Vistra Corp. (VST): Business Model Canvas [Dec-2025 Updated]

As someone who spent ten years heading up analysis at a firm like BlackRock, I know you want the straight facts on how Vistra Corp. is truly structured after their huge 2025 acquisitions. Honestly, their business engine is a masterclass in managing massive scale-they operate a $\mathbf{41,000\ MW}$ generation fleet, hedge almost all of their 2025 output, and serve $\sim \mathbf{5}$ million retail customers, all while targeting $\mathbf{\$5.5}$ billion to $\mathbf{\$6.1}$ billion in Adjusted EBITDA this year. This Business Model Canvas cuts through the noise, showing you the integrated strategy that pairs reliable nuclear power with their Vistra Zero push, and exactly how they plan to turn that into $\mathbf{\$3.0}$ to $\mathbf{\$3.6}$ billion in free cash flow. Dive in below to see the nine blocks that define how Vistra Corp. wins in today's energy transition.

Vistra Corp. (VST) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Vistra Corp. has locked in to power its growth, especially with the AI demand surge. These aren't just vendor agreements; they are multi-year revenue anchors.

Strategic Power Purchase Agreements (PPAs)

Vistra Corp. has secured significant capacity commitments from major technology clients, underpinning the build-out of its Vistra Zero assets.

The company is progressing construction on new solar facilities supporting PPAs with two of the world's leading technology companies.

Partner	Project Type	Capacity (MW)	Location/Market
Amazon	Solar	200	Texas (ERCOT)
Microsoft	Solar	405	Illinois (MISO)

Additionally, a separate, long-term PPA for the Comanche Peak Nuclear Power Plant involves 1,200 gigawatts (likely 1,200 MW) with an investment-grade counterparty, expected to increase Adjusted Free Cash Flow before Growth by 8% to 10% once at full capacity.

Equipment Suppliers and Engineering Firms

Partnerships here are essential for Vistra Zero's development pipeline, which includes solar and battery storage projects.

• Advancing construction at Deer Creek Solar & Energy Storage Facility (CAISO), a 50-MW solar/50-MW storage project, with commercial operations expected mid-2026.

Lotus Infrastructure Partners Acquisition

The acquisition of natural gas assets from Lotus Infrastructure Partners finalized a major capacity addition in late 2025.

Metric	Value
Acquisition Price	$1.9 billion
Total Capacity Added	2,557 MW (or ~2,600 MW)
Number of Facilities	Seven natural gas-fired generation facilities
Closing Date	October 22, 2025

The purchase price implied a multiple of approximately 7x 2026 Adjusted EBITDA, excluding synergies.

Financial Institutions and Capital Markets

Vistra Corp.'s access to capital markets and lender confidence is reflected in recent rating actions and leverage targets.

• S&P Global Ratings upgraded Vistra Corp. to investment grade, raising the issuer credit rating to BBB- from BB+ on December 2, 2025.
• The projected S&P Global Ratings-adjusted debt-to-EBITDA ratio is in the mid-3.0x range by the end of 2025, decreasing to 2.6x-2.8x by 2026-2027.
• Debt stood at approximately $18.05 billion for the fiscal quarter ending in June of 2025.
• Total available liquidity, including cash and cash equivalents, was approximately $2,618 million as of June 30, 2025.

Nuveen and Avenue Capital Group (Vistra Vision)

Vistra Corp. moved to full ownership of its zero-carbon platform, Vistra Vision, which holds nuclear, solar, and storage assets.

Vistra agreed to acquire the minority interest held by affiliates of Nuveen Asset Management and Avenue Capital Management II LP.

• Minority Stake Acquired: 15% equity interest in Vistra Vision.
• Total Acquisition Price for the 15% stake: Approximately $3.25 billion in cash.
• Original Transaction (Energy Harbor): The initial structure gave Nuveen and Avenue a combined 15% ownership interest in Vistra Vision in exchange for $3 billion cash and assumption of ~$430 million of net debt.

