Core Viewpoint - PPL Corporation is set to release its consolidated fourth-quarter and year-end 2025 earnings results on February 20, 2026, with a conference call scheduled to discuss these results and the company's business outlook [1]. Group 1: Earnings Release - The earnings results will be announced on February 20, 2026 [1]. - The conference call will begin at 11 a.m. Eastern Time and will include discussions led by PPL's president and CEO, Vincent Sorgi, along with other executives [1]. Group 2: Webcast and Access Information - The conference call will be available via a live audio webcast, and slides will accompany the presentation [2]. - Interested parties can access the webcast through the PPL investor relations website or join the call by telephone using specific numbers for domestic and international participants [2]. Group 3: Company Overview - PPL Corporation, headquartered in Allentown, Pennsylvania, serves over 3.6 million customers in the U.S. by providing electricity and natural gas [4]. - The company focuses on building smarter and more resilient power grids while advancing sustainable energy solutions [4].

In the latest trading session, PPL (PPL) closed at $36.31, marking a -1.06% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.72%. Coming into today, shares of the energy and utility holding company had gained 4.8% in the past month. In that same time, the Utilities sector gained 1.04%, while the S&P 500 gained 0.78%. The investment community will be closely monitoring the performance ...

Key Takeaways PPL and CMS are investing heavily in grid upgrades and renewables to meet rising electricity demand.CMS posts a higher ROE of 12.1% vs. PPL's 9.08%, outperforming the industry's 10.7% average.PPL currently trades at 18.67X P/E-F12M, slightly above CMS at 18.59X valuation.Stocks in the Zacks Utility-Electric Power industry offer an attractive investment opportunity, supported by stable cash flows and the predictability of regulated business models. Most domestic utilities operate under long-ter ...

Core Insights - PPL Corp.'s shares have increased by 4% over the last month, outperforming the Zacks Utility-Electric Power industry, which declined by 2.6% [1][7] - The company serves 3.6 million customers in the U.S. and has repositioned itself as a U.S.-focused energy provider after divesting its international operations [1][4] Investment and Growth Strategy - PPL plans to invest approximately $20 billion through 2028 to modernize its grid, enhance service reliability, and reduce outage risks [2][9] - The company aims to achieve a net-zero energy system by 2050 while lowering emissions from power generation [2] - PPL's capital investment plan includes delivering 7,500 MW of zero-carbon renewable generation, 3,000 MW of natural gas-fired capacity, nearly 2,000 MW of energy storage, and 1,500 miles of new high-voltage transmission lines [12] Financial Performance and Estimates - The Zacks Consensus Estimate for PPL's earnings per share for 2026 has increased by 7.85%, supported by a 5.24% year-over-year increase in sales estimates [14] - PPL's trailing 12-month return on equity (ROE) is 9.08%, which is lower than the industry average of 10.47% [24] - The current P/E ratio for PPL is 18.19X, compared to the industry's 15.55X, indicating that PPL is trading at a premium [26] Dividend Policy - PPL has a history of consistent dividend payments and plans to increase dividends annually by 6-8% at least through 2028, subject to board approval [21][22] - The current quarterly dividend rate is 27.25 cents, resulting in an annual dividend of $1.09 per share, with a dividend yield of 3.07%, which is higher than the industry average of 2.77% [22] Market Position and Outlook - Demand for reliable clean energy is increasing in PPL's service territory, positioning the company to meet this growth through its long-term capital investment program [12][29] - Ongoing cost-reduction efforts aim to lower operating and maintenance expenses by at least $175 million by 2026 compared to the 2021 baseline [13]

