Entergy Corporation (ETR): Business Model Canvas [Dec-2025 Updated]

You're digging into Entergy Corporation's (ETR) playbook right now, and frankly, the story isn't just about keeping the lights on; it's a massive capital deployment story meeting unprecedented industrial demand. As someone who's tracked utilities for two decades, what stands out is their commitment to executing a $40 billion capital plan through 2028, largely fueled by securing massive new loads like data centers-think a potential 5-10 GW pipeline. This aggressive growth, while targeting a 2025 Adjusted EPS between $3.85 and $3.95, hinges entirely on navigating state regulators and MISO for rate recovery. Let's break down exactly how this regulated giant is structuring itself to fund this growth and serve its 3 million customers; you'll see the core mechanics below.

Entergy Corporation (ETR) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Entergy Corporation relies on to execute its growth strategy, especially with that massive capital deployment underway. These aren't just casual agreements; they are regulatory necessities, operational mandates, and major customer commitments that define the near-term path for Entergy Electric.

State Public Service Commissions (LPSC, PUCT, APSC) for Rate Approval

Regulatory approval is the gatekeeper for Entergy Corporation's investments and rate structures across its service territory. The Louisiana Public Service Commission (LPSC) plays a huge role in enabling major load growth projects.

Specifically, the LPSC voted 4-1 to approve Entergy Louisiana's plan to build three new gas generators, costing $3.2 billion, to serve the new Meta data center. This approval was fast-tracked to meet Meta's timeline. Furthermore, the LPSC authorized Entergy Louisiana to procure up to 1,500 megawatts of solar resources through an expedited process. For other operations, the Mississippi Public Service Commission (MPSC) approved Entergy Mississippi's formula rate plan. Entergy Texas also secured approval to place $188 million of distribution investments into rates via the DCRF rider.

MISO (Midcontinent Independent System Operator) for Grid Operations and Capacity

Entergy Corporation is part of the MISO regional grid operator, which it joined in December 2013. However, Entergy's participation in MISO's long-range planning has been a point of regulatory friction. MISO recently estimated that Entergy's $3.3 billion transmission investment in 2023 yielded a net benefit of only .01 for consumers. Looking ahead to the near term, Entergy Texas expects higher MISO capacity costs in July and August 2025, totaling approximately $0.06 per share.

Large Industrial Customers like Meta for Data Center Load Growth

The partnership with large industrial customers, particularly in the data center space, is a primary driver for Entergy Corporation's capital plan expansion. The agreement with Meta Platforms Inc. is a prime example of this customer-driven growth.

The Meta facility in Richland Parish, Louisiana, is a $10 billion data center project expected to consume as much as 5 GW of electricity at full capacity. To support this, Entergy is building three new gas plants to generate about 2.3 GW of power. Meta has agreed to cover its share of the generation costs for the initial 15 years of the 15-year electric service agreement. Additionally, Meta agreed to fund the development of 1.5 GW of solar generation and provide up to $1 million per year for Entergy's Power to Care bill assistance program.

Key Suppliers for the $40 Billion Capital Plan Execution

Executing the updated $40 billion capital plan through 2028 requires strong relationships with equipment and service vendors. Management has noted strong vendor partnerships as a key factor in securing supply amidst rising costs for turbine and equipment slots. The plan itself details significant procurement across several categories:

• The capital plan was increased from $37 billion to $40 billion.
• Investments include approximately 3 GW of solar capacity.
• Investments include approximately 1.4 GW of battery storage.
• Investments include approximately 8 GW of highly efficient gas units.
• Entergy Corporation has a specific partnership with Enbridge involving a 600MW solar project in Texas.

Delta Utilities, which acquired the natural gas distribution businesses

The divestiture of Entergy Corporation's natural gas distribution businesses to Delta Utilities finalized in July 2025, allowing Entergy to sharpen its focus on electric operations. The transaction value was approximately $484 million in cash. The acquired assets included roughly 5,955km of natural gas pipelines and 3,541km of service lines. This business served about 108,000 customers in New Orleans and 96,000 in the Baton Rouge area. Delta Utilities, following this and another acquisition, now serves approximately 600,000 customers across Louisiana and Mississippi.

