Constellation Energy's 2025 earnings reveal profit drop but soaring stock confidence
Constellation Energy has reported mixed financial results for 2025. While annual revenue rose to $25.5 billion, net profit dropped sharply from $3.7 billion to $2.3 billion. Despite this, the company's stock has climbed by 36.76% over the past year, reflecting strong investor confidence.
The company's earnings per share fell from $11.89 to $7.40, with fourth-quarter profit nearly halving—from $852 million to $432 million. Yet, the stock price surged nearly 6% to around $312, even after Citigroup adjusted its target price downward to $348.
Analysts remain divided, with an average target of $398 but a neutral stance from some firms. Meanwhile, Constellation Energy announced a 10% dividend increase, raising the quarterly payout from $0.3878 to $0.4265 per share. Shareholders recorded by March 9 will receive the payment on March 20.
The company's long-term growth has been notable, with stock performance jumping 103.45% in 2024 and 29.94% in 2023. New major contracts and the dividend hike have added optimism about its future prospects.
Constellation Energy's financial results show both challenges and strengths. Revenue growth and a rising stock market price contrast with declining profits and mixed analyst ratings. The dividend increase and recent contracts suggest confidence in the company's direction.
