Group 1 - PPL Corporation will hold its 2026 Annual Meeting of Shareowners virtually on May 13, 2026, at 9 a.m. Eastern Time [1] - Shareowners of record as of March 4, 2026, are eligible to vote and participate in the meeting [1] Group 2 - PPL Corporation is a leading U.S. energy company providing electricity and natural gas to over 3.6 million customers [2] - The company focuses on building smarter, more resilient power grids and advancing sustainable energy solutions [2]

Company Performance - PPL closed at $35.13, down 1.04% from the previous trading session, underperforming the S&P 500 which lost 0.51% [1] - Over the last month, PPL shares increased by 1.75%, lagging behind the Utilities sector's gain of 3.78% and the S&P 500's gain of 0.93% [1] Upcoming Earnings - PPL's earnings report is scheduled for February 20, 2026, with an expected EPS of $0.42, reflecting a 23.53% increase year-over-year [2] - The Zacks Consensus Estimate projects net sales of $2.34 billion, a rise of 5.76% from the same quarter last year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $1.82 per share and revenue of $9.07 billion, indicating a 7.69% increase in earnings but no change in revenue compared to the previous year [3] - Recent analyst estimate changes suggest optimism regarding PPL's business and profitability [3] Valuation Metrics - PPL is currently trading with a Forward P/E ratio of 18.17, which is higher than the industry average of 17.91 [6] - The company has a PEG ratio of 2.47, compared to the industry average PEG ratio of 2.64 [6] Industry Context - The Utility - Electric Power industry, which includes PPL, has a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [7] - Strong industry rankings correlate with better stock performance, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - PPL Corporation is a regulated utility company based in Pennsylvania, with a market capitalization of $26.8 billion, primarily generating revenue from electricity transmission and distribution [1] Performance Overview - PPL shares have underperformed the broader market over the past year, gaining 5% compared to the S&P 500 Index's 15.4% increase [2] - In 2026, PPL's stock has risen 1.4%, slightly outperforming the S&P 500's 1.1% rise on a year-to-date basis [2] - PPL has also lagged behind the State Street Utilities Select Sector SPDR Fund (XLU), which gained approximately 10.5% over the past year [3] Financial Results - For Q3, PPL reported an adjusted EPS of $0.48, exceeding Wall Street's expectation of $0.46, with revenue of $2.24 billion, surpassing the forecast of $2.17 billion [4] - The company expects full-year adjusted EPS to be in the range of $1.78 to $1.84 [4] Earnings Forecast - Analysts project PPL's EPS to grow by 7.7% to $1.82 on a diluted basis for FY2025 [5] - PPL's earnings surprise history is mixed, with the company surpassing consensus estimates in two of the last four quarters [5] Analyst Ratings - The consensus rating among 16 analysts covering PPL stock is a "Moderate Buy," consisting of ten "Strong Buy" ratings, one "Moderate Buy," and five "Holds" [5] - This consensus is slightly more bullish than two months ago, when seven analysts recommended a "Strong Buy" for the stock [7] Price Targets - PPL's mean price target of $40 indicates a premium of 12.7% from current price levels, while the highest price target of $44 suggests an upside potential of 23.9% [8]

Core Viewpoint - PPL Corporation and PPL Electric Utilities reaffirm their commitment to transparency, affordability, and collaboration in response to rising energy costs and the recent Budget Address by Governor Shapiro [1][2]. Ratemaking Transparency - PPL Electric supports enhanced transparency in the regulatory process, including full rate reviews and regular audits, to build public confidence in utility regulation [3]. Reforming Retail Markets - The company advocates for measures to protect customers from deceptive retail energy practices, highlighting that retail shopping abuses cost residential customers over $60 million in 2025 [4]. Eliminating Unnecessary Fees - PPL Electric aims to revise or eliminate "junk" fees that do not add value, which could lower customer bills, and is committed to supporting vulnerable customers [5]. Customer Protections - The company continues to uphold customer protections even without current laws and supports the reinstatement of Chapter 14, which expired in December 2024 [6]. Cost Management and Reliability - Over the past decade, PPL Electric has managed operating and maintenance expenses nearly 25% below inflation while investing in grid reliability, avoiding distribution base rate increases since 2015 [7]. Economic Development - PPL Electric's infrastructure investments support economic development projects, such as the Eli Lilly project, contributing to job creation and stability in Pennsylvania [8]. Energy Supply Prices - Rising energy supply costs are a significant concern, with supply prices for PPL Electric customers increasing by over 200% in the last five years, accounting for 47% of a typical residential bill [9][10]. Generation Capacity - The company supports building new generation capacity as a key strategy to lower energy bills and has engaged in a joint venture to support data center load growth [11]. Stakeholder Collaboration - PPL Electric is dedicated to collaborating with policymakers and stakeholders to develop effective solutions for energy cost challenges while ensuring safety and reliability [12]. Company Overview - PPL Corporation is a leading U.S. energy company serving over 3.6 million customers, focusing on building resilient power grids and advancing sustainable energy solutions [13]. PPL Electric Utilities Overview - PPL Electric Utilities provides reliable electricity to about 1.5 million customers in Pennsylvania and is recognized for its reliability and customer satisfaction [14].

