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EL

ENTERGY LOUISIANA, LLC (ELC)·Q4 2024 Earnings Summary

Executive Summary

  • Adjusted EPS was $0.66 in Q4 2024, up from $0.26 in Q4 2023, while as-reported EPS was $0.65; consolidated earnings were $291M adjusted and $286M as-reported, with strong cash generation (OCF $1.38B, +$316M YoY) .
  • Management initiated 2025 adjusted EPS guidance of $3.75–$3.95 and highlighted results within the top half of guidance for the ninth consecutive year, framing 2024 as “transformational” with progress on growth and derisking .
  • Industrial load growth was a standout: Q4 retail industrial sales +14.8% YoY, helping total retail sales +8.0% YoY; Other O&M plus refueling expense per MWh fell 12.7% YoY, underscoring operating efficiency gains .
  • Key catalysts: raised 2025 EPS guidance, growing industrial and data-center demand (E‑LA filed to increase planned load for a north Louisiana data center), and multiple regulatory approvals across jurisdictions .

What Went Well and What Went Wrong

What Went Well

  • Industrial demand acceleration: Q4 industrial GWh sold +14.8% YoY, driving total retail sales +8.0% YoY; operating efficiency improved with Other O&M + refueling outage cost per MWh down 12.7% YoY .
  • Strong operating cash flow: consolidated OCF rose to $1.38B in Q4 (+$316M YoY), reflecting lower fuel/purchased power payments and customer advances for construction .
  • Strategic momentum and regulatory progress: multi-state approvals (e.g., E‑LA FRP renewal and riders; E‑MS FRP/riders; E‑TX DCRF), and development milestones (Delta Blues Advanced Power Station; data-center load filing) .
  • Quote: “2024 was a transformational year for Entergy… strong financial performance while… growing and derisking our business” — Drew Marsh, Chair & CEO .

What Went Wrong

  • Sequential EPS decline vs Q3: adjusted EPS fell from $2.99 in Q3 to $0.66 in Q4, consistent with seasonality but amplified by higher interest expense and tax items .
  • Higher interest costs: utility and parent interest expense increased on higher rates/debt and issuance of $1.2B junior subordinated debentures at Parent & Other in May 2024 .
  • Tax headwind: Louisiana state income tax rate change raised Q4 income tax expense by $(29)M and led to a $9M E‑LA regulatory liability adjustment (excluded from adjusted EPS) .

Financial Results

EPS versus prior periods

MetricQ2 2024Q3 2024Q4 2024
EPS (As-Reported, $)$0.23 $2.99 $0.65
EPS (Adjusted, $)$1.92 $2.99 $0.66

Consolidated earnings versus prior periods

MetricQ2 2024Q3 2024Q4 2024
Earnings (As-Reported, $USD Millions)$49 $645 $286
Earnings (Adjusted, $USD Millions)$411 $645 $291

Operating cash flow (OCF)

MetricQ4 2023Q4 2024
Consolidated OCF ($USD Millions)$1,063 $1,380
Utility OCF ($USD Millions)$1,576 $1,845

Segment EPS breakdown (Q4)

SegmentQ4 2023 (As-Rep)Q4 2023 (Adj)Q4 2024 (As-Rep)Q4 2024 (Adj)
Utility EPS ($)$1.98 $0.57 $0.92 $0.97
Parent & Other EPS ($)$0.34 $(0.31) $(0.27) $(0.31)
Consolidated EPS ($)$2.32 $0.26 $0.65 $0.66

KPIs (Q4 YoY)

KPIQ4 2023Q4 2024YoY Change
Total Retail Sales (GWh)27,320 29,497 +8.0%
Industrial Sales (GWh)12,984 14,906 +14.8%
Other O&M + Refueling Outage Expense per MWh ($)$28.13 $24.55 (12.7)%
Total Sales (GWh)30,919 32,771 +6.0%

