NRG Energy Inc's stock plummeted 5.24% during intraday trading on Tuesday, reversing earlier premarket gains that followed the company's fourth-quarter earnings release.

The Houston-based power producer reported a significant year-over-year decline in profit, posting net income of $66 million or 26 cents per share for Q4 2025, compared to $643 million or $3.10 per share in the same quarter a year earlier. While the company's adjusted earnings of $1.04 per share beat analyst estimates of 98 cents, and revenue of $7.76 billion exceeded expectations of $6.34 billion, the substantial drop in GAAP earnings appears to have concerned investors.

NRG attributed the profit decline largely to unrealized non-cash mark-to-market losses on open positions related to economic hedges, compared with gains in the previous year. Additionally, analyst sentiment has shown signs of weakening, with the mean earnings estimate falling about 10.2% over the last three months and three analysts negatively revising their earnings estimates in the past 30 days.