Company Performance - PPL closed at $34.44, reflecting a -1.29% change from the previous day, which is less than the S&P 500's daily loss of 0.34% [1] - Over the past month, PPL shares gained 3.22%, outperforming the Utilities sector's loss of 3.09% and the S&P 500's gain of 1.19% [1] Earnings Expectations - PPL is expected to report an EPS of $0.41, representing a 20.59% increase from the prior-year quarter [2] - The consensus estimate for quarterly revenue is $2.34 billion, up 5.69% from the year-ago period [2] Full-Year Estimates - The full-year Zacks Consensus Estimates for PPL are earnings of $1.81 per share and revenue of $8.73 billion, indicating year-over-year changes of +7.1% for earnings and 0% for revenue [3] - Recent adjustments to analyst estimates for PPL may reflect shifting short-term business dynamics, with positive revisions indicating optimism about the business outlook [3] Valuation Metrics - PPL is currently trading with a Forward P/E ratio of 17.84, which is a premium compared to the industry average Forward P/E of 17.07 [6] - The PEG ratio for PPL is 2.43, compared to the average PEG ratio of 2.51 for Utility - Electric Power stocks [6] Industry Context - The Utility - Electric Power industry has a Zacks Industry Rank of 64, placing it in the top 27% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Industry Overview - The U.S. utility sector is experiencing rapid transformation due to rebounding electricity demand from data centers, AI computing, electrified transport, and domestic manufacturing [1] - Utilities are increasing investments in power generation, transmission networks, and grid upgrades to ensure reliable supply and support long-term growth [1] Transition to Clean Energy - Utilities are phasing out coal and investing in wind, solar, nuclear, and energy storage, driven by federal incentives and state decarbonization goals [2] - This transition is directing capital towards regulated assets that provide steady returns while reducing emissions [2] - A drop in interest rates to 3.5% to 3.75% is favorable for capital-intensive utility companies [2] Company Focus: PPL Corporation and Xcel Energy - PPL Corporation and Xcel Energy are U.S.-regulated electric utility companies heavily investing in grid infrastructure and renewable energy [3] - PPL emphasizes infrastructure upgrades and clean energy investments, supporting stable cash flows and dividends [4] - Xcel Energy's investment case is bolstered by strong capital spending, a clear clean-energy strategy, and rising customer demand [5] Earnings Estimates - PPL's Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year increases of 7.1% and 7.85%, respectively [7] - Xcel Energy's Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year increases of 9.1% and 7.98%, respectively [10] Financial Metrics - PPL's return on equity (ROE) is 9.08%, while Xcel Energy's ROE is 10.45% [9][11] - PPL and Xcel Energy plan to invest $20 billion and $60 billion, respectively, to strengthen their infrastructure [9] - PPL is trading at a P/E Forward 12-month of 18.01X, while Xcel Energy is at 17.99X [16][18] Dividend Yield and Debt Metrics - PPL's dividend yield is 3.11%, compared to Xcel Energy's 3.06% and the Zacks Utility-Electric Power yield of 2.84% [13] - PPL has a debt-to-capital ratio of 56.85%, while Xcel Energy's is 61.17% [14] - Both companies maintain a times interest earned (TIE) ratio above 1, indicating financial flexibility [15] Long-Term Investment Plans - PPL expects a regulated capital investment plan of $20 billion from 2025 to 2028, with significant potential demand in its Pennsylvania segment [20] - Xcel Energy aims to spend $60 billion from 2026 to 2030, focusing on electric distribution, generation, and natural gas operations [21] Conclusion - Both PPL Corporation and Xcel Energy are investing to upgrade infrastructure and expand assets, with increasing clean energy generation to meet rising customer demand [22] - Xcel Energy is viewed as having better potential going into 2026 due to better earnings estimates, valuation, ROE, and capital expenditure plans [23]

