Core Insights - Nuclear energy is emerging as a vital solution for clean and reliable energy, particularly as the world shifts away from fossil fuels [2][9] - Innovations in nuclear technology, such as small modular reactors (SMRs) and portable microreactors, are enhancing the safety, efficiency, and accessibility of nuclear power [3][9] - The nuclear energy sector is supported by government initiatives and growing demand for stable energy sources, particularly from data centers and AI technologies [19][21] Uranium Miners - Cameco Corp. is one of the largest uranium producers globally, operating high-grade mines in Canada, the U.S., and Kazakhstan, positioning itself to meet rising global demand [7] - Denison Mines Corp. focuses on high-grade uranium projects in the Athabasca Basin, with its Wheeler River Project being a significant asset for low-cost production [8] - NexGen Energy is advancing the Rook I project in Canada, aiming for innovative mining techniques to enhance efficiency and environmental responsibility [10] Nuclear Industrials - Oklo Inc. is developing ultra-compact micro-reactors for remote locations and industrial sites, utilizing recycled nuclear fuel for sustainability [11] - BWX Technologies specializes in nuclear components and services, focusing on advanced reactors and small modular reactor technology [12] - Centrus Energy Corp. supplies low-enriched uranium and is developing high-assay, low-enriched uranium for advanced reactors, positioning itself strategically in the fuel supply chain [13] Nuclear Utilities - Constellation Energy Corp. is the largest producer of carbon-free energy in the U.S., operating nuclear plants and exploring partnerships for next-generation technologies [14] - Public Service Enterprise Group operates nuclear plants in the U.S. and is committed to a low-carbon future, supporting regional power demands [15] - PG&E Corp operates California's last nuclear power plant, the Diablo Canyon Power Plant, ensuring a stable, low-emission power supply [16]

Core Insights - Public Service Enterprise Group Incorporated (PSEG) reported third-quarter 2025 adjusted earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $1.01 by 11.9% and reflecting a 25.6% increase from the prior year's figure of 90 cents per share [1][8] - Total operating revenues reached $3.23 billion, surpassing the Zacks Consensus Estimate of $2.73 billion by 18.2% and increasing 22.1% from $2.64 billion in the previous year [2][8] Revenue and Sales Performance - Electric sales volume totaled 11,804 million kilowatt-hours, a decline of 1% year over year, while gas sales volume decreased by 7% to 404 million therms [3] - Residential electric sales volume was 4,539 million kilowatt-hours, down 2% from the prior year, and commercial and industrial sales volume was 7,181 million kilowatt-hours, reflecting a 1% decline [3] - Other sales amounted to 84 million kilowatt-hours, up 18% from the previous year [4] Financial Highlights - Operating income was $855 million, a 33.4% increase from $641 million in the year-ago period [5] - Total operating expenses rose to $2.37 billion, up 18.5% from the previous year [5] - Interest expenses increased to $253 million, reflecting an 11.5% year-over-year rise [5] Segment Performance - The PSE&G segment reported net income of $515 million, up from $379 million in the third quarter of 2024 [6] - Adjusted operating income for the PSEG Power & Other segment was $107 million, down from $141 million in the prior-year quarter [6] Financial Position - Long-term debt as of September 30, 2025, was $22.54 billion, compared to $21.11 billion as of December 31, 2024 [7] Guidance and Outlook - PSEG narrowed its 2025 EPS guidance to a range of $4.00-$4.06, compared to the previous guidance of $3.94-$4.06, with the Zacks Consensus Estimate currently at $4.03 per share [10]

Core Insights - In times of market volatility, investors are increasingly turning to value investing as a strategy to capitalize on discounted stock prices when others are selling off [1][3] Group 1: Value Investing Strategy - Value investing allows investors to purchase stocks at lower prices during market uncertainty, presenting opportunities for long-term gains [1] - The strategy can lead to "value traps" if not properly understood, where stocks underperform due to persistent issues rather than temporary setbacks [3] Group 2: Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio indicating better value [5] - While P/E ratios alone may not accurately reflect a stock's true value, the PEG ratio helps in assessing intrinsic value [5] - Investors should also consider other parameters alongside the PEG ratio to enhance investment outcomes [6] Group 3: Screening Criteria for Value Stocks - Effective screening criteria for identifying potential value stocks include a PEG ratio lower than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, average trading volume exceeding 50,000, and upward revisions in earnings estimates greater than 5% [6] Group 4: Selected Stocks - Fox Corporation (FOX) has a Zacks Rank of 1, a Value Score of A, and a five-year historical growth rate of 12.3% [10] - Flex Ltd. (FLEX) also holds a Zacks Rank of 1, a Value Score of B, and a five-year historical growth rate of 35.1% [12] - Suzano S.A. (SUZ) has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 52% [14] - Garrett Motion Inc. (GTX) maintains a Zacks Rank of 1, a Value Score of A, and a five-year expected growth rate of 23.1% [15]

