Constellation Energy

Third quarter sales jumped about 45% to 9.55 billion dollars, and profit roughly doubled to about 1.8 billion dollars. Favorable power markets and the addition of Calpine did the heavy lifting. Management also raised the middle of its 2026 forecast, now 12.50 to 12.80 dollars of adjusted profit per share.

Big tech is moving from simply buying power to helping pay for new supply. Amazon signed a 20-year, 690 megawatt deal tied to more than 3 billion dollars of investment at the Calvert Cliffs nuclear plant, and Google's 20-year deal supports more than 4.3 billion dollars to add about 890 megawatts across 11 existing reactors. Think of it as adding rooms to a house that is already built, instead of starting from scratch.

Long-term debt reached about 19 billion dollars at the end of September, and total borrowings come to about 23.4 billion dollars against about 1 billion dollars in cash. Higher interest costs already took a bite out of this quarter's results. The company is still spending too, agreeing to pay 715 million dollars for a Rhode Island gas plant.

Much of the exciting new supply is still years away. The Crane plant restart is planned for 2027, Google's first reactor upgrade is expected in 2028, and the Amazon-backed expansion at Calvert Cliffs is not expected until 2030 to 2032. This quarter also leaned on favorable power markets, which can turn, and the stock entered this report down about 29% from a year earlier.