Core Viewpoint - PPL Corporation's shares are trading at a forward 12-month P/E ratio of 17.4X, which is higher than the industry average of 14.79X and the broader utilities sector average of 15.45X [1][7]. Financial Performance - PPL Corporation reported a positive earnings surprise in the last quarter and is benefiting from increased demand from data centers, particularly in Pennsylvania and Kentucky [3]. - PPL's shares have gained 1.8% over the past six months, underperforming the industry's rise of 9.5% [5]. - The company expects its 2025 earnings estimate to be in the range of $1.78-$1.84 per share, with a year-over-year increase of 7.1% projected for 2025 and 8.07% for 2026 [17]. Growth Drivers - PPL plans to invest approximately $20 billion from 2025 through 2028 to enhance its generation, transmission, and distribution network [9]. - The potential data center load in Pennsylvania has increased to nearly 20.5 GW from 14.4 GW, representing a $1 billion transmission investment opportunity [10]. - In Kentucky, data center requests have grown to 9.7 GW from 8.5 GW, positioning PPL to meet this growing demand [10]. Cost Management - PPL aims to reduce its operating and maintenance costs by at least $150 million by 2025 and $175 million by 2026 from the 2021 baseline [13]. - More than 60% of PPL's capital investment plan is subject to "contemporaneous recovery," which allows for quicker recovery of capital expenditures and enhances financial flexibility [11]. Dividend Policy - PPL has a history of distributing dividends and plans to increase them annually by 6-8% at least through 2028, with a current quarterly dividend rate of 27.25 cents, resulting in an annual dividend of $1.09 per share [20]. - The current dividend yield is 3.21%, which is better than the industry's yield of 3.11% [20]. Competitive Position - PPL's return on equity (ROE) is 9.08%, slightly lower than the industry's 9.95% [22]. - The company operates in a competitive environment for transmission projects and must comply with Federal Energy Regulatory Commission rules, which adds pressure to control costs [16]. Summary - PPL is well-positioned to capitalize on the increasing demand for clean energy and is investing to expand operations accordingly [24]. - The interest rate cuts are expected to benefit the company by reducing the cost of long-term projects [12]. - Despite the positive outlook, PPL's shares currently trade at a premium, and returns remain slightly below the industry average, suggesting potential investors may want to wait for a better entry point [25].

Core Insights - PPL Corporation is a large-cap utility company with a market capitalization of $25 billion, serving approximately 3.6 million customers in electricity and natural gas [1][2] Company Overview - PPL operates in the regulated electric industry, generating electricity and marketing wholesale and retail energy and natural gas, with a diversified presence in Kentucky, Pennsylvania, and Rhode Island [1][2] - The company's business model is stable and regulated, providing predictable revenue and reasonable returns, contributing to its financial stability [2] Stock Performance - PPL's stock has experienced a decline of 11.7% from its 52-week high of $38.27, reached on October 16, and has underperformed the Utilities Select Sector SPDR Fund (XLU) with a 5.4% decline over the past three months compared to XLU's 2.8% gain [3][4] - Over a six-month period, PPL shares have fallen marginally, but they have increased by 2% over the past 52 weeks, underperforming XLU's six-month gains of 6% and 8.7% returns over the last year [4] Recent Financial Results - In Q3, PPL reported an adjusted EPS of $0.48, surpassing Wall Street's expectation of $0.46, and revenue of $2.24 billion, exceeding the forecast of $2.17 billion [5] - The company anticipates a full-year adjusted EPS in the range of $1.78 to $1.84 [5] Competitive Landscape - Eversource Energy has outperformed PPL in the utility sector, showing a 3.3% increase over six months and 12.6% gains over the past 52 weeks [6]

