Income Per Share

3 Months Ended

Mar. 31, 2025

Basic income per common share is computed by dividing net income less cumulative dividends attributable to preferred stock by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the period are weighted for the portion of the period that they were outstanding. Diluted income per share is computed in a manner consistent with that of basic income per share while giving effect to all potentially dilutive common shares that were outstanding during the period when there is net income. The relative performance stock units and non-vested restricted stock units are not considered outstanding for purposes of computing basic income per share. However, these instruments are included in the denominator for purposes of computing diluted income per share under the treasury stock method for periods when there is net income. The Convertible Senior Notes are convertible, under certain circumstances, into cash or a combination of cash and the Company’s common stock. The Company is including the potential share settlements, if any, in the denominator for purposes of computing diluted income per share under the if converted method for periods when there is net income. The potential shares settlements are calculated as the excess of the Company's conversion obligation over the aggregate principal amount (which will be settled in cash), divided by the average share price for the period.

NRG's basic and diluted income per share is shown in the following table:


	Three months ended March 31,
(In millions, except per share data)	2025		2024
Basic income per share:
Net income	$	750	$	511
Less: Cumulative dividends attributable to Series A Preferred Stock	17		17
Net income available for common stockholders	$	733	$	494
Weighted average number of common shares outstanding - basic	198		209
Income per weighted average common share — basic	$	3.70	$	2.36

Diluted income per share:
Net income	$	750	$	511
Less: Cumulative dividends attributable to Series A Preferred Stock	17		17
Net income available for common stockholders	$	733	$	494
Weighted average number of common shares outstanding - basic	198		209
Incremental shares attributable to the issuance of equity compensation (treasury stock method)	2		2
Incremental shares attributable to the potential share settlements of the Convertible Senior Notes (if converted method)	3		3
Weighted average number of common shares outstanding - dilutive	203		214
Income per weighted average common share — diluted	$	3.61	$	2.31

As of March 31, 2025 and 2024, the Company had an insignificant number of outstanding equity instruments that were anti-dilutive and were not included in the computation of the Company's diluted income per share.