2Q26 Earnings Preview and Upcoming Catalysts

Research evidence excerpt

2Q26 Earnings Preview and Upcoming Catalysts

Idea

July 28, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMDiversified Utilities / IPPs | North America David Arcaro, CFA

Equity Analyst

2Q26 Earnings Preview and David.Arcaro@morganstanley.comAlexandre Zimmermann +1 212 761-1817

Research Associate

Alexandre.Zimmermann@morganstanley.com +1 212 761-3617

Upcoming Catalysts Zhizhong Dong

Jonathan.Dong@morganstanley.com +1 212 761-5632

We preview expectations into 2Q26 earnings reports for CEG, Amanda Huang

NRG, PEG, SEI, TLN, and VST, along with upcoming catalysts. We ResearchAmanda.Huang@morganstanley.comAssociate +1 212 761-4197

also include our thoughts on yesterday's PJM documents related Jeremy Herring

to its regulatory initiatives (Backstop Procurement and Connect ResearchJeremy.Herring@morganstanley.comAssociate +1 212 761-4182

& Manage).

Diversified Utilities / IPPs

North America

We've updated our estimates into 2Q earnings and present thoughts on the earnings Industry View Attractive

print and management updates. We would call out SEI, TLN, and VST as best

positioned for positive updates into results.

We expect regulatory updates and data center contracting progress to be of

focus this quarter. With several advancements in key regulatory processes over the

past few months, we would expect investors to focus on the evolving market rules

and how advancing clarity is shaping data center contracting. ERCOT's Batch Zero

process was approved in June, and we would expect loads to be notified of their

inclusion in the study next week. PJM has moved through multiple processes, most

notably the region's Reliability Backstop Procurement, with Board commentary out

last night (see below for our initial thoughts). While we don't think we will see a