Financial Performance - PPL Corporation reported third-quarter 2025 earnings of $318 million, or $0.43 per share, a 48% increase from $214 million, or $0.29 per share in Q3 2024[2][6] - Adjusted earnings from ongoing operations for Q3 2025 were $355 million, or $0.48 per share, compared to $310 million, or $0.42 per share in Q3 2024, reflecting a 14% increase[3][6] - For the first nine months of 2025, reported earnings were $915 million, or $1.23 per share, up 28% from $711 million, or $0.96 per share in the same period of 2024[2][10] - Reported earnings in Q3 2025 included net special-item after-tax charges of $37 million, or $0.05 per share, primarily related to IT transformation and integration expenses from the acquisition of Rhode Island Energy[14] - Higher sales volumes, driven by weather, and lower operating costs contributed to the earnings increase in both Q3 and the first nine months of 2025[17][18] - Operating revenues for Q3 2025 were $2,239 million, an increase of 8.4% from $2,066 million in Q3 2024[41] - Net income for the nine months ended September 30, 2025, was $915 million, up 28.7% from $711 million in the same period of 2024[43] - Reported Earnings for Q3 2025 totaled $318 million, with segment contributions of $185 million from KY, $159 million from PA, $27 million from RI, and a loss of $53 million from Corporate & Other[47] - Year-to-Date Reported Earnings as of September 30, 2025, reached $915 million, with KY contributing $534 million, PA $482 million, RI $80 million, and a loss of $181 million from Corporate & Other[49] Earnings Forecast - PPL narrowed its 2025 ongoing earnings forecast range to $1.78 to $1.84 per share, maintaining a midpoint of $1.81 per share[4][28] - The company reaffirmed its annual earnings per share (EPS) and dividend growth target of 6% to 8% through at least 2028, with EPS growth expected in the top half of the range[5][6] - The forecast for 2025 reported earnings is estimated to be between $1.61 and $1.67 per share, with a midpoint of $1.64[57] - Total special items for the 2025 forecast are expected to be $0.17 per share, impacting ongoing operations earnings forecast to range from $1.78 to $1.84 per share[57] Special Items and Costs - Reported Earnings from Ongoing Operations for Q3 2025 were $355 million, reflecting a decrease of $37 million due to special items[47] - Special items in Q3 2025 included $15 million related to acquisition integration and $12 million for IT transformation costs[47] - Total special items for Year-to-Date 2025 included $69 million from acquisition integration and $48 million from IT transformation[49] - The company incurred $35 million in special items related to acquisition integration and $6 million for energy efficiency program settlements in Year-to-Date 2025[49] - Special items reduced earnings by $283 million, primarily due to acquisition integration costs of $254 million and strategic corporate initiatives costing $11 million[55] - Integration costs associated with the acquisition of Rhode Island Energy amounted to $206 million, significantly affecting overall earnings[55] - The company is undergoing an IT transformation, with associated costs projected to be $0.07 per share in the 2025 forecast[57] - Customer system integration impacts are expected to cost $0.01 per share, reflecting ongoing adjustments post-acquisition[57] - The PPL Electric billing issue resulted in a $13 million impact on earnings, highlighting operational challenges[55] - The ECR beneficial reuse transition adjustment had a negative impact of $4 million on earnings from ongoing operations[55] Segment Performance - The Pennsylvania Regulated segment saw increased transmission revenue and distribution regulatory rider recovery, contributing to earnings growth[20][21] - PPL's Rhode Island Regulated segment reported a slight increase in earnings from ongoing operations, driven by lower operating costs[22] - Retail electricity sales in the PA Regulated Segment for Q3 2025 were 9,453 GWh, a decrease of 0.2% from 9,468 GWh in Q3 2024[45] - The KY Regulated Segment saw retail electricity sales increase by 1.8% to 8,231 GWh in Q3 2025 from 8,084 GWh in Q3 2024[45] Assets and Cash Flow - Total assets as of September 30, 2025, were $43,939 million, up from $41,069 million at the end of 2024, representing a 6.8% increase[39] - Cash and cash equivalents increased to $1,102 million as of September 30, 2025, compared to $306 million at the end of 2024[39] - Cash flows from operating activities for the nine months ended September 30, 2025, were $2,081 million, compared to $1,829 million for the same period in 2024[43] - The company issued $1,895 million in long-term debt during the nine months ended September 30, 2025[43] Historical Comparison - Reported Earnings for Q3 2024 were $214 million, with a notable decrease in Corporate & Other segment losses compared to Q3 2025[53] - Earnings from Ongoing Operations for Q3 2024 were $310 million, indicating a year-over-year increase in operational performance[53] - Reported Earnings for the year-to-date September 30, 2024, totaled $711 million, with ongoing operations earnings at $994 million[55]

