Entergy Surpasses Financial Projections and Sets Sights on Long-Term Growth
In its recent Q4 2024 earnings conference call, Entergy Corporation reported strong financial performance and outlined its strategy for continued growth and diversification. The company's Chair and CEO, Drew Marsh, highlighted the significance of the past year, stating that it was 'transformational' for the business.
Entergy's adjusted EPS for 2024 came in at $3.65, placing it in the top half of the company's guidance range. Notably, the company has raised its capital and outlook beyond 2025, citing growth opportunities that now surpass its previous projections of 8-9%. This means Entergy is now targeting growth rates 'greater than 8%' through 2028.
The company's success in attracting large industrial customers was a key factor in this performance. Industrial sales saw an impressive 8% increase for the year and a remarkable 15% jump in the fourth quarter. Two significant hyperscale data centers have been added to Entergy's outlook, capitalizing on the natural advantages of the Gulf South region.
One notable example of this growth is a new electric service agreement with a major customer in Mississippi, although details were not disclosed due to confidentiality. Additionally, Entergy anticipates signing an agreement with Meta to expand their capacity needs, as outlined in supplemental testimony submitted by Entergy Louisiana last week.
The combined utility segment is expected to see industrial sales compound annually at 12-13% from 2024 through 2028. Entergy's model allows it to provide complete technical solutions and connect new customers with critical stakeholders, positioning the company well to capture additional projects as a one-stop shop.
The company's focus on stakeholder engagement has been key in its success. Through this approach, Entergy has concluded several regulatory processes, including final approvals of settlements and investments totaling over $2 billion across multiple jurisdictions.
As Entergy looks to the future, it is clear that the company is poised for continued growth and expansion. With a robust pipeline of potential projects and a commitment to stakeholder engagement, Entergy is well-positioned to capture new opportunities in the rapidly evolving energy landscape.
