CenterPoint Energy reported diluted GAAP earnings per share of $0.30 and non-GAAP EPS of $0.29 for Q2 2025, compared to $0.36 non-GAAP EPS in Q2 2024.
Equity issuances of $500 million last year, including a $250 million pull forward, resulted in a $0.01 unfavorable variance quarter-over-quarter.
The first half of 2025 non-GAAP EPS is approximately 46% of the midpoint of the full year guidance range of $1.74 to $1.76, in line with expectations.
Through the first half of 2025, $2.4 billion of base capital work was invested, on track to meet the revised 2025 capital investment target of $5.3 billion.
Trailing 12-month adjusted FFO to debt ratio was 14.1% at quarter end, with credit metrics expected to strengthen through the year.
Unfavorable variances included $0.01 from rate recovery netted with depreciation and taxes, $0.03 from O&M due to accelerated vegetation management, and $0.03 from higher interest expense and financing costs.
Weather and usage contributed a favorable $0.01 variance, mainly from Houston Electric's warmer start to 2025 compared to 2024.
Strategic Portfolio Optimization and Asset Divestitures
Baker Hughes announced three strategic transactions in Q2, including a joint venture with Cactus, a sale of Precision Sensors & Instrumentation for approximately $1.15 billion, and an acquisition of Continental Disc Corporation for about $540 million.
These transactions aim to enhance the company's earnings durability, cash flow, and long-term shareholder value by focusing on higher-growth, higher-margin opportunities.
The company has generated over $2.5 billion in cash from strategic divestitures since 2017 and continues to reinvest in industrial and energy technology sectors.
The portfolio reshaping involves exiting non-core assets and deploying capital into businesses with recurring revenue potential and long-term growth prospects.
Dafinchi