Entergy Subsidiaries Report Mixed Financial Results for Second Quarter and First Half of 2025

**Entergy Subsidiaries Report Mixed Financial Results in Latest Filing**

Entergy Corporation's latest 10-Q filing reveals varying financial performances among its subsidiaries for the second quarter and first half of 2025. Entergy Arkansas, LLC reported a net income increase of $3.8 million for the second quarter, driven by higher volume/weather and retail electric prices, but this was partially offset by increased expenses. For the six months ended June 30, 2025, Entergy Arkansas's net income rose by $122.6 million, largely due to a charge recorded in the previous year related to an adverse decision in the opportunity sales proceeding. Entergy Louisiana, LLC experienced a significant net income increase of $169.1 million for the second quarter, primarily due to the absence of regulatory charges that impacted the same period last year. The six-month period saw a $240.5 million increase in net income, also attributed to the absence of prior-year regulatory charges and higher revenues.

Entergy Mississippi, LLC reported a $4.7 million increase in net income for the second quarter, driven by higher retail electric prices and other income, while the six-month period saw a $24.1 million increase due to higher retail electric prices, other income, and volume/weather. Entergy New Orleans, LLC, however, experienced a $3.1 million decrease in net income for the second quarter due to higher operation and maintenance expenses and interest expenses. Despite this, the company reported a significant turnaround for the six-month period, with net income of $30.1 million compared to a net loss of $27.8 million in the previous year, primarily due to the absence of a regulatory charge recorded in the first quarter of 2024. Entergy Texas, Inc. reported a decrease in net income of $8.7 million for the second quarter, attributed to higher purchased power costs, while the six-month period saw a $21.4 million increase due to higher retail electric prices, volume/weather, and other income.

System Energy Resources, Inc., which sells capacity and energy from Grand Gulf Nuclear Station, reported a $3.5 million decrease in net income for the second quarter, primarily due to a lower rate of return on rate base. The six-month period saw an $11.3 million decrease in net income, also attributed to the lower rate of return. Several strategic developments were highlighted in the filing. Entergy Louisiana is pursuing new generation and transmission resources to serve a new data center, while Entergy Arkansas is constructing Lake Catherine Unit 5, a 446 MW natural gas combustion turbine facility. Entergy Texas is progressing with the Legend Power Station and Lone Star Power Station projects, although a proposal for decision recommended rejection of Entergy Texas’s application to construct the Legend Power Station and the Lone Star Power Station based upon their finding that Entergy Texas did not demonstrate the resources to be cost-effective alternatives to address the uncontested need for additional generation.

Key operational developments and business indicators included varying trends in electric energy sales across the subsidiaries. Entergy Arkansas saw a 10% decrease in residential sales for the second quarter, while industrial sales increased by 25%. Entergy Louisiana reported a slight increase in total retail sales, driven by a 9% increase in industrial sales. Entergy Mississippi experienced a 1% decrease in total retail sales, while Entergy Texas reported a 4% increase. The filing also noted the impact of weather conditions on residential sales, with less favorable weather affecting sales in some regions. Entergy Texas plans to file for a capacity cost recovery rider to recover future capacity procurement costs at the earliest opportunity in 2026.

Looking ahead, Entergy anticipates continued investment in generation projects, transmission infrastructure, and distribution systems to modernize its portfolio, improve reliability, and support customer growth. However, the filing also acknowledges potential risks and uncertainties, including regulatory challenges, changes in environmental laws, the impact of extreme weather events, and the effects of changes in federal, state, or local laws and regulations. The company also notes the potential impact of new foreign entity of concern (FEOC) rules on clean energy projects and the potential for stranded assets due to declines in the demand for electricity to power hyperscale data centers.