Here's a quick breakdown of the scale of the divested assets:

Entergy Corporation (ETR) - Canvas Business Model: Key Activities

You're looking at the core engine of Entergy Corporation (ETR) right now, which is all about building and moving power to meet massive, concentrated industrial demand.

Operating and maintaining 16,100 circuit miles of transmission lines is a fundamental activity. This high-voltage network, which spans approximately 114,000 square miles across its service area, acts as the interstates of the electric grid, moving bulk power from generation sources to substations, which are the off-ramps. This system includes approximately 1,300 substations operated at 69 kV to 500 kV.

A massive undertaking is executing the $40 billion 4-year capital investment plan (2025-2028). This plan was recently updated, with some sources noting an estimated capital spending through 2029 of $41 billion. Within the $40 billion plan, Entergy has allocated approximately $8 billion specifically for transmission investment through 2028.

The company is heavily involved in power generation from a diverse mix, including 27% nuclear. As of year-end 2024, Entergy owned and operated approximately 24,000 megawatts of electric generating capacity. The nuclear fleet produced approximately 5,000 megawatts of carbon-free power, representing about 27% of its total capacity. Furthermore, 42% of its capacity was modern gas as of year-end 2024.

Securing the necessary permissions is a constant activity, particularly for securing regulatory approvals for new generation and transmission projects to support growth. For instance, the Southeast Texas Area Reliability Project (SETEX), a new single-circuit 500-kV transmission line approximately 145 miles in length, received approval from the Public Utility Commission of Texas on October 2, 2025, with expected energization by the end of 2029. To serve Meta's 2 GW data center in Louisiana, Entergy proposed building three combined-cycle combustion turbines totaling 2,260MW and a $1.2 billion, 100-mile, 500kV transmission line, with the line targeted for operational status by December 2026.

Finally, a key activity is economic development to attract large industrial customers. Entergy's data center customer pipeline is currently in the 7 GW to 12 GW range as of late 2025, up by 2 GW from the previous quarter. This growth is expected to drive an industrial sales growth rate of approximately 13% over the four years from 2025 through 2028. In 2024 alone, Entergy helped secure more than $47 billion in capital investments, creating approximately 5,445 new direct jobs.

Here's a quick view of the scale of generation and customer-driven capacity additions:

The generation investments secured to support new load include approximately 3 gigawatts of solar, 1.4 gigawatts of battery storage, and 8 gigawatts of highly efficient gas units.

You should track the execution of the resilience program, where more than $2 billion has been approved, with roughly $400 million invested to date, expecting about 30% of Phase 1 projects to be complete by year-end 2025.

Finance: draft 13-week cash view by Friday.

Entergy Corporation (ETR) - Canvas Business Model: Key Resources

You're looking at the core assets Entergy Corporation is using to power its regulated utility business across Arkansas, Louisiana, Mississippi, and Texas as of late 2025. These aren't just line items; they are the physical and financial engines driving their $\mathbf{\$37 \text{ billion}}$ capital plan through 2028.

The regulated asset base (rate base) is the foundation, though the precise dollar amount across the four states isn't explicitly stated here, we see the scale of the total enterprise with Total Assets reported at $\mathbf{\$69.848 \text{ billion}}$ on a trailing twelve-month basis as of September 30, 2025.

The generation fleet is substantial, with Entergy Corporation owning or operating approximately $\mathbf{24,000 \text{ megawatts}}$ of electric generating capacity. This capacity is spread across various sources, which you can see detailed below:

The workforce supporting this massive infrastructure is lean but specialized. Honestly, for a utility of this scale, the headcount is quite focused.

• Employees managing operations and growth: 12,267 total employees as of 2024.

The nuclear fleet is a critical, low-carbon resource, with specific plants providing reliable baseload power. Waterford 3 and Grand Gulf are key components of that strategy, especially as data center demand grows.

• Waterford 3 Steam Electric Station (Louisiana): Maximum Dependable Capacity of 1,152 MW.
• Grand Gulf Nuclear Station (Mississippi): Total output of 1,443 MW after its 2012 power upgrade.

To fund the ongoing capital needs, especially supporting the growth outlook through 2028, Entergy Corporation is using forward equity mechanisms. This helps lock in pricing now while delaying the actual share issuance, which is smart for managing near-term dilution.

