NRG ENERGY, INC.

NRG Energy, Inc. operates in the competitive retail energy and smart home technology industries across North America. The Company serves electricity, natural gas, and smart-home technology solutions to approximately 8 million residential customers (comprised of 6 million retail energy and 2 million smart home), in addition to large commercial and industrial, data center, and wholesale customers. As of December 31, 2025, the Company's core power and natural gas business consists of approximately 12 GW of competitive power generation, primarily in Texas, and a natural gas portfolio that serves approximately 1,900 MMDth annually. NRG sold 154 TWhs of electricity and 1,857 MMDth of natural gas in 2025, making it one of the largest competitive energy retailers in the U.S. As of the end of 2025, NRG had recurring electricity and/or natural gas sales in 25 U.S. states, the District of Columbia, and 8 provinces in Canada, and Vivint Smart Home served customers in all 50 U.S. states and the District of Columbia.

NRG's retail brands, collectively, have the largest share of competitively served residential electric customers in Texas and is a leading business-to-business provider of power and natural gas in North America. The Company's strategy is to maximize shareholder value by delivering integrated energy and smart home solutions, supported by an owned generation fleet and a diversified supply strategy. The Company is advancing opportunities to meet growing demand, including from data centers, other large load customers, and electrification, including demand response and virtual power plants, completing the Texas Development Projects, long-term contract-backed generation and related infrastructure, and increasing capacity at existing facilities.

NRG generates revenue through the sale of electricity and natural gas to residential, commercial and industrial, and wholesale customers, supported by the Company's wholesale electric generation, as well as the sale of smart home products and services. The Company offers a variety of energy products and smart home products and services that are differentiated by innovative, value-additive features, premium service, integrated platforms, sustainability, loyalty/affinity programs, and affordability. NRG manages its electricity and natural gas operations based on the combined results of the retail, wholesale and generation businesses with a geographical focus, with Vivint Smart Home operations reported within the Vivint Smart Home segment.

The Company's business is segmented as follows: Texas, which includes all activity related to customer, plant and market operations in Texas; East, which includes all activity related to customer, plant and market operations in the East; West/Other, which primarily includes all activity related to customer, plant and market operations in the West and Canada, and other investments; Vivint Smart Home; and Corporate activities. In Texas, the Company's generation supply is fully integrated with its retail load, providing the advantage of being able to supply a portion of the Company's retail customers with electricity from the Company's assets, which reduces the need to sell electricity to and buy electricity from other institutions and intermediaries, resulting in more stable earnings and cash flows, lower transaction costs and less credit exposure.

NRG's retail brands include NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. The Company also provides smart home security and automation services that deepen customer relationships and support long-term engagement. The Company's differentiated model is built to meet North America's evolving needs while delivering affordable, reliable solutions for customers and long-term growth for shareholders. This strategy is intended to generate recurring cash flow, strengthen earnings and cost competitiveness, and reduce risk and volatility.

On January 30, 2026, NRG completed the acquisition of the LSP Portfolio, pursuant to the Purchase and Sale Agreement dated as of May 12, 2025. The LSP Portfolio includes 18 natural gas-fired and dual fuel facilities totaling approximately 13 GW of capacity, located across nine states, as well as CPower, a leading demand response platform. During the fiscal year, the Company also executed on its capital allocation plan, including share repurchases and debt management activities.

For the fiscal year ended December 31, 2025, total operating revenues were $23.486 billion ¹, compared to $26.246 billion ² in the prior year. Net income was $1.756 billion ³, compared to $1.894 billion ⁴ in the prior year. Diluted earnings per share was $7.87 ⁵ versus $7.82 ⁶ in the prior year. Adjusted EBITDA was $3.642 billion ⁷ for 2025, compared to $3.642 billion ⁸ in 2024.

NRG is advancing opportunities to meet growing demand, including from data centers, other large load customers, and electrification. This includes demand response and virtual power plants, which help manage costs and improve affordability for customers, completing the Texas Development Projects, long-term contract-backed generation and related infrastructure supported by strategic partnerships with equipment manufacturers and engineering, procurement, and construction companies, and increasing capacity at existing facilities. The LSP Portfolio acquisition, completed on January 30, 2026, includes 18 natural gas-fired and dual fuel facilities totaling approximately 13 GW of capacity, located across nine states, as well as CPower, a leading demand response platform.

The Company's strategy is intended to generate recurring cash flow, strengthen earnings and cost competitiveness, and reduce risk and volatility. The filing does not provide specific margin or cost trajectory targets beyond the general strategic objectives.

The filing does not provide a detailed operational outlook regarding supply chain posture, manufacturing capacity, technology infrastructure investments, or headcount and workforce strategy.

The Company's capital allocation strategy includes engaging in disciplined and transparent capital allocation. During the fiscal year, the Company repurchased shares under its capital allocation plan. The filing does not specify forward-looking R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy figures for the upcoming period.

The filing discusses structural headwinds and execution risks including the impact of weather conditions on demand and revenue, commodity price volatility affecting the cost of fuels and purchased energy, and the regulatory environment including environmental regulations such as the Clean Air Act and state-level Renewable Portfolio Standards. The Company also faces risks related to the availability and cost of credit and collateral requirements in the energy markets.

The Company faces constraints related to its geographic concentration in Texas, where its generation supply is fully integrated with its retail load, and the competitive nature of the retail energy markets in the U.S. and Canada. The filing also notes risks associated with the integration of acquisitions, including the Vivint Smart Home acquisition and the LSP Portfolio acquisition.

NRG faces material risks from commodity price volatility, as the cost of fuels and purchased energy is a significant expense, and the Company uses derivatives to manage this exposure, with the fair value of commodity derivatives reported as assets of $1.118 billion ⁹ and liabilities of $1.064 billion ¹⁰ as of December 31, 2025. The Company is exposed to credit risk from counterparties, with net exposure calculated net of collateral, and had letters of credit and surety bonds outstanding of $2.4 billion ¹¹ as of December 31, 2025. Weather conditions significantly impact demand and revenue, as the Company's results are affected by heating and cooling degree days. The regulatory environment poses risks, including environmental regulations under the Clean Air Act and state-level Renewable Portfolio Standards, as well as potential changes to market rules in the Electric Reliability Council of Texas and other independent system operators. The Company's significant concentration in Texas, where its generation supply is fully integrated with its retail load, creates geographic concentration risk. The integration of acquisitions, including the Vivint Smart Home acquisition and the LSP Portfolio acquisition, presents execution risks.

Management's message emphasizes a strategy to maximize shareholder value by delivering integrated energy and smart home solutions, supported by an owned generation fleet and a diversified supply strategy. The tone is forward-looking, focusing on advancing opportunities to meet growing demand from data centers, other large load customers, and electrification. The key strategic priorities emphasized are: serving the energy needs of residential, commercial and industrial, and wholesale counterparties in competitive markets; offering a variety of energy products and smart home products and services differentiated by innovative features and premium service; excellence in operating performance of its assets; achieving the optimal mix of supply to serve customer load requirements through a diversified supply strategy; and engaging in disciplined and transparent capital allocation.