Financial Performance - PSE&G's net income for the three months ended September 30, 2025 was $515 million, compared to $379 million for the same period in 2024, representing a 36% increase [278]. - PSEG Power's net income for the nine months ended September 30, 2025 was $403 million, up from $317 million in 2024, reflecting a 27% increase [278]. - PSEG's net income for the three months ended September 30, 2025 was $622 million, compared to $520 million in 2024, marking a 20% increase [278]. - Operating revenues for the three months ended September 30, 2025, increased by 22% to $3,226 million compared to $2,642 million in 2024 [304]. - PSE&G's operating revenues increased by $396 million (19%) for the three months ended September 30, 2025, compared to the same period in 2024, driven by changes in delivery, commodity, clause, and other operating revenues [307]. - For the nine months ended September 30, 2025, PSE&G's operating revenues increased by $895 million (14%) compared to the same period in 2024 [317]. - PSEG Power's operating revenues increased by $621 million (29%) for the nine months ended September 30, 2025, driven by changes in generation and gas supply revenues [332]. Capital Investment and Rate Base - PSEG's regulated rate base increased from approximately $30 billion as of December 31, 2023 to approximately $34 billion as of December 31, 2024 [260]. - The estimated regulated capital investment program for 2025-2029 is projected to be between $21 billion and $24 billion, with a compound annual growth rate in the regulated rate base of 6% to 7.5% [262]. - The distribution rate case settlement approved a $17.8 billion rate base and a 9.6% return on equity for PSE&G's distribution business [266]. - Capital expenditures for PSE&G during the nine months ended September 30, 2025, were $1,893 million, primarily for T&D system reliability [356]. - PSEG Power & Other made capital expenditures of $146 million during the same period, excluding $135 million for nuclear fuel [357]. Regulatory and Legislative Environment - The company is facing regulatory uncertainty due to significant increases in electricity costs, with July 2024 PJM annual capacity market auction prices approximately 10 times higher than the previous year [289]. - The New Jersey Board of Public Utilities (BPU) approved a settlement allowing PSE&G to apply a credit to residential electric customers' bills for July and August 2025, with offsets charged from September 2025 through February 2026 [291]. - The company is involved in proceedings to achieve a 50% reduction in natural gas emissions by 2030, which could materially impact operations and cash flows [285]. - The enactment of federal and state tax legislation could materially impact the company's effective tax rate and cash tax position [295]. - The company anticipates increased accounts receivable and bad debt expense due to new legislation prohibiting disconnection for non-payment during summer months starting in 2026 [291]. Energy Costs and Revenue Sources - Energy costs rose by 26% to $1,133 million for the three months ended September 30, 2025, compared to $899 million in 2024 [304]. - Delivery revenues rose by $256 million, primarily due to a $251 million increase in electric and gas revenues from the settlement of the 2024 distribution base rate case [309]. - Commodity revenues increased by $226 million, mainly from higher electric basic generation service revenues of $227 million due to elevated prices [311]. - Generation revenues increased by $108 million, attributed to a $66 million rise in capacity revenue and a $51 million increase in average realized energy prices [328]. - PSEG Power's energy costs rose by $38 million, reflecting higher gas costs [329]. Cash Flow and Financial Position - Operating cash flow increased by $811 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a net change at PSE&G and higher earnings at PSEG Power [341]. - PSE&G's operating cash flow rose from $1,119 million to $1,528 million for the nine months ended September 30, 2025, an increase of $409 million attributed to regulatory deferrals and tax refunds [342]. - Total committed credit facilities as of September 30, 2025, amounted to $3.825 billion, with available liquidity of $3.274 billion [346]. - PSEG Power's uncommitted credit facilities totaled $275 million, with $166 million in letters of credit outstanding as of September 30, 2025 [346]. - The potential additional collateral required if PSEG Power loses its investment grade credit rating was approximately $683 million as of September 30, 2025 [347]. Environmental Goals - PSEG aims for net zero greenhouse gas emissions by 2030, supporting New Jersey's clean energy and climate goals [270]. Risk Management - The company is assessing strategic options to maximize long-term shareholder value, including utility capital investment programs and managing risks related to federal and state energy policies [300]. - The expected Production Tax Credit (PTC) rate for electricity generated from existing nuclear energy is up to $15/MWh, impacting the decision not to apply for the next zero emission certificate eligibility period [288]. Market Risk - From July through September 2025, the MTM VaR varied between a low of $17 million and a high of $45 million at the 95% confidence level [364]. - The average MTM VaR for the three months ended September 30, 2025, was $29 million, compared to $44 million for the year ended December 31, 2024 [364].

