAAP, including presentation of net income (loss) and diluted earnings (loss) per share, CenterPoint provides guidance based on non-GAAP income and non-GAAP diluted earnings per share. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure.
Management evaluates CenterPoint’s financial performance in part based on non-GAAP income and non-GAAP diluted earnings per share. Management believes that presenting these non-GAAP financial measures enhances an investor’s understanding of CenterPoint’s overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that management believes do not most accurately reflect the company’s fundamental business performance. These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint’s non-GAAP income and non-GAAP diluted earnings per share measures should be considered as a supplement to, and not as a substitute for, or superior to, net income and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.
2024 and 2025 non-GAAP EPS and 2025 non-GAAP EPS guidance range
- 2024 and 2025 non-GAAP EPS and 2025 non-GAAP EPS guidance excludes:
- Earnings or losses from the change in value of CenterPoint’s 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 (“ZENS”) and related securities;
- Gains, losses and impacts, including related expenses, associated with mergers and divestitures, such as the divestiture of our Louisiana and Mississippi natural gas LDC businesses; and
- 2025 non-GAAP EPS and 2025 non-GAAP EPS guidance also exclude impacts related to temporary emergency electric energy facilities “TEEEF” once they are no longer part of our rate-regulated business.
In providing 2024 and 2025 non-GAAP EPS and 2025 non-GAAP EPS guidance, CenterPoint does not consider the items noted above and other potential impacts such as changes in accounting standards, impairments, or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. The 2025 non-GAAP EPS guidance range also considers assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings. To the extent actual results deviate from these assumptions, the 2025 non-GAAP EPS guidance range may not be met, or the projected annual non-GAAP EPS growth rate may change. CenterPoint is unable to present a quantitative reconciliation of forward-looking non-GAAP diluted earnings per share without unreasonable effort because changes in the value of ZENS and related securities, future impairments, and other unusual items are not estimable and are difficult to predict due to various factors outside of management’s control.
Filing of Form 10-Q for CenterPoint Energy, Inc.
Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (“SEC”) its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. A copy of that report is available on the company’s website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website. In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates, and other matters. Information that we post on our website could be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.
Webcast of Earnings Conference Call
CenterPoint’s management will host an earnings conference call on April 24, 2025, at 7:00 a.m. Central time / 8:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company’s website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.
