CenterPoint Energy, Inc.

What they do

CenterPoint Energy is a public utility holding company whose operating subsidiaries own and operate electric transmission, distribution and generation facilities and natural gas distribution systems. Its main subsidiaries are Houston Electric, which delivers power in the ERCOT region along the Texas Gulf Coast including Houston, CERC Corp., which runs natural gas distribution systems in Minnesota and Texas and pipeline interconnects, and SIGECO, which serves electric and natural gas customers near Evansville, Indiana. As of December 31, 2025, the company reported three segments: Electric, Natural Gas and Corporate and Other.

Revenue drivers

• Electric segment (Houston Electric and Indiana Electric) — Regulated electric transmission and distribution service, including transmission service to ERCOT customers and distribution service to REPs serving the Texas Gulf Coast including the city of Houston, plus generation and wholesale power optimization in southwestern Indiana.
• Natural Gas segment (CERC) — Owns and operates natural gas distribution systems in Minnesota and Texas and permanent pipeline connections through CEIP interconnects with interstate and intrastate pipelines, following the 2025 sale of the Louisiana and Mississippi LDC businesses.
• Large-load customer growth (Houston Electric) — New connection demand from large users such as data centers; Houston Electric estimates approximately 14 gigawatts of its potential large-load customers are eligible for ERCOT's Batch Zero process, which would represent more than a 65% increase over current 21 gigawatt peak system demand.
• Capital investment program — Regulated rate base growth funded by a 10-year capital plan now totaling approximately $66.7 billion through 2035, increased by $1.2 billion in July 2026.

Recent performance

For the second quarter of 2026, CenterPoint reported net income of $244 million, or $0.37 per diluted share on a GAAP basis, versus $0.30 per diluted share in the prior-year quarter. Non-GAAP EPS was $0.40 per diluted share, compared with $0.29 a year earlier, with growth and regulatory recovery contributing $0.10 per share and O&M contributing $0.02 per share of favorability. Full-year 2025 revenue was $9.34 billion with net income of $1.05 billion and diluted EPS of $1.60, and quarterly revenue rose from $1.95 billion in Q2 2025 to $2.98 billion in Q1 2026. As of March 31, 2026, total assets were $47.84 billion, long-term debt was $22.48 billion and shareholder equity was $11.45 billion.

Strategy

Management is emphasizing customer-driven capital investment, reliability and affordability, with the 10-year capital plan increased by $1.2 billion to approximately $66.7 billion through 2035 to support accelerating large-load demand in Houston and the Downtown Houston Revitalization project. The company submitted over 17 gigawatts of large-load projects to ERCOT's Batch Zero process, of which about 14 gigawatts are expected to be eligible as base or studied load. CenterPoint entered a 2026 Equity Distribution Agreement in May 2026 for up to $1 billion in at-the-market Common Stock sales, and states the capital plan increase was made without increasing the current equity financing guide. The company also continues portfolio actions, including the pending approximately $2.62 billion sale of Ohio subsidiary CEOH and the March 2025 sale of Louisiana and Mississippi gas LDC businesses for approximately $1.2 billion.

Risks

• Concentration of Houston Electric receivables in a few REPs — Houston Electric's receivables are primarily concentrated in a small number of REPs, so any delay or default in their payments could adversely affect results.
• Generation transition execution at Indiana Electric — Indiana Electric's generation transition plan carries risks including timely recovery of capital investments and increased costs and risks tied to timing and construction of new generation facilities.
• TEEEF fleet deployment and recovery — Houston Electric's use of TEEEF is subject to performance issues, allegations about procurement and deployment, regulatory and environmental requirements, and timely capital recovery.
• Large-load timing and regulatory uncertainty — The amount of gigawatts ultimately connected, actual electricity used, and timing of connections depend on ERCOT Batch Zero approvals, construction timing, legislative and regulatory actions, and material availability.

Outlook

CenterPoint reiterated its 2026 non-GAAP EPS guidance range of at least the midpoint of $1.89-$1.91, which at the midpoint would represent 8% growth over 2025 delivered results. Management cites approximately 14 gigawatts of eligible base or studied large-load projects projected by 2031 and says these new connections are forecasted to meaningfully reduce Houston Electric's residential and commercial delivery charges by at least $5 billion over the next decade. The company also expects the CEOH sale to close in the fourth quarter of 2026, subject to customary closing conditions.