PPL CORP (PPL) Q1 2026 Earnings Call Transcript
Bullish Utilities - Regulated Electric 27.90B USA
Next Earnings
2026-04-29
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PPL delivers 2025 earnings in line with plan, raises 2026 guidance, expands capex and rate-base growth, and advances its Blackstone JV and data-center generation initiatives to support strong long-term earnings growth while prioritizing affordability.
⭐ Key Highlights
2025 results in line with plan
PPL delivered 2025 ongoing earnings of $1.81 per share, up 7.1% year over year, in line with the midpoint of guidance.
Raised and extended growth plan to 2029
Updated plan extends 6%–8% annual EPS growth through 2029, with 2026 ongoing earnings guidance of $1.90–$1.98 per share (midpoint $1.94, ~7.2% growth).
Large capital investment program
Capex plan boosted to $23 billion 2026–2029 (up from $20B prior), driving ~10.3% rate-base CAGR and funding largely through cash flow with equity needs of about $2B after $1B already raised.
Dividend increase and returns
Dividend raised to 28.5 cents per share quarterly, or $1.14 annualized, aligning with 4%–6% annual dividend growth.
Strategic new generation and JV momentum
Private equity JV with Blackstone progressing; potential new generation to support data-center demand; hyperscalers showing urgency for BYOG solutions and new capacity.
✔Positive Signals
- 2026 ongoing EPS guidance midpoint of $1.94 (+7.2% from 2025) and 6%–8% growth trajectory extended through 2029
- Capital plan increased to $23B (2026–2029), with rate-base CAGR ~10.3% and strong credit metrics (16%–18% FFO/debt)
- Dividend increased to $0.285 per share quarterly (4%–6% growth target) supporting total return ~10%–12%
- O&M run-rate savings exceeded target, ~$170M against a $175M 2026 target, enhancing affordability
- Blackstone JV progressing with potential for earnings later in planning horizon and support for BYOG data-center solutions
✖Negative Signals
- Regulatory risk with ongoing PA and RI rate cases; potential delays or modifications to settlements
- Higher interest expense and depreciation pressure offsetting some earnings gains
- Rhode Island drag on 2025 earnings due to onetime items and higher operating costs; not expected to recur
- Need to issue ~$2B of equity 2026–2029 to fund expanded capex plan; execution risk of equity timing
- Uncertainty around timing and structure of hyperscaler contracts and PJM/market reforms affecting JV upside
📊Financial Results
- 2025 GAAP earnings of $1.59 per share; ongoing earnings of $1.81 per share, up $0.12 year over year and in line with forecast
- Kentucky: higher sales, lower O&M, offset by depreciation and interest expense; Pennsylvania: higher transmission revenue and rider recovery, offset by costs
- Rhode Island: 2025 earnings down $0.02 per share vs 2024 due to higher operating costs and one-time items; not expected to repeat
- Ongoing capex and rate-base expansion supported by improved rate recovery and higher revenues from capital investments
🔮Future Guidance
- 2026 ongoing earnings guidance range of $1.90–$1.98 per share, midpoint $1.94 (+7.2% vs 2025)
- Capex plan raised to $23B 2026–2029; equity needs ~ $2B; dividend growth target 4%–6% annually
- Rate-base CAGR ~10.3% 2025–2029; FFO/debt target 16%–18%; maintain holding company debt below 25%
💡Interesting Insights
- Hyperscalers increasingly demanding BYOG (bring-your-own-generation) solutions and faster interconnection; JV with Blackstone positioned to deliver generation at pace required by data-center growth
Detailed Analysis
AI-generated summary of PPL CORP earnings call transcript.
PPL closed 2025 with solid execution across operations and capital programs, delivering $1.81 ongoing EPS and advancing a broader growth plan that extends EPS growth to 2029 with a 2026 midpoint of $1.94 and 7.2% growth from 2025. The company increased its four-year capital plan to $23 billion, targeting a 10.3% rate-base CAGR and maintaining a strong balance sheet with FFO to debt of 16%–18%. PPL emphasized affordability through ongoing O&M reductions, a dividend increase to 28.5 cents per quarter, and a disciplined approach to equity funding (~$2B through 2029). Key catalysts include transmission/ distribution investments, Kentucky generation, data-center load growth in PA and KY, and the Blackstone JV, which could deliver earnings in the back half of the plan and beyond if contracts with hyperscalers materialize. Regulatory developments remain a key risk, with ongoing rate cases in Pennsylvania and Rhode Island, potential settlement dynamics, and the need to balance customer bills with capital needs. Overall, the company positions itself for durable earnings growth, capital discipline, and meaningful upside from new generation and transmission opportunities, while prioritizing customer affordability and reliability.
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