Core Insights - Duke Energy Corporation (DUK) reported first-quarter 2025 earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.59 by 10.7% and improving 22.2% from $1.44 per share in the same quarter last year, driven by higher retail sales volumes and new rates [1][3] - Total operating revenues reached $8.25 billion, a 7.5% increase from $7.67 billion in the previous year, also surpassing the Zacks Consensus Estimate of $8.06 billion by 2.3% [1][2] Revenue Breakdown - The Regulated electric unit generated operating revenues of $7.06 billion, up 4.9% year over year, contributing 85.6% to total revenues [2] - Revenues from the Regulated natural gas business totaled $1.11 billion, reflecting a significant increase of 27.6% year over year [2] - The Non-regulated Electric and Other segment produced revenues of $80 million, which is a 9.6% year-over-year increase [2] Expense and Income Analysis - Total operating expenses for the quarter were $5.91 billion, up 3.4% year over year, primarily due to increased costs in natural gas, operation, maintenance, depreciation, and property taxes [3] - Operating income rose 19.4% to $2.34 billion from $1.96 billion in the same quarter last year [3] Customer and Sales Metrics - Interest expenses increased to $889 million from $817 million in the first quarter of 2024 [4] - The average number of customers in Electric Utilities grew by 1.7% year over year [4] - Total electric sales volumes increased by 7.6% year over year, reaching 65,242 gigawatt-hours [4] Segment Performance - Electric Utilities & Infrastructure segment earnings totaled $1,276 million, up from $1,021 million in the first quarter of 2024 [5] - Gas Utilities & Infrastructure segment earnings were $349 million, compared to $284 million in the previous year [5] - The Other segment incurred a loss of $260 million, worsening from a loss of $203 million in the first quarter of 2024 [6] Financial Position - As of March 31, 2025, cash and cash equivalents stood at $475 million, up from $314 million on December 31, 2024 [7] - Long-term debt increased to $79.70 billion from $76.34 billion as of December 31, 2024 [7] - Net cash from operating activities for the first three months of 2025 was $2.18 billion, down from $2.47 billion in the same period last year [7] Future Guidance - Duke Energy reaffirmed its 2025 adjusted EPS guidance, expecting a range of $6.17-$6.42, with the Zacks Consensus Estimate at $6.32 per share [9] - The company projects long-term EPS growth of 5-7% through 2029 [9]

Financial Performance - GAAP reported EPS and adjusted EPS for the three months ended March 31, 2025, were $1.76, an increase from $1.44 for the same period in 2024, primarily due to higher retail sales volumes and new rates [361]. - Net income for Progress Energy increased by $111 million to $546 million for the three months ended March 31, 2025 [384]. - The net income for the three months ended March 31, 2025, was $1,404 million, an increase of $253 million from $1,151 million in the prior year [423]. Revenue and Sales Growth - Operating revenues for Electric Utilities and Infrastructure segment increased to $7,140 million for the three months ended March 31, 2025, compared to $6,803 million in 2024, reflecting a variance of $337 million [366]. - Operating revenues for Duke Energy Carolinas increased by $117 million to $2,524 million for the three months ended March 31, 2025, compared to $2,407 million in 2024 [379]. - Duke Energy Progress reported operating revenues of $2,018 million for Q1 2025, an increase of $230 million (12.9%) compared to $1,788 million in Q1 2024 [390]. - Duke Energy Florida's operating revenues were $1,444 million in Q1 2025, a slight increase of $8 million (0.6%) from $1,436 million in Q1 2024 [394]. - Duke Energy Ohio's total operating revenues reached $766 million in Q1 2025, an increase of $88 million (13.0%) from $678 million in Q1 2024 [400]. - Duke Energy Indiana reported operating revenues of $858 million in Q1 2025, up $99 million (13.0%) from $759 million in Q1 2024 [404]. - Piedmont's operating revenues increased to $857 million in Q1 2025, a rise of $181 million (26.8%) compared to $676 million in Q1 2024 [410]. Operating Income and Expenses - Segment income for Electric Utilities and Infrastructure was $1,276 million for the three months ended March 31, 2025, up from $1,021 million in 2024, representing an increase of $255 million [366]. - Operating income for Duke Energy Carolinas rose by $98 million to $703 million, driven by higher pricing and improved weather conditions [379]. - The total operating expenses for Duke Energy Progress were $1,540 million in Q1 2025, up $155 million (11.2%) from $1,385 million in Q1 2024 [390]. - The increase in operating expenses for Duke Energy was primarily driven by a $142 million rise in the cost of natural gas due to higher rates and volumes [375]. - Total operating expenses for Duke Energy Carolinas were $1,821 million, a slight increase of $18 million compared to the previous year [379]. Customer Growth - The average number of customers for Duke Energy increased by 2.0% year-over-year [380]. - The average number of customers for Duke Energy