CenterPoint Energy Unveils $65 Bln Investment Plan Through 2035, Raises FY25 Non-GAAP EPS Guidance

CenterPoint Energy (CNP) announced a substantial customer-focused capital investment plan totaling $65 billion through 2035, driven by a revised forecast for electric peak load demand to double to nearly 42GW by the mid-next decade. Reflecting this robust growth outlook, the company raised its 2025 non-GAAP EPS guidance to $1.75-$1.77, initiated 2026 guidance at $1.89-$1.91, and introduced long-term annual EPS growth targets at the mid-to-high end of 7%-9% through 2035, indicating strong projected financial performance and infrastructure expansion.

Analysis

CenterPoint Energy (CNP) has outlined a significant long-term capital deployment strategy, committing to a $65 billion investment plan from 2026 through 2035, supported by an additional $10 billion in identified opportunities. This substantial capital expenditure is driven by a sharply revised forecast for electric peak load demand, which the company now expects to double to nearly 42 gigawatts by the middle of the next decade. Reflecting this robust growth outlook, the company has raised its 2025 non-GAAP EPS guidance to $1.75-$1.77, a 9% increase at the midpoint over 2024, and initiated 2026 guidance at $1.89-$1.91, implying 8% growth from the 2025 midpoint. These figures align with or slightly exceed analyst consensus estimates of $1.75 for 2025 and $1.90 for 2026. Furthermore, CNP introduced a new long-term target of mid-to-high 7%-9% annual non-GAAP EPS growth through 2035, providing investors with a clear, multi-decade earnings visibility framework tied directly to its infrastructure expansion.

Key Decisions for Investors

• Investors should re-evaluate valuation models to incorporate the newly established long-term annual EPS growth target of 7%-9% through 2035, as the $65 billion capital plan provides a highly visible and durable growth trajectory.
• Given the revised 2025 and new 2026 EPS guidance which meets or slightly exceeds consensus, a bullish stance may be warranted as the market digests the potential for upward revisions from analysts.
• It is prudent to monitor the execution of the multi-decade capital plan and track whether the forecasted doubling of peak load demand materializes, as these are the foundational assumptions for the company's long-term earnings thesis.