• Secured Equity for 2025 and 2026: $1.4 \text{ billion in equity has already been secured for 2025 and 2026.
• Recent Forward Offering: A registered offering of $1.3 \text{ billion of common stock was announced in March 2025, with settlement expected on or prior to September 30, 2026.

Finance: draft 13-week cash view by Friday.

Entergy Corporation (ETR) - Canvas Business Model: Value Propositions

You're looking at the core promises Entergy Corporation (ETR) makes to its stakeholders, grounded in their late 2025 strategic execution. These aren't just goals; they are backed by significant capital deployment and operational metrics right now.

Reliable and resilient electric service for 3 million customers

Entergy Corporation produces, transmits, and distributes electricity to power life for approximately 3 million customers across its operating companies in Arkansas, Louisiana, Mississippi, and Texas. To ensure this service is reliable and resilient, the company has a capital plan that includes over $16 billion dedicated to transmission and distribution upgrades through 2028. For example, Entergy Texas is executing on a $137 million investment specifically for projects designed to strengthen the Southeast Texas power grid and reduce storm-related outages.

Clean energy transition via investments in renewables and modern gas

Entergy is actively accelerating its clean energy transition, targeting the addition of more than 5,000 megawatts of solar power capacity by the end of 2028. As a recent milestone, five new solar resources were added in 2024, bringing over 700 megawatts of clean energy capacity online. To balance this renewable expansion with reliability needs driven by industrial growth, Entergy is investing in modern natural gas generation. The Orange County Advanced Power Station, a modern generation source, is about 70% complete and on schedule for a summer 2025 in-service date. Furthermore, Entergy Arkansas submitted an application for the Jefferson Power Station, a 754-megawatt combined cycle gas turbine facility.

Economic development support with certified, shovel-ready sites

Entergy's economic development efforts are translating directly into massive capital inflows for the Gulf South region. In 2024 alone, Entergy helped secure more than $47 billion in capital investments, which is projected to create approximately 5,445 new direct jobs. The company has secured major commitments, including hyperscale data center projects with Meta and Amazon in Louisiana and Mississippi, respectively. Entergy has been recognized by Site Selection Magazine as a Top Utility in economic development for the 18th consecutive year.

Here's a look at some of the major capital investments the economic development teams have helped secure over the last 18 years:

Improved customer experience, achieving first-quartile Net Promoter Score

Entergy measures customer experience through the Net Promoter Score (NPS), which is incorporated into the annual incentive program. For 2025, the framework for incentive compensation was refined to incorporate large commercial and industrial customer feedback, weighted equally with residential and business customer feedback components. The company is focused on delivering service that meets the expectations of its growing customer base, including large industrial users.

Long-term rate affordability through efficient new generation

Entergy is executing a total capital plan of $37 billion in generation, transmission, and distribution from 2025 through 2028 to support growth while managing costs. This investment in efficient technologies is key to affordability. For instance, in Texas, Entergy Texas rates were reported to be about 17% below the national average last year. Furthermore, specific large customer agreements are structured to benefit all ratepayers; for example, Meta's contributions in Louisiana are projected to save customers approximately $650 million over 15 years, which is expected to lower customer storm charges by an average of about 10%. The utility business reported earnings of $810 million for the third quarter of 2025, driven in part by regulatory actions and higher retail sales volume.

Here's a quick look at the scale of investment supporting this value proposition:

• Total Capital Plan (2025-2028): $37 billion
• Entergy Texas Rate vs. National Average: 17% below
• Projected Customer Savings from Meta Agreement: $650 million over 15 years
• Q3 2025 Utility Business Earnings: $810 million

Entergy Corporation (ETR) - Canvas Business Model: Customer Relationships

You're looking at how Entergy Corporation (ETR) manages its connection with the millions of customers it powers across Arkansas, Louisiana, Mississippi, and Texas. For a regulated utility, this relationship is built on compliance, proactive service, and community investment, all while managing rate expectations.

Regulated relationship managed through Formula Rate Plans (FRPs)

The core of the regulated relationship involves securing approvals for cost recovery and rate adjustments from state commissions. This is formalized through mechanisms like the Formula Rate Plan (FRP). As of late 2025, Entergy New Orleans, Entergy Louisiana, and Entergy Arkansas each filed their annual formula rate plans in the second quarter of 2025. Furthermore, the Mississippi Public Service Commission (MPSC) approved Entergy Mississippi's formula rate plan.

