Constellation Energy Corp
For the period ended Mar 31, 2025. Filed May 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 6, 2025
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Financial Results of Operations
GAAP Results of Operations. The following table sets forth our consolidated GAAP Net Income (Loss) Attributable to Common Shareholders for the three months ended March 31, 2025 compared to the same period in 2024. For additional information regarding the financial results for the three months ended March 31, 2025 and 2024, see the discussions of Results of Operations below.
| Three Months Ended March 31, · $ Change | |||
|---|---|---|---|
| 2025 · 2024 | |||
| GAAP Net Income (Loss) Attributable to Common Shareholders | $118 | $883 | $(765) |
Adjusted (non-GAAP) Operating Earnings. We utilize Adjusted (non-GAAP) Operating Earnings (and/or its per share equivalent) in our internal analysis, and in communications with investors and analysts, as a consistent measure for comparing our financial performance and discussing the factors and trends affecting our business. The presentation of Adjusted (non-GAAP) Operating Earnings is intended to complement and should not be considered an alternative to, nor more useful than, the presentation of GAAP Net Income.
The table below provides a reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings. Adjusted (non-GAAP) Operating Earnings is not a standardized financial measure and may not be comparable to other companies’ presentations of similarly titled measures.
Unless otherwise noted, the income tax impact of each reconciling adjustment between GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all adjustments except the NDT fund investment returns, which are included in decommissioning-related activities, the marginal statutory income tax rate was 25.5% and 25.1% for the three months ended March 31, 2025 and 2024, respectively. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized and realized gains and losses related to NDT funds were 55.3% and 54.8% for the three months ended March 31, 2025 and 2024, respectively. The following table provides a reconciliation between GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings for the three months ended March 31, 2025 compared to the same period in 2024.
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| 2025 · 2024 | ||||
| (In millions, except per share data) · Earnings Per Share(a) · Earnings Per Share(a) | ||||
| GAAP Net Income (Loss) Attributable to Common Shareholders | $118 | $0.38 | $883 | $2.78 |
| Unrealized (Gain) Loss on Fair Value Adjustments (net of taxes of $169 and $57, respectively)(b) | 505 | 1.61 | (170) | (0.53) |
| Plant Retirements and Divestitures (net of taxes of $4 and $4, respectively) | 11 | 0.03 | 12 | 0.04 |
| Decommissioning-Related Activities (net of taxes of $31 and $139, respectively)(c) | 19 | 0.06 | (67) | (0.21) |
| Pension & OPEB Non-Service (Credits) Costs (net of taxes of $3 and $1, respectively) | 9 | 0.03 | 2 | 0.01 |
| Separation Costs (net of taxes of $— and $2, respectively) | — | — | 5 | 0.02 |
| ERP System Implementation Costs (net of taxes of $— and $1, respectively) | — | — | 4 | 0.01 |
| Acquisition-Related Costs (net of taxes of $4 and $—, respectively)(d) | 13 | 0.04 | — | — |
| Income Tax-Related Adjustments(e) | — | — | (88) | (0.28) |
| Noncontrolling Interests(f) | (2) | (0.01) | (2) | (0.01) |
| Adjusted (non-GAAP) Operating Earnings | $673 | $2.14 | $579 | $1.82 |
(a)Amounts may not sum due to rounding. Earnings per share amount is based on average diluted common shares outstanding of 314 million and 318 million for the three months ended March 31, 2025 and 2024, respectively.
(b)Includes mark-to-market on economic hedges, interest rate swaps, and fair value adjustments related to gas imbalances and equity investments.
(c)Reflects all gains and losses associated with NDTs, ARO accretion, ARC depreciation, ARO remeasurement, and impacts of contractual offset for Regulatory Agreement Units.
(d)In 2025, reflects acquisition-related costs associated with the proposed Calpine merger.
(e)In 2024, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment.
(f)Represents elimination of the noncontrolling interest portion of certain adjustments included above.
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