Accessibility StatementSkip Navigation ALLENTOWN, Pa., Nov. 5, 2025 /PRNewswire/ -- PPL Corporation (NYSE: PPL) today announced third-quarter 2025 reported earnings (GAAP) of $318 million, or $0.43 per share, compared with third-quarter 2024 reported earnings of $214 million, or $0.29 per share. PPL reported earnings of $915 million, or $1.23 per share, for the first nine months of 2025, compared with the reported earnings of $711 million, or $0.96 per share, for the first nine months of 2024. Adjusting for ...

Core Insights - PPL Corporation (PPL) is set to report its third-quarter 2025 results on November 5, with earnings expected at 46 cents per share, reflecting a year-over-year increase of 9.52%, and revenues projected at $2.17 billion, indicating a growth of 5.14% from the previous year [1][7]. Earnings Estimates - The Zacks Consensus Estimate for the current quarter (Q3 2025) is 46 cents per share, with a year-over-year growth estimate of 9.52% [2]. - For the next quarter (Q4 2025), the estimate is 43 cents per share, with a year-over-year growth of 26.47% [2]. - The current year estimate stands at $1.81 per share, reflecting a 7.10% increase from the previous year, while the next year estimate is $1.96 per share, indicating an 8.29% growth [2]. Earnings Surprise History - PPL has beaten the Zacks Consensus Estimate in two of the last four quarters, resulting in a negative average surprise of 0.18% [3]. Earnings Prediction Model - The current Earnings ESP for PPL is 0.00%, and it holds a Zacks Rank of 4 (Sell), indicating that an earnings beat is not predicted this time [5]. Key Factors Influencing Q3 Results - PPL's earnings are expected to benefit from ongoing cost reduction initiatives, energy efficiency programs, and a return on capital investment in the latter half of 2025 [9]. - The company is also likely to see increased earnings due to strong demand from data centers and higher sales volumes in Pennsylvania and Kentucky [10]. Stock Performance - Over the past three months, PPL's stock has returned 1.8%, outperforming the industry growth of 1% [11]. - PPL is trading at a forward 12-month price-to-earnings ratio of 18.78X, which is higher than the industry average of 15.27X, indicating a premium valuation [12]. Return on Equity - PPL's trailing 12-month return on equity (ROE) is 8.81%, which is below the industry average of 10.35% [15]. Investment Considerations - PPL plans to invest $20 billion from 2025 to 2028, with $4.3 billion allocated for 2025, focusing on infrastructure projects for generation, transmission, and distribution [17]. - The company operates in a favorable regulatory environment, with over 60% of its capital investment plan subject to contemporaneous recovery, reducing regulatory lag impacts [18]. Strategic Initiatives - PPL is implementing a "Utility of the Future" strategy, including IT transformation and enhanced engineering standards to improve grid resilience and efficiency [19]. Overall Outlook - PPL is expected to benefit from rising demand, cost savings, energy efficiency programs, and infrastructure upgrades, with strong liquidity and growth driven by data center demand acting as tailwinds [20].

Core Insights - Wall Street analysts anticipate PPL to report quarterly earnings of $0.46 per share, reflecting a year-over-year increase of 9.5% [1] - Expected revenues for the quarter are projected at $2.17 billion, which represents a 5.1% increase from the same quarter last year [1] - Over the past 30 days, the consensus EPS estimate has been revised downward by 3.4%, indicating a reassessment by analysts [1] Revenue Estimates - Analysts project 'Revenues- Pennsylvania Regulated' to be $760.16 million, indicating a year-over-year change of +6.2% [4] - 'Revenues- Rhode Island Regulated' is expected to reach $516.73 million, suggesting a year-over-year increase of +13.6% [4] - 'Revenues- Kentucky Regulated' is estimated to be $904.96 million, reflecting a year-over-year change of +1.1% [4] Stock Performance - PPL shares have decreased by 2% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.1% [4] - PPL holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [4]

