NRG Energy announces new $150M cost reduction initiative

The company is announcing a new $150M cost reduction initiative that is expected to be completed by 2025, derived from operations and maintenance efficiencies, sourcing optimization, automation, service levels, spans of control and other redundancies. These savings are in addition to $300M in Direct Energy cost synergies that are expected to be completed by the end of 2023 and $100M in cost synergies related to the Vivint acquisition that are expected to be completed by 2025. With the recently completed acquisition of Vivint Smart Home, NRG has positioned itself to fully capitalize on its market leadership and approximately 7.5 million residential customer base. The enhanced consumer services platform is creating new, high margin recurring revenue streams and extending customer tenure and reach. Through a combination of cross-selling, bundling and organic growth, NRG expects to achieve $300M of incremental free cash flow before growth by 2025.