Progress increased by 1.9% in Q1 2025 compared to the prior year [391]. - The average number of customers increased by 1.8% year-over-year [411]. Regulatory and Legal Matters - The company is pursuing cost recovery for future expenditures related to EPA regulations on GHG emissions through normal ratemaking processes [353]. - Duke Energy's nuclear sites received renewed licenses allowing operation for an additional 20 years, with Oconee approved to operate through 2053 and 2054 [351]. - Duke Energy Ohio's anticipated passage of Ohio Substitute House Bill 15 will eliminate the Legacy Generation Rider, negatively impacting future recoverable losses from the Inter-Company Power Agreement with OVEC [354]. - The company is actively participating in legal challenges regarding new EPA regulations affecting GHG emissions and coal combustion residuals [430][431]. Cash Flow and Liquidity - Net cash provided by operating activities was $2,177 million, a decrease of $297 million from $2,474 million in the same period last year [421]. - Issuances of long-term debt increased by $1,011 million to $3,100 million compared to $2,089 million in the same period last year [428]. - As of March 31, 2025, Duke Energy had $475 million in cash on hand and $7.8 billion available under its Master Credit Facility [416]. - Duke Energy expects to have sufficient liquidity to support its funding needs through cash on hand, cash from operations, and available credit capacity [416]. Storm Recovery and Costs - The company anticipates storm cost recovery of approximately $1.1 billion over 12 months beginning in March 2025 due to significant storm damage from hurricanes Debby, Helene, and Milton [351]. - Operating revenues for the three months ended March 31, 2025, were impacted by a $102 million increase in natural gas costs and a $72 million increase due to base rate increases in North Carolina [413].

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.76 for the first quarter of 2025, a 22% increase compared to the first quarter of 2024, driven by top line growth across electric and gas utilities [5][14] - The company reaffirmed its 2025 earnings guidance range of $6.17 to $6.42 and a long-term EPS growth rate of 5% to 7% through 2029 [6][22] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw an increase of $0.33 compared to last year, driven by higher sales volumes, improved weather, and new rates [14] - Gas Utilities and Infrastructure results were up $0.08 compared to last year, primarily due to new rates at Piedmont, North Carolina [14] - The Other segment experienced a decrease of $0.08, mainly due to higher interest expenses [14] Market Data and Key Metrics Changes - Weather-normalized volumes increased by 1.8% compared to last year, aligning with the full-year projection of 1.5% to 2% [15] - Residential volumes rose over 3% in the quarter, reflecting customer growth and higher usage [16] Company Strategy and Development Direction - The company is focused on meeting growing energy demands through new generation and enhancing existing generation, including extending the operating license for the Oconee nuclear station for an additional twenty years [6][7] - A strategic partnership with GE Vernova was announced to secure up to 19 natural gas turbines, aimed at timely delivery of critical infrastructure [10] - The company plans to file a merger application for its DC and DEP utilities later this year, which is expected to create significant customer savings and operational flexibility [11][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook, citing strong fundamentals and visibility to growth for years to come [12][13] - The company anticipates load growth to accelerate beginning in 2027 as economic development projects come online [16] - Management noted a cautious stance among industrial customers due to economic and policy uncertainties, but no immediate changes to production schedules were observed [61] Other Important Information - The company invested over $3 billion in capital during the quarter and is on track for $15 billion for the full year [20] - The impact of tariffs on the capital plan is estimated to be about 1% to 3% over five years, with confidence in minimizing this impact [21] Q&A Session Summary Question: Incremental CapEx opportunities - Management indicated that updates on capital expenditures will be provided in February, with a stable and growing investment pipeline [28][30] Question: Specificity around credit metrics - Management plans to provide more defined targeted ranges for credit metrics in the next cycle in February [33] Question: Cadence of adding signed deals - Management confirmed that the one gigawatt signed is part of a robust pipeline and is being actively worked through the process [40] Question: Financial implications of the merger - The merger is expected to generate over a billion dollars in savings for customers, focusing on operational efficiencies and reduced regulatory proceedings [51][52] Question: Size of one gigawatt signing - The one gigawatt signing involves two customers [55] Question: Outlook on tax credits and renewables - Management emphasized the importance of nuclear