Entergy Unveils Multi-Billion Dollar Infrastructure Expansion Plan

The US utility giant Entergy is preparing for a significant phase of growth, fueled by surging electricity demand across its Southern US markets. To fund this expansion, the company is substantially increasing its equity issuance program, aiming to raise billions for critical investments in grid modernization and power generation capacity.

Surging Demand Drives Capital Needs

A boom in data center construction and new industrial projects within Entergy’s service territories is the primary catalyst for this ambitious capital program. The company now anticipates annual sales growth of eight percent through 2029. Demand from the industrial sector alone is projected to increase by 15 percent annually over the same period, necessitating a rapid and substantial upgrade to both power generation and transmission infrastructure.

In response, Entergy has outlined a massive $43 billion infrastructure investment plan stretching to 2029, a notable increase over prior estimates. A core component of the funding strategy involves raising approximately $4.4 billion in equity by that date. To provide additional financial flexibility, the company has added Barclays to its existing at-the-market (ATM) equity offering program. This mechanism allows Entergy to sell new shares into the market opportunistically. Currently, the program has a remaining capacity of about $1.658 billion. A significant portion of the planned equity raise is already hedged through forward sales agreements, enhancing financial predictability for the coming years.

Should investors sell immediately? Or is it worth buying Entergy?

Financial Performance and Market Sentiment

Operationally, Entergy reported a solid performance for 2025, achieving an adjusted earnings per share of $3.91. Looking ahead, management has expressed optimism for the 2026 fiscal year, guiding for EPS in the range of $4.25 to $4.45.

This confidence appears to be reflected in the market. Entergy’s shares are trading near their yearly peak, with a current price of 88.50 Euros sitting just below the 52-week high of 89.00 Euros.

Investors can expect further details on the progress of this investment initiative when the company releases its next quarterly results, scheduled for May 5, 2026. That update will likely provide more granularity on the execution of the capital plan and may offer refined forecasts for industrial electricity demand.