Note: Revenue and EBIT margin were not disclosed in the Q4 2024 release materials; therefore margin comparisons are presented via cost-per-MWh and ROE metrics from appendices .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPSFY 2025N/A$3.75–$3.95 Initiated
Adjusted ROE (LTM)FY 202410.4% (FY 2023 actual) 10.6% (FY 2024 actual) Maintained trajectory
Debt to Total Capital12/31/202364% 65% (12/31/2024) Slightly higher

Additional context: Q3 2024 narrowed FY 2024 adjusted EPS guidance to $7.15–$7.35 pre-split (historical reference), while Q4 2024 emphasizes top-half delivery; 2025 guidance initiates a new range .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Industrial/data-center loadE‑LA agreement in principle; NextEra JV to develop up to 4.5 GW solar/storage FRP approvals; E‑LA transmission/generation to support a large customer E‑LA filed to increase planned load for a north Louisiana data center Strengthening demand narrative
Grid resilience/hardeningE‑TX Future Ready Resiliency Plan Phase I filed ($335M) CCNO approved $100M resilience plan for E‑NO PUCT approved first phase of E‑TX accelerated resilience plan Steady execution across jurisdictions
Generation developmentE‑TX hydrogen-capable stations (Legend/Lone Star) filed E‑AR solar projects placed in service; E‑MS announced 50 years first new gas station E‑MS broke ground on 754 MW Delta Blues Advanced Power Station Advancing buildout
Regulatory/legalSERI settlement progress; multiple FRP approvals LPSC approved items incl. FRP renewal; SERI complaint settlement subject to FERC; stock split approved FERC approved SERI/LPSC settlement; E‑MS received E‑LA’s 16% Grand Gulf share Resolution momentum
Capital structure/liquidityPension lift-out headwind at P&O (Q2) Dividend increase and planned stock split Net liquidity rose to $6.01B; debt to capital 65% Liquidity improving

Management Commentary

  • “2024 was a transformational year for Entergy… strong financial performance while also making meaningful progress on growing and derisking our business.” — Drew Marsh, Chair & CEO .
  • Company highlighted results in the top half of guidance for nine consecutive years and raised outlooks; initiated 2025 adjusted EPS guidance of $3.75–$3.95 .

Q&A Highlights

  • An earnings teleconference was scheduled on Feb. 18, 2025, but a transcript was not available in filings; call details provided for webcast and replay access . No call transcript could be retrieved via the document search, so Q&A themes are not available from primary sources.

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of analysis (tool limit error). With management initiating FY 2025 adjusted EPS guidance at $3.75–$3.95, sell-side models may need to align ranges to this framework pending detailed drivers and pacing .

Key Takeaways for Investors

  • Industrial demand is accelerating and broad-based: Q4 industrial GWh +14.8% YoY, lifting retail sales +8.0%; this supports volume-led earnings resilience into 2025 .
  • Operating efficiency improved materially (Other O&M + refueling per MWh down 12.7% YoY), aiding margin resilience against higher interest costs .
  • Cash generation remains a strength: Q4 consolidated OCF of $1.38B (+$316M YoY) provides funding flexibility for resilience and growth capex programs .
  • Regulatory execution and load growth (including data centers) underpin the raised 2025 guidance; monitor E‑LA, E‑MS, E‑TX proceedings and approvals for timing and recovery mechanisms .
  • Watch interest-rate sensitivity: higher rates and debt balances lifted interest expense; funding mix (junior subordinated debentures) at P&O was a headwind in 2024 .
  • Tax dynamics matter: the Louisiana state tax rate change added $(29)M of Q4 tax expense and a $9M E‑LA regulatory liability adjustment (excluded from adjusted EPS), highlighting jurisdictional tax impacts .
  • Near-term trading: guidance initiation and industrial load momentum are positive catalysts; absence of transcript limits real-time tone checks, but release commentary was confident on growth and derisking .