tax credits and their role in reducing customer bills, while advocating for their transferability [60] Question: Impact of economic uncertainty on industrial customers - Management noted a cautious stance among industrial customers but no immediate changes to their production schedules [61]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.76 for the first quarter of 2025, a 22% increase compared to the first quarter of 2024, driven by top line growth across electric and gas utilities [5][14] - The company reaffirmed its 2025 earnings guidance range of $6.17 to $6.42 and a long-term EPS growth rate of 5% to 7% through 2029 [6][21] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw an increase of $0.33 compared to last year, driven by higher sales volumes, improved weather, and new rates [14] - Gas Utilities and Infrastructure results were up $0.08 compared to last year, primarily due to new rates at Piedmont, North Carolina [14] - The Other segment experienced a decrease of $0.08, mainly due to higher interest expenses [14] Market Data and Key Metrics Changes - Weather-normalized volumes increased by 1.8% compared to last year, aligning with the full-year projection of 1.5% to 2% [15] - Residential volumes rose over 3% in the quarter, reflecting customer growth and higher usage [16] Company Strategy and Development Direction - The company is focused on meeting growing energy demands through new generation and enhancing existing generation, including extending the operating license for the Oconee nuclear station for an additional twenty years [6][7] - A strategic partnership with GE Vernova was announced to secure up to 19 natural gas turbines, aimed at timely delivery of critical infrastructure [10] - The company plans to file a merger application for its DC and DEP utilities, expected to create significant customer savings and operational efficiencies [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook, citing strong fundamentals and visibility to growth for years to come [12][13] - The company anticipates load growth to accelerate beginning in 2027 as economic development projects come online [16] - Management noted a cautious stance among industrial customers due to economic and policy uncertainties, but no immediate changes in production schedules were observed [59] Other Important Information - The company invested over $3 billion in capital during the quarter and is on track for $15 billion for the full year [20] - The impact of tariffs on the capital plan is estimated to be about 1% to 3% over five years, with confidence in minimizing this impact [21] Q&A Session Summary Question: Incremental CapEx opportunities and guidance - Management indicated that updates on capital expenditures will be provided during the annual cycle in February, with a focus on a stable and growing pipeline of investment opportunities [26][28] Question: Specificity around credit metrics - Management acknowledged ongoing discussions about improving credit profiles and indicated that more defined target ranges would be provided in the next cycle in February [31][33] Question: Cadence of load growth and data center deals - Management confirmed that the pipeline remains robust, with a recent signing of one gigawatt of data center projects, which was anticipated in their plans [38][40] Question: Financial implications of the merger - Management highlighted that the merger of DC and DEP utilities could generate over a billion dollars in savings for customers, focusing on operational efficiencies and reduced regulatory proceedings [48][50] Question: Outlook on tax credits and renewables - Management emphasized the importance of nuclear tax credits in reducing customer bills and expressed support for ongoing advocacy in Washington regarding energy credits [57][58] Question: Impact of economic uncertainty on industrial customers - Management reported no immediate changes in production schedules from industrial customers but noted a cautious stance due to tariff policy uncertainties [59][60]

Core Insights - Duke Energy reported quarterly earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.59 per share, and up from $1.44 per share a year ago, representing an earnings surprise of 10.69% [1] - The company generated revenues of $8.25 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.33%, and an increase from $7.67 billion year-over-year [2] - Duke Energy shares have increased by approximately 12.1% since the beginning of the year, contrasting with a -3.9% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $7.35 billion, and for the current fiscal year, it is $6.32 on revenues of $31.81 billion [7] - The estimate revisions trend for Duke Energy is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Utility - Electric Power industry, to which Duke Energy belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Q1 / 2025 Earnings Review and Business Update Harry Sideris / President and CEO Brian Savoy / Executive Vice President and CFO May 6, 2025 // 1 Safe Harbor statement FIRST QUARTER 2025 EARNINGS REVIEW AND BUSINESS UPDATE // 2 Safe harbor statement This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be ...

