CenterPoint Energy reaches settlement agreement on SRP

CenterPoint Energy (CNP) announced that it has reached a settlement agreement with parties to its 2026-2028 Systemwide Resiliency Plan, SRP. Subject to Public Utility Commission of Texas review and approval, the SRP represents the largest single grid resiliency investment in CenterPoint's history and is expected to reduce the impact of storm-related outages by nearly 1 billion for its 2.8 million customers by 2029. CenterPoint's 2026-2028 SRP will build on the progress made during the first two phases of the company's Greater Houston Resiliency Initiative and is designed to further address the impacts of a wide range of extreme weather threats, including more powerful storms, hurricanes, wind events like derechos, flooding, extreme temperatures, tornadoes, wildfires and winter storms.
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With A Return On Equity Of 8.8%, Has CenterPoint Energy, Inc.'s (NYSE:CNP) Management Done Well?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine CenterPoint Energy, Inc. (NYSE:CNP), by way of a worked example. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for CenterPoint Energy is: 8.8% = US$966m ÷ US$11b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.09. Check out our latest analysis for CenterPoint Energy By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. You can see in the graphic below that CenterPoint Energy has an ROE that is fairly close to the average for the Integrated Utilities industry (8.9%). That isn't amazing, but it is respectable. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If true, then it is more an indication of risk than the potential. You can see the 2 risks we have identified for CenterPoint Energy by visiting our risks dashboard for free on our platform here. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. CenterPoint Energy does use a high amount of debt to increase returns. It has a debt to equity ratio of 2.03. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company. But note: CenterPoint Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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3 days ago

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Is CenterPoint Energy Stock Outperforming the Nasdaq?

Valued at $23.3 billion by market cap, Houston, Texas-based CenterPoint Energy, Inc. (CNP) operates as a public utility company. It operates through Electric and Natural Gas segments, serving nearly 7 million metered customers in Indiana, Minnesota, Ohio, and Texas. Companies with a market cap of $10 billion or more are categorized as "large-cap stocks." CenterPoint fits this description perfectly, with its market cap exceeding this threshold, reflecting its substantial size and influence in the utility sector. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer CoreWeave Stock Is Too 'Expensive' According to Analysts. Should You Sell CRWV Now? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Despite its strengths, CNP stock has dropped 9.5% from its all-time high of $38.31 touched on May 6. Over the past three months, CNP stock has dipped by a marginal 28 bps, notably underperforming the Nasdaq Composite's ($NASX) 11.7% surge during the same time frame. Nevertheless, CNP's performance has remained much more impressive over the longer term. CNP stock has soared 12.1% on a YTD basis and 14.7% over the past 52 weeks, outpacing Nasdaq's 1.2% uptick in 2025 and 9.4% gains over the past year. To confirm the longer-term bullish trend and recent dip in prices, CNP stock has traded consistently above its 200-day moving average since late September last year and dropped below its 50-day moving average earlier this month. CenterPoint Energy's stock prices rose 1.5% following the release of its mixed Q1 results on Apr. 24. Driven by favorable weather and increased energy usage, the company's overall revenues for the quarter surged 18.3% year-over-year to $1.8 billion, surpassing the consensus estimates by a notable margin. However, due to an increase in financing, maintenance, and operating expenses, the company's margins observed a significant contraction. Its non-GAAP EPS for the quarter dropped 3.6% year-over-year to $0.53, missing the Street's expectations. On a more positive note, CenterPoint has outperformed its peer Dominion Energy, Inc.'s (D) marginal 59 bps uptick in 2025 and 9.6% gains over the past 52 weeks. Among the 18 analysts covering the CNP stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $38.87 suggests a 9.3% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Business Wire

4 days ago

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Nextracker Expands Board of Directors

FREMONT, Calif.--(BUSINESS WIRE)-- Nextracker (Nasdaq: NXT), a global leader in advanced solar energy solutions, announced it has appointed Monica Karuturi, Mark Menezes, and Jeffrey Guldner to its Board of Directors. 'With the energy sector continuing to evolve, Monica Karuturi, Mark Menezes, and Jeffrey Guldner joining our Board brings extensive depth in policy, regulation, corporate governance, and electric utilities,' said Dan Shugar, founder and CEO of Nextracker. 'Their leadership across public policy, legal strategy, and energy infrastructure will also be instrumental as we continue to scale our global business and evolve as a next-generation power solutions platform.' Monica Karuturi Karuturi serves as executive vice president and general counsel of CenterPoint Energy, a leading electric and gas utility company, a position she has held since January 2022. Since joining CenterPoint Energy in 2014, she has served in multiple leadership roles for the company spanning corporate strategy, finance, and governance. Prior to joining CenterPoint Energy, Karuturi served as counsel, corporate finance and strategic transactions, at LyondellBasell Industries. Karuturi holds a B.A. from Brown University, an M.P.H. from Columbia University, and a J.D. from Georgetown University Law Center. Mark Menezes Menezes currently serves as president and CEO of the United States Energy Association (USEA), a non-profit organization advancing global energy development and policy founded in 1924. Under his leadership since 2023, USEA continues to promote access to affordable, reliable, clean, and resilient energy both in the U.S. and globally. Additionally, Menezes has been an adjunct professor at Georgetown University Law Center since 2021. He is also the founder of Global Sustainable Energy Advisors LLC, a strategic advisory firm focused on energy policy, security, innovative technologies, and investments. Menezes previously served as Deputy Secretary of the U.S. Department of Energy (2020-2021) and held other senior roles at the U.S. Department of Energy, including Under Secretary. Earlier in his career, he was a partner at Hunton & Williams LLP, where he led the regulated markets and energy infrastructure practice. He holds a B.A. from Louisiana State University and a J.D. from the Louisiana State University Law Center. Jeffrey Guldner Joining Nextracker's board in June 2024, Guldner served as president, CEO, and chairman of the board of Pinnacle West Capital Corporation and its primary subsidiary, Arizona Public Service Company (APS), from 2019 to 2025. Joining APS in 2004, he held several leadership roles during his tenure at the company. Earlier in his career, he was a partner at Snell & Wilmer LLP, practicing public utility, telecommunications, and energy law. A former U.S. Navy surface warfare officer, Guldner also taught naval history at the University of Washington. He serves on the boards of Edison Electric Institute, the Nuclear Energy Institute, the McCain Institute, and the Smart Electric Power Alliance, among others. Guldner holds a B.A. from the University of Iowa and a J.D. from Arizona State University and is a graduate of executive programs at MIT and Columbia Business School. About Nextracker Nextracker innovates and delivers the global, leading solar power technology platform with integrated tracker, electrical solutions, and yield optimization and control systems for utility-scale and distributed generation projects. Our advanced technology enables solar power plants to follow the sun's movement across the sky and optimize performance. With systems operating in more than 40 countries worldwide, Nextracker offers innovative solutions that accelerate solar power plant construction, increase energy output, and enhance long-term reliability. For more information, visit Nextracker.