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Financial Data and Key Metrics Changes - PSEG reported net income of $1.24 per share in Q3 2025, down from $1.40 per share in Q3 2024, while non-GAAP operating earnings increased to $1.13 per share from $0.90 per share year-over-year [11][12] - The company narrowed its 2025 non-GAAP operating earnings guidance to the upper half of the range at $4 to $4.6 per share, up from prior guidance of $3.94 to $4.06 per share [3][18] - PSEG's balance sheet supports a five-year capital investment program of $22.5 billion to $26 billion without the need to issue new equity or sell assets [9][18] Business Line Data and Key Metrics Changes - PSEG's utility segment reported net income and non-GAAP operating earnings of $515 million for Q3 2025, driven by new electric and gas base distribution rates implemented in October 2024 [11][12] - PSEG Power and Other reported net income of $107 million in Q3 2025, down from $141 million in Q3 2024, with non-GAAP operating earnings of $50 million compared to $69 million in the prior year [14][15] - Nuclear generation was approximately 7.9 terawatt hours in Q3 2025, slightly down from 8.1 terawatt hours in Q3 2024, but year-to-date nuclear generation increased to 23.8 terawatt hours from 23.3 terawatt hours [16] Market Data and Key Metrics Changes - The capacity factors for the nuclear fleet were 92.4% and 93.7% for the quarter and nine-month period ended September 30, 2025, respectively [16] - The company noted that imports have grown to over 40% of its generation consumption, highlighting a significant reliance on external sources [6] Company Strategy and Development Direction - PSEG is focused on operational excellence and cost discipline to maintain reliability and provide value for customers, with a capital spending program aimed at modernizing New Jersey's energy infrastructure [4][5] - The company is actively collaborating with policymakers to address the supply-demand imbalance in New Jersey, emphasizing the need for additional generation supply [5][6] - PSEG is pursuing opportunities in regulated generation, unregulated generation, and renewable energy sources, including solar and battery storage [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in working with the incoming administration to address rising costs and supply issues, emphasizing the need for more generation supply to meet customer demand [5][10] - The company reaffirmed its long-term non-GAAP operating earnings growth outlook of 5% to 7% through 2029, supported by capital investment programs and nuclear production tax credits [18] Other Important Information - PSEG's liquidity as of September was $3.6 billion, including $330 million in cash [17] - The company issued $450 million of secured medium-term notes in August 2025 and redeemed $550 million of notes at maturity [17] Q&A Session Summary Question: Impact of elections on data center deals - Management indicated that they expect to work with both sides of the aisle post-election and noted that data center opportunities in New Jersey have not slowed down [26][27] Question: Differences in contracting conversations between New Jersey and Pennsylvania - Management noted that while there is interest in both states, Pennsylvania has a more forward-leaning appetite for larger-scale projects compared to New Jersey [33] Question: Supply additions and stakeholder collaboration - Management expressed willingness to help the state achieve its goals in a regulated capacity and mentioned potential opportunities in gas generation and solar projects [35][36] Question: Affordability concerns and regulatory approaches - Management emphasized the importance of addressing affordability and reliability issues, indicating that both candidates for governor understand the need for more supply [56][58] Question: Future capital plans and equity needs - Management reassured that they can manage capital needs without issuing new equity, with a full update expected in the fourth quarter [108][109]

Financial Performance - PSEG's Q3 2025 Net Income was $1.24 per share, and Year-to-Date (YTD) Net Income was $3.59 per share[12] - Q3 2025 non-GAAP Operating Earnings were $1.13 per share, and YTD non-GAAP Operating Earnings were $3.33 per share, representing increases of approximately 26% and 17% respectively[12] - PSEG narrows 2025 non-GAAP Operating Earnings guidance to $4.00 - $4.06 per share (from $3.94 - $4.06 per share prior)[15] - PSE&G filed annual transmission formula rate update with FERC in October, resulting in approximately $82 million in increased annual transmission revenue effective January 1, 2026, subject to true-up[29] Capital Investment and Spending - PSE&G invested approximately $1 billion in Q3 2025 and approximately $2.7 billion YTD as part of a full-year 2025 regulated capital spending plan of approximately $3.8 billion[12, 29] - The company has a regulated capital investment program for 2025-2029 of $21 billion - $24 billion, driven by infrastructure modernization, energy efficiency, and growing customer demand[12] - Total PSEG capital program of $22.5 billion - $26 billion for 2025-2029[15] Operational