Vistra Corp. unveiled a $1.2 billion expansion of its gas-fired power capacity and a $500 million share buyback program, signaling confidence in long-term energy demand. Constellation Energy continues to lead the sector in operating margins, reinforcing its competitive edge in the evolving U.S. power market.
- Vistra committed $1.2 billion to expand gas-fired generation with 1,400 MW of new capacity by 2027.
- Vistra launched a $500 million share buyback program over 18 months.
- Constellation Energy reported a Q3 2025 operating margin of 14.8%, leading the sector.
- Vistra’s adjusted EBITDA grew 22% YoY in Q3 2025.
- VST stock rose 7.2% on the expansion and buyback news.
- CSTL stock gained 3.1% amid continued margin leadership.
Vistra Corp. has announced a major strategic move, committing $1.2 billion to expand its natural gas-fired power generation portfolio across Texas and the Midwest. The expansion includes two new combined-cycle units with a combined capacity of 1,400 megawatts, expected to come online by 2027. This investment underscores the company's pivot toward flexible, dispatchable generation amid increasing grid volatility and rising electricity demand driven by data centers and industrial growth. Simultaneously, Vistra launched a $500 million share repurchase program, a clear signal of financial strength and shareholder confidence. The buyback, which will be executed over the next 18 months, follows a period of operational improvements and a 22% increase in adjusted EBITDA year-over-year in Q3 2025. The move comes as the company prepares to exit bankruptcy restructuring and reemerge as a standalone, fully capitalized utility. Meanwhile, Constellation Energy (CSTL) has maintained its leadership in operating margins, reporting a 14.8% margin in Q3 2025—outperforming the sector average of 10.3%. This edge stems from a diversified fleet, long-term power purchase agreements, and strategic positioning in the PJM and ERCOT markets. Despite Vistra’s aggressive expansion, Constellation’s margin leadership remains intact, reflecting superior cost control and asset optimization. The developments are reshaping investor sentiment in the electric utilities sector. Vistra’s stock (VST) rose 7.2% in early trading following the announcement, while Constellation (CSTL) gained 3.1%, reflecting market recognition of both growth and stability. Analysts note that the shift toward gas-fired generation, particularly in high-demand regions, may continue to favor companies with strong balance sheets and execution capability.