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Will CEG's Integrated Clean Power Assets Sustain Its Long-term Growth?
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Key Takeaways
CEG's clean-energy platform is anchored by nuclear power, with renewables and gas supporting growth.
Calpine added gas and geothermal assets, plus solar and geothermal projects, boosting capacity.
CEG plans $5.7B in 2026 capex to support fuel inventory, uprates and plant upgrades.
Constellation Energy Corporation (CEG - Free Report) presently operates an integrated clean-energy platform anchored by zero-carbon nuclear generation, supported by a large fleet of flexible natural gas-fired plants and renewable energy assets. At the end of 2025, CEG's generation portfolio totaled 31,676 megawatts (MW). Currently, nearly 85% of its generation comes from nuclear energy.
Although the company relies heavily on nuclear energy and natural gas to produce clean electricity for its customers, CEG is steadily expanding its renewable generation capacity, further strengthening its clean-energy portfolio. CEG’s strategic investments in solar, wind, geothermal and battery storage projects position it to meet growing carbon-free electricity demands from data centers and commercial customers. Renewable expansion advances decarbonization efforts and positions CEG to capitalize on favorable tax incentives and accelerating electrification trends.
At the end of 2025, CEG's generation consisted of roughly 2,561 MW of renewable capacity. The Calpine acquisition, completed in January 2026, was significant as it added efficient natural gas and geothermal facilities to its generation portfolio, strengthening its generation mix and expanding its clean electricity generation platform.
Calpine, a wholly owned subsidiary of Constellation Energy, completed the 105-MW Pastoria Solar Project, which will assist in decarbonizing the State Water Project. Recently, Calpine expanded the power-generating capacity of The Geysers Geothermal Complex by 25 MW, capable of powering more than 25,000 homes across California. This enhances grid reliability, supports rising electricity demand across California and creates opportunities for long-term revenue growth.
CEG expects capital expenditures of approximately $5.7 billion in 2026 and $4.7 billion in 2027, supporting nuclear fuel inventory buildup and growth investments in uprates, license renewals and plant upgrades.
Renewable energy also offers significant economic benefits, as resources such as wind, solar and geothermal are not exposed to volatile fuel prices. Technological progress in recent years has driven cost efficiencies, supported revenue growth and strengthened the company's competitive position.
Clean Fuel Focus: Companies Benefit From the Transition
A clear transition is evident in the utility space and the operators are gradually shifting toward clean energy resources to produce electricity. Courtesy of its technological developments, utility-scale renewable plants are becoming cost-effective and are providing support to the grid.
NextEra Energy, Inc. (NEE - Free Report) plans to expand its renewable generation portfolio by approximately 76.6-107.6 gigawatt (GW) through 2032 and currently maintains a development backlog of more than 33 GW. Of the expected additions, solar, wind and gas projects are expected to add 31.5-41.5 GW, 8.5-14.5 GW and 4-8 GW, respectively.
The Southern Company (SO - Free Report) plans to expand its renewable generation portfolio by approximately 20,000 MW by mid-2030 and expects to invest $1 billion in renewable generation in 2030.
CEG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 24.92% and 16.62%, respectively, year over year.
Image Source: Zacks Investment Research
CEG’s Returns on Equity (ROE)
Constellation Energy's trailing-12 months ROE is 16.81%, ahead of the industry average of 7.08%.
Image Source: Zacks Investment Research
CEG’s Stock Price Performance
In the past month, the company’s shares have plunged 7.1% compared with the industry’s 0.6% decline.
View the Zacks #1 Rank List
Image: Bigstock
Will CEG's Integrated Clean Power Assets Sustain Its Long-term Growth?
Key Takeaways
Constellation Energy Corporation (CEG - Free Report) presently operates an integrated clean-energy platform anchored by zero-carbon nuclear generation, supported by a large fleet of flexible natural gas-fired plants and renewable energy assets. At the end of 2025, CEG's generation portfolio totaled 31,676 megawatts (MW). Currently, nearly 85% of its generation comes from nuclear energy.
Although the company relies heavily on nuclear energy and natural gas to produce clean electricity for its customers, CEG is steadily expanding its renewable generation capacity, further strengthening its clean-energy portfolio. CEG’s strategic investments in solar, wind, geothermal and battery storage projects position it to meet growing carbon-free electricity demands from data centers and commercial customers. Renewable expansion advances decarbonization efforts and positions CEG to capitalize on favorable tax incentives and accelerating electrification trends.
At the end of 2025, CEG's generation consisted of roughly 2,561 MW of renewable capacity. The Calpine acquisition, completed in January 2026, was significant as it added efficient natural gas and geothermal facilities to its generation portfolio, strengthening its generation mix and expanding its clean electricity generation platform.
Calpine, a wholly owned subsidiary of Constellation Energy, completed the 105-MW Pastoria Solar Project, which will assist in decarbonizing the State Water Project. Recently, Calpine expanded the power-generating capacity of The Geysers Geothermal Complex by 25 MW, capable of powering more than 25,000 homes across California. This enhances grid reliability, supports rising electricity demand across California and creates opportunities for long-term revenue growth.
CEG expects capital expenditures of approximately $5.7 billion in 2026 and $4.7 billion in 2027, supporting nuclear fuel inventory buildup and growth investments in uprates, license renewals and plant upgrades.
Renewable energy also offers significant economic benefits, as resources such as wind, solar and geothermal are not exposed to volatile fuel prices. Technological progress in recent years has driven cost efficiencies, supported revenue growth and strengthened the company's competitive position.
Clean Fuel Focus: Companies Benefit From the Transition
A clear transition is evident in the utility space and the operators are gradually shifting toward clean energy resources to produce electricity. Courtesy of its technological developments, utility-scale renewable plants are becoming cost-effective and are providing support to the grid.
NextEra Energy, Inc. (NEE - Free Report) plans to expand its renewable generation portfolio by approximately 76.6-107.6 gigawatt (GW) through 2032 and currently maintains a development backlog of more than 33 GW. Of the expected additions, solar, wind and gas projects are expected to add 31.5-41.5 GW, 8.5-14.5 GW and 4-8 GW, respectively.
The Southern Company (SO - Free Report) plans to expand its renewable generation portfolio by approximately 20,000 MW by mid-2030 and expects to invest $1 billion in renewable generation in 2030.
CEG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 24.92% and 16.62%, respectively, year over year.
Image Source: Zacks Investment Research
CEG’s Returns on Equity (ROE)
Constellation Energy's trailing-12 months ROE is 16.81%, ahead of the industry average of 7.08%.
Image Source: Zacks Investment Research
CEG’s Stock Price Performance
In the past month, the company’s shares have plunged 7.1% compared with the industry’s 0.6% decline.
Image Source: Zacks Investment Research
CEG’s Zacks Rank
CEG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.