Vistra Corp. expects to execute at least $1 billion of share repurchases in 2026.

Vistra Corp. (VST) - Canvas Business Model: Key Activities

You're looking at the core operational engine of Vistra Corp. as of late 2025. This is where the rubber meets the road for their integrated model, balancing massive physical assets with sophisticated financial management to serve millions of homes and businesses.

The first key activity is Operating a diverse generation fleet. Vistra Corp. stands as the largest competitive power generator in the United States, managing a fleet capacity of approximately 41,000 MW. This scale is critical for meeting demand across competitive wholesale markets. This activity involves the safe, reliable, and efficient operation of assets across the spectrum of energy sources.

Here's a look at the fleet composition, highlighting the zero-carbon focus post-Energy Harbor integration:

Generation Source	Capacity/Status Detail
Total Fleet Capacity	Approximately 41,000 MW
Nuclear Fleet (Vistra Vision)	Owns the second-largest competitive nuclear fleet in the USA, totaling more than 6,400 MWe from four facilities.
Natural Gas (Including Lotus Addition)	Includes 2,600 MW added from the Lotus Infrastructure Partners acquisition announced in May 2025.
Coal	Maintains legacy coal assets, though one unit at Martin Lake was out of service until late 2025 following an incident.
Solar & Storage (Vistra Zero)	Claims the second-largest energy storage capacity in the country at 1,020 MWe.

Next up is Managing commodity risk through comprehensive hedging. This is a crucial financial activity that smooths out the volatility inherent in merchant power markets. Vistra Corp. has executed a highly effective hedging program to lock in revenue certainty. As of August 1, 2025, approximately 100% of expected generation volumes for 2025 were hedged. Furthermore, they have locked in about 95% of their expected generation for 2026 as of that date, with about 96% of 2026 generation hedged at an average price of $50.99/MWh. They are also hedged for approximately 70% of expected generation for 2027.

The third activity centers on Retail electricity sales and customer service. Vistra Corp. serves approximately 5 million retail customers across 18 states and Washington D.C. This retail book provides a stable demand base that complements the wholesale generation business. The Energy Harbor acquisition alone added approximately 1 million retail customers to the zero-carbon platform. The retail segment delivered strong performance in Q1 2025, with volumes increasing 27% year-over-year, driven by growth in the business markets segment and the Energy Harbor acquisition.

A significant ongoing activity is Integrating major acquisitions like the Energy Harbor nuclear fleet for synergy capture. The closing of the Energy Harbor deal created the Vistra Vision subsidiary, combining nuclear, retail, and renewables. This integration is key to realizing value, as synergies from this transformative acquisition exceeded initial expectations in 2024. The combined entity now owns the second-largest competitive nuclear fleet in the U.S.

Finally, Vistra Corp. is actively engaged in Developing and constructing Vistra Zero's renewable and battery storage projects. This is the growth vector for their clean energy portfolio. The company is advancing projects like the 200-MW Oak Hill solar project, with commercial operations expected in the fourth quarter of 2025. The overall Vistra Zero portfolio includes a growing pipeline of solar and battery storage assets, building upon the existing capacity that includes the Moss Landing battery complex, which, despite a major fire in January 2025, remains a key asset in their storage strategy.

The scale of these activities supports the company's financial outlook. For instance, Vistra Corp. reaffirmed its 2025 Ongoing Operations Adjusted EBITDA guidance range of $5.5 billion to $6.1 billion. The company also has a line of sight for a 2026 Ongoing Operations Adjusted EBITDA midpoint opportunity of more than $6.8 billion.

Finance: draft 13-week cash view by Friday.

Vistra Corp. (VST) - Canvas Business Model: Key Resources

You're looking at the core assets that make Vistra Corp. a major player in the competitive energy markets. These aren't just abstract concepts; they are hard assets and financial commitments that drive their operations right now, late in 2025.

Large, diverse power generation fleet, including the second-largest competitive nuclear fleet. Vistra Corp. is the largest competitive power generator in the U.S., operating a diverse portfolio. This fleet has seen expansion with the recent closing of the Lotus Infrastructure Partners acquisition, adding significant natural gas capacity.

