CenterPoint Energy, Inc. Q3 FY2025 earnings call

• Introduced a 10-year financial plan focusing on economic development, customer outcomes, O&M efficiency, and investor value, with a $65 billion capital investment plan supported by growing energy demand.
• Reported non-GAAP EPS of $0.50 for Q3 2025, a 60% increase year-over-year. Reiterated 2025 non-GAAP EPS guidance of $1.75 to $1.77 and 2026 guidance midpoint of $1.89 to $1.91.
• Announced sale of Ohio gas LDC, expected to generate ~$2.6 billion gross proceeds, with proceeds to be redeployed into higher growth jurisdictions.
• Capital investment plan on track for 2025, with $5.3 billion target, $1.3 billion invested in Q3.
• Balance sheet update: Trailing 12 months adjusted FFO to debt ratio 14% (removing storm impacts), expecting improvement with securitization bonds.

Houston Electric business had throughput up 9% year-to-date, with industrial customer class throughput up over 17% quarter-over-quarter and 11% year-to-date. The Ohio gas LDC is being sold, expected to generate ~$2.6 billion in gross proceeds.

• Reiterated 2025 non-GAAP EPS guidance of $1.75 to $1.77 (9% growth over 2024).
• 2026 non-GAAP EPS guidance midpoint of $1.89 to $1.91 (8% increase over 2025 midpoint).
• Expect to grow non-GAAP EPS at the mid- to high end of the 7% to 9% long-term annual guidance range from 2026 through 2028 and 2035.

• Forward-looking statements subject to risks and uncertainties as noted in SEC filings.
• Transaction-related risks, including timing and impact on earnings and balance sheet.
• Regulatory and market uncertainties affecting capital investment and earnings.

Q: Discussion on balance sheet capacity and financing post-Ohio sale.

A: Chris Foster discussed reduction in OpCo debt, benefit to plan, and potential for accretive deployment of proceeds.

Q: Update on local feedback on Ohio sale.

A: Jason Wells said reception has been great, supportive, no challenges anticipated.

Q: Color on sales growth in Texas industrial sectors.

A: Jason Wells mentioned diversity of drivers including data centers, energy, refining, processing, exports, and Port of Houston exports.

Q: Data center prospects in Indiana and regulatory environment.

A: Jason Wells talked about active work on data centers, excess capacity, and proactive steps on rates.

Q: Accretive nature of Ohio sale to earnings.

A: Chris Foster discussed reduction in cash lag, deployment of proceeds in Texas businesses, and acceleration of CapEx.

Q: AMI rollout timeline.

A: Jason Wells said pilot in 2026, filing with PUCT in 2027, deployment beginning in 2027.

Q: Mobile gen units and market opportunities.

A: Jason Wells discussed medium-sized units being marketed and larger units to be remarkedeted in late 2026/early 2027.

Q: HB4384 and gas investment contribution.

A: Jason Wells said legislation benefits incorporated in plan, with opportunity for further enhancement.