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Can Rising Capital Spending Act as a Catalyst for VST Stock's Growth?
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Key Takeaways
VST plans to boost CapEx to $2.27B in 2025, up from $1.85B in 2024 and $1.61B in 2023.
Spending targets solar, battery storage and gas assets, enhancing capacity and future cash flow.
VST's 87.33% ROE far exceeds the industry average, highlighting strong capital efficiency.
Vistra Corp. (VST - Free Report) stands well-positioned for long-term growth, backed by its strategic capital allocation plan. As the energy landscape transitions toward cleaner and more reliable sources, Vistra is committing significant capital expenditures (CapEx) to enhance its renewable energy and energy storage portfolio. These investments increase the company’s ability to meet evolving demand while maintaining system reliability.
Vistra aims to invest $2.27 billion in 2025, up from $1.85 billion and $1.61 billion invested in 2024 and 2023, respectively. The company’s capital expenditure is strategically directed toward the development of solar, battery storage and modernized gas-fired facilities. Vistra owns and operates six nuclear units having a combined generation capacity of 6,448 megawatts. This diversified investment approach not only accelerates Vistra’s clean energy transition but also ensures balanced risk exposure.
Steady CapEx spending reflects management’s long-term vision to build a more sustainable business model and improve margins. These investments align with state and federal policy incentives, making Vistra eligible for attractive tax credits and subsidies.
As CapEx supports asset expansion and technology upgrades, it enhances Vistra’s capacity and operational efficiency, thereby strengthening future cash flows. Projects like the Vistra Zero portfolio exemplify how the company leverages capital spending to transition away from carbon-intensive assets while creating new revenue streams.
With strong fundamentals and a clear capital deployment strategy, Vistra’s steadily rising CapEx signals long-term upside potential. Investors may view Vistra as a compelling opportunity in the evolving utility and clean energy space.
How Other Utilities Are Investing in Energy Transition
Utilities across the United States are accelerating investments to lead the energy transition, channeling capital into renewable generation and storage technologies.
NextEra Energy (NEE - Free Report) intends to invest more than $72.6 billion through 2029 to strengthen its operations. NEE’s multibillion-dollar capital plan emphasizes infrastructure modernization, grid reliability and low-cost clean energy generation.
Duke Energy Corporation (DUK - Free Report) is investing heavily in decarbonizing its generation fleet and modernizing grid infrastructure. DUK plans to spend more than $83 billion through 2029 to strengthen its grid and expand the renewable energy portfolio.
VST’s Price Performance
Shares of Vistra have risen 57.8% in the past three months against the Zacks Utility- Electric Power industry’s decline of 1%.
Image Source: Zacks Investment Research
VST’s Earnings Estimate Moving North
The Zacks Consensus Estimate for Vistra’s 2025 and 2026 earnings per share indicates an increase of 0.31% and 1.01%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
VST Stock’s ROE is Higher Than Its Industry
VST’s trailing 12-month return on equity (ROE) is 87.33%, way ahead of its industry average of 10.41%. ROE, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in operations to generate income.
Image: Bigstock
Can Rising Capital Spending Act as a Catalyst for VST Stock's Growth?
Key Takeaways
Vistra Corp. (VST - Free Report) stands well-positioned for long-term growth, backed by its strategic capital allocation plan. As the energy landscape transitions toward cleaner and more reliable sources, Vistra is committing significant capital expenditures (CapEx) to enhance its renewable energy and energy storage portfolio. These investments increase the company’s ability to meet evolving demand while maintaining system reliability.
Vistra aims to invest $2.27 billion in 2025, up from $1.85 billion and $1.61 billion invested in 2024 and 2023, respectively. The company’s capital expenditure is strategically directed toward the development of solar, battery storage and modernized gas-fired facilities. Vistra owns and operates six nuclear units having a combined generation capacity of 6,448 megawatts. This diversified investment approach not only accelerates Vistra’s clean energy transition but also ensures balanced risk exposure.
Steady CapEx spending reflects management’s long-term vision to build a more sustainable business model and improve margins. These investments align with state and federal policy incentives, making Vistra eligible for attractive tax credits and subsidies.
As CapEx supports asset expansion and technology upgrades, it enhances Vistra’s capacity and operational efficiency, thereby strengthening future cash flows. Projects like the Vistra Zero portfolio exemplify how the company leverages capital spending to transition away from carbon-intensive assets while creating new revenue streams.
With strong fundamentals and a clear capital deployment strategy, Vistra’s steadily rising CapEx signals long-term upside potential. Investors may view Vistra as a compelling opportunity in the evolving utility and clean energy space.
How Other Utilities Are Investing in Energy Transition
Utilities across the United States are accelerating investments to lead the energy transition, channeling capital into renewable generation and storage technologies.
NextEra Energy (NEE - Free Report) intends to invest more than $72.6 billion through 2029 to strengthen its operations. NEE’s multibillion-dollar capital plan emphasizes infrastructure modernization, grid reliability and low-cost clean energy generation.
Duke Energy Corporation (DUK - Free Report) is investing heavily in decarbonizing its generation fleet and modernizing grid infrastructure. DUK plans to spend more than $83 billion through 2029 to strengthen its grid and expand the renewable energy portfolio.
VST’s Price Performance
Shares of Vistra have risen 57.8% in the past three months against the Zacks Utility- Electric Power industry’s decline of 1%.
Image Source: Zacks Investment Research
VST’s Earnings Estimate Moving North
The Zacks Consensus Estimate for Vistra’s 2025 and 2026 earnings per share indicates an increase of 0.31% and 1.01%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
VST Stock’s ROE is Higher Than Its Industry
VST’s trailing 12-month return on equity (ROE) is 87.33%, way ahead of its industry average of 10.41%. ROE, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in operations to generate income.
Image Source: Zacks Investment Research
VST's Zacks Rank
Vistra currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.