Constellation Energy Corp. (CEG) Strong execution and contracting progress balanced by valuation and long dated PPA timeline...

Equity Research 10 August 2026 | 7:03PM EDT

Constellation Energy Corp. (CEG) Strong execution and contracting progress balanced by valuation and long-dated PPA timelines; Neutral

CEG 12m Price Target: $305.00 Price: $270.43 Upside: 12.8% NEUTRAL Carly Davenport We update estimates for Constellation Energy (CEG, Neutral) | Goldman Sachs & Co. LLC following 2Q26 earnings. While CEG delivered strong Beatriz Abreu, CFA second-quarter results and raised its 2026 EPS guidance to | Goldman Sachs & Co. LLC $11.50-$12.50, we maintain our Neutral rating as we believe the positive contracting momentum and regulatory tailwinds are Jaya Patel | Goldman Sachs & Co. LLC already reflected in the current valuation. While we believe the signing of 920 MW of nuclear PPAs is constructive, these agreements represent only 1.7% of CEG’s total capacity (4% of Key Data _____________________________________ Market cap: $95.7bn nuclear capacity) and have later start dates with expected ramps Enterprise value: $119.2bn 3m ADTV: $979.0mn starting in 2029, making them immaterial for near-term earnings. United States Positively, rule clarity is near in PJM, with the July 31 filing of the Americas Utilities M&A Rank: 3 Reliability Backstop Procurement (RBP) and the Interim Resource GS Forecast __________________________________ Adequacy Service (IRAS), while the Batch Zero pause in ERCOT 12/25 12/26E 12/27E 12/28E

highlights ongoing regulatory uncertainty for large load Revenue ($ mn) New Revenue ($ mn) Old 26,309.0 26,309.0 37,335.7 37,554.5 39,214.2 39,214.2 41,187.6 41,187.6 interconnections. Finally, we see the progress in the capital EBITDA ($ mn) 5,050.0 8,451.3 9,126.6 10,865.1 EBIT ($ mn) 4,181.0 6,571.5 7,042.8 8,574.6 allocation plan as constructive, with $2.2 bn shares repurchased EPS ($) New YTD, with an additional $2.8bn left in the program. We update our EPS ($) Old P/E (X) estimates following results, but our price target remains unchanged Dividend yield (%) 0.5 0.6 0.7 0.8 at $305, implying 13% total return. Net debt/EBITDA (X) 1.0 2.7 2.3 1.6

6/26 9/26E 12/26E 3/27E PPAs signed in the quarter a positive and can point to EPS ($) contracting momentum, but still not material for now. CEG GS Factor Profile ______________________________ signed 920MW of long term nuclear deals, with an average duration Growth

of 18.5 years and investment-grade counterparties, including its Financial Returns 176 MW PPA with Walmart announced on June 23, 2026. While Multiple management did not give additional disclosure on pricing, it stated that the deals are consistent with the $20-$50/MWh premium to Integrated

PTC floor value range provided in March, and confirmed most Percentile 20th 40th 60th 80th 100th contracts are in PJM. Importantly, management highlighted that the signed contracts are not dependent on FERC or PJM regulatory CEG relative to Americas Coverage CEG relative to Americas Utilities outcomes. While we see the signings as constructive and could point to contracting momentum, the announced agreements are still less Source: Company data, Goldman Sachs Research estimates. See disclosures for details. significant from a scale standpoint, representing only 1.7% of CEG total capacity (4% of nuclear capacity) and have later start dates

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Constellation Energy Corp. (CEG)

Constellation Energy Corp. (CEG) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since Jun 18, 2026 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 3,748.0 1,690.5 1,830.3 1,156.9 Accounts receivable -- -- -- -- Inventory -- -- -- -- Ratios & Valuation __________________________________________ Other current assets 8,371.0…