Financial Data and Key Metrics Changes - The company reported third-quarter GAAP earnings of $0.43 per share, an increase from $0.29 per share in Q3 2024 [31] - Adjusted ongoing earnings were $0.48 per share, a $0.06 increase compared to Q3 2024, driven by higher revenues and lower operating costs [31][32] - The ongoing earnings forecast for 2025 has been narrowed to a range of $1.78-$1.84 per share, with a midpoint of $1.81 per share [5][32] Business Line Data and Key Metrics Changes - The Kentucky segment results increased by $0.02 per share due to higher sales volumes and lower operating costs [33] - The Pennsylvania regulated segment also saw a $0.02 per share increase, driven by higher transmission revenue and distribution rider recovery [33] - The Rhode Island segment results increased by $0.01 per share, primarily due to lower operating costs [34] Market Data and Key Metrics Changes - The economic development pipeline in Kentucky has grown to just under 10 GW of electricity demand, with data center requests totaling about 8.7 GW [22][23] - In Pennsylvania, the number of data center projects in advanced planning stages increased by over 40%, from 14.4 GW to 20.5 GW [16][17] Company Strategy and Development Direction - The company is focused on a utility-to-the-future strategy, with plans for $20 billion in infrastructure investments from 2025 to 2028 [6] - The company aims for average annual rate-based growth of 9.8% and 6%-8% annual EPS and dividend growth through at least 2028 [6] - The company is actively engaged in legislative discussions to spur new generation and stabilize capacity prices in the wholesale markets [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of the ongoing earnings forecast, supported by operational discipline and strategic execution [5][36] - The company is addressing regulatory challenges and is optimistic about future approvals for infrastructure investments [12][13] - Management highlighted the importance of building new generation to meet the growing demand from data centers [19][20] Other Important Information - The company is on track to complete approximately $4.3 billion in infrastructure improvements this year [5] - The company has proposed new tariffs in both Pennsylvania and Kentucky to ensure large load customers pay their fair share [26][27] - The company is committed to maintaining a strong credit profile, with an FFO to debt ratio of 16%-18% [6] Q&A Session Summary Question: What information was missing for the Kentucky CPCN case denial? - Management indicated that the commission felt the CPCN proceeding was not the proper arena for rate mechanisms and encouraged re-filing in future proceedings [44][45] Question: Thoughts on resource adequacy legislation in Pennsylvania? - Management noted that state budget issues are impacting legislative movement but expressed optimism about future discussions and potential solutions with IPPs [49][51] Question: Details on the 20.5 GW data center pipeline? - Management provided insights on the growth of the pipeline and emphasized the company's ability to connect large loads quickly due to a strong transmission grid [59][61] Question: Clarification on the Blackstone JV developments? - Management confirmed ongoing activity with the Blackstone team but did not provide specific timelines for announcements [62][63] Question: Concerns about revenue concentration from data centers? - Management expressed confidence in the regulatory protections in place and the continued demand for power from hyperscalers [96][99]

Financial Data and Key Metrics Changes - The company reported third-quarter GAAP earnings of $0.43 per share, an increase from $0.29 per share in Q3 2024. Adjusted ongoing earnings were $0.48 per share, a $0.06 increase compared to Q3 2024 [31][5][32] - The ongoing earnings forecast for 2025 has been narrowed to a range of $1.78-$1.84 per share, with a midpoint of $1.81 per share [5][32] - The company expects to maintain a strong credit profile with an FFO to debt ratio of 16-18% and a holding company to total debt ratio below 25% [6] Business Line Data and Key Metrics Changes - The Kentucky segment results increased by $0.02 per share due to higher sales volumes and lower operating costs [33] - The Pennsylvania regulated segment also saw an increase of $0.02 per share, driven by higher transmission revenue and distribution rider recovery [33] - The Rhode Island segment results increased by $0.01 per share, primarily due to lower operating costs [34] Market Data and Key Metrics Changes - The economic development pipeline in Kentucky has grown to nearly 10 gigawatts of electricity demand, with data center requests totaling about 8.7 gigawatts [22][23] - In Pennsylvania, the number of data center projects in advanced stages of planning increased by over 40%, from 14.4 gigawatts to 20.5 gigawatts [16][17] Company Strategy and Development Direction - The company is focused on a utility-to-the-future strategy, with plans for approximately $4.3 billion in infrastructure improvements this year and $20 billion in investments from 2025 through 2028 [5][6] - The company aims for average annual rate-based growth of 9.8% and 6-8% annual EPS and dividend growth through at least 2028 [6] - The company is actively engaged in discussions to incentivize new generation development and resource adequacy solutions in Pennsylvania [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of the ongoing earnings forecast, supported by operational discipline and strategic execution [5][36] - The management highlighted the importance of building new generation to meet the growing demand from data centers and emphasized the need for timely investments [19][20] - The management acknowledged the challenges posed by legislative discussions and budget impasses but remains optimistic about future developments [46][47] Other Important Information - The company has proposed a new tariff for large load customers in Kentucky, requiring a 15-year commitment to pay for at least 80% of forecasted demand [26] - A recent proposal in Rhode Island aims to provide bill credits to customers during high winter months, totaling nearly $155 million [27][28] Q&A Session Summary Question: What information was missing for the Kentucky CPCN case denial? - Management indicated that the commission felt the CPCN proceeding was not the proper arena for rate mechanisms and encouraged re-filing in future proceedings [42][44] Question: Thoughts on resource adequacy legislation in Pennsylvania? - Management noted that legislative support exists for new generation but emphasized the need for resolution on the state budget and other gating issues before significant movement occurs [46][47] Question: Can the company provide more details on the 20.5 gigawatts pipeline in Pennsylvania? - Management confirmed that the pipeline consists of projects with signed agreements, and they are confident in their ability to connect this demand to the grid [53][56] Question: Is the company considering acquiring existing gas plants for the joint venture? - Management stated that while acquiring existing assets is not the core strategy, it could be considered if it supports resource adequacy in the short term [85] Question: Concerns about revenue concentration from data centers? - Management expressed confidence in the protections built into tariff structures and does not foresee an unhealthy concentration risk [92][93]

