Constellation Announces Q4 and Full-Year 2024 Financial Results
Constellation Energy Corporation recently released its financial results for the fourth quarter and full year of 2024, demonstrating significant growth and strategic advancements. The company continues to drive operational excellence, maintain financial strength, and expand its influence in the clean energy sector.
A Year of Operational and Financial Strength
Joe Dominguez, President and CEO of Constellation Energy, emphasized the company’s commitment to delivering reliable and sustainable energy solutions. He highlighted Constellation’s role in supporting the evolving energy landscape, which increasingly relies on artificial intelligence (AI), emerging technologies, and everyday energy needs of households and businesses. Dominguez expressed enthusiasm for the company’s long-term investments aimed at securing America’s energy future.
“The 14,000 women and men of Constellation remain the driving force behind our strong operational and financial performance in 2024. Whether it’s AI and the many technologies of the future, or the everyday needs of families and businesses across our nation, Constellation provides the reliable and sustainable energy needed today and is investing billions of dollars to power our country for decades to come. We know that reliable, affordable, and sustainable power is the key to America’s freedom and the life-blood of our economic prosperity, and over the past three years, we have built a company that can meet that need for power with unmatched capabilities,” said Dominguez.
He also noted that the upcoming acquisition of Calpine Corporation will significantly enhance Constellation’s capabilities, expanding its product offerings and increasing its reach to families and businesses nationwide.
Financial Performance Overview
Fourth Quarter 2024 Results
Constellation reported strong financial performance in the fourth quarter of 2024, showing substantial improvements over the previous year.
- GAAP Net Income (Loss) per share rose to $2.71 from ($0.11) in Q4 2023.
- Adjusted (non-GAAP) Operating Earnings per share increased to $2.44 from $1.74 in Q4 2023.
The increase in adjusted operating earnings was primarily driven by:
- Favorable performance in the nuclear Production Tax Credit (PTC) portfolio.
- Lower labor costs due to incentives.
- Effective contracting and material cost management.
- These positive factors were slightly offset by market conditions and nuclear outage impacts.
Full Year 2024 Results
The company’s financial performance for the full year of 2024 showcased impressive growth:
- GAAP Net Income per share surged to $11.89, up from $5.01 in 2023.
- Adjusted (non-GAAP) Operating Earnings per share climbed to $8.67, compared to $6.28 in 2023.
Key drivers for full-year performance included:
- Strong market conditions benefiting the nuclear PTC portfolio.
- Robust financial discipline despite cost pressures from labor incentives and materials.
- Banked Zero Emissions Credit (ZEC) revenues and managed interest expenses.
2025 Outlook and Guidance
Dan Eggers, Chief Financial Officer of Constellation, highlighted the company’s strong financial positioning heading into 2025.
“For the second consecutive year since forming our new company, Constellation has outperformed the top end of its guidance range – a testament to the combined value of our commercial and generation businesses, which were firing on all cylinders in 2024. Backstopped by our strong balance sheet and industry-leading generation and commercial businesses, we’re affirming our 2025 adjusted operating earnings guidance range at $8.90-9.60 per share. Independent of our pending acquisition of Calpine, Constellation will invest over $2.5 billion in 2025 to reliably operate our business for the long term and fund our growth investments to help meet growing power demand.”
Recent Developments and Strategic Initiatives
Acquisition of Calpine Corporation
Constellation entered into a definitive agreement to acquire Calpine Corporation through a combination of cash and stock. This acquisition consists of 50 million shares of Constellation’s common stock and $4.5 billion in cash. The merger will:
- Strengthen Constellation’s position as the leading clean energy provider.
- Integrate dispatchable natural gas assets from Calpine to enhance reliability.
- Expand competitive retail energy offerings to 2.5 million customers.
- Help businesses and utilities manage energy costs and achieve sustainability goals.
Capital Allocation Strategy
Constellation remained committed to its disciplined capital allocation strategy in 2024:
- Share repurchases: The company repurchased $1 billion worth of common stock in 2024, bringing total repurchases to $2 billion since the program’s initiation.
- Credit rating upgrade: Moody’s upgraded Constellation’s rating from Baa2 to Baa1, citing improved debt coverage and strong financial metrics.
- Green bond issuance: The company issued a $900 million, 30-year green bond to fund nuclear plant upgrades and clean energy projects.
- Dividend growth: The annual per-share dividend increased by 25%, with an additional 10% increase expected in 2025.
Dividend Declaration
The Board of Directors declared a quarterly dividend of $0.3878 per share, payable on March 18, 2025, to shareholders of record as of March 7, 2025.
Industry Leadership in Emissions-Free Energy
For the 11th consecutive year, Constellation was ranked as the largest producer of emissions-free energy in the U.S. An independent analysis of 2022 air emissions data confirmed that Constellation maintains the lowest carbon dioxide emissions rate among the 20 largest private power producers in the country.
Operational Performance
Nuclear Operations
Constellation’s nuclear fleet, including Salem and the South Texas Project (STP), generated 45,494 GWh in Q4 2024, slightly down from 45,563 GWh in Q4 2023. Despite this minor decrease, the fleet maintained an impressive capacity factor of 94.8% in Q4 2024 and 94.6% for the full year.
- The company conducted 66 planned refueling outage days in Q4 2024, compared to 56 in Q4 2023.
- Non-refueling outage days were 3 in Q4 2024, down from 7 in Q4 2023.
Natural Gas, Oil, and Renewables Performance
- Dispatch match rate: Gas and pumped storage hydro fleet maintained 93.2% efficiency in Q4 2024, down slightly from 97.5% in Q4 2023.
- Energy capture rates: Wind, solar, and hydro generation efficiency stood at 95.7% in Q4 2024, slightly lower than 96.3% in Q4 2023.