Highlights - PSE&G effectively maintained high system reliability and efficient customer response times, restoring all impacted electric customers within 24 hours and over 200 gas services within a four-day period, following a July NJ state of emergency caused by a severe storm and flooding[12] - PSE&G replaced year-to-date approximately 170 miles of gas main and approximately 22,000 associated gas services to homes and businesses as scheduled under the gas main replacement program[29] - PSE&G large load inquires for new service connections rose to approximately 11,500 megawatts as of September 30, 2025[29] Nuclear Generation - Hope Creek completed a breaker-to-breaker run, operating for 499 continuous days since its last refueling outage, and recently completed work to extend its fuel cycle from 18 to 24 months[12, 34] - For 2025, total nuclear generation is forecasted to be 30-32 TWh[34]

Financial Performance - PSEG reported a net income of $622 million for Q3 2025, up from $520 million in Q3 2024, resulting in earnings per share of $1.24 compared to $1.04 in the prior year[3]. - Non-GAAP operating earnings for Q3 2025 were $565 million, an increase from $448 million in Q3 2024, translating to $1.13 per share versus $0.90 per share in the previous year[3]. - For the first nine months of 2025, net income reached $1.796 billion, up from $1.486 billion in the same period of 2024, with earnings per share increasing from $2.97 to $3.59[5]. - Operating revenues for the three months ended September 30, 2025, increased to $3,226 million, up from $2,642 million in the same period of 2024, representing a growth of 22%[27]. - Net income for the three months ended September 30, 2025, was $622 million, compared to $520 million for the same period in 2024, reflecting a 20% increase[27]. - Operating earnings (non-GAAP) for the three months ended September 30, 2025, were $565 million, up from $448 million in the prior year, marking a 26% increase[27]. - For the nine months ended September 30, 2025, operating revenues reached $9,253 million, a 18% increase from $7,825 million in the same period of 2024[30]. - The company reported a net income of $1,796 million for the nine months ended September 30, 2025, compared to $1,486 million in the same period of 2024, indicating a 22% increase[35]. - The diluted earnings per share for the three months ended September 30, 2025, was $1.24, compared to $1.04 in 2024, reflecting a 19.2% increase[47]. - For the nine months ended September 30, 2025, net income reached $1.796 billion, a 20.9% increase from $1.486 billion in 2024[47]. Guidance and Outlook - The company narrowed its 2025 non-GAAP operating earnings guidance to a range of $4.00 to $4.06 per share, up from the previous range of $3.94 to $4.06[6]. - The company reaffirmed a five-year non-GAAP operating earnings growth outlook of 5% to 7% through 2029, supported by a capital investment program of $22.5 billion to $26 billion[9]. Capital Expenditures and Investments - Regulated investment for Q3 2025 was approximately $1 billion, contributing to a total of $2.7 billion over the first nine months, as part of a planned $3.8 billion capital spending program[6]. - The Long Island Power Authority approved a five-year contract extension for PSEG Long Island as the operations service provider through 2030[12]. Operational Metrics - PSEG's nuclear operations supplied 7.9 TWh of carbon-free energy in Q3 2025, enhancing financial flexibility for regulated investments[12]. - Total operating expenses for the three months ended September 30, 2025, were $2,371 million, compared to $2,001 million in the same period of 2024, an increase of 19%[27]. - Total debt as of September 30, 2025, was $23,370 million, up from $22,707 million at the end of 2024, reflecting an increase of 3%[33]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $2,577 million, compared to $1,766 million in the same period of 2024, a significant increase of 46%[35]. - Electric sales for the three months ended September 30, 2025, totaled 11,804 million kWh, a decrease of 1% compared to the same period in 2024[37]. - Total firm gas sales for the three months ended September 30, 2025, were 195 million therms, a 4% increase compared to the same period in 2024[39]. Shareholder Returns - The company paid dividends of $0.63 per share in Q3 2025, up from $0.60 in Q3 2024, resulting in a dividend yield of 3.0%[45]. - The stock price at the end of the period was $83.46, down from $89.21 in the previous year[45]. - The book value per common share increased to $34.10 in 2025 from $32.33 in 2024[45]. - The market price as a percent of book value was 245% in 2025, down from 276% in 2024[45]. Challenges and Issues - The company is actively collaborating with stakeholders to address a growing generation supply-demand imbalance in the mid-Atlantic region, which has led to nearly a 20% increase in summer electric bills[8]. - The company reported a loss of $70 million related to nuclear decommissioning trust fund activities for the three months ended September 30, 2025[50]. - Operating earnings for PSEG Power were $50 million for Q3 2025, down from $69 million in Q3 2024[50].

