Entergy Corp. (ETR), the utility company, reported higher second-quarter earnings as industrial electricity demand offset weaker weather and rising financing costs. Earnings increased to $483 million from $468 million a year earlier.

The quarter extended a sequential recovery from late 2024. Earnings rose from $236 million in the fourth quarter to $385 million in the first quarter and then climbed again in the second quarter, while adjusted EPS advanced from $0.51 to $0.86 and $1.03.

Diluted EPS slipped from $1.05 a year earlier as average diluted shares increased by 21 million to 466 million. Utility earnings rose $27 million to $626 million, though Utility EPS held at $1.34 because of the higher share count. The Parent & Other loss widened to $143 million, or $0.31 a share, primarily because of higher interest expense.

Weather-adjusted retail electricity sales grew 5.7%, led by a 9.9% increase in industrial volume on greater demand from data centers, primary-metals producers and chlor-alkali customers. Weather-adjusted residential sales rose 2.8%. Reported retail volume increased 4.1%, while a 19.2% decline in wholesale volume limited total sales growth to 1.4%.

Retail pricing, construction-work returns and volume and weather contributed to Utility earnings, partly offset by decommissioning provisions and the sale of natural-gas utilities. Higher expenses absorbed much of that benefit: Utility interest expense reduced EPS by $0.11, other operations and maintenance costs by $0.08, and depreciation and amortization by $0.05. The weather benefit also fell to $3 million from $38 million a year earlier.

Operating cash flow benefited from a $650 million increase at the Utility business, driven by higher customer advances and collections and lower payments for fuel and purchased power. Year-to-date adjusted earnings increased $52 million to $881 million, and adjusted EPS edged up to $1.90 from $1.87.

Entergy affirmed its 2026 adjusted EPS guidance of $4.25 to $4.45. The company completed a $2.175 billion common-stock offering with a forward component during the quarter, while Entergy Texas received an approximately $200 million state grant that would strengthen grid reliability at no cost to customers. The added capital supported its investment plans as higher interest expense continued to weigh on earnings.