Entergy has outlined a substantial capital plan, with planned construction and capital investments totaling $8.2 billion in 2025, $11.32 billion in 2026, and $10.07 billion in 2027. A significant portion is allocated to generation projects ($4.31 billion in 2025) to modernize, decarbonize, and diversify its portfolio, including new power stations and nuclear fleet investments.

Entergy Arkansas received APSC certification for its 446 MW hydrogen-capable Lake Catherine Unit 5 in April 2025, with an in-service date by 2028. Entergy Mississippi also plans a 754 MW combined cycle facility enabled for carbon capture/storage and hydrogen co-firing, expected to cost over $1 billion and be in service by 2029, demonstrating continued investment in future energy resources.

Entergy Louisiana is no longer pursuing its 150 MW Vacherie and 150 MW St. Jacques solar facilities after the St. James Parish council denied the permit application in June 2024. This indicates challenges in local regulatory approvals for certain renewable energy projects, potentially impacting the pace of renewable portfolio expansion.

Entergy Louisiana successfully reached a settlement agreement with the LPSC staff and intervenors in July 2025 regarding the approval of additional generation and transmission resources for a new data center. This demonstrates management's ability to effectively negotiate and secure regulatory approvals for strategic growth initiatives.

Management maintained the consolidated debt ratio at 64.9% as of June 30, 2025, remaining in compliance with its 65% covenant. Additionally, the company physically settled $806 million in forward sale agreements in May 2025, using the proceeds for general corporate purposes, including debt repayment, showcasing prudent financial management.

Waterford 3 nuclear plant was placed in NRC Column 2, effective Q2 2025, due to a failure in properly developing and implementing maintenance instructions for an emergency diesel generator. This indicates a lapse in operational efficiency and compliance, leading to higher regulatory oversight and requiring a supplemental inspection to resolve.

The One Big Beautiful Bill Act (OBBBA) enacted in July 2025 significantly shortens the timeline for solar and wind facilities to qualify for clean energy tax incentives and introduces new foreign entity of concern (FEOC) rules. This could materially affect Entergy's resource planning and its ability to realize anticipated benefits for planned solar and battery facilities.

Recent changes to international trade policy and tariffs are highlighted as potential impacts, including increases in capital investment and operation and maintenance expenses, supply chain disruptions, and broader economic risks. These factors could adversely affect Entergy's ability to complete planned capital investments in a timely and cost-effective manner.

Waterford 3 was placed in NRC's 'regulatory response column' (Column 2) in Q2 2025 due to inadequate maintenance instructions for an emergency diesel generator. This elevation in regulatory oversight indicates a heightened risk of operational non-compliance, potentially leading to increased costs and operational restrictions until the issue is resolved.

Entergy's Utility segment saw a 12% increase in industrial electric energy sales in Q2 2025 (15,620 GWh vs 13,973 GWh) and an 11% increase for H1 2025 (29,452 GWh vs 26,633 GWh). This growth is primarily attributable to increased demand from large industrial customers in key sectors such as primary metals and technology industries, indicating a strong competitive position in these segments.

The Utility operating companies primarily function under cost-based rate regulation, employing rate mechanisms to recover fuel, purchased power, and other costs. This structure ensures that revenues and expenses generally offset, thereby limiting exposure to market risk and providing a stable revenue stream, which is a key competitive advantage.

Entergy Texas experienced a $20 million increase in purchased power costs in Q2 2025 due to MISO's annual planning resource auction and a significant increase in seasonal auction clearing prices. While new Texas legislation allows for a capacity cost recovery rider, this highlights the ongoing cost pressures and competitive dynamics within the MISO market.

Other operation and maintenance expenses for the Utility segment increased by $27 million in Q2 2025 ($713 million vs $686 million) and $9 million in H1 2025 ($1.376 billion vs $1.367 billion). Key drivers include higher non-nuclear generation expenses due to plant outages, increased power delivery expenses for vegetation maintenance, and higher bad debt expense.

