Vistra lifts 2026 profit outlook, plans nuclear expansion to meet power demand

By Sumit Saha

Aug 7 (Reuters) - Vistra VST.N on Thursday raised its 2026 adjusted EBITDA outlook and unveiled plans to boost nuclear capacity by 2030 as it positions itself for a surge in U.S. electricity demand, even as second-quarter profit fell on higher costs.

Shares of the company rose nearly 4% in morning trade.

Vistra said it expects to add more than 600 megawatts of nuclear generation by mid-2030 to support rising electricity needs, particularly from data centers and AI-related industrial growth.

In July, the company received regulatory approval to extend operations at its Perry nuclear plant in Ohio through 2046.

The Texas-based utility lifted its 2026 adjusted EBITDA midpoint forecast to about $6.8 billion, excluding contributions from the seven natural gas plants it acquired in May.

For the current year, it reaffirmed its forecast of adjusted core profit from continuing operations between $5.5 billion and $6.1 billion, broadly in line with analysts' estimates.

The U.S. Energy Information Administration estimates electricity consumption in the country to reach record highs in 2025 and 2026, driven by surging demand from data centers looking to match Big Tech's AI ambitions.

Still, Vistra's second-quarter results were weighed down by costs.

Net income for the quarter ended June 30 fell to $327 million from $467 million a year earlier.

Adjusted EBITDA from ongoing operations slipped to $1.35 billion from $1.41 billion, hurt partly by unplanned plant outages.

Total operating expenses rose 17% to $733 million, while interest costs jumped nearly 26% to $303 million.

Higher-for-longer interest rates are squeezing U.S. utilities by raising the cost of maintaining and expanding infrastructure.

CEO Jim Burke said the company has returned $6.5 billion to shareholders through dividends and share buybacks to date, and expects to return another $1.8 billion by the end of 2026.