Key Highlights
- Shares of CEG declined 2.2% in premarket trading following the announcement of a $3.9B capital investment plan
- Share repurchase program expanded to $5 billion
- Projected 2026 adjusted EPS of $11–$12 trails Wall Street expectations of $11.6
- Management forecasts annual base EPS growth exceeding 20% between 2026 and 2029
- In unrelated news, Constellation Software acquired $12.3M worth of Sabre Corp (SABR) shares during February
As America’s premier nuclear power fleet operator, Constellation Energy unveiled an aggressive capital allocation strategy Tuesday, aiming to meet the explosive growth in demand for carbon-free electricity.
Constellation Energy Corporation, CEG
The Maryland-headquartered energy provider revealed plans for $3.9 billion in capital investments while simultaneously expanding its share repurchase authorization to $5 billion. Investor reaction proved lukewarm, with shares dropping 2.2% during premarket hours.
Context is critical here. United States electricity consumption reached unprecedented levels in 2025, propelled by artificial intelligence data center expansion, digital currency mining operations, and accelerating electrification across residential and transportation sectors. Constellation aims to secure a substantial portion of this expanding market.
The energy giant has already secured over 5,650 megawatts through long-duration clean power contracts covering nuclear, geothermal, and energy storage technologies. Notable agreements include a two-decade commitment with Meta to maintain operations at an Illinois nuclear facility, plus an arrangement with Microsoft to revive the Pennsylvania facility previously identified as Three Mile Island.
This past January, Constellation finalized its $16.4 billion Calpine acquisition, combining its nuclear operations with Calpine’s natural gas and geothermal infrastructure. To address regulatory requirements, the company agreed during March to divest certain PJM grid holdings to LS Power for $5 billion.
Financial Projections Trail Analyst Expectations
For the upcoming year, Constellation projected adjusted earnings between $11 and $12 per share. The $11.50 midpoint falls marginally short of the $11.60 analyst consensus compiled by LSEG. This modest shortfall likely influenced the premarket stock decline.
Extending their outlook, management projected annual base earnings per share expansion of at least 20% spanning 2026 to 2029. This represents an exceptionally aggressive growth trajectory for a utility company, supported by its extensive long-term contracts and the Calpine merger synergies.
Constellation Software Accumulates Sabre Position
In unrelated corporate activity, Constellation Software (CSU) — an entirely separate entity from Constellation Energy — revealed a $12.3 million investment in Sabre Corp (SABR) stock.
Monday’s regulatory filing indicates Constellation Software and associated entities, including Constellation Canadian Holdings and Mark Miller, acquired 10,634,702 Sabre shares on February 27 at a volume-weighted average of $1.1605 per share.
Post-transaction, Constellation Holdings maintains direct ownership of 50,157,523 Sabre shares.
Sabre currently trades near $1.40, representing a decline exceeding 50% year-over-year. Bernstein recently lowered its rating to Market Perform, highlighting balance sheet concerns, with a $1.50 price objective. Cantor Fitzgerald maintains a Neutral stance following Sabre’s fourth-quarter performance, which surpassed projections for both top-line revenue and EBITDA.
In response to Constellation Software’s expanding ownership position, Sabre’s board implemented a temporary shareholder rights plan, taking immediate effect with a one-year expiration.
Sabre has also recently completed the full buyback of $91.6 million in senior secured notes scheduled to mature in 2027, while naming Niklas Andréen as Chief Commercial Officer for its Airline Technology division.
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