• Total competitive power generation capacity is approximately 39 GW (as of 2024 data, prior to full integration of 2025 additions).
• Completed acquisition of seven natural gas facilities from Lotus Infrastructure Partners, adding approximately 2,600 MW of capacity in October 2025.
• Plans to add another 860 MW of new natural gas capacity in West Texas.

Vistra Vision zero-carbon platform, including 6.4 GW of nuclear capacity. The nuclear fleet is a cornerstone, providing reliable, emission-free baseload power. Every one of Vistra Corp.'s six nuclear reactors has received license extensions, securing long-term operation.

• The nuclear fleet capacity is stated at 6.4 GW.
• These six reactors can generate over 6,500 MW of emission-free energy.
• The Perry Nuclear Power Plant is licensed to operate through 2046.

5 million retail customer accounts across competitive markets. The integrated model means Vistra Corp. can service much of its own retail obligations with its generation assets. The retail arm continues to show growth, especially in Texas.

• Total customer count at the end of 2024 was about 5 million.
• Retail business showed year-over-year growth in customer count in Q1 2025.
• Year-to-date Retail volumes for 2025 reached 66.6 TWh as of Q2 2025.

Extensive transmission and distribution infrastructure access. This resource is about market reach and interconnection capability, placing Vistra Corp.'s assets in crucial, high-demand regions.

• Significant asset presence and market access across key competitive regions including PJM, New York, New England, and California.
• Strong operational position in the ERCOT market in Texas.

Financial capital and liquidity. You need to see the cash-generating power to understand the firm's ability to fund operations and growth. The guidance for 2025 shows a strong expected cash flow before growth investments.

Here's the quick math on the latest financial guidance you should be tracking:

Metric	Value (2025 Fiscal Year Guidance/Data)
Ongoing Operations Adjusted FCFbG Guidance (Narrowed Range)	\$3.3 billion to \$3.5 billion
Ongoing Operations Adjusted EBITDA Guidance (Narrowed Range)	\$5.7 billion to \$5.9 billion
Natural Gas Assets Acquired (Lotus)	Approximately 2,600 MW
Nuclear Fleet Capacity	6.4 GW
Total Retail Customer Accounts (End of 2024)	Approximately 5 million

What this estimate hides is the impact of the share repurchase program, which has reduced the share count by approximately 30% since November 2021. Finance: draft 13-week cash view by Friday.

Vistra Corp. (VST) - Canvas Business Model: Value Propositions

Integrated Model: Hedging generation risk with stable retail margins.

You're looking at a company that actively manages the inherent volatility of power markets through a disciplined financial structure. Vistra Corp. locks in revenue certainty by pairing its wholesale generation with its retail sales arm. This integration is key to delivering predictable performance, even when spot power prices swing wildly.

Here's the quick math on their risk management as of late 2025:

Metric	Value/Coverage	Date/Period
2025 Generation Volumes Hedged	Approximately 98%	As of October 31, 2025
2026 Generation Volumes Hedged	Approximately 96%	As of October 31, 2025
2026 Average Hedged Price	$50.99/MWh	As of Third Quarter 2025
ERCOT Retail Margin (Approximate)	$40/MWh
Share Repurchases Since Nov 2021	~$5.6 billion	As of October 31, 2025

The company's commitment to this strategy supports its financial outlook, with the 2026 midpoint opportunity for Ongoing Operations Adjusted EBITDA projected at more than $6,000 million.

Reliable, Zero-Carbon Power: Dispatchable nuclear and gas generation for grid stability.

Vistra Corp. offers essential grid reliability through its dispatchable assets, which are critical when intermittent renewables aren't producing. This is backed by a significant, low-carbon nuclear fleet and modern natural gas facilities.

