Entergy forecasts 2026 profit below estimates as costs weigh

Feb 12 (Reuters) - U.S. electric utility Entergy ETR.N on Thursday forecast 2026 earnings below Wall Street expectations after missing estimates for fourth-quarter profit, as elevated operating and maintenance costs weigh on the company.

Rising power consumption from large industrial users and emerging high-load customers have lifted demand for electricity, but higher operating expenses, financing costs and capital requirements are weighing on margins and near-term profit growth for utilities.

Entergy's operating and maintenance expenses rose 8.6% year-on-year in the fourth quarter to $26.67 per megawatt hour (MWh), while full-year O&M and nuclear refueling outage expenses increased 1.2% to $22.02 per MWh.

The company's results were further pressured by higher debt levels, which rose nearly 7% to $31 million in 2025 on a year-on-year basis.

New Orleans-based Entergy provides electricity to nearly 3 million customers across Arkansas, Louisiana, Mississippi and Texas.

The utility now expects its full-year adjusted profit to be in the range of $4.25 to $4.45, the midpoint of which is below analysts' average estimate of $4.41 per share, according to data compiled by LSEG.

For the quarter ended December 31, Entergy posted an adjusted profit of 51 cents per share, which missed analysts' average estimates of 52 cents.