CEG Filings — Constellation Energy Corporation - FilingSpy
CEG
Constellation Energy Corporation
A power company that is the largest U.S. producer of clean, carbon-free energy, running the country's biggest nuclear fleet along with gas, hydro, wind, and solar plants, and selling electricity to homes and businesses. Its roots reach back to the Gas Light Company of Baltimore, founded in 1816, and it took the name Constellation in 1999 to reflect its many operations grouped like stars in a sky. Today it is restarting the old Three Mile Island reactor—renamed the Crane Clean Energy Center—to power Microsoft's data centers.
Calpine merger costs and nuclear outages cut GAAP net income 39% to $513M, while adjusted earnings rose 54% to $920M.
The acquisition reshaped the quarter, adding $2.1 billion in but also merger costs that weighed on reported earnings. Revenue rose 23% to $7.5 billion and fell 39% to $513 million, while adjusted operating earnings climbed 54% to $920 million as higher capacity revenues and the new 's contribution offset nuclear outage impacts and unrealized hedge losses. The combined company is now operating with $19.1 billion in , and the integration story will define the rest of the year.
Key takeaways
fell $326 million to $513 million, driven by merger costs, unfavorable unrealized hedge losses, and higher nuclear refueling outage costs.
rose 54% to $920 million from $599 million a year ago, excluding $340 million in and $149 million in of acquired commodity contracts.
Total operating rose 23% to $7.5 billion, with the new contributing $2.1 billion; legacy revenue rose 7.4% while fell 18.2%.
Section summaries
Management's Discussion and Analysis
Q2 2026 GAAP net income fell to $513M from $839M, driven by Calpine merger costs and nuclear outages, partially offset by higher capacity revenues.
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attributable to common shareholders decreased $326M to $513M, primarily due to unfavorable unrealized hedge losses, merger costs, and nuclear outage impacts.
Purchased power and fuel expense rose 28.4% to $4.0 billion, with adding $1.1 billion and legacy costs up 20.7% on higher net transmission costs.
Operating and maintenance expense increased $636 million to $2.3 billion, including $228 million in higher labor and contracting costs and $87 million in merger and integration costs.
rose to $19.1 billion from $7.3 billion a year ago, reflecting the financing for the acquisition that closed in January 2026.
What changed
The acquisition, flagged as the dominant strategic event in every filing since Q1 2025, closed in January 2026; this is the second full quarter of consolidation, with the contributing $2.1 billion in .
Nuclear PTC , which fell 79% to $445 million in FY 2025 and was a key watch item, is not separately disclosed in this quarter's narrative, suggesting it remains at a fraction of 2024 levels as forward power prices stay elevated.
turned negative at -$118 million for the quarter, down from positive $710 million in Q2 2025, as ramped for the restart and co-location infrastructure.
The nuclear decommissioning trust sensitivity rose to $1,129 million for a 25 rate rise and 10% equity decline, up from $1,072 million in Q1 2026 and $1,099 million at year-end 2025, reflecting market movements affecting the trust's fair value.
What to watch
Track integration costs and the pace of synergy realization through the second half of 2026, as the $149 million in acquired commodity contract this quarter is a non-cash item that will recur.
Monitor whether returns to positive territory as the year progresses, given the $5.7 billion plan for 2026 that includes the Crane restart and nuclear fuel build.
Watch the trajectory of at $19.1 billion and any refinancing activity, as the company manages its investment-grade rating with the much larger balance sheet.
Follow the nuclear decommissioning trust sensitivity at $1,129 million, as changes in interest rates and equity markets flow through to balance-sheet equity for the combined entity.
Total operating revenues rose 23% to $7.5B, largely from the addition of $2.1B in , while legacy segments saw mixed results with up 7.4% and down 18.2%.
increased to $920M from $599M, excluding significant items like $340M in unrealized fair value losses and $149M in of acquired commodity contracts.
Purchased power and fuel expense grew 28.4% to $4.0B, with the new contributing $1.1B; legacy costs rose 20.7% due to higher net transmission costs.
Operating and maintenance expense increased $636M to $2.3B, driven by $228M in higher labor and contracting costs, $87M in merger and integration costs, and $68M in increased nuclear refueling outage costs.
Cash used in investing activities was $5.1B for the first six months, primarily for the $4.5B cash portion of the acquisition and increased for the Crane restart and co-location infrastructure.
We are parties to various lawsuits and regulatory proceedings in the ordinary course of business. For information regarding material lawsuits and proceedings, see Note 3 — Regulatory Matters and Note 15 — Commitments and Contingencies of the Combined Notes to Consolidated Financ…
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We are parties to various lawsuits and regulatory proceedings in the ordinary course of business. For information regarding material lawsuits and proceedings, see Note 3 — Regulatory Matters and Note 15 — Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements in PART I, ITEM 1. FINANCIAL STATEMENTS of this report. Such descriptions are incorporated herein by these references.
At June 30, 2026, our risk factors were consistent with the risk factors described in our 2025 Form 10-K in ITEM 1A. RISK FACTORS which was inclusive of the risks related to the Calpine acquisition and its operations.
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At June 30, 2026, our risk factors were consistent with the risk factors described in our 2025 Form 10-K in ITEM 1A. RISK FACTORS which was inclusive of the risks related to the Calpine acquisition and its operations.