NRG Energy beat third-quarter forecasts on Monday and agreed to sell six gas-fired power plants to LS Power for $4 billion in cash, a deal that will fund bigger share buybacks and faster debt reduction while the company pushes into power for data centres.

The Houston-based power producer reported adjusted earnings of $4.68 per share for the three months to 30 September, well above the $3.44 expected by analysts surveyed by Zacks, a beat of about 36%. Revenue rose 24% from a year earlier to $9.47 billion. Net income on a GAAP basis more than tripled to $561 million from $152 million, while adjusted net income rose to $983 million from $537 million and adjusted earnings before interest, tax, depreciation and amortisation reached $2.01 billion, up from $1.21 billion.

Management said the improvement was driven by the portfolio NRG acquired from LS Power, higher realised capacity prices in the eastern United States and stronger margins in Texas. Shares rose on Monday after the announcement.

A $4 billion disposal

The asset sale landed alongside the results. NRG entered a definitive agreement to sell six natural gas-fired generation assets totalling 4.9 gigawatts to LS Power for $4 billion in cash, subject to adjustments. The plants are in New York, Texas and New England, and the deal is expected to close in the second quarter of 2027, subject to regulatory approvals.

Chief executive Robert Gaudette said LS Power approached NRG with an unsolicited offer, which valued the assets at eight times expected 2027 adjusted earnings before interest, tax, depreciation and amortisation. NRG will retain its entire PJM portfolio and its CPower demand-response business, concentrating its generation operations in the PJM and Texas markets.

Buybacks, debt and data centres

NRG reaffirmed its 2026 guidance, pointing to adjusted earnings of $7.90 to $9.90 per share, and set out 2027 targets for the first time, with adjusted earnings of $8.05 to $10.05 per share and adjusted earnings before interest, tax, depreciation and amortisation of $5.5 billion to $6 billion.

The company plans $3 billion of share repurchases across 2026 and 2027, including an extra $1 billion launched after the sale agreement, and expects to use $2 billion of the proceeds to cut debt. Its 1.2-gigawatt Bring Your Own Power data-centre project in Texas remains on schedule, putting NRG among the power producers hoping to sell directly to the AI build-out. The deal reshapes the company around its strongest markets, but its value now depends on closing the sale on time and on the data-centre demand arriving as promised.