Question · Q3 2025
Angie Storozinski from Seaport inquired about the absence of the gross margin sensitivity slide, the impact of PJM price movements on pro forma EBITDA, NRG's competitive position against new power developers, interest in single asset transactions before the LS Power close, and the effect of the LS Power acquisition on NRG's tax shield and 2026 free cash flow guidance.
Answer
Larry Coben, Chair, President, and CEO, stated that the margin sensitivity slide would be updated post-LS Power acquisition and declined to provide current PJM price impact details. He expressed strong confidence in NRG's competitive position for building power plants and serving hyperscalers, emphasizing a focus on tangible results over announcements. Mr. Coben also noted an opportunistic interest in single asset transactions, though not a necessity. Bruce Chung, EVP and CFO, clarified that the standalone cash tax increase is due to expiring tax credits, not disappearing NOLs, and confirmed the LS Power transaction would enhance NRG's tax shield, benefiting cash flow.