We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is CEG's Nuclear Fleet Positioned to Support Long-Term Growth?
Read MoreHide Full Article
Key Takeaways
CEG secured nearly 920 MW of new long-term nuclear PPAs averaging 18.5 years.
CEG expects about 30% of baseload clean generation under long-term agreements by 2032.
CEG is advancing license extensions, the Crane restart and about 1,100 MW of nuclear uprates.
Constellation Energy’s (CEG - Free Report) nuclear fleet is benefiting from rising demand for reliable, carbon-free electricity. Growing customer interest in long-term nuclear contracts further supports revenue visibility.
In the second quarter of 2026, CEG’s nuclear fleet generated 44,160 gigawatt-hours (GWhs), while its owned nuclear plants, excluding Salem and South Texas Project, achieved a 93% capacity factor. Although the capacity factor declined from 94.8% a year earlier, non-refueling outage days improved to 20 from 22.
The company is also generating more value from its nuclear assets through long-term contracts. During the second quarter of 2026, CEG secured nearly 920 megawatts (MW) of new long-term nuclear PPAs with an average contract duration of 18.5 years. These agreements are expected to place roughly 30% of its baseload clean generation under long-term agreements by 2032, providing greater revenue visibility while serving growing electricity demand. CEG expects more than 20% base earnings per share (EPS) growth through 2029
CEG is further extending the productive life of its nuclear fleet. The company filed license renewal applications for Ginna and Nine Mile Point Unit 1, seeking to extend their operations to 2049. It continues to advance the restart of the Crane Clean Energy Center, with approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. Constellation Energy's fleet is positioned to add about 1,100 MWs of nuclear uprates.
Overall, nuclear fleet reliability, long-term contracts, license extensions and the Crane restart could support CEG’s growth.
Utilities Benefit From Improved Nuclear Operations
Utilities benefit when nuclear plants run more efficiently. Better maintenance and shorter refueling outages keep plants online longer. This improves electricity production and reliability. Higher capacity factors can also support steadier revenues and reduce the need for costly replacement power.
Duke Energy (DUK - Free Report) operates 11 nuclear units across six sites in North and South Carolina, with approximately 10,773 MW of combined nuclear generating capacity. Stronger plant reliability supports steady generation, grid reliability and lower customer costs.
Entergy Corp. (ETR - Free Report) operates and supports five nuclear units across four sites, with approximately 5,376 MW of carbon-free generating capacity. Reliable nuclear operations support electricity supply and financial performance.
The Zacks Rundown on CEG
CEG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 26.62% and 9.43%, respectively, year over year.
Image Source: Zacks Investment Research
CEG’s Returns on Equity (ROE)
Constellation Energy's trailing-12-month ROE is 14.89%, ahead of the industry average of 7.16%.
Image Source: Zacks Investment Research
CEG’s Stock Price Performance
In the past month, the company’s shares have risen 9% against the industry’s 1.1% fall.
View the Zacks #1 Rank List
Image: Bigstock
Is CEG's Nuclear Fleet Positioned to Support Long-Term Growth?
Key Takeaways
Constellation Energy’s (CEG - Free Report) nuclear fleet is benefiting from rising demand for reliable, carbon-free electricity. Growing customer interest in long-term nuclear contracts further supports revenue visibility.
In the second quarter of 2026, CEG’s nuclear fleet generated 44,160 gigawatt-hours (GWhs), while its owned nuclear plants, excluding Salem and South Texas Project, achieved a 93% capacity factor. Although the capacity factor declined from 94.8% a year earlier, non-refueling outage days improved to 20 from 22.
The company is also generating more value from its nuclear assets through long-term contracts. During the second quarter of 2026, CEG secured nearly 920 megawatts (MW) of new long-term nuclear PPAs with an average contract duration of 18.5 years. These agreements are expected to place roughly 30% of its baseload clean generation under long-term agreements by 2032, providing greater revenue visibility while serving growing electricity demand. CEG expects more than 20% base earnings per share (EPS) growth through 2029
CEG is further extending the productive life of its nuclear fleet. The company filed license renewal applications for Ginna and Nine Mile Point Unit 1, seeking to extend their operations to 2049. It continues to advance the restart of the Crane Clean Energy Center, with approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. Constellation Energy's fleet is positioned to add about 1,100 MWs of nuclear uprates.
Overall, nuclear fleet reliability, long-term contracts, license extensions and the Crane restart could support CEG’s growth.
Utilities Benefit From Improved Nuclear Operations
Utilities benefit when nuclear plants run more efficiently. Better maintenance and shorter refueling outages keep plants online longer. This improves electricity production and reliability. Higher capacity factors can also support steadier revenues and reduce the need for costly replacement power.
Duke Energy (DUK - Free Report) operates 11 nuclear units across six sites in North and South Carolina, with approximately 10,773 MW of combined nuclear generating capacity. Stronger plant reliability supports steady generation, grid reliability and lower customer costs.
Entergy Corp. (ETR - Free Report) operates and supports five nuclear units across four sites, with approximately 5,376 MW of carbon-free generating capacity. Reliable nuclear operations support electricity supply and financial performance.
The Zacks Rundown on CEG
CEG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 26.62% and 9.43%, respectively, year over year.
Image Source: Zacks Investment Research
CEG’s Returns on Equity (ROE)
Constellation Energy's trailing-12-month ROE is 14.89%, ahead of the industry average of 7.16%.
Image Source: Zacks Investment Research
CEG’s Stock Price Performance
In the past month, the company’s shares have risen 9% against the industry’s 1.1% fall.
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.