Vistra — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported GAAP Net Income of $305 million for Q2 2026, a decrease of $22 million compared to $327 million in Q2 2025, primarily driven by a $488 million increase in unrealized mark-to-market losses on derivative positions.
• Ongoing Operations Adjusted EBITDA reached $1,767 million in Q2 2026, representing a 30% year-over-year increase from $1,349 million in Q2 2025.
• For the six months ended June 30, 2026, Ongoing Operations Adjusted EBITDA totaled $3,261 million, up from $2,589 million in the same period of 2025.
• Operating revenues were $4,017 million for Q2 2026, down from $4,250 million in Q2 2025.
• Cash provided by operating activities was $2,222 million for the six months ended June 30, 2026, compared to $1,171 million in the prior year period.
• Capital expenditures, including nuclear fuel purchases and LTSA prepayments, totaled $1,572 million for the six months ended June 30, 2026.
• Net income attributable to Vistra common stock was $258 million for Q2 2026.

Guidance and Future Outlook

• Reaffirmed 2026 Ongoing Operations Adjusted EBITDA guidance range of $6.8 billion to $7.6 billion.
• Reaffirmed 2026 Ongoing Operations Adjusted Free Cash Flow before Growth (FCFbG) guidance range of $3.925 billion to $4.725 billion.
• Provided a previously announced Ongoing Operations Adjusted EBITDA midpoint opportunity range of $7.4 billion to $7.8 billion for 2027, excluding potential benefits from the pending Cogentrix acquisition and Meta power purchase agreements.
• As of August 3, 2026, the company had hedged approximately 100% of expected generation volumes for 2026, 94% for 2027, and 72% for 2028.
• The comprehensive hedging program supports the reaffirmed 2026 guidance ranges.

Business Segments and Product Lines

• Retail Segment: Adjusted EBITDA was $773 million for Q2 2026, compared to $756 million in Q2 2025; $841 million for the six months ended June 30, 2026, compared to $940 million in the prior year period.
• Texas Segment: Adjusted EBITDA was $311 million for Q2 2026, up from $142 million in Q2 2025; $897 million for the six months ended June 30, 2026, compared to $632 million in the prior year period.
• East Segment: Adjusted EBITDA was $642 million for Q2 2026, up from $418 million in Q2 2025; $1,443 million for the six months ended June 30, 2026, compared to $932 million in the prior year period.
• West Segment: Adjusted EBITDA was $68 million for Q2 2026, up from $49 million in Q2 2025; $124 million for the six months ended June 30, 2026, compared to $111 million in the prior year period.
• Corporate and Other: Adjusted EBITDA was $(27) million for Q2 2026, compared to $(16) million in Q2 2025.
• Asset Closure Segment: Adjusted EBITDA was $(23) million for Q2 2026, compared to $(17) million in Q2 2025.
• Strategic initiatives include the pending acquisition of Cogentrix Energy, construction of two Permian Basin natural gas units, and development of solar facilities including Oak Hill 2 and Pulaski.

Market and Competitive Landscape

• Achieved commercial availability of 97% or greater across the fleet during recent periods of extreme heat in Texas and the PJM market.
• Recognized as one of U.S. News & World Report's Best Companies to Work For for the second consecutive year.
• Received Federal Energy Regulatory Commission (FERC) approval for the pending Cogentrix Energy acquisition.
• Announced the formation of Helix Digital Infrastructure alongside KKR, Kuwait Investment Authority (KIA), and NVIDIA, with Vistra committing up to $1.0 billion and serving as Helix's preferred power provider.

Risks and Challenges

• Financial results are subject to risks including adverse changes in economic or market conditions, interest rates, and political or regulatory changes.
• Execution risks related to strategic initiatives, including the ability to close the Cogentrix acquisition and integrate acquired businesses.
• Exposure to extreme weather events and their impact on operations and financial results.
• Potential variability in power price market movements and hedging strategy outcomes.
• Risks associated with credit rating agency actions and uncertainties regarding future acquisitions or dispositions.

Management Commentary and Tone

• CEO Jim Burke stated the team delivered another strong quarter, building on momentum and executing at a high level.
• Management highlighted a more than 30% year-over-year increase in Ongoing Operations Adjusted EBITDA driven by the commitment and collaboration of employees.
• The tone emphasized disciplined execution during annual spring maintenance, ensuring reliable performance during the summer.
• Management expressed confidence in advancing key strategic initiatives and creating value for customers, communities, employees, and shareholders.

Other Key Points

• Share Repurchase Program: Executed approximately $6.5 billion in share repurchases since November 2021, resulting in a ~30% reduction in shares outstanding. Approximately $1.2 billion of authorization remains available, expected to be completed no later than year-end 2027.
• Liquidity: As of June 30, 2026, total available liquidity was approximately $6,295 million, comprising $435 million in cash and cash equivalents, $4,408 million under the corporate revolving credit facility, and $1,452 million under the commodity-linked revolving credit facility.
• Dividends: Paid $154 million in dividends to common stockholders and $96 million to preferred stockholders for the six months ended June 30, 2026.
• Debt Activity: Issued $6,422 million in debt and repaid/repurchased $3,859 million in debt for the six months ended June 30, 2026.
• Webcast: Hosted an earnings webcast on August 7, 2026, with slides available on the company's Investor Relations website.