CenterPoint Energy (CNP) Q3 2024 earnings summary

Executive summary

• Q3 2024 non-GAAP EPS was $0.31, reaffirming full-year 2024 guidance of $1.61–$1.63 and initiating 2025 guidance at $1.74–$1.76, both targeting 8% annual growth.

• Net income for Q3 2024 was $193 million, down from $256 million in Q3 2023; nine-month net income rose to $771 million from $675 million year-over-year.

• Increased 10-year capital investment plan by $2.5 billion to $47 billion, focusing on grid resiliency, especially for Houston Electric.

• Initiated sale of Louisiana and Mississippi LDC businesses for $1.2 billion, expected to close by Q1 2025.

• Significant operational focus on storm response and customer communications, with major investments in the Greater Houston Resiliency Initiative.

Financial highlights

• Q3 2024 non-GAAP EPS was $0.31, down from $0.40 in Q3 2023, mainly due to higher O&M expenses and unfavorable weather.

• Q3 2024 revenues were $1.86 billion, flat year-over-year; nine-month revenues were $6.38 billion, down from $6.51 billion.

• Year-to-date capital investments reached $2.6 billion, over 70% of the $3.7 billion 2024 target.

• Storm costs for the May derecho and Hurricane Beryl are now estimated at $1.6 billion, at the low end of prior guidance.

• Year-to-date non-GAAP EPS reached $1.22, up from $1.18 for the same period last year.

Outlook and guidance

• 2024 non-GAAP EPS guidance reaffirmed at $1.61–$1.63; 2025 guidance initiated at $1.74–$1.76, with 6–8% annual EPS growth targeted through 2030.

• Dividend per share growth expected to align with EPS growth.

• Customer electric delivery charge increases projected to track with inflation over the next decade.

• Plans 1–2% annual O&M reductions and to fund capital investments with $3 billion in asset recycling/securitization and $2.5 billion in equity or equity-like issuances through 2030.

• Expects to meet 2024 cash needs through credit facilities, new debt, and operating cash flow.