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Vistra raises its profit forecast for 2026 and plans nuclear expansion in order to meet the power demand

Vistra raised its adjusted EBITDA forecast for 2026 and announced plans to increase nuclear capacity by 2030, as it prepares itself for an expected surge in U.S. demand. This comes as the company's second-quarter profits fell due to higher costs.

The company's shares rose by nearly 4% during morning trading.

Vistra expects to add 600 megawatts by mid-2030 in order to meet the rising demand for electricity, primarily from data centres and AI-related industrial expansion.

The company was granted regulatory approval in July to continue operating its Perry nuclear power plant in Ohio until 2046.

The Texas-based utility raised its midpoint 2026 adjusted EBITDA forecast to approximately $6.8 billion. This excludes contributions from the natural gas plants acquired in May.

It reaffirmed that it expects to achieve a core adjusted profit of between $5.5 and $6.1 billion in the current fiscal year. This is broadly in line with analyst estimates.

According to the U.S. Energy Information Administration, electricity consumption will reach new highs in 2025 or 2026. This is due to the surge in demand for data centers that are trying to meet Big Tech's AI goals.

Vistra's results for the second quarter were still hampered by costs.

The net income for the three months ended June 30 dropped to $327 millions from $467million a year ago.

Unplanned plant shutdowns contributed to a decline in adjusted EBITDA, which fell from $1.41 billion to $1.35.

Interest costs increased by nearly 26%, to $303 million.

Interest rates that are higher for longer squeeze utilities in the United States by increasing costs of infrastructure maintenance and expansion.

Jim Burke, CEO of the company, said that the company had returned to shareholders $6.5 billion through dividends and buybacks. He expects the return to be $1.8 billion more by the end 2026. (Reporting and editing by Shailesh Kuber in Bengaluru)

(source: Reuters)