Core Insights - PPL Corporation reported third-quarter 2025 operating earnings per share (EPS) of 48 cents, exceeding the Zacks Consensus Estimate of 46 cents by 4.3% and up from 42 cents in the same quarter last year [1][9] - Total revenues reached $2.24 billion, surpassing the Zacks Consensus Estimate of $2.17 billion by 3.08% and increasing 8.4% from $2.07 billion year-over-year [2] - The company sold 17,944 gigawatt hours of electricity, reflecting a 1.2% increase year-over-year [3][9] Financial Performance - Operating income totaled $569 million, a 32.9% increase from $428 million in the previous year [3] - Total operating expenses were $1.67 billion, up 1.95% from $1.64 billion year-over-year, driven by higher fuel and energy purchases [3] - Interest expenses rose to $210 million, an 11.7% increase from $188 million in the same period of 2024 [4] Segment Performance - Pennsylvania Regulated: Adjusted EPS was 21 cents, up 10.5% from 19 cents year-over-year, driven by increased transmission revenues [5] - Kentucky Regulated: Adjusted EPS was 25 cents, compared to 23 cents in the prior year, attributed to higher sales volumes and lower operating costs [6] - Rhode Island Regulated: Adjusted EPS was a loss of 1 cent, an improvement from a loss of 2 cents year-over-year [6] - Corporate and Other: The segment incurred a loss of 3 cents per share, improved from a loss of 10 cents in the previous year [7] Financial Position - As of September 30, 2025, cash and cash equivalents stood at $1.1 billion, up from $0.3 billion as of December 31, 2024 [8] - Long-term debt increased to $16.93 billion from $15.95 billion as of December 31, 2024 [8] Guidance and Future Outlook - PPL narrowed its 2025 EPS guidance to a range of $1.78-$1.84, reaffirming a long-term annual earnings growth rate of 6-8% through 2028 [11] - The company plans to invest $20 billion in infrastructure from 2025 to 2028 [11]

Financial Data and Key Metrics Changes - The company reported third-quarter GAAP earnings of $0.43 per share, an increase from $0.29 per share in Q3 2024 [27] - Adjusted ongoing earnings were $0.48 per share, a $0.06 increase compared to Q3 2024, driven by higher revenues and lower operating costs [28] - The ongoing earnings forecast for 2025 has been narrowed to a range of $1.78-$1.84 per share, with a midpoint of $1.81 per share [4][28] Business Line Data and Key Metrics Changes - The Kentucky segment results increased by $0.02 per share due to higher sales volumes and lower operating costs [29] - The Pennsylvania regulated segment also saw a $0.02 per share increase, driven by higher transmission revenue and distribution rider recovery [29] - The Rhode Island segment results increased by $0.01 per share, primarily due to lower operating costs [29] Market Data and Key Metrics Changes - The economic development pipeline in Kentucky has grown to nearly 10 gigawatts of electricity demand, with significant contributions from data centers [20] - In Pennsylvania, the number of data center projects in advanced planning stages increased by over 40%, reaching 20.5 gigawatts [14] - The company anticipates $20 billion in infrastructure investments from 2025 through 2028, driving average annual rate-based growth of 9.8% [5] Company Strategy and Development Direction - The company is focused on a utility-to-the-future strategy, with plans to complete approximately $4.3 billion in infrastructure improvements this year [4] - The company aims for 6-8% annual EPS and dividend growth through at least 2028, with EPS growth expected to be in the top half of that range [5] - The company is actively engaged in discussions to incentivize new generation development and mitigate supply price increases for customers [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of the ongoing earnings forecast, supported by operational discipline and strategic execution [4] - The management highlighted the importance of building new generation to meet the growing demand from data centers and emphasized the need for timely investments [17] - The management acknowledged the challenges posed by regulatory processes but remains optimistic about future approvals and outcomes [10][11] Other Important Information - The company has proposed a new tariff for large load customers in Kentucky, requiring a 15-year commitment to pay for at least 80% of forecasted demand [24] - A recent proposal in Rhode Island aims to provide nearly $155 million in customer credits during high winter bills [25] - The company is leveraging its joint venture with Blackstone Infrastructure to build new generation to support data center demand [18] Q&A Session Summary Question: Impact of Kentucky CPCN case on earnings - Management indicated no immediate earnings impact from the CPCN case, as the commission encouraged re-filing for rate mechanisms in future proceedings [34][36] Question: Resource adequacy discussions in Pennsylvania - Management noted that legislative support exists for new generation, and discussions with Independent Power Producers (IPPs) are ongoing to find a middle ground [38][40] Question: Details on the 20.5 gigawatts data center pipeline - Management confirmed that the pipeline includes projects with significant financial commitments, and they are confident in connecting this demand [41][44] Question: Joint venture with Blackstone and existing gas plants - Management clarified that while acquiring existing assets is not the core strategy, it could be considered if it meets resource adequacy needs [55] Question: Concerns about revenue concentration from data centers - Management expressed confidence in the regulatory protections in place and does not foresee an unhealthy concentration risk [57]

