Markets

NRG Stock Soars 9% After Profit Growth And A $4 Billion Plant Sale Agreement

NRG plans $3 billion in buybacks across 2026 and 2027, alongside $3 billion in debt reduction in 2027.

NRG Energy, which generates and sells energy and provides smart-home services, soared 9.04% to $96.27 in Monday trading, as of 10:36 a.m. ET, adding $1.7 billion in market value after stronger quarterly profit and an agreement to sell power plants. The proposed $4 billion sale to LS Power will help fund buybacks and debt reduction, according to the company's SEC filings.

Profit Climbs, Returns Expand

NRG earned $561 million in the third quarter, more than triple the $152 million it earned a year earlier. Adjusted earnings per share reached $4.68, compared with $2.78.

The company's cash-return plans include a proposed dividend increase. Robert Gaudette, NRG's president and CEO, said: “Today’s announcement is about returning more to our shareholders and supporting future growth investments.”

Plant Proceeds For Buybacks And Debt

NRG plans $3 billion in share repurchases across 2026 and 2027. It also plans to reduce debt by $3 billion in 2027, with the proposed plant sale supporting both efforts.

Those plans span different periods: the repurchases cover 2026 and 2027, while the debt reduction is planned for 2027. NRG targets completion of the sale in the second quarter of 2027, pending regulatory approvals.

A Rally After A Steep Retreat

NRG entered Monday down 45% for the year at Friday's close, compared with an 8% gain for the S&P 500. Its shares had fallen 15% over the previous month. Monday's move was on pace to be its second gain of 7% or more this month, and its market value stood at about $20.2 billion in Monday trading.

The retreat came despite a profitable second quarter. NRG reported $7.5 billion in revenue, up 11% from a year earlier, and net income of $506 million.

NRG serves 6 million retail energy customers. Its broader business supplies electricity and natural gas to households, businesses, industrial facilities, data centers and wholesale buyers across North America.

The company also operates Vivint Smart Home, which sells connected cameras, locks, thermostats and other devices with installation, support and professional monitoring. NRG reports that business separately from its Texas, East and West/Other energy operations.

The proposed sale pairs a reduction in NRG's plant holdings with plans to repurchase shares and pay down debt; the transaction remains pending.