For example, Entergy Arkansas, LLC filed its 2025 Formula Rate Plan on July 7, 2025, requesting a Rider FRP Revenue Change and Rate Adjustment totaling $92.3 million. This proposed adjustment breaks down across customer classes:

Separately, Entergy Texas received approval to place $188 million of distribution investments into rates through the Distribution Cost Recovery Factor (DCRF) rider in the second quarter of 2025.

Dedicated economic development team for large industrial customers

The economic development team is actively securing major industrial load, which is critical for the company's growth outlook. Site Selection Magazine named Entergy a Top Utility in economic development for the 18th consecutive year as of October 2025. This focus is paying off; in 2024, Entergy helped secure more than $47 billion in capital investments and create approximately 5,445 new direct jobs. The company projects industrial sales to grow at a compound annual rate of 12% to 13% from 2024 through 2028. This growth is heavily influenced by large data center customers. Examples of major capital investments secured include:

• Amazon Web Services: $10 billion
• Meta: $10 billion
• Sempra: $13 billion
• Hyundai: $5.8 billion

The company plans to invest $37 billion in generation, transmission, and distribution from 2025 through 2028, partly to support this customer demand.

Proactive storm response and resilience communication

Customer trust hinges on rapid restoration after severe weather events. Following Hurricane Francine in September 2024, which disrupted service for about 316,000 customers, Entergy restored 100 percent of customers who could safely receive power within four days. After Hurricane Beryl in July 2024, power was restored to approximately 90 percent of customers who could safely receive power within five days. Entergy Texas is investing $137 million over three years in its resiliency plan, projected to reduce outage durations by 1 billion minutes over 50 years. The company also secured nearly $54 million in federal funding through the Department of Energy's Grid Resilience and Innovation Partnerships (GRIP) program for upgrades. Over the last 25 years, the Edison Electric Institute (EEI) has given Entergy 48 Emergency Response Awards.

Community engagement, delivering over $100 million in annual economic benefits

Entergy Corporation consistently reports delivering more than $100 million in economic benefits each year to the communities it serves through philanthropy, volunteerism, and advocacy. For the full year 2024, the economic impact was reported at over $153 million for customers and communities. This included shareholder-funded charitable contributions of $18.23 million in 2024. Employee dedication also plays a role; in 2024, employees contributed more than 122,000 hours of volunteer service, valued at more than $4 million. For the tenth consecutive year, Entergy was named to The Civic 50, recognizing the 50 most community-minded companies in the U.S.

Digital self-service options for billing and outage reporting

Entergy utilizes technology to enhance customer interaction for routine tasks like billing and outage reporting. The company is focused on providing these digital channels to its 3 million customers.

Entergy Corporation (ETR) - Canvas Business Model: Channels

You're looking at how Entergy Corporation (ETR) physically and digitally connects with its 3 million electric customers across its service territory. This is the nuts and bolts of getting power to the people and businesses that need it.

The primary channel is the physical infrastructure itself, which is vast and complex.

• Physical transmission and distribution grid across a 90,117 square mile service area.
• Operates and maintains equipment along more than 107,000 circuit miles of distribution lines.
• Owns 16,100 circuit miles of interconnected high-voltage transmission lines.
• Serves customers across Arkansas, Louisiana, Mississippi, and Texas.

Here's a quick look at the customer distribution across those regulated utilities:

The digital channels are key for self-service and account management. You can manage your account online or on the go.

• Online customer portals and mobile applications for service, accessible via entergy.com and the free Entergy app on the App Store or Google Play.
• The myEntergy account allows you to Report an outage, Make a payment, Login or sign up, and access Account support.
• Portals include sections for Billing and payments, Outage information, Usage tracking, and Service requests.

For large energy users, the connection is more direct, involving dedicated teams focused on growth and infrastructure planning.