The generation fleet characteristics include:

• Total generation capacity: Approximately 41,000 megawatts or 44,000 megawatts.
• Nuclear capacity (Vistra Vision portfolio): About 6.4 GW.
• Nuclear generation projection: About 53 terawatt-hours (TWh).
• Nuclear margin floor: About $45 per megawatt-hour (/MWh) due to PTCs.
• Nuclear PTCs recognized in 2024: $545 million.
• Natural gas acquisition (May 2025): Added approximately 2,600 MW for approximately $1.9 billion.

This dispatchable generation is vital, as seen in capacity markets. For the PJM 2026-2027 auction, Vistra cleared about 10.3 GW at a clearing price of $329.17/MW-day, projecting pretax capacity revenues of around $1.2 billion.

Energy Transition Leadership: Vistra Zero portfolio for sustainability-focused customers.

Vistra Corp. is actively growing its zero-carbon resources, which include nuclear, solar, and battery storage, to meet evolving customer and regulatory demands. The company is the second-largest competitive nuclear fleet operator in the country.

The Vistra Zero portfolio components include:

• Total Vistra Vision zero-carbon generation target: Approximately 7,800 MW.
• Standalone solar capacity: 768 MW.
• Standalone energy storage capacity: About 1,164 MW across six sites.

The company has a stated commitment to a 60% reduction of Scope 1 and 2 greenhouse gas emissions by 2030, compared to a 2010 baseline, and net-zero carbon emissions by 2050.

Price Stability: Retail plans and wholesale hedging to manage price volatility for customers.

For retail customers, Vistra provides price stability through its retail plans, which are underpinned by the wholesale hedging program mentioned earlier. This structure helps insulate customers from sharp, short-term wholesale price spikes. The retail business itself is a significant component of the overall value proposition.

Retail customer and performance metrics:

• Total retail customers served: Approximately 5 million.
• Retail customer count at end of 2024: About 5 million.
• Retail segment year-to-date 2025 Adjusted EBITDA: $977 million (through Q3).
• Retail segment Q1 2025 Adjusted EBITDA: $184 million.
• Retail segment Q3 2025 Adjusted EBITDA: $37 million.

The retail business saw year-over-year growth in both volume and customer count in early 2025.

Scale and Reach: Largest competitive power generator in the U.S. serving coast-to-coast markets.

Vistra Corp. holds the top position as the largest competitive power generator in the U.S., operating across major competitive wholesale markets nationwide. This scale provides operational efficiencies and broad market access.

Key scale indicators:

Metric	Value	Context
Market Position	Largest competitive power generator	U.S.
Total Employees	Approximately 6,850	December 2024
States Served by Retail	20 states
2024 Full-Year Revenue	Increase US$17.2 billion
2024 Ongoing Operations Adjusted EBITDA	$5,656 million

The company serves customers from California to Maine, operating in all major competitive wholesale markets in the country.

Vistra Corp. (VST) - Canvas Business Model: Customer Relationships

You're looking at how Vistra Corp. manages the connection with its diverse customer base, from individual homes to massive industrial users. It's a mix of high-touch support and long-term contractual certainty.

For the retail side, under the TXU Energy brand, the focus is on service quality and digital engagement. As of early 2025, TXU Energy maintained a 5-star rating by the Public Utility Commission of Texas for 27 straight months, showing consistent performance in customer care. This retail segment saw its Q1 2025 Retail volumes reach 33.3 TWh, an increase from 26.3 TWh in the year-ago period, reflecting growth in residential customer counts in Texas.

The digital relationship is supported by tools like the TXU Energy Dashboard, which helps customers manage usage and spend. To drive engagement, TXU Energy launched the Ultimate Summer Pass product offering in Q1 2025.

For large commercial and industrial clients, Vistra Corp. locks in revenue certainty through long-duration contracts. A recent example is the 20-year Power Purchase Agreement (PPA) signed for 1,200 MW of carbon-free electricity from the Comanche Peak Nuclear Power Plant with an investment-grade counterparty. This deal is expected to provide incremental Adjusted Free Cash Flow before Growth (AFCFBG) accretion in the range of approximately 8% to 10% upon full utilization, with power delivery ramping up to the full capacity by 2032.