Financial Performance - Duke Energy reported first-quarter 2025 adjusted EPS of $1.76, an increase of 22.2% compared to $1.44 in the first quarter of 2024[1][3][13]. - The increase in adjusted EPS was driven by higher retail sales volumes and new rates, partially offset by increased interest and O&M expenses[2][6]. - The company reaffirmed its 2025 adjusted EPS guidance range of $6.17 to $6.42, with a long-term growth rate of 5% to 7% through 2029[2]. - Duke Energy reported net income available to common stockholders of $1,365 million for the three months ended March 31, 2025, compared to $1,099 million for the same period in 2024, representing a 24.2% increase[41]. - The earnings per share (EPS) for Duke Energy was $1.76 for Q1 2025, up from $1.44 in Q1 2024, reflecting a 22.2% increase[41]. - Total operating revenues increased to $8,249 million in Q1 2025 from $7,671 million in Q1 2024, marking an increase of 7.5%[41]. - Operating income rose to $2,343 million in Q1 2025, compared to $1,963 million in Q1 2024, indicating a growth of 19.4%[41]. - The company recorded a loss from discontinued operations of $3 million in Q1 2024, which was not present in Q1 2025[41]. - Net income for Q1 2025 was $1,404 million, an increase of 22% compared to $1,151 million in Q1 2024[46]. Segment Performance - Electric Utilities and Infrastructure segment income rose to $1,276 million in Q1 2025, up from $1,021 million in Q1 2024, reflecting a $0.33 per share increase[6]. - Gas Utilities and Infrastructure segment income increased to $349 million in Q1 2025, compared to $284 million in Q1 2024, representing an increase of $0.08 per share[7]. - The Other segment reported a loss of $260 million in Q1 2025, worsening from a loss of $203 million in Q1 2024, a decrease of $0.08 per share[8]. - The company reported segment income of $1,276 million, with Duke Energy Carolinas contributing $521 million and Duke Energy Progress contributing $338 million[60]. - Operating revenues for the Gas Utilities and Infrastructure segment reached $1,140 million, with operating income of $487 million[72]. Customer and Sales Metrics - Duke Energy serves 8.6 million electric customers and 1.7 million gas customers across multiple states, with a total energy capacity of 55,100 megawatts[21]. - Total retail sales increased by 5.4% to 53,391 GWh in Q1 2025 compared to 50,664 GWh in Q1 2024[83]. - Residential sales rose by 11.1% to 25,225 GWh, while industrial sales decreased by 4.2% to 10,964 GWh[83]. - The average number of residential customers grew by 1.9% to 7,498,119, contributing to a total of 8,581,850 retail customers[83]. - Duke Energy Carolinas reported a 5.2% increase in total consolidated electric sales to 23,558 GWh[86]. - Duke Energy Progress saw total retail sales increase by 8.2% to 11,351 GWh, with residential sales up by 14.6%[89]. - The average number of retail customers for Duke Energy Progress increased by 1.9% to 1,772,504[89]. Operational Efficiency - The consolidated effective tax rate for Q1 2025 was 12.1%, down from 13.4% in Q1 2024, primarily due to increased amortization of income tax credits[9][10]. - Operating expenses increased to $5,912 million in Q1 2025 from $5,720 million in Q1 2024, a rise of 3.4%[41]. - The effective tax rate for continuing operations was 12.1% in Q1 2025, down from 13.4% in Q1 2024[33]. - The company has significant regulatory assets amounting to $14,200 million, indicating ongoing investments in compliance and infrastructure[54]. - Duke Energy's cash flow from operations remains strong, supporting ongoing capital expenditures and debt servicing[60]. Assets and Liabilities - Total assets for Duke Energy Corporation were $187,476 million in Q1 2025, compared to $186,343 million in Q4 2024[44]. - Total liabilities increased to $135,682 million in Q1 2025 from $135,599 million in Q4 2024[44]. - Long-term debt rose to $79,700 million in Q1 2025, up from $76,340 million in Q4 2024[44]. - The company reported a total of $4,442 million in accounts payable for Q1 2025, a decrease from $5,479 million in Q4 2024[44]. - Total current liabilities amount to $11,193 million, with accounts payable at $3,579 million[68]. Energy Generation and Transition - The company is focused on an energy transition, investing in electric grid upgrades and cleaner generation technologies[22]. - Total electric generation increased by 6.2% to 53,113 GWh, with coal generation up by 20.9% to 11,347 GWh[83]. - Duke Energy Florida's renewable energy generation surged by 37.5% to 729 GWh in Q1 2025, up from 530 GWh in Q1 2024[92]. - Future outlook includes continued focus on renewable energy investments and potential market expansions in the Southeast U.S.[60].