Core Insights - PPL Corporation is making strategic investments in infrastructure development, focusing on transmission and distribution projects, and aims for carbon neutrality by 2050 with a projected long-term earnings growth rate of 7.34% [1] Tailwinds - PPL is enhancing its infrastructure through generation, transmission, and distribution projects, with its subsidiary PPL Electric leading in the integration of Dynamic Line Rating (DLR) technology for improved electricity supply reliability [2] - A systematic long-term capital investment plan of $20 billion is set for 2025-2028, with expected investments of $4.3 billion in 2025 and $5.2 billion in 2026, aimed at upgrading the grid and increasing clean energy generation capacity [3] - The company is incorporating new technology to meet rising demand from data centers and diversifying its generation portfolio with more renewable sources, benefiting from declining interest rates that will lower long-term capital project costs [4] Carbon Reduction Goals - PPL plans to implement new carbon capture technology to achieve a 70% reduction in carbon emissions by 2035 and 80% by 2040 from 2010 levels, ultimately targeting carbon neutrality by 2050 [5] Headwinds - As a holding company, PPL's financial performance is heavily reliant on its subsidiaries; underperformance in these subsidiaries could negatively impact income generation and dividend obligations [6] - The Pennsylvania Regulated segment faces competition for transmission projects, and any delays or cost overruns in long-term projects could adversely affect financial results [7] Price Performance - Over the past year, PPL shares have increased by 3.0%, underperforming the industry average growth of 19.0% [8] Industry Comparison - PPL currently holds a Zacks Rank 3 (Hold), while competitors like Dominion Energy, Entergy Corporation, and PG&E Corporation have better rankings with Zacks Rank 2 (Buy) [11] - The average earnings surprise for these competitors over the last four quarters has been 12.72%, 14.30%, and 0.47%, respectively [11]

Industry Overview - The Zacks Utility - Electric Power industry presents a strong long-term investment case due to its capital-intensive, domestically focused, and highly regulated business model, which ensures steady revenue visibility and predictable earnings [1] - The industry is transitioning towards cleaner energy sources driven by rising demand from AI-based data centers, reshoring of industries, and increased electric vehicle usage, with utilities retiring older fossil-fuel units and expanding renewables [2] Company Focus: PPL Corporation - PPL Corporation is a fully regulated utility focused on infrastructure upgrades and clean energy expansion, generating stable cash flows and reliable dividends [3] - The company's regulated operations provide predictable revenues, enhancing financial stability and supporting consistent capital returns to shareholders [4] - PPL plans to invest nearly $20 billion from 2025 to 2028 to strengthen its infrastructure and increase clean electricity generation assets [23] Company Focus: Ameren Corporation - Ameren Corporation operates as a regulated electric and natural gas utility in Missouri and Illinois, providing consistent cash flows and a reliable dividend profile [5] - The company benefits from a supportive regulatory environment and a long-term capital strategy, prioritizing grid upgrades and clean energy transition [5] - Ameren plans to invest $68 billion from 2025 to 2029 to enhance its electric transmission, distribution, and generation infrastructure [23] Financial Performance Comparison - The Zacks Consensus Estimate for PPL's earnings per share in 2025 and 2026 has remained unchanged, with long-term earnings growth pegged at 7.34% [7] - Ameren's EPS estimates for 2025 and 2026 have increased by 0.60% and 0.56%, respectively, with long-term earnings growth pegged at 8.52% [9] - PPL's current Return on Equity (ROE) is 9.08%, while Ameren's ROE is higher at 10.92% [11] Capital Return and Dividend Yield - PPL offers a higher dividend yield of 2.99% compared to Ameren's 2.71%, both exceeding the S&P 500 composite's yield of 1.49% [15] - Both companies are known for their dependable dividend distributions, reflecting solid financial performance [14] Valuation and Debt Metrics - PPL appears slightly cheaper than Ameren on a Price/Earnings Forward 12-month basis, with PPL trading at 18.7X and Ameren at 19.78X [16][18] - PPL's debt-to-capital ratio is 56.85%, while Ameren's is 59.8%, indicating PPL has a slightly lower leverage [20] Price Performance - Over the past six months, Ameren's shares have gained 9.7%, while PPL's shares have risen by 5.4% [24] Conclusion - Ameren Corporation currently has a marginal edge over PPL Corporation due to rising earnings and sales estimates, better ROE, more extensive capital expenditure plans, and superior share price returns [28] - Ameren holds a Zacks Rank 2 (Buy), while PPL has a Zacks Rank 3 (Hold) [29]