Shares declined 10% following the earnings release, driven by investor disappointment over a cautious near-term outlook amid a soft market environment and decelerating demand growth in key regions.

• Texas experienced a notably mild winter with heating degree days down 30% year-over-year, suppressing power demand and limiting market opportunities.
• The company reaffirmed its 2026 guidance, but emphasized near-term variability and a cautious stance on power demand growth despite a structurally improved market outlook.
• Integration of the LS Power portfolio is underway as expected, with new Texas Energy Fund projects on track to come online, though these are positioned as upside optionality rather than core growth drivers.
• Management highlighted incremental capacity upgrade opportunities totaling up to 2 gigawatts, to be pursued selectively based on capital discipline and customer commitments.
• While long-term demand shows promise, investors focused on the slower-than-anticipated recovery and evolving regulatory challenges impacting load growth timing and magnitude.