Here's a quick look at the scale of these key customer relationship anchors:

Relationship Element	Metric/Value	Timeframe/Context
Retail Service Quality	27 straight months	5-star rating by PUCT (as of early 2025)
Large Client Contract Length	20 years	Comanche Peak Nuclear PPA term
Large Client Contract Volume	1,200 MW	Comanche Peak PPA commitment
Expected Financial Impact	8% to 10%	Incremental AFCFBG accretion potential from the PPA

Community support is also a direct relationship touchpoint, particularly in Texas. Vistra Corp.'s subsidiary, TXU Energy, expanded its Winter Warmth Program in November 2025, dedicating $350,000 in assistance to fund food pantries, holiday meals, and electricity bill-payment support statewide.

The ways Vistra Corp. interacts with its customer segments include:

• Dedicated support channels for retail brands like TXU Energy.
• Digital self-service via the TXU Energy Dashboard.
• Long-term, contracted revenue streams from large clients.
• Targeted community aid, such as the $350,000 Winter Warmth Program in 2025.
• Product innovation, like the Ultimate Summer Pass launched in Q1 2025.

Finance: draft 13-week cash view by Friday.

Vistra Corp. (VST) - Canvas Business Model: Channels

You're looking at the specific ways Vistra Corp. gets its power and services to the end-user, which is key to understanding their integrated model's revenue stability. Honestly, the numbers here show a clear dual focus: massive retail scale and strategic wholesale market positioning.

Direct-to-consumer retail sales through proprietary brands (e.g., TXU Energy)

The retail arm is the stable cash flow engine, which S&P Global Ratings noted generates more stable cash flow than wholesale generation. As of the latest reports, Vistra Corp. serves approximately 5 million retail customers across 20 states and the District of Columbia. The flagship brand, TXU Energy, is clearly a primary driver, showing organic residential customer growth in Texas throughout Q1 2025. For instance, TXU Energy serves Texas Tech University, which has over 40,000+ students, showing deep local penetration.

The growth in this channel has been significant, partly due to acquisitions. The 2024 acquisition added approximately one million retail customers, primarily in the PJM market. Retail volumes for Year-to-Date (YTD) Q1 2025 hit 33.3 TWh, a solid jump from 26.3 TWh in the year-ago period. The Retail segment's financial contribution reflects this strength; Q1 2025 Ongoing Operations Adjusted EBITDA was $184 million, a massive improvement from the negative $(28) million in Q1 2024.

Wholesale power markets (ERCOT, PJM, ISO-NE, NYISO, CAISO) for generation sales

Vistra Corp. is a major player in the wholesale markets, leveraging its generation fleet of approximately 41,000 MW to 44,000 MW. Their strategy heavily involves securing capacity revenues through organized market auctions, which provides crucial cash flow visibility. The PJM market, for example, is a key focus, now representing about 35% of Vistra's total capacity following recent acquisitions.

The results from capacity auctions directly translate to contracted revenue. For the 2026-2027 PJM auction, Vistra cleared about 10.3 GW at a clearing price of $329.17/MW-day, which is projected to yield pretax capacity revenues of around $1.2 billion, or about 20% of their expected EBITDA. This is a significant step up from the 2025-2026 auction, where they cleared 10.2 GW at $273/MW-day. To manage risk, Vistra is typically largely hedged in the prompt year; as of Q3 2025, about 96% of its wholesale generation for 2026 was hedged at an average price of $50.99/MWh.

Here's a quick look at some capacity auction metrics:

Metric	PJM 2026-2027 Auction	PJM 2025-2026 Auction	PJM 2024-2025 Auction
MW Cleared (Approx.)	10,300 MW	10,200 MW	6,905 MW
Avg. Clearing Price (per MW-day)	$329.17	$273.00	$43.25
Projected Pretax Capacity Revenue (PJM)	~$1.2 Billion	N/A	~$109 Million

Direct sales teams for large commercial and industrial (C&I) customers

The C&I segment is a growth vector, especially with increased industrial load from sectors like data centers. Vistra Corp.'s total retail customer base of approximately 5 million includes these commercial and industrial users across its operating regions. In Texas, Vistra serves almost a third of all electricity consumers, which includes a substantial C&I component. The company noted that large business markets sales performance was well ahead of expectations across all regions in Q2 2024, indicating effective direct engagement channels.