Financial Performance - PPL reported Q3 2025 GAAP earnings of $0.43 per share and ongoing earnings of $0.48 per share[8] - The company narrowed its 2025 ongoing EPS forecast range to $1.78 - $1.84 per share, maintaining a midpoint of $1.81 per share[8] - Year-to-date, PPL has agreed to issue approximately $1.4 billion of its total projected $2.5 billion equity needs through 2028 via ATM, utilizing forward sales contract features[37] Capital Investments and Growth - PPL is on track to complete approximately $4.3 billion of capital investments and achieve at least $150 million of cumulative O&M savings in 2025[8] - The company continues to project $20 billion of capital investment needs through 2028, resulting in an average annual rate base growth of 9.8% over the period[8] - PPL anticipates 6%-8% annual EPS and dividend growth through at least 2028[8, 44] Regulatory Updates - A Kentucky rate case stipulation proposes an aggregate increase in annual electricity and gas revenues of approximately $235 million[14] - LG&E would receive a $58 million increase for electric service and a $45 million increase for natural gas service[14] - KU would receive a $132 million increase for electric service[14] - PPL Electric Utilities filed its first distribution base rate change in a decade in Pennsylvania, requesting an annual distribution base rate revenue increase of approximately $356 million, with over $50 million already reflected in customer bills through riders, resulting in a net increase of approximately 8.6% in PPL Electric's total annual revenue[16, 18] Economic Development - Data centers in advanced stages in Pennsylvania increased to 20.5GW (up from 14.4GW in Q2), representing potential transmission capital investment of at least $1 billion with only $0.4 billion reflected in plan[23] - Economic development queue in Kentucky shows total potential load growth of 9.7GW through 2032, including 8.7GW from data center requests[26, 28]

Core Insights - PPL reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and up from $0.42 per share a year ago, representing an earnings surprise of +4.35% [1] - The company generated revenues of $2.24 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.08% and increasing from $2.07 billion year-over-year [2] - PPL shares have increased approximately 11.7% year-to-date, while the S&P 500 has gained 15.1% [3] Earnings Outlook - The future performance of PPL's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $2.32 billion, and for the current fiscal year, it is $1.81 on revenues of $8.67 billion [7] Industry Context - The Utility - Electric Power industry, to which PPL belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact PPL's stock performance [5][6]

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]

Financial Performance - PPL Corporation reported third-quarter 2025 earnings of $318 million, or $0.43 per share, a 49% increase from $214 million, or $0.29 per share in the same quarter of 2024 [1] - For the first nine months of 2025, earnings were $915 million, or $1.23 per share, compared to $711 million, or $0.96 per share for the same period in 2024, reflecting a 28% increase [1] - Adjusted earnings from ongoing operations for Q3 2025 were $355 million, or $0.48 per share, up from $310 million, or $0.42 per share in Q3 2024, marking a 15% increase [2] Earnings Forecast - The company narrowed its 2025 earnings forecast range to $1.78 to $1.84 per share, maintaining a midpoint of $1.81 per share [3][9] - PPL reaffirmed its projection of 6% to 8% annual earnings per share (EPS) and dividend growth through at least 2028, with EPS growth expected to be in the top half of the targeted range [4] Regulatory Developments - PPL highlighted key regulatory milestones, including a Kentucky Public Service Commission decision approving additional generation resources for its subsidiaries in Kentucky [5] - The ruling granted a Certificate of Public Convenience and Necessity to build two new 645-megawatt natural gas combined-cycle units, with expected availability in 2030 and 2031 [5][6] Key Factors Impacting Earnings - Earnings growth was driven by higher sales volumes due to weather, increased earnings from capital investments, and lower operating costs, partially offset by higher interest expenses [14][15] - 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 [11] Segment Performance - The Kentucky Regulated segment reported earnings of $0.25 per share in Q3 2025, compared to $0.23 in Q3 2024 [10] - The Pennsylvania Regulated segment reported earnings of $0.21 per share in Q3 2025, up from $0.19 in Q3 2024 [10] - The Rhode Island Regulated segment reported earnings of $0.04 per share in Q3 2025, compared to $0.02 in Q3 2024 [10]

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]