Industry Overview - The Zacks Utility Electric - Power industry is undergoing a significant transformation driven by increased electricity demand from data centers, transportation electrification, and grid modernization efforts [1] - Utilities are investing heavily to enhance grid resilience, upgrade infrastructure, integrate renewable energy, and comply with regulations [1][2] - The sector continues to provide stable cash flows, steady returns, and regular dividends, supported by substantial capital expenditures focused on long-term growth and sustainability [1] Company Insights PPL Corporation - PPL plans to invest $20 billion from 2025 to 2028 to modernize its infrastructure, aiming to strengthen the grid and support electrification [3] - The company is collaborating with the Department of Energy to explore the feasibility of building small nuclear reactors [3] - The Zacks Consensus Estimate for PPL's earnings indicates year-over-year growth of 7.1% for 2025 and 8.29% for 2026, with a long-term growth rate of 7.34% [6] Duke Energy Corporation - Duke Energy intends to invest $87 billion between 2025 and 2029, focusing on grid modernization and transitioning to low-carbon energy sources [4] - The company is actively pursuing nuclear energy expansion as part of its clean energy strategy, particularly in the Carolinas [4] - The Zacks Consensus Estimate for Duke Energy's earnings implies year-over-year growth of 7.29% for 2025 and 6.08% for 2026, with a long-term growth rate of 6.43% [9] Financial Metrics - Duke Energy's debt-to-capital ratio is 61.74%, while PPL's is 55.47%, both above the industry average of 61.16% [16] - Return on equity (ROE) for PPL is 8.81%, compared to Duke Energy's 9.85%, both below the industry average of 10.35% [17] - PPL's current dividend yield is 2.95%, while Duke Energy's is 3.39%, with Duke having raised its dividend five times in the past five years [19] Valuation and Performance - PPL trades at a premium with a Price/Earnings Forward 12-month ratio of 18.84X, while Duke Energy's is 18.7X, compared to the industry average of 15.42X [20] - In the past six months, PPL's shares have gained 1.1%, while Duke Energy's shares have returned 2.5% [22] - Duke Energy currently holds a Zacks Rank 2 (Buy), while PPL has a Zacks Rank 4 (Sell) [25]

Financial Services Sector - Financial Services sector shows strong buy ratings for Mastercard (MA), Visa (V), Global Payments (GPN), Fidelity National Information Services (FIS), and Truist Financial (TFC) in recent days [1] - Average target price upside across these companies suggests continued positive momentum in the Financial Services sector [1] Utilities Sector - Utilities sector also demonstrates strength with upgrades for Alliant Energy (LNT), PPL Corporation (PPL), and Entergy (ETR) on October 24 and October 22 [1] - The upgrades indicate a favorable outlook for these utility companies [1] Payroll Services and Insurance - Payroll services sector experiences a notable strong sell for Paychex (PAYX), indicating caution in this area [1] - Insurance giant W.R. Berkley (WRB) also received a strong sell rating, further signaling caution in the insurance sector [1]

Core Insights - PPL Corporation, a utility company with a market cap of $27.6 billion, focuses on modernizing the electric grid, expanding renewable energy integration, and enhancing customer service through advanced technology [1] Financial Performance - Analysts expect PPL to report a profit of $0.46 per share for fiscal Q3 2025, representing a 9.5% increase from $0.42 per share in the same quarter last year [2] - For fiscal 2025, PPL is projected to report a profit of $1.81 per share, up 7.1% from $1.69 per share in fiscal 2024, with further growth expected to $1.96 per share in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, PPL's shares have increased by 14%, underperforming the S&P 500 Index's 16.2% return but outperforming the Utilities Select Sector SPDR Fund's 11.4% increase [4] - Following mixed Q2 results, PPL's shares fell nearly 1% on July 31, with operating revenue rising 7.7% year-over-year to $2 billion, exceeding consensus estimates by 2.5%, while adjusted EPS of $0.32 decreased 15.8% from the previous year [5] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for PPL, with nine out of 15 analysts recommending "Strong Buy," one suggesting "Moderate Buy," and five advising "Hold" [6] - The mean price target for PPL is set at $40.86, indicating a potential upside of 9.4% from current levels [6]