The demand signals from these sectors are clear, with weather-normalized load in PJM growing approximately 2% to 3% year-over-year, and the ERCOT market growing approximately 6% year-over-year as of Q2 2025. This growth underpins the need for direct sales efforts to secure large, long-term load commitments.

• Retail business grew in volume and customer count year-over-year in Q1 2025.
• Large business markets sales performance was strong in all regions (Q2 2024 data).
• Secured major customer-backed solar PPAs: 200 MW with Amazon (Texas) and 405 MW with Microsoft (Illinois).

Online platforms and digital marketing campaigns for customer acquisition

Digital channels are used to support retail acquisition and customer engagement. Vistra Corp. maintains a 24/7 Online Portal for customer access. Marketing efforts include launching innovative retail products designed to capture customer interest and volume. For example, in Q1 2025, Vistra highlighted the launch of the Ultimate Summer Pass, a product first introduced by TXU Energy in 2022, as a key retail highlight.

The company's overall financial performance is supported by its retail segment, which posted an Ongoing Operations Adjusted EBITDA of $756 million in Q2 2025. While specific digital marketing spend isn't broken out, the growth in residential counts, including in the newly competitive Lubbock, Texas market where TXU Energy quickly became the top choice, suggests effective customer acquisition strategies are in place.

Key digital/product channel points:

• Maintains a 24/7 Online Portal.
• Launched the Ultimate Summer Pass product in Q1 2025.
• TXU Energy became the top choice for homes and businesses in the new Lubbock, TX market in 2024.

Finance: finalize the 2026 capital expenditure forecast by next Tuesday.

Vistra Corp. (VST) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Vistra Corp.'s power and energy services as of late 2025. Honestly, it's a mix of direct consumers and massive grid operators, which is key to their integrated model.

Residential Customers

Vistra Corp. serves households through its retail brands, like TXU Energy, in competitive electricity markets. This segment is definitely a source of stable cash flow, which is something the company values highly. The retail business saw growth in both volume and customer count year-over-year as of the first quarter of 2025. For example, TXU Energy became the top choice in the newly competitive Lubbock, Texas market in 2024, serving entities like Texas Tech University, which has over 40,000+ students. Overall, Vistra Corp. serves approximately 5 million retail customers across its portfolio. This retail operation spans 18 states and Washington D.C. as of October 2025.

• Total retail customer base: Approximately 5 million.
• Geographic reach: 18 states and Washington D.C.
• Retail segment cash flow: Typically more stable.

Commercial & Industrial (C&I) Clients

This group includes businesses of all sizes looking for price certainty and tailored energy solutions, often under long-term contracts. The large business markets team performed well ahead of expectations in 2024. A major focus for Vistra Corp. in securing future load is the data center and tech sector, which is driving significant capacity needs, especially in Texas. ERCOT projects that data centers alone will account for 22 GW of load by 2030, up from the 87 GW total projected load in 2025.

Vistra Corp. is actively contracting for this demand. They recently announced a significant 20-year power purchase agreement (PPA) to supply 1,200 MW of carbon-free power from the Comanche Peak Nuclear Power Plant to an investment-grade counterparty, which is expected to ramp to full capacity by 2032. Plus, their renewable development pipeline includes a 200 MW solar facility supported by a PPA with Amazon.

Customer Type / Contract	Capacity Secured / Size	Key Market / Asset	Term / Timeline
Large Tech/Data Center PPA	1,200 MW	Comanche Peak Nuclear Plant (Texas)	20-year term, full delivery by 2032.
Solar PPA Customer	200 MW	New solar facility	PPA with Amazon.
ERCOT Data Center Load Projection	22 GW	ERCOT Market	Projected by 2030.

