Friday, January 23, 2026

Constellation Holds Margin Lead as Vistra Expands With Gas Plants and Buybacks

A split graphic comparing two energy companies. On the left, Constellation Energy showcases nuclear power and AI data centers with a green growth chart. On the right, Vistra Energy displays natural gas power plants and fossil fuel operations with a volatile red growth chart.
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  • Constellation Energy (CEG) missed Q3 revenue at $6.57B but operates 90% carbon-free generation. Nuclear production rose to 46,477 gigawatt-hours.

  • Vistra (VST) missed revenue at $4.97B and net income fell 66.7% to $652M. Vistra acquired seven natural gas plants and started building two new gas units.

  • Vistra trades at 17.92x forward earnings despite guiding 2026 EBITDA to $6.8B-$7.6B from $5.7B-$5.9B in 2025. Constellation trades at 32.15x forward earnings.

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Constellation Energy (NASDAQ: CEG) and Vistra Energy (NYSE: VST) reported Q3 earnings this month, exposing two fundamentally different approaches to power generation. Constellation doubled down on premium nuclear assets and clean energy positioning. Vistra leaned into growth through fossil fuel acquisitions and aggressive capital returns.

Constellation missed Q3 revenue estimates at $6.57B versus $6.63B expected, but fundamentals tell a steadier story. Nuclear production climbed to 46,477 gigawatt-hours from 45,510 in the prior year quarter, and renewable capture rate improved to 96.8%. The company operates nearly 90% carbon-free generation, positioning itself as infrastructure backbone for data centers and AI workloads demanding reliable, emissions-free power. CEO Joe Dominguez emphasized that “momentum continues to build around reliable, clean nuclear energy as a cornerstone of America’s energy strategy.”

Vistra missed revenue more dramatically at $4.97B against a $6.16B estimate. Net income dropped 66.7% year-over-year to $652M, hurt by lower unrealized mark-to-market gains on derivatives and the Martin Lake Unit 1 outage. But Vistra is playing a different game. The company completed acquisition of seven natural gas plants during the quarter, started building two new gas units in West Texas, and secured a 20-year power purchase agreement for its Comanche Peak nuclear facility. CEO Jim Burke described the quarter as “marked by disciplined growth and a focus on meeting customer needs across key markets.”

Business Driver

Constellation

Vistra

Core Asset Focus

Nuclear and renewables (90% carbon-free)

Diversified gas, nuclear, coal, solar, storage

Q3 Strategy

Operational excellence, premium positioning

M&A expansion, new builds

Profit Margin

11%

6.7%

Market Cap

$112.41B

$56.64B

Constellation carries a 0.41% dividend yield and trades at 41.17 times trailing earnings, reflecting its status as a quality asset with predictable cash flows. The company narrowed full-year 2025 adjusted operating earnings guidance to $9.05 to $9.45 per share.

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