Vistra Corp.

Results of Operations

The tables and discussion that follows present period‑over‑period changes in our results of operations and highlight the primary drivers of those variances for the periods presented.

In analyzing and planning for our business, we supplement our use of GAAP financial measures with non-GAAP financial measures, including EBITDA and Adjusted EBITDA as performance measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed (i) with our GAAP results and (ii) the accompanying reconciliations to corresponding GAAP financial measures may provide a more complete understanding of factors and trends affecting our business. Because EBITDA and Adjusted EBITDA are financial measures that management uses to allocate resources, determine our ability to fund capital expenditures, assess performance against our peers, and evaluate overall financial performance, we believe they provide useful information for investors.

These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures and are, by definition, an incomplete understanding of Vistra and must be considered in conjunction with GAAP measures. In addition, non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. We strongly encourage investors to review the consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

When EBITDA or Adjusted EBITDA is discussed in reference to performance on a consolidated basis, the most directly comparable GAAP financial measure to EBITDA and Adjusted EBITDA is Net income (loss).

Consolidated Results of Operations

The following table presents Net income (loss), EBITDA and Adjusted EBITDA:

(a)Corporate and Other includes $67 million of unrealized mark-to-market net losses on interest rate swaps.

(b)Includes nuclear fuel amortization of $133 million and $354 million, respectively, in the Texas and East segments.

(c)Includes involuntary conversion gain recognized from Martin Lake Incident property damage insurance in the Texas segment and revenues from Moss Landing Incident business interruption proceeds in the Asset Closure segment.

(d)Represents net of all NDT (income) loss of the PJM nuclear facilities and all ARO and environmental remediation expenses and other expenses associated with the Moss Landing Incident.

(a)Corporate and Other includes $53 million of unrealized mark-to-market net gains on interest rate swaps.

(b)Includes nuclear fuel amortization of $105 million and $282 million, respectively, in the Texas and East segments.

(c)Includes $10 million gain recognized on the repurchase of TRA Rights.

(d)Represents net of all NDT (income) loss, ARO accretion expense for operating assets, and ARO remeasurement impacts for operating assets.

Net income for the year ended December 31, 2025 compared to the year ended December 31, 2024 decreased by $1.868 billion. Adjusted EBITDA for the year ended December 31, 2025 compared to the year ended December 31, 2024 increased by $299 million. The primary drivers for the decrease in net income and the increase in Adjusted EBITDA include:

Results of Operations by Segment

The following section presents the results of operations and net income of Vistra's reportable business segments. See Note 21 of the Financial Statements for a discussion of the Company's segments as defined under the accounting standards for segment reporting.

Retail

Retail net income increased due to higher retail margins driven by strong counts and one-time gains from supply cost management and an increase in customer consumption primarily due to weather, partially offset by a $96 million increase in unrealized mark-to-market losses on commodity derivative positions.

Texas

Texas net income decreased primarily due to a $311 million decrease in unrealized mark-to-market gains on commodity derivative positions, a decrease in energy revenues due to the Martin Lake Incident, a $68 million impairment of long-lived assets related to certain development projects, and a $60 million reduction in nuclear PTC revenue, partially offset by higher realized energy prices and $120 million of involuntary conversion gains on property damage insurance from the Martin Lake Incident.

East

East net income decreased primarily due to a $1.1 billion increase in unrealized mark-to-market losses on commodity derivative positions and a $264 million reduction in nuclear PTC revenue, partially offset by inclusion of twelve months of Energy Harbor in 2025 compared to ten months in 2024 and higher realized energy and capacity prices.

West

West net income decreased primarily due to a $460 million increase in unrealized mark-to-market losses on commodity derivative positions.

Asset Closure Segment

Asset Closure net loss increased primarily due to a $155 million impairment expense for the Moss Landing 100 MW battery facility and costs associated with the Moss Landing Incident, net of insurance receivables, partially offset by business interruption insurance revenue.

Disaggregated Consolidated Statement of Operations Results

Explanations of variations between periods for selected income statement categories are provided below:

Operating revenues increased primarily due to an increase in retail revenue rates, an increase in retail customer consumption primarily due to weather, inclusion of a full year of Energy Harbor retail and wholesale revenues for 2025 compared to ten months in 2024, a $312 million increase in retail transmission charges (offset in fuel, purchased power costs, and delivery fees), and business interruption insurance revenue related to the Martin Lake Incident and Moss Landing Incident, partially offset by an increase of $1.8 billion of unrealized mark-to-market losses on commodity derivative positions and a decrease in nuclear PTC revenues.

Fuel, purchased power costs, and delivery fees increased primarily due to an $1.219 billion increase in realized fuel costs, a $312 million increase in retail transmission charges (offset in operating revenues) and an increase of $184 million in unrealized mark-to-market losses on commodity derivative positions.

Operating costs increased primarily due to the inclusion of a full year of Energy Harbor operating costs for 2025 compared to 10 months in 2024 of $198 million, higher maintenance and outage costs of $62 million, $77 million in operating costs due to the Moss Landing Incident, net of expected insurance recoveries and higher ARO accretion of $18 million.

Depreciation and amortization increased primarily due to a $50 million increase in depreciation expense due to the inclusion of a full year of Energy Harbor depreciation expense for 2025 compared to 10 months in 2024 and increased capital expenditures in the Texas and East segments.

Selling, general, and administrative expenses increased primarily due to the inclusion of a full year of Energy Harbor selling, general, and administrative expenses for 2025 compared to 10 months in 2024 and an increase in technology costs.

Other income, net increased primarily due to higher insurance income primarily due to involuntary conversion gains from Martin Lake Incident insurance proceeds and NDT net income, partially offset by lower interest income.

Interest expense and related charges increased due to higher average borrowings and decrease in unrealized mark-to-market gains on interest rate swaps of $120 million.

Income tax expense decreased due to lower pre-tax book income in 2025 and a lower effective tax rate.