Just caught Vistra's Q4 earnings and it's a mixed bag. The energy company did miss analyst expectations on both fronts - EPS came in at $2.18 versus the consensus call of $2.51, and revenues of $4.58 billion fell short of the $5.34 billion estimate. That said, the miss doesn't tell the whole story since earnings actually jumped 91.2% year-over-year and revenues climbed 13.5% compared to the same quarter last year.

What caught my attention though is the pressure on operating costs. Fuel, purchased power, and delivery fees ballooned 24.9% to $9.1 billion, while operating costs themselves rose 16.1%. Interest expenses also ticked up 31% - that's a noticeable jump. Operating income actually fell from $4.08 billion to $1.91 billion, which explains some of the miss.

Full year 2025 revenues totaled $17.74 billion, slightly up from $17.22 billion in 2024. For 2026, management is guiding for adjusted EBITDA between $6.8-$7.6 billion and free cash flow before growth of $3.925-$4.725 billion. The company still has decent liquidity at $2.78 billion and has been aggressive on buybacks - $5.9 billion repurchased since late 2021.

It's a hold situation for me. Growth is there, but cost pressures are real and the miss suggests the margin story is tightening. Worth watching how they manage inflation going forward.