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Research Alert: Vistra Q1: Lotus Acquisition Drives 20.5% Ebitda Growth Despite Mild Weather

作者

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Vistra delivered exceptional Q1 2026 results with GAAP Net Income of $1,029M versus a $268M loss in the prior year, driven by $723M in unrealized mark-to-market gains on derivatives. Ongoing Operations adjusted EBITDA increased 20.5% to $1,494M from $1,240M, benefiting from higher energy and capacity prices plus the Lotus acquisition contribution. The East segment led performance with $801M in adjusted EBITDA, up 55.8% from $514M, demonstrating the immediate accretive impact of the Lotus transaction, while Texas generation delivered solid $586M EBITDA, up 19.6%. Management continues targeting the Cogentrix acquisition of approximately 5,500 MW of natural gas capacity in 2H 2026, while recently announced Meta PPAs for PJM nuclear sites provide future earnings visibility. We believe Vistra's achievement of investment-grade ratings at both major agencies reflects the strengthened balance sheet and supports enhanced capital allocation flexibility for growth financing.

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