Core Points - Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) have reached an agreement to adjust base rates to support system enhancements and hardening projects against severe storms and increased energy needs [1][2][10] - The agreement is filed with the Kentucky Public Service Commission (KPSC) for approval, with new rates expected to take effect no earlier than January 1, 2026 [2][3] System Hardening and Resiliency - The utilities are implementing a data-driven strategy to enhance system resilience, including stronger wires and poles, and real-time monitoring technologies [4] - Recent improvements have led to a 40% reduction in power outage frequency and a 30% decrease in outage duration [4] Upgrading Aging Infrastructure - A significant portion of the utilities' wooden transmission poles are over 60 years old and require replacement with steel structures [6] - Some equipment in the substations is nearly 100 years old, posing risks to reliability [5][6] Technology Enhancements - LG&E and KU are investing in advanced meter technology and upgrading IT systems to improve customer billing and cybersecurity [7] New Customer Options - The utilities propose to waive the $1.95 transaction fee for cash payments at third-party locations and introduce a pre-pay program for residential customers [8] - A new rate, Extremely High Load Factor Service, is proposed for large power users, ensuring they pay for their fair share without shifting costs to other customers [9] Financial Implications - Under the agreement, LG&E will receive a $58 million increase for electric service and $45 million for natural gas service, while KU will receive a $132 million increase for electric service [10] - Average monthly bill increases for residential customers are projected at $9 for KU, $5.04 for LG&E electric, and $8.10 for LG&E gas [11] Customer Support Programs - LG&E and KU offer various programs to help customers manage bills, including energy efficiency programs and financial assistance for vulnerable customers [12] Regulatory Agreement Details - The agreement includes a commitment not to increase base rates until at least August 1, 2028, and introduces mechanisms for cost recovery and revenue adjustments [13]

Core Insights - AI and AI investing have significantly driven stock market growth in 2023, leading to increased demand for data centers and related energy needs [1] - The surge in data center energy demand has created new opportunities in the natural gas and midstream sectors, evidenced by recent key deals [1] Group 1: Company Investments - Williams Companies, Inc. (WMB) has committed an additional $3.1 billion to two power innovation projects, raising its total investment in power projects to approximately $5 billion [2] - WMB has secured 10-year fixed-price power purchase agreements with a large investment-grade counterparty for the new projects, expected to be completed in the first half of 2027 [3] - WMB has increased its 2025 growth capital expenditure guidance by $875 million to a midpoint of $3.6 billion, anticipating a 20% return on the new projects [3] Group 2: Natural Gas Supply Agreements - Energy Transfer (ET) has entered into an agreement with Fermi America (FRMI) to supply natural gas to FRMI's HyperGrid AI data center campus in Texas, highlighting the growing energy needs of data centers [4] - VoltaGrid has also announced a 2.3 GW agreement with ET to supply electricity generated from natural gas to Oracle's data centers, further demonstrating the demand for natural gas in the sector [4] Group 3: Data Center Demand and Infrastructure - Pembina Pipeline Corporation (PPL) is nearing a deal with Meta (META) for a new data center in western Canada, which will utilize natural gas-fired electricity from the Greenlight Electricity Centre [5] - The Greenlight Electricity Centre is expected to have a capacity of up to 1.8 GW, translating to a natural gas demand of 320 million cubic feet per day [5] - Key players in the midstream energy infrastructure, including WMB, ET, and PPL, are significant constituents of the Alerian Energy Infrastructure ETF, which focuses primarily on natural gas infrastructure [6]

Core Insights - PPL Corporation is currently trading above its 50 and 200-day simple moving averages, indicating a bullish trend in the stock market [1][7] - The company has shifted its focus to being a U.S.-centric energy provider following the divestiture of its international operations, with data centers driving new demand in its service regions [1][13] Capital Investment Strategy - PPL has a long-term capital investment strategy aimed at enhancing infrastructure to ensure safe, reliable, and affordable energy delivery [2] - The company plans to invest $20 billion from 2025 to 2028 to improve reliability and service quality [7][10] - Investments include $8 billion in electric and gas distribution and $6 billion in electric transmission to strengthen the electricity grid [11] Cost Management and Profitability - PPL is targeting $175 million in operating and maintenance cost reductions by 2026, with $130 million already achieved in 2024 [12] - The company expects its earnings per share for 2025 to be in the range of $1.75 to $1.87, with a positive earnings estimate trend for 2025 and 2026 [14] Dividend Policy - PPL has a history of distributing dividends and plans to increase them annually by 6-8% through at least 2028, with a current quarterly dividend rate of 27.25 cents [16][17] - The current dividend yield stands at 2.88%, outperforming the S&P 500 group's yield of 1.48% [16] Market Performance - Over the past year, PPL's shares have increased by 17.3%, outperforming the Zacks Utility-Electric Power industry's growth of 11.6% and the S&P 500's growth of 16% [6][7] - PPL's trailing 12-month return on equity is 8.81%, which is below the industry average of 10.35% [18] Valuation - PPL is currently trading at a premium on a forward 12-month P/E basis, with a P/E of 19.3X compared to the industry's 15.65X [22] - The company is well-positioned to benefit from increasing energy demand while its cost-saving initiatives are expected to support margin expansion [23]