Title

Earning Preview: CenterPoint this quarter’s revenue is expected to decrease by 9.72%, and institutional views are bullish

Abstract

CenterPoint Energy, Inc. will report fourth-quarter 2025 results on February 19, 2026 Pre-Market, and investors will focus on whether earnings and margins can expand despite revenue headwinds.

Market Forecast

Based on current projections, the market anticipates that CenterPoint Energy, Inc.’s fourth-quarter 2025 revenue will be about 2.24 billion US dollars, implying a year-over-year decline of 9.72%, with EPS around 0.45, up 12.15% year over year, and EBIT near 611.61 million US dollars, up 27.02% year over year. Forecasts do not indicate a specific gross margin or net margin for the quarter, but the EPS and EBIT trajectories imply a focus on operating leverage and cost discipline. The main business is poised to center on network operations and reliability work, with continued system-hardening activities setting the tone for service quality and cost control into the period. The segment with the largest growth potential remains electric transmission and distribution, which generated 1.37 billion US dollars last quarter and is expected to benefit from resiliency investments and asset deployment initiatives that can underpin medium-term earnings.

Last Quarter Review

For the prior quarter (third quarter 2025), CenterPoint Energy, Inc. reported revenue of 1.99 billion US dollars (up 7.11% year over year), a gross profit margin of 51.66%, GAAP net profit attributable to the parent company of 293.00 million US dollars, a net profit margin of 14.74%, and EPS of 0.50 (up 61.29% year over year). Sequential performance improved as net profit rose 47.98% quarter over quarter, underpinned by stronger operating efficiency and a favorable mix. Main business highlights included electric transmission and distribution revenue of 1.37 billion US dollars and natural gas distribution revenue of 622.00 million US dollars, while total company revenue grew 7.11% year over year.

Current Quarter Outlook (with major analytical insights)

Electric Transmission and Distribution

Electric transmission and distribution remains the core earnings engine this quarter. The company has recently signed a long-term agreement to source weather-resistant infrastructure materials for its network, which can support grid resiliency and lower lifecycle maintenance costs; initiatives like these often reduce outage-driven expenses and improve service reliability over time. Even with top-line pressure implied by the revenue forecast, the EBIT and EPS growth expectations suggest that operating leverage from execution on reliability projects and effective cost control could sustain profitability. The winter period typically tests network resilience, and the company’s operational focus on storm preparedness and asset hardening should help contain restoration costs and maintain service metrics through the quarter.

Natural Gas Distribution

Natural gas distribution is entering the heart of the heating season period for the quarter, and recent updates indicate that service continuity has been high despite adverse weather, with only a small fraction of customers impacted at any given time. Operational preparedness, including measures to reinforce the natural gas system and deploy contingency resources, should help limit unexpected cost spikes from service disruptions. While revenue for the business is smaller than electric transmission and distribution, the segment’s stable contribution can help smooth consolidated results during volatile weather, particularly when operational controls and safety measures keep systems running at high availability. Against the current backdrop of forecast revenue decline at the consolidated level, steady performance from the gas distribution function supports the company’s EPS resilience narrative.

Key Stock Price Drivers This Quarter

This quarter’s stock performance will revolve around whether CenterPoint Energy, Inc. can convert the anticipated operating gains into visible margin continuity despite forecast revenue headwinds. Investors will watch the interplay between the revenue estimate of 2.24 billion US dollars (down 9.72% year over year) and the EBIT estimate of 611.61 million US dollars (up 27.02% year over year), assessing whether mix and cost discipline can sustain the implied margin improvement. The EPS estimate of 0.45 (up 12.15% year over year) will be a central gauge; any beat on EPS, coupled with commentary on execution of resiliency and infrastructure programs, can reinforce the case for ongoing earnings momentum. Operational updates tied to weather preparedness and infrastructure resiliency could further influence sentiment, particularly if they point to lower outage costs and reduced variability in service reliability through peak winter conditions.

Analyst Opinions

Across relevant research published between January 1, 2026 and February 12, 2026, the majority view is bullish, with approximately three-quarters of the opinions in this period leaning positive versus one-quarter neutral. Jefferies maintained a Buy rating while adjusting its price target to 44.00 US dollars on January 16, 2026, citing continued confidence in the equity story despite near-term estimate adjustments. Wells Fargo reiterated an Overweight rating on January 21, 2026 and raised its price target to 47.00 US dollars, implying upside from recent trading levels and reflecting conviction in execution and projected earnings resilience. On February 12, 2026, BMO Capital upgraded CenterPoint Energy, Inc. to Buy with a 42.00 US dollars target, characterizing the outlook as “de-risked growth” with a “reasonable valuation premium” and “attractive risk/reward,” which aligns with the forecast dynamic of rising EBIT and EPS against revenue softness. Collectively, these positive opinions concentrate on several linked points. First, they emphasize the company’s ability to deliver earnings growth through operational efficiency and disciplined execution on network investments, even as consolidated revenue faces near-term pressure. Second, they highlight that the forecast profile favors profitability metrics (EBIT up 27.02% year over year and EPS up 12.15% year over year) that matter for valuation continuity and capital returns over time. Third, they view recent operational updates—such as the long-term infrastructure materials agreement and demonstrably high service continuity during severe winter weather—as supportive of more predictable operating costs and fewer downside surprises from outage-related expenses. In this frame, the bullish camp expects management’s focus on resiliency and cost containment to translate into steadier margins and a credible path to meet or exceed the quarter’s EPS target. For investors calibrating expectations into the print on February 19, 2026, the majority view suggests that demonstrating margin stability and reiterating disciplined project execution could be sufficient to sustain positive sentiment, while any upside on EBIT or EPS versus the 611.61 million US dollars and 0.45 benchmarks would bolster the Buy-side case further.