Direct sales and economic development teams work to secure major load additions, which is a big deal for future revenue stability. The pipeline for this growth is strong; for instance, the agreement for power island equipment for potential data centers was recently increased by an additional 4.5 gigawatts. This expected regional economic expansion fuels projections of 6% to 7% retail sales compound annual growth through 2028. To support this, Entergy Corporation and Subsidiaries updated its four-year capital plan to invest $37 billion in generation, transmission and distribution from 2025 through 2028.

Customer service centers and call centers are the traditional touchpoints, though specific volume data isn't always public, the digital channels offload much of the routine interaction. The company is mindful that about 40% of its approximately 3 million residential customers live at or below the poverty line, which drives decisions on service accessibility and affordability.

Regulatory filings and public hearings act as an indirect but critical channel for rate recovery and investment approval. These proceedings directly impact the financial viability of the service delivery. For example, Entergy Arkansas submitted an application for approval of Jefferson Power Station, a 754-megawatt CCCT facility. Furthermore, Entergy Texas was awarded a $200 million grant from the Texas Energy Fund for resiliency projects. Financial results from these regulatory outcomes are tracked closely; for the third quarter of 2025, the Utility business reported earnings attributable to Entergy Corporation of $810 million, or $1.79 per share, on an as-reported and an adjusted basis. The company narrowed its 2025 adjusted EPS guidance range to $3.85 to $3.95.

Entergy Corporation (ETR) - Canvas Business Model: Customer Segments

Entergy Corporation produces, transmits and distributes electricity to power life for approximately 3 million customers across its operating companies in Arkansas, Louisiana, Mississippi, and Texas. The company is sharpening its focus on the regulated electric utility business, with the gas distribution business sale expected to finalize in late summer 2025, which previously served more than 200,000 customers in New Orleans and Baton Rouge.

The electric retail customer base, as reported for the second quarter of 2025, shows the distribution across the primary regulated segments:

Large industrial customers represent a significant growth driver. For the first quarter of 2025, industrial volume saw an increase of 9.3 percent, specifically driven by sales to petroleum refining, chlor-alkali, and primary metals customers.

The focus on securing large, high-demand load is evident in the utility's preparation for new data center development. Entergy Corporation has expanded its agreement for power island equipment by an additional 4.5 gigawatts to accommodate the growing pipeline of potential data center customers. This growth is supported by specific project approvals, such as Entergy Arkansas submitting an application for the 754-megawatt Jefferson Power Station, a CCCT facility, and Entergy Texas receiving approval for the Legend and Lone Star power stations.

Wholesale power purchasers are primarily internal entities receiving power from Entergy's generation assets. For instance, System Energy sells its power and capacity from Grand Gulf 1 at wholesale according to the following allocations:

• Entergy Arkansas: 36%
• Entergy Mississippi: 33%
• Entergy New Orleans: 17%
• Entergy Louisiana: 14%

Commercial businesses of varying sizes are served across the four-state footprint, with 371,699 commercial customers reported as of the second quarter of 2025. Still, this segment experienced a slight sales decline of (1.1) percent in the first quarter of 2025, contrasting with the strong industrial performance.

New, high-growth data center developers are a key focus for future load capture, evidenced by the expansion of power equipment agreements and securing new hyperscale data center agreements in Mississippi and Louisiana.

Finance: review the capital allocation plan against the $37 billion generation, transmission, and distribution investment planned through 2028 to support this customer growth.

Entergy Corporation (ETR) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep the lights on and the grid growing for Entergy Corporation. For a utility this size, the cost structure is dominated by massive, long-term infrastructure spending and the volatile costs of fuel.

High capital expenditures for infrastructure are a defining feature. Entergy Corporation has raised its 4-year capital plan to a total of $40 billion through 2028, signaling a significant, ongoing commitment to investment. This spending funds grid modernization and clean energy projects.

The day-to-day running of the system involves substantial Operating and Maintenance (O&M) expenses. You see the pressure points in the near term; for instance, other O&M expenses in the third quarter of 2025 were expected to be roughly $0.05 higher than the third quarter of the prior year, partly driven by the timing of vegetation maintenance and nonnuclear plant outages.

Fuel and purchased power costs flow directly through to customers, but they represent a major cash outlay. For example, Entergy Texas expected higher MISO capacity costs in July and August of 2025, totaling approximately $0.06.

