Constellation Energy beats profit estimates on robust power demand, lower interest costs
Aug 7 (Reuters) - U.S. utility Constellation Energy CEG.O on Thursday beat Wall Street estimates for second-quarter adjusted profit, helped by rising power demand and lower interest expenses.
According to the U.S. Energy Information Administration (EIA), power consumption will hit record highs in 2025 and 2026, driven by a demand surge from AI-powered data centers.
The S&P index tracking utilities .SPLRCU rose 3.5% in the quarter ended June 30.
"We are adding megawatts to the grid through extending the lives of our existing fleet... and launching a new, AI-powered demand response tool that helps businesses reduce energy use during periods of peak demand," said CEO Joe Dominguez.
The company said nearly 1.1 gigawatt of additional generation has been approved by grid operator PJM Interconnection, which coordinates the movement of wholesale electricity in parts of the Eastern United States.
Constellation's total operating expenses rose 17.7% to $5.15 billion in the April-June quarter, compared with $4.38 billion a year earlier.
The company's nuclear fleet produced 45,170 gigawatt-hours (GWhs), down from 45,314 GWhs a year ago, due to higher non-refueling outage days compared to last year.
Constellation Energy said it will provide continued bipartisan legislative support for nuclear energy.
U.S. President Donald Trump in May signed executive orders directing the nation's independent nuclear regulatory commission to cut down on regulations and fast-track new licenses for reactors and power plants.
Constellation Energy reported total quarterly operating revenue of $6.10 billion, up from $5.48 billion a year earlier. Analysts, on average, had expected $4.83 billion, according to data compiled by LSEG.
Its interest expenses fell to $118 million from $142 million.
The Baltimore, Maryland-based utility posted an adjusted profit of $1.91 per share for the three months ended June 30, compared with analysts' average estimate of $1.85.
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