CenterPoint Energy, Inc. Q2 FY26 Earnings Analysis

- Houston Electric's peak demand forecast accelerated by 2 years with a 50% increase expected, driven by 12.2 GW of firmly committed load by 2029 (up from 7.5 GW). - Approximately 8 GW of this load, mainly from data centers and advanced manufacturing, is expected to be energized by 2029, creating substantial growth in electricity volumes. - The region's economic expansion, including life sciences, energy exports, and manufacturing, supports sustained volume growth. - Indiana’s large load customer opportunity could provide incremental load enabling $250 million in savings over 15 years, indicating meaningful future demand growth. - Transmission and capital investments are planned to support this growth, with $6.8 billion targeted for 2026 and over $65 billion through 2035. - Non-GAAP EPS expected to grow 7%-9% annually through 2035, reflecting revenue and sales growth. - Demand charges linked to large industrial loads provide significant earnings tailwind.

- CenterPoint Energy reiterates 2026 non-GAAP EPS guidance of $1.89 to $1.91, representing an 8% increase over 2025 at the midpoint. - Long-term non-GAAP EPS growth expected at mid- to high end of 7% to 9% annually from 2026 through 2028. - Continued annual EPS growth of 7% to 9% projected through 2035. - Growth driven by accelerating load growth, capital investments, and economic development, especially in Houston and Indiana. - Incremental capital investment opportunities and strong load commitments support sustained earnings expansion. - Improved affordability profiles and regulatory factors enhance earnings durability and customer benefits.

- Planned capital investment of $6.8 billion in 2026, on track with seasonal timing (Page 3-4). - Over $65.5 billion 10-year base capital plan through 2035, with an additional $10 billion+ incremental investment opportunities as load growth clarifies (Page 4). - Anticipated inclusion of new transmission projects in second half of 2026 as part of refreshed transmission planning process (Page 4-5). - Indiana opportunity to convert simple cycle to combined cycle gas plant, unlocking 1.5 GW capacity with ~$1 billion CapEx within 2027-2029 (Page 6). - Incremental transmission projects planned to replace capacity and support growth driven by 12.2 GW committed load in Houston and Indiana (Pages 5-10). - Multiple capital trackers filings for timely recovery: Houston Electric Distribution and Transmission, Texas Gas GRIP, Minnesota and Indiana gas cases planned in 2026 (Pages 3, 10, 11). - Capital investments mainly focused on system resilience, safety, customer affordability, and enabling economic development (multiple pages).

- Nearly 70% of planned 2026 financing needs have already been completed, derisking this year's financing plan. - A $650 million convertible debt issuance occurred in February 2026, reducing near-term floating interest rate exposure. - Debt issuances were pulled forward opportunistically in 2026 to take advantage of market conditions. - No current commercial paper balance at the parent company, compared to an average of approximately $1 billion. - Favorable corporate alternative minimum tax (AMT) guidance allows for potential cash tax refunds, improving financing plans later in the year. - No indication of new common equity issuance in 2026; cash tax savings may allow for incremental CapEx with no additional equity. - Future capital needs will reflect ongoing economic growth and infrastructure investments, with incremental opportunities being evaluated.

- Houston Electric business has a firmly committed load of **12.2 gigawatts**, up from a prior 7.5 gigawatts forecast. - Of this, **3.2 gigawatts** have received ERCOT approval; an additional **9 gigawatts** are pending submission for approval. - Approximately **8 gigawatts** of this committed load is expected to be energized by 2029. - The committed load comprises nearly 20 distinct projects across more than a dozen customers. - In Indiana, there is ongoing progress with a potential transformative large load customer in Southern Indiana, which could represent the largest incremental load in that territory. - This opportunity could lead to approximately $250 million in residential customer savings over 15 years. - Additional opportunities exist to further expand beyond these committed loads, implying potential for more backlog growth.