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2Q26 Power Preview: What we‘re focused on for CEG, NRG and TLN into 2Q earnings. Industry themes, macro spark spread review and framing the path forward for PJM RBP. 2Q sets stage for busier Fall ‘26 as PJM End Game in focus.

Published: 2026-07-28Institution: BarclaysPages: 32Original language: EnglishEvidence page: 1

Research evidence excerpt

2Q26 Power Preview: What we‘re focused on for CEG, NRG and TLN into 2Q earnings. Industry themes, macro spark spread review and framing the path forward for PJM RBP. 2Q sets stage for busier Fall ‘26 as PJM End Game in focus.

Equity Research

28 July 2026

North America Power & Utilities

2Q26 Power Preview

What we're focused on for CEG, NRG and TLN into 2Q

earnings. Industry themes, macro spark spread review and

framing the path forward for PJM RBP. 2Q sets stage for busier North America Power & Utilities POSITIVE

UnchangedFall '26 as PJM End Game in focus.

Nicholas Campanella2Q26 Power Preview: We review the set-up for power companies under coverage into 2Q26

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results including a MtM of current commodities, regulatory updates and the path to large load

nicholas.campanella@barclays.com

contracting which remains the largest overhang on the sector. The power stocks have had a BCI, US

tough 2026, down YTD in aggregate which we see mostly due to the lack of deals. For the quarter

Michael Loneganwe don’t think we’ll get much incremental clarity nor are we expecting deals for the group,

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though executives will likely frame how they plan to participate in the RBP / centralized

michael.lonegan1@barclays.com

procurement process in PJM. Texas prices look like a headwind, while PJM sparks have modestly BCI, US

improved. We see the quarter as somewhat quiet while many are looking forward to 3Q for

Michael Browngreater visibility on the outcome of the RBP in PJM. PJM is set to make its formal filing at FERC

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this week. michael.brown3@barclays.com

BCI, US

Valuations have reset materially for power, and we’re maintaining our OW ratings on TLN,

NRG and CEG. Prefer NRG as a top idea in power. We continue to believe the path of least

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