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].

Company Performance - PPL closed at $36.31, reflecting a -1.06% change from the previous day, underperforming the S&P 500 which lost 0.13% [1] - Over the past month, PPL shares have increased by 4.8%, while the Utilities sector and S&P 500 gained 1.04% and 0.78% respectively [1] Earnings Expectations - Analysts anticipate PPL to report earnings of $0.41 per share, indicating a year-over-year growth of 20.59% [2] - Revenue is expected to reach $2.35 billion, representing a 6.33% increase compared to the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $1.82 per share, reflecting a +7.69% change from the prior year, while revenue is estimated at $9.06 billion, showing no change [3] - Recent revisions to analyst forecasts for PPL are important as they indicate the evolving business trends [3] Valuation Metrics - PPL has a Forward P/E ratio of 18.77, which is higher than the industry average of 17.9 [5] - The company has a PEG ratio of 2.56, compared to the Utility - Electric Power industry average PEG ratio of 2.59 [6] Industry Ranking - The Utility - Electric Power industry ranks 83 in the Zacks Industry Rank, placing it in the top 34% of over 250 industries [7] - Strong industry rankings correlate with better stock performance, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Industry Overview - The Zacks Utility-Electric Power industry presents an attractive investment opportunity due to stable cash flows and predictable regulated business models [1] - Domestic utilities benefit from long-term power purchase agreements, which protect revenues from economic volatility [1] - Rising electricity demand and capital investments are enhancing operational efficiency, leading to consistent earnings and reliable dividend payments [1] Shift to Clean Energy - The utility industry is transitioning to cleaner energy sources driven by increased power demand from AI data centers, industrial reshoring, and Electric Vehicle adoption [2] - Utilities are retiring fossil fuel assets, expanding renewable energy, and implementing low-emission technologies while ensuring grid reliability [2] - The sector is well-positioned for long-term value as decarbonization progresses, supported by strong capital-return programs [2] Company Focus: PPL Corporation and CMS Energy - PPL Corporation and CMS Energy are U.S.-regulated electric utility companies investing in grid infrastructure and renewable energy to meet rising demand [3] - PPL emphasizes infrastructure upgrades and clean energy investments, ensuring stable cash flows and dependable dividends [4] - CMS Energy focuses on modernizing the grid and expanding capacity to meet demand, with a clear commitment to clean energy and net zero operations by 2040 [5] Earnings Estimates - The Zacks Consensus Estimate for PPL's earnings per share in 2026 has improved by 7.6% year over year, with long-term earnings growth projected at 7.34% [7] - The Zacks Consensus Estimate for CMS' earnings per share in 2026 has improved by 7.28% year over year, with long-term earnings growth projected at 7.31% [10] Financial Metrics - CMS Energy has a higher Return on Equity (ROE) of 12.1% compared to PPL's 9.08%, outperforming the industry average of 10.7% [9][11] - PPL trades at a Price/Earnings Forward 12-month (P/E-F12M) ratio of 18.67, slightly above CMS's 18.59, both higher than the industry's 15.64 [12] Dividend and Capital Return - PPL Corporation has a dividend yield of 2.99%, while CMS Energy has a yield of 3.03%, both exceeding the S&P 500 composite yield of 1.35% [17] - Both companies have maintained a times interest earned (TIE) ratio above 1 for over a decade, indicating financial flexibility to meet near-term debt obligations [19] Long-Term Capital Investment Plans - CMS plans to invest $20 billion from 2025 to 2029, with $6.3 billion allocated for enhancing pipeline integrity and reducing methane emissions [20] - PPL expects to invest $20 billion from 2025 to 2028, focusing on strengthening the grid and expanding clean energy generation capacity [21] Conclusion - Both PPL and CMS are making significant investments to enhance operations and customer service [22] - CMS has a competitive edge over PPL due to its better ROE and more attractive valuation metrics [22]

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]