$VST (-4,41 %) raised its adjusted EBITDA forecast for 2026 on Thursday and unveiled plans to increase nuclear capacity by 2030 to position itself for an increase in electricity demand in the US, even as second-quarter profit fell due to higher costs.
The company's shares rose nearly 4 percent in morning trading.
Vistra expects to add more than 600 megawatts of nuclear power plants by mid-2030 to meet rising electricity demand, particularly from data centers and AI-related industrial growth.
In July, the company received regulatory approval to extend the operation of its Perry nuclear power plant in Ohio until 2046.
The Texas-based utility raised its mid-range forecast for adjusted EBITDA in 2026 to approximately USD 6.8 billion, excluding contributions from the seven natural gas-fired power plants it acquired (link) in May.
For the current year, the company reiterated its forecast of core adjusted earnings from continuing operations of between $5.5 billion and $6.1 billion, broadly in line with analysts' estimates.
The U.S. Energy Information Administration estimates that electricity consumption in the country will reach record highs in 2025 and 2026, driven by rising demand from data centers looking to keep up with Big Tech's AI ambitions.
Still, Vistra's second-quarter results were weighed down by costs.
Net income for the quarter ended June 30 fell to $327 million from $467 million a year earlier.
Adjusted EBITDA from continuing operations fell from $1.41 billion to $1.35 billion, due in part to unplanned equipment outages.
Total operating expenses increased by 17 percent to USD 733 million, while interest expenses rose by almost 26 percent to USD 303 million.
Higher and longer-lasting interest rates are putting pressure on U.S. utilities as they drive up the cost of maintaining and expanding infrastructure.
CEO Jim Burke said the company has so far returned $6.5 billion to shareholders through dividends and share buybacks and plans to return another $1.8 billion by the end of 2026.
Source: reuters.com