Constellation Energy

Constellation Energy Corporation (CEG) (Q1FY26) – Upgrade to “BUY” as portfolio derisking and data center scaling solve asymmetric value

Highlights of the report

CEG signed a definitive agreement to sell 4.4GW of PJM thermal capacity to LS Power for a premium gross consideration of $5.0 bn . This transaction removes the structural execution risk that previously weighed down valuation models after the merger.

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Constellation Energy Corporation generates and sells electricity in the United States.

CEG delivered strong financial execution in Q1FY26, with Non GAAP Adjusted Operating Earnings rising YoY to $2.74 per share from $2.14 per share in Q1FY25. Total adjusted operating earnings reached $972mn for the quarter, driven by the strategic addition of Calpine and expanding market capacity margins.

In the last 3 months CEG’s stock has given a negative return of 8.58, driven primarily by sector wide utilities multiple compression and temporary regulatory noise surrounding PJM network compliance adjustments.

 Executive Summary

• CrispIdea Forecast

– Income Statement

– Balance Sheet

– Cash Flow

– Common Size Ratio Analysis

– CrispIdea Segment Forecast

• Valuation & Historical Performance

– P/E Analysis

– CrispIdea Valuation

– Peer Comparison

– Ratio Analysis

– Economic Value-Added Analysis

– Du Pont Analysis

– CrispIdea Forecast Relative to Consensus

– Consensus Momentum

– Segment Performance

– Key Developments

– M&A Deals

• Ownership

• Stock Price Performance

• Crispidea Coverage

Report details

Constellation Energy Corporation (CEG) (Q1FY26) – Upgrade to “BUY” as portfolio derisking and data center scaling solve asymmetric value

Price

$216.00

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