Vistra Corp.

What they do

Vistra combines retail electricity and natural gas sales with wholesale power generation, reporting in five segments: Retail, Texas, East, West, and Asset Closure. Retail operations, largely under TXU Energy, Ambit Energy, Dynegy Energy Services, Homefield Energy, Energy Harbor, and U.S. Gas & Electric, serve approximately 5 million customers, about 2.6 million of them in Texas. The Texas, East, and West segments own the generation fleet, which at December 31, 2025 totaled 43,641 MW net capacity: 62% natural gas, 20% coal, 15% nuclear, 3% solar/battery, and a small amount of fuel oil. Most generation is merchant, selling energy, capacity, and ancillary services into wholesale markets without a guaranteed rate of return.

Revenue drivers

• Retail — Sells electricity, natural gas, and related services to roughly 5 million residential, commercial, and industrial customers in 16 states and D.C.; second quarter 2026 Adjusted EBITDA was $773 million.
• Texas — Owns and operates generation in ERCOT and sells power into that market; second quarter 2026 Adjusted EBITDA was $311 million versus $142 million a year earlier.
• East — Generation in eastern competitive markets including PJM and MISO; second quarter 2026 Adjusted EBITDA was $642 million, the largest generation segment contribution.
• West — Generation in western markets, including solar and battery storage; second quarter 2026 Adjusted EBITDA was $68 million, the smallest operating segment.

Recent performance

Second quarter 2026 net income was $305 million, down $22 million from $327 million in the second quarter of 2025, including a $472 million unrealized loss from hedges expected to settle in future years. Ongoing Operations Adjusted EBITDA rose more than 30% to $1,767 million from $1,349 million, driven by higher realized energy and capacity prices and three months' contribution from plants acquired from Lotus. First half 2026 net income was $1,334 million versus $59 million a year earlier, and first half Ongoing Operations Adjusted EBITDA was $3,261 million versus $2,589 million. Second quarter revenue was $4,017 million against $4,250 million in the prior-year quarter, with the decline in net income attributed primarily to $488 million higher unrealized mark-to-market losses on derivatives.

Strategy

Management reaffirmed 2026 Ongoing Operations Adjusted EBITDA guidance of $6.8 billion to $7.6 billion and Ongoing Operations Adjusted FCFbG of $3.925 billion to $4.725 billion. Vistra announced formation of Helix Digital Infrastructure with KKR, Kuwait Investment Authority, and NVIDIA, with an initial Vistra commitment of up to $1.0 billion, and Vistra as Helix's preferred power provider. The company received FERC approval for the pending Cogentrix Energy acquisition and is constructing two Permian Basin natural gas units and developing solar facilities including Oak Hill 2 and Pulaski. Management described the Helix investment, the Cogentrix acquisition, and the new-build projects as positioning Vistra for long-term growth.

Risks

• Wholesale power price exposure — Most facilities operate as merchant plants without long-term power sales agreements, so revenues and cash flows depend on volatile spot and short-term wholesale power, capacity, and ancillary services prices.
• Hedging and mark-to-market volatility — Assets and positions cannot be fully hedged against commodity and Market Heat Rate changes, and second quarter 2026 net income included a $472 million unrealized hedge loss expected to settle in future years.
• Fuel cost and supply disruption — The fleet relies mainly on natural gas, coal, fuel oil, and nuclear fuel, and higher-than-expected fuel costs or delivery disruptions tied to mines, rail, barges, and other infrastructure could raise costs and reduce results.
• New generation and subsidized supply — Continued construction of new or expanded generation by market participants, including resources bid into spot markets at near-zero prices, can depress wholesale power prices and pressure Vistra's returns.

Outlook

Vistra reiterated full-year 2026 Ongoing Operations Adjusted EBITDA of $6.8 billion to $7.6 billion and Ongoing Operations Adjusted FCFbG of $3.925 billion to $4.725 billion. Management pointed to the pending Cogentrix acquisition, construction of two Permian Basin natural gas units, and solar development at Oak Hill 2 and Pulaski as ongoing strategic initiatives. The company also flagged the Helix Digital Infrastructure venture with NVIDIA, KKR, and KIA, in which Vistra committed up to $1.0 billion and serves as preferred power provider. Vistra reported commercial availability of 97% or greater across its fleet during recent extreme heat in Texas and PJM.