Key Takeaways:
Nuclear power producer Constellation Energy on Tuesday announced plans for a $3.9 billion capital expenditure program, forecasting base earnings per share growth of over 20% from 2026 to 2029 as it expands to meet demand from data centers.
The company's announcement detailed a significant increase in its share buyback authorization to $5 billion, signaling a strong focus on shareholder returns while investing in new capacity.
For 2026, the Baltimore-based utility projected adjusted profit between $11 and $12 per share. The midpoint of this range is slightly below the analyst consensus of $11.60 per share, according to LSEG data.
The investment push comes as U.S. power demand is expected to hit new records, driven by the rapid build-out of data centers for artificial intelligence. In response, shares of Constellation (CEG.O) fell 2.2% in premarket trading.
Constellation, the largest operator of nuclear plants in the U.S., is positioning itself as a key supplier of carbon-free power for technology giants. The company has secured over 5,650 megawatts in long-term clean energy agreements, including a deal with Meta to support one of its Illinois reactors for 20 years.
Another key agreement with Microsoft will fund the restart of a nuclear reactor at its Pennsylvania facility, the site of the former Three Mile Island plant. These deals underscore the growing trend of tech companies directly contracting for nuclear power to meet their clean energy goals.
The company's growth strategy also includes its recent $16.4 billion acquisition of Calpine, which added natural gas and geothermal assets to its portfolio. To satisfy regulatory requirements from that deal, Constellation agreed in March to sell a portfolio of power grid assets to LS Power for $5 billion.
The updated capital plan and long-term growth forecast signal management's confidence in sustained demand for clean, reliable baseload power. Investors will watch the company's upcoming earnings calls for further details on project execution and the integration of its Calpine assets.
This article is for informational purposes only and does not constitute investment advice.