Julie Janson, EVP and CEO, Duke Energy Carolinas, to retire after a distinguished 37-year career with the company Kodwo Ghartey-Tagoe, Alex Glenn and Louis Renjel to be appointed to new leadership positions, reflecting the depth of Duke Energy's leadership team Cameron McDonald to join the company's senior management committeeCHARLOTTE, N.C., May 2, 2025 /PRNewswire/ -- Duke Energy (NYSE: DUK) today announced a series of leadership appointments to further advance the company's strategy and ensure it is bes ...

Financial Data and Key Metrics Changes - Duke Energy increased its capital plan to $83 billion over the next five years, one of the largest regulated plans in the industry [28] - The company reported a consistent annual growth rate of 5% to 7% and has paid a dividend for 99 consecutive years [30][42] Business Line Data and Key Metrics Changes - The company avoided over 2.3 million customer outages and more than 11 million hours of total outage time through grid improvements [29] - Duke Energy provided nearly $148 million in energy bill assistance, supporting over 210,000 households [30] Market Data and Key Metrics Changes - The company reported that all residential rates across its regions are below the national average [46] - The stock price has ranged from $100 to $120 per share over the last six months, which is considered affordable for small investors [44] Company Strategy and Development Direction - Duke Energy is focused on delivering value for customers and shareholders by investing in reliability, resiliency, and affordability [28] - The company is advancing new generation through integrated resource plans and plans to add five gigawatts of new natural gas generation by 2029 [32] Management's Comments on Operating Environment and Future Outlook - The CEO emphasized the pivotal moment for the industry, highlighting unprecedented growth potential and the importance of a growth mindset [27] - Management is committed to a flexible strategy that includes proven technologies like natural gas and nuclear, as well as emerging technologies [70] Other Important Information - The company has invested over $10 billion in grid resiliency and storm hardening over the last three years [34] - Duke Energy's nuclear facilities provide over 50% of the energy needs for the Carolinas and are the lowest cost generation asset [72] Q&A Session All Questions and Answers Question: When will be the next dividend increase? - The company is committed to growing the dividend, with historical increases occurring around the third quarter [42] Question: Is there any plans for a stock split in the near future? - Currently, there are no plans for a stock split, but the company will continue to evaluate this over time [44] Question: Why is Duke Energy repeatedly asking for price increases when service is questionable? - The company is focused on affordability and reliability, making substantial investments to modernize the grid [45] Question: Why do almost 50% of board members serve on multiple boards? - The board has a mix of industry and non-industry experience, which enriches deliberations and governance [48] Question: Why is it necessary to have so many members on the Board of Directors? - The board size aligns with industry standards and is necessary due to the complexity of the business [51] Question: Why do we give shares to executives and directors? - Compensation is structured to be market competitive, with a mix of cash and stock to align interests with shareholders [56] Question: Why was the program providing matching funds to retirees eliminated? - The company is focused on streamlining operations while still supporting communities through the Duke Energy Foundation [64] Question: Will you please stop all DEI activities? - The company values diversity and inclusion as a strength that benefits employees and customers [66] Question: How will management proceed if reaching net zero is unreasonably expensive? - The company will remain flexible and focus on reliability and affordability while exploring diverse resources [70] Question: How does nuclear power fit in with zero carbon energy generation? - Nuclear power is a vital asset, providing low-cost, reliable, and carbon-free energy, and the company aims to extend the lives of its nuclear plants [72]

Duke Energy Corporation (DUK) is scheduled to release its first-quarter 2025 results on May 6, before market open.The company delivered an earnings surprise of 3.11% in the last reported quarter. Moreover, DUK holds a four-quarter average earnings surprise of 4.30%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors at Play Ahead of DUK’s Q1 ResultsThe majority of DUK’s service territori ...