Constellation Energy (NASDAQ: CEG) reported strong second-quarter earnings on August 7, surpassing analyst expectations and reflecting a 87% increase in stock value over the past year. The company is leveraging its carbon-free nuclear fleet to satisfy the rising energy demands of the artificial intelligence and data center sectors.
Key Achievements
Constellation has secured a 20-year power agreement with Meta Platforms Inc. (NASDAQ: META) aimed at enhancing its Clinton Clean Energy Center. The acquisition of Calpine is expected to add over $2 billion in annual free cash flow by 2025. Additionally, results from a recent PJM capacity auction are forecasted to increase earnings by 50 cents per share in 2026, and $1.50 per share in 2027.
Financial Stability
With a debt-to-equity ratio of 0.79 and a $400 million share repurchase program initiated in Q2, the company is reinforcing its financial health. As of now, Constellation’s stock trades at a price-to-earnings ratio of approximately 35x, outperforming traditional utility norms and aligning more closely with high-growth tech industry valuations. Analysts have set a price target averaging $309.29, with high-end targets reaching $390.