Financing these massive capital projects means interest expense on debt is a constant factor. While a precise 2025 total interest expense figure isn't immediately available, reports from early 2025 indicated that higher interest rates and increased debt balances were already contributing to higher interest expense year-over-year.

Storm restoration and resilience costs are a critical, though less predictable, component. For specific resilience efforts, Entergy New Orleans received approval for Phase 1 of its Accelerated Resilience Plan (2025-26), with a total approved cost of $100 Million over the two-year period. This specific Phase 1 investment is designed to strengthen nearly 3,100 structures and upgrade 63 electrical line miles.

Here's a look at how these major cost categories stack up based on recent disclosures:

You can see the ongoing nature of these expenditures through the following key cost drivers:

• Debt Servicing: Interest expense is sensitive to the cost of capital used to fund the $40 billion plan.
• Vegetation Management: This is a recurring, planned O&M expense that saw upward pressure in 2025 projections.
• Regulatory Recovery: Storm costs, like the Entergy New Orleans Phase 1 resilience investment, are often sought to be recovered via riders, shifting the immediate cash burden but remaining a cost to the rate base.
• Fuel Volatility: Purchased power and fuel costs are passed through dollar-for-dollar, but the magnitude of these costs is significant.

For the first quarter of 2025, total operating expenses were reported at $2.15 billion, which was a 16% fall compared to the same period the previous year.

Finance: draft 13-week cash view by Friday.

Entergy Corporation (ETR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Entergy Corporation brings in cash, which is heavily tied to its regulated utility structure across Arkansas, Louisiana, Mississippi, and Texas. Honestly, for a regulated utility, the revenue streams are pretty straightforward, but the growth drivers right now are anything but.

The regulated electric retail sales are definitely the main engine. Entergy Corporation serves nearly 3 million customers across its service territory. This regulated business means that the rates you charge customers are set by state public utility commissions, which is a double-edged sword-it provides stability but limits upside. For instance, in the second quarter of 2025, the Utility business reported earnings attributable to Entergy Corporation of $599 million. By the third quarter of 2025, that Utility business segment was reporting earnings of $810 million.

A key metric for you to watch here is the Return on Equity (ROE) earned on that regulated asset base. For the quarter ending in mid-2025, Entergy Corporation reported a return on equity of 11.53%. This number is critical because it's the allowed profit margin regulators permit the company to earn on its investments in infrastructure, like power plants and wires.

The top-line revenue picture for the Trailing Twelve Months (TTM) ending September 30, 2025, shows a total revenue of $12.73 Billion USD. This is up from the full-year 2024 revenue of $11.88 Billion USD.

Here's a quick look at how the revenue components stacked up in recent quarters:

Next up is wholesale power sales to other entities. Entergy Corporation uses Entergy-Koch, L.P. to handle wholesale energy marketing and trading services. While retail is the bedrock, these wholesale activities provide flexibility. The growth in earnings drivers in Q3 2025 included higher other income, primarily due to an increase in AFUDC-equity (Allowance for Funds Used During Construction equity), which can reflect capital projects that may eventually serve wholesale needs or be rolled into the regulated base.

A major near-term opportunity driving revenue potential is the demand from large, new industrial loads, which often involve customer-funded interconnection costs. You've definitely heard about the data center boom; Entergy Corporation is actively securing this business. They increased their agreement for power island equipment by an additional 4.5 gigawatts to support potential data center customers. Furthermore, regulators in Louisiana approved resources needed to support Meta's data center project. To meet this anticipated demand, Entergy has increased its four-year capital expenditure plan to $40 billion, up from $37 billion.

Finally, the forward-looking guidance reflects confidence in this revenue base, even with the inherent regulatory lag. Entergy Corporation narrowed its 2025 Adjusted EPS guidance to a range of $3.85 to $3.95 per share following its third-quarter 2025 results. This is a tighter band than the earlier affirmed range of $3.75 to $3.95.

The revenue streams are supported by:

• Regulated retail sales to 3 million customers.
• A recent quarterly ROE of 11.53%.
• TTM revenue as of September 30, 2025, at $12.73 Billion USD.
• Securing capacity for new loads, including an additional 4.5 GW agreement for power island equipment.
• A capital plan expansion to $40 billion through 2028 to support growth.

Finance: draft 13-week cash view by Friday.