CNP

CenterPoint is a pure regulated energy-delivery holding company serving 7M+ metered customers across four states, and the FY2025 numbers read like a textbook regulated utility: revenue of $9.34B grew +9.2% and operating income of $2.11B grew +6.0%, but the gains barely reach the bottom line — net income of $1.05B rose only +3.2% and diluted EPS of $1.60 was up just +1.3%. Margins are steady (operating 22.6%, net 11.3%) and ROE is a modest 9.4%. Five years of history confirm the profile: net income has drifted between $0.92B and $1.49B with no clear uptrend, so this is a slow-compounding rate-base story, not a grower.

The forward case rests on the capital plan. Management announced a $65.5B 10-year capex program (2026-2035), and FY2025 capex of $4.87B already exceeds operating cash flow of $2.49B — meaning the rate-base growth that drives utility EPS is being funded with external capital. That shows up on the balance sheet: long-term debt sits at $20.6B against $11.2B of equity, the company issued/borrowed $3.7B of new debt in 2025, and the current portion of debt spiked +326.5% to $2.41B. Current liabilities ($6.26B) now exceed current assets ($5.70B) and cash is just $38M, so near-term refinancing is a live consideration. Two filing items help fund and de-risk the plan: the pending $2.62B sale of the Ohio gas business (CEOH), expected to close Q4 2026, brings $1.42B cash to recycle into the plan, and Treasury Notice 2026-7 is expected to reduce the annual CAMT liability with a potential refund of prior-year CAMT paid.