Core Insights - Public Service Enterprise Group (PSEG) reported a net income of $622 million for Q3 2025, up from $520 million in Q3 2024, translating to earnings per share of $1.24 compared to $1.04 in the previous year [1][5] - For the nine months ended September 30, 2025, PSEG's net income reached $1.796 billion, an increase from $1.486 billion in the same period of 2024, with earnings per share rising to $3.59 from $2.97 [2][5] Financial Performance - Q3 2025 Non-GAAP Operating Earnings were $565 million, up from $448 million in Q3 2024, resulting in earnings per share of $1.13 compared to $0.90 [1][5] - For the nine months ended September 30, 2025, Non-GAAP Operating Earnings totaled $1.667 billion, an increase from $1.418 billion in 2024, with earnings per share of $3.33 compared to $2.84 [2][5] Segment Performance - PSE&G's net income for Q3 2025 was $515 million, up from $379 million in Q3 2024, while PSEG Power & Other reported a net income of $107 million, down from $141 million [5] - Year-to-date results for PSE&G showed net income of $1.393 billion, compared to $1.169 billion in 2024, while PSEG Power & Other's year-to-date net income increased to $403 million from $317 million [5] Operational Highlights - PSEG is focused on operational excellence and cost discipline, reaffirming a five-year Non-GAAP Operating Earnings growth outlook of 5% to 7% through 2029 [4] - The company plans to invest between $22.5 billion and $26 billion over the next five years to enhance its energy infrastructure and meet growing customer demand [4] Market Context - PSEG noted a nearly 20% rise in summer electric bills due to a generation supply-demand imbalance and PJM's capacity market results [4] - The company is collaborating with state stakeholders to address resource adequacy in the mid-Atlantic region [4] Nuclear Operations - PSEG Nuclear supplied 7.9 TWh of reliable, carbon-free energy in Q3 2025, contributing to the company's financial flexibility for regulated investments [7] - The Hope Creek unit operated for 499 continuous days since its last refueling outage and extended its fuel cycle from 18 to 24 months [7]

Core Insights - Analysts forecast PSEG (PEG) to report quarterly earnings of $1.01 per share, reflecting a year-over-year increase of 12.2% and revenues of $2.73 billion, up 3.3% from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised downward by 1.5% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3] Revenue Estimates - Analysts predict 'Revenue- PSE&G' at $2.29 billion, representing a 7.3% increase from the year-ago quarter [5] - The estimate for 'Revenue- PSEG Power & Other' is $426.88 million, indicating a decline of 26.9% from the previous year [5] Gas and Electric Sales - Estimated 'Gas sold and Transported - Total' is 415 million dekatherm, down from 436 million dekatherm reported in the same quarter last year [6] - 'Gas Sold and Transported - Total Non-Firm Sales' is projected at 225 million dekatherm, compared to 249 million dekatherm in the previous year [7] - The consensus for 'Gas Sold and Transported - Total Firm Sales' stands at 190 million dekatherm, slightly up from 187 million dekatherm reported last year [7] Operating Income - 'Operating Income- Power & Other' is expected to reach $50.62 million, down from $59.00 million a year ago [8] - 'Operating Income- PSE&G' is projected at $678.92 million, an increase from $582.00 million in the previous year [8] Stock Performance - PSEG shares have decreased by 2.6% in the past month, contrasting with a 3.8% increase in the Zacks S&P 500 composite [8] - PSEG holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [8]