CenterPoint Energy offers a durable regulated delivery monopoly with 7%–9% EPS growth potential, powered by Texas data-center electrification, although leverage, dilution, weather, and regulatory execution constrain the upside.
Overview
CenterPoint Energy is a Houston-based, rate-regulated utility holding company focused on electric transmission and distribution and natural-gas distribution. Its pure-play delivery model avoids merchant generation, commodity-price exposure, and unregulated retail sales, while serving more than 7 million metered customers across Texas, Indiana, and Minnesota. Franchise monopolies, capital-intensive infrastructure, and regulated tariffs provide a strong competitive position and predictable cash flows. **The principal growth engine is Texas electrification:** Houston Electric’s peak demand could more than double by the middle of the next decade, supported by approximately 14 GW of eligible Batch Zero load and 12.2 GW of firmly committed industrial demand, including 8 GW of data centers scheduled by 2029. CenterPoint raised its ten-year capital plan to $66.7 billion and targets 7%–9% annual non-GAAP EPS growth through 2035, alongside 6% annual dividend growth. Q2 2026 adjusted EPS rose 37.9% to $0.40 and revenue increased 10.7% to $2.15 billion, while full-year guidance was reaffirmed at $1.89–$1.91. Valuation is demanding at 21.3x forward earnings, but reflects expected 11%+ annual rate-base growth through 2030. Near-term catalysts include the Q4 2026 Ohio sale, Batch Zero execution, the $2.7 billion resiliency plan, and Moody’s Stable outlook; leverage, dilution, interest rates, weather, and regulatory scrutiny remain the key offsets.