Vistra Q2 Profit Dips on Hedging Losses Despite Strong Power Demand
Vistra's Q2 net income fell to $305M on $472M unrealized hedging losses, though adjusted EBITDA rose 31% to $1.77B.
Vistra Corp reported a slight decline in second-quarter profit on Friday, as unrealized losses on commodity hedges outweighed strong growth in its power generation business during periods of extreme heat in some of its markets.
The Irving, Texas-based utility posted a quarterly net income of $305 million, down from $327 million a year earlier. The company incurred an unrealized loss of $472 million during the quarter from hedges expected to settle in future years.
Despite the hedging hit, ongoing operations adjusted EBITDA rose 31% to $1.77 billion, driven by higher realized energy and capacity prices and contributions from plants acquired from Lotus. Quarterly interest expenses and related charges rose 3% from a year earlier to $312 million, while operating costs increased 16.4% to $853 million.
Vistra reaffirmed its guidance for 2026 ongoing operations adjusted EBITDA of $6.8 billion to $7.6 billion. The company also said it has committed up to $1 billion to Helix Digital Infrastructure, an AI infrastructure venture launched in June by a KKR-led consortium with more than $10 billion in committed capital and backing from Nvidia, the Kuwait Investment Authority, and Vistra.
Additionally, Vistra received Federal Energy Regulatory Commission (FERC) approval for its pending acquisition of Cogentrix Energy. Shares fell 2.5% in premarket trading.