Wholesale Market Operators

These are the Regional Transmission Organizations (RTOs) that manage the grid and capacity markets, like PJM Interconnection and the Electric Reliability Council of Texas (ERCOT). Vistra Corp. is a major supplier of capacity into these markets. For the PJM Capacity Auction for the 2026/2027 planning year, Vistra successfully cleared approximately 10,314 MW at a weighted average clearing price of $329.17 per megawatt-day. This is a strong result compared to the 2025/2026 auction where they cleared 10.2 GW at $273/MW-day.

In terms of total owned generation, Vistra Corp. has about 43.7 GW total, with 22.3 GW in eastern U.S. markets (like PJM) and 19.6 GW in Texas (ERCOT). Load growth in these key wholesale markets is also notable; ERCOT saw 6.5% year-to-date growth as of Q3 2025, while PJM saw 3% growth. The company's overall 2025 Ongoing Operations Adjusted EBITDA guidance is in the range of $5.7 billion to $5.9 billion.

• PJM Cleared Capacity (2026/2027): Approximately 10,314 MW.
• PJM Clearing Price (2026/2027): $329.17 per MW-day.
• Total Owned Capacity: About 43.7 GW.
• ERCOT Load Growth (YTD 2025): 6.5%.

The company is definitely positioned to benefit from the need for reliable supply in these tight markets. Finance: draft 13-week cash view by Friday.

Vistra Corp. (VST) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Vistra Corp. running, which, for a company with this much physical infrastructure, means big, unavoidable bills. The cost structure is heavily weighted toward assets that need constant upkeep and fuel to run.

High fixed costs from owning and operating large nuclear and gas generation facilities.

Operating a fleet of 41 GW capacity means significant, non-negotiable fixed overhead. This includes maintenance, staffing, and regulatory compliance for assets like the six nuclear units totaling 6,448 megawatts. The nuclear fleet, with its Perry plant now licensed through 2046, requires consistent, long-term operational spending regardless of immediate power prices.

The generation mix dictates where the fixed costs land:

• Natural Gas: 59% of capacity.
• Coal: 21% of capacity.
• Nuclear: 16% of capacity.
• Renewables (Solar/Storage): Less than 5%.

Significant fuel costs, primarily for natural gas and coal.

Fuel and purchased power costs are a major variable expense, though Vistra uses hedging to manage volatility. For instance, in Q1 2025, these costs were reported at (\$2,447) million from Ongoing Operations. Even with hedging, past events show the risk; the \$2.1 billion loss during the 2021 winter storm was largely tied to high natural gas fuel costs. The company hedges heavily, with approximately 98% of expected 2025 generation hedged as of October 31, 2025.

Here's a look at the cost components from recent quarters:

Cost Category (Ongoing Operations)	Q1 2025 Amount (Millions)	Q2 2025 Amount (Millions)
Fuel, purchased power costs, and delivery fees	(\$2,447)	(\$1,974)
Operating costs	(\$693)	(\$628)
Depreciation and amortization	(\$522)	(\$403)

These figures definitely show where the money goes to keep the lights on.

Capital expenditures for energy transition and fleet modernization.

Vistra Corp. is actively spending to modernize and transition its fleet, meaning capital expenditures (CapEx) are rising. The planned investment for 2025 is \$2.27 billion, an increase from \$1.85 billion in 2024 and \$1.61 billion in 2023. This spending is focused on cleaner assets, but also on modernizing gas-fired facilities.

The specific allocation for growth projects in 2025 is detailed:

• Total investment on solar and energy storage projects in 2025: Just over \$700 million.
• Solar projects under construction (with Amazon and Microsoft): Over 600 MW total.
• Newton Solar & Energy Storage Facility: 52 MW solar / 2 MW storage.

The company is committed to targeting at least mid-teens levered returns on these CapEx projects.

Integration costs for major acquisitions, offset by expected \$125 million in annual synergies by year-end 2025.