Depreciation and amortization expenses increased in Q2 2025 and H1 2025, primarily driven by additions to plant in service, including new solar facilities like Walnut Bend Solar and West Memphis Solar, and higher nuclear depreciation rates at Entergy Louisiana. This indicates ongoing capital deployment and asset base expansion.

Entergy's utility operating companies effectively utilize rate mechanisms to recover fuel, purchased power, and other costs. This regulatory treatment ensures that associated revenues and expenses generally offset, providing a stable financial impact despite higher fuel and purchased power payments in H1 2025, thus maintaining operational cost recovery.

Entergy is making substantial capital investments in new generation projects, including the APSC-certified 446 MW hydrogen-capable Lake Catherine Unit 5 in Arkansas and the planned 754 MW combined cycle Jefferson Power Station. These projects demonstrate a strategic focus on modern, flexible, and potentially lower-emission power sources.

New planned facilities, such as Entergy Mississippi's 754 MW combined cycle combustion turbine and Entergy Texas's Legend Power Station and Lone Star Power Station, are being designed with optionality for future carbon capture and storage and hydrogen co-firing. This proactive approach positions Entergy for long-term decarbonization goals and technological advancements.

Information technology capital expenditures decreased by $101 million in H1 2025 compared to H1 2024, primarily due to decreased spending on technology upgrade projects. This suggests that major digital transformation initiatives may be progressing towards completion or shifting from large-scale implementation to optimization and maintenance phases.

Entergy has committed to a substantial capital expenditure program, with planned investments of $8.2 billion in 2025, $11.32 billion in 2026, and $10.07 billion in 2027. This includes significant allocations to generation ($4.31 billion in 2025), transmission ($1.26 billion in 2025), and distribution ($2.20 billion in 2025) to modernize infrastructure and support customer growth.

The company actively utilized debt markets, issuing multiple series of mortgage bonds in late 2024 and early 2025, including $750 million by Entergy Louisiana and $600 million by Entergy Mississippi. These proceeds are primarily directed towards financing construction projects like new power stations and for general corporate purposes, aligning with its growth strategy.

In May 2025, Entergy physically settled $806 million of outstanding forward sale agreements under its at-the-market equity distribution program. The net proceeds were used for general corporate purposes, including the repayment of commercial paper, outstanding loans under its revolving credit facility, and other debt, demonstrating a balanced approach to capital funding.

In Q2 2025, Entergy recognized $571.2 million in zero-emission nuclear power production tax credits for 2024 electricity generation across its subsidiaries. This highlights the financial benefits derived from its low-carbon nuclear fleet, contributing positively to its environmental goals, although the tax position is considered uncertain pending final IRS guidance.

Entergy believes that achieving its 50% carbon intensity reduction goal by 2030 and 50% carbon-free energy generating capacity goal by 2030 may be delayed. This is attributed to stronger-than-expected sales growth necessitating new generation capacity that may not be carbon-free, and uncertainty surrounding tax credits for carbon-free generation.

For the 2025-2027 performance period, 20% of executive performance unit awards will be measured based on an environmental achievement measure, emphasizing carbon-free generation and resilience. This aligns executive incentives with the company's ESG objectives, reflecting a commitment to environmental stewardship.

Industrial electric energy usage increased significantly in H1 2025, primarily due to heightened demand from large industrial customers in key sectors such as petroleum refining, chlor-alkali, primary metals, and technology industries. This robust industrial activity is a significant driver of Entergy's overall revenue growth and reflects favorable market conditions in its service areas.

The recently enacted One Big Beautiful Bill Act (OBBBA) of 2025 introduces new foreign entity of concern (FEOC) rules and significantly shortens tax incentive timelines for solar and wind facilities. These changes create regulatory uncertainty and could materially impact Entergy's future resource planning, particularly for renewable energy projects.

Recent announcements regarding changes to international trade policy and tariffs are identified as potential risks, including increased capital investment and O&M costs, supply chain disruptions, and volatile credit and capital markets. These factors could affect Entergy's ability to access capital and execute planned investments, reflecting a challenging global economic backdrop.