The acquisition of 2,600 MW of natural gas generation from Lotus Infrastructure Partners adds to integration costs, though the purchase price implied a multiple of approximately 7x 2026 Adjusted EBITDA, excluding synergies. Vistra is counting on realizing at least \$125 million of run-rate annual synergies from the Energy Harbor integration by the end of 2025. Successfully integrating large fleets, like the prior Dynegy and Energy Harbor deals, is noted as a core competency.

Debt service costs, aiming for a net leverage target of less than 3x.

With debt sitting at roughly \$18.1 billion, debt service is a material cost. Vistra Corp. explicitly maintains a long-term net leverage target of less than 3x adjusted EBITDA. S&P Global projects the debt-to-EBITDA ratio to be in the mid-3.0x area by the end of 2025, with a goal to decrease that to 2.6x-2.8x by 2026. This deleveraging is expected to be driven by EBITDA expansion, projected to exceed \$7 billion by 2026 from the high \$5 billion area in 2025. Finance: draft 13-week cash view by Friday.

Vistra Corp. (VST) - Canvas Business Model: Revenue Streams

You're looking at the core ways Vistra Corp. brings in money as of late 2025. It's a mix of selling power when the market is hot and securing guaranteed payments for being ready to sell power.

The overall expected performance for the year is anchored by the latest guidance. Vistra Corp. narrowed its 2025 Ongoing Operations Adjusted EBITDA guidance range to \$5.7 billion to \$5.9 billion, up from the initial reaffirmed range of \$5.5 billion to \$6.1 billion. For context, the third quarter 2025 Ongoing Operations Adjusted EBITDA alone was \$1,581 million.

The revenue streams are heavily weighted toward wholesale power and capacity markets, supported by a large, hedged generation fleet. As of the third quarter 2025 earnings, the Generation segment contributed \$1,544 million to Adjusted EBITDA, while the Retail segment contributed \$37 million.

Wholesale electricity sales from the generation fleet are managed through a comprehensive hedging program to lock in revenue visibility. As of October 31, 2025, Vistra Corp. had hedged approximately 98% of its expected generation volumes for 2025, 96% for 2026, and approximately 70% for 2027. The 96% hedge for 2026 was at an average price of \$50.99/MWh. Trailing twelve-month revenue ending September 30, 2025, was \$17.191B.

Capacity market payments provide a crucial, contracted revenue floor, especially in key organized markets. Vistra Corp. secured favorable results in the PJM Capacity Auction for the 2026/2027 planning year.

Metric	Value	Context
Cleared Capacity (PJM 2026/2027)	10,314 MW	Total capacity cleared in the PJM auction
Weighted Average Clearing Price (PJM 2026/2027)	\$329.17 per megawatt-day	Clearing price for the 2026/2027 planning year
Previous Auction Clearing Price (2025/2026)	\$273/MW-day	Favorable comparison to the prior year's auction result

The retail electricity and natural gas sales margins come from a substantial customer base. Vistra Corp. serves approximately 5 million customers across its retail operations. The Retail segment contributed \$37 million to Adjusted EBITDA in the third quarter of 2025.

Revenue is also bolstered by Nuclear Production Tax Credits (PTCs) from the expanded nuclear fleet, which are supported by the Inflation Reduction Act (IRA). The nuclear generation floor is estimated to be between \$2.0 billion and \$2.4 billion in margin, based on a projected output of about 53 TWh from the 6.4 GW nuclear fleet. Vistra Corp. recognized \$545 million of these nuclear PTCs in the full year 2024 results.

Key components supporting these revenue streams include:

• Generation capacity of approximately 41,000 megawatts (MW).
• Completed acquisition of approximately 2,600 MW of natural gas assets from Lotus Infrastructure Partners in 2025.
• A 20-year Power Purchase Agreement (PPA) signed for 1,200 MW from the Comanche Peak Nuclear Plant.
• Expected free cash flow conversion rate of 55-60% of Adjusted EBITDA.