Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on PPL, and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][10]. Group 1: Brokerage Recommendations for PPL - PPL has an average brokerage recommendation (ABR) of 1.57, indicating a consensus between Strong Buy and Buy, based on recommendations from 15 brokerage firms [2]. - Out of the 15 recommendations, 10 are classified as Strong Buy, accounting for 66.7%, while one is a Buy, making up 6.7% of the total [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five Strong Buy recommendations for every Strong Sell [6][10]. - The ABR may not be up-to-date, as it does not reflect the latest changes in earnings estimates, which can mislead investors [12]. Group 3: Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more effective indicator of near-term stock price performance compared to ABR [8][11]. - The Zacks Rank is timely and reflects changes in earnings estimates quickly, unlike the ABR [12]. - For PPL, the Zacks Consensus Estimate for the current year remains unchanged at $1.82, leading to a Zacks Rank of 3 (Hold) [13][14].

Core Viewpoint - PPL Corporation has shown a mixed performance in the stock market, with a 2.5% increase in shares over the last three months, underperforming the Zacks Utility-Electric Power industry's 5.2% rally, while maintaining strong financial discipline and efficient execution of plans [1][2]. Price Performance - PPL shares have gained 2.5% in the last three months compared to the Zacks Utility-Electric Power industry's 5.2% increase [1]. - The average trading volume for PPL in the last three months was approximately 5.83 million shares per day, significantly higher than DTE Energy's 1.56 million shares [5]. Factors Supporting PPL Stock - PPL's service areas in Pennsylvania and Kentucky are seeing increased demand from data centers, with projected new requests reaching 50 gigawatts (GW) in Pennsylvania and 6 GW in Kentucky between 2026 and 2034 [7]. - The company plans to invest $20 billion from 2025 to 2028 to meet rising demand and improve service quality, with over 60% of this investment benefiting from "contemporaneous recovery" to minimize regulatory lag [8]. - PPL aims to reduce expenses by at least $175 million by 2026 compared to 2021 levels, which is expected to strengthen profit margins [9]. - PPL plans to invest over $8 billion in electric and gas distribution infrastructure between 2025 and 2028 to enhance system reliability [10]. Earnings Estimates - PPL expects earnings per share (EPS) of $1.75-$1.87 for 2025, with the Zacks Consensus Estimate currently at $1.82 per share [11]. - The Zacks Consensus Estimate indicates year-over-year EPS increases of 7.5% for 2025 and 8.26% for 2026 [11]. Earnings Surprise History - PPL has outperformed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 8.84% [12]. Capital Return Program - PPL continues to return value to shareholders through dividends, with a current annual dividend of $1.09 and projected growth of 6-8% per year through 2027 [14]. - The targeted dividend payout ratio is expected to be in the range of 60-65% [15]. Valuation and Performance Metrics - PPL is currently valued at a premium compared to its industry on a forward 12-month P/E basis [17]. - PPL's trailing 12-month return on equity (ROE) is 9.14%, lower than the industry average of 10.05% [19]. Strategic Outlook - PPL's investments in clean energy generation and infrastructure are expected to support reliable service, aided by efficient operational management and a supportive regulatory environment [21].

Group 1 - PPL Corporation declared a quarterly common stock dividend of $0.2725 per share, payable on July 1, 2025, to shareholders of record as of June 10, 2025 [1] - PPL Corporation is a leading U.S. energy company providing electricity and natural gas to over 3.5 million customers [2] - The company focuses on building smarter, more resilient power grids and advancing sustainable energy solutions [2] Group 2 - PPL Corporation is headquartered in Allentown, Pennsylvania [2] - The company has high-performing, award-winning utilities that address energy challenges [2] - Additional information about PPL Corporation can be found on their website [2]

Financial Data and Key Metrics Changes - PPL achieved targeted earnings per share growth of 6% to 8% in 2024 [25] - The common stock dividend was increased by more than 7% in 2024 [26] - PPL's stock price increased by nearly 20% in 2024, ranking among the best performing regulated utility stocks in the U.S. [28] Business Line Data and Key Metrics Changes - PPL completed over $3 billion in planned infrastructure improvements in 2024 to enhance grid reliability and resilience [24] - Achieved annual O&M savings of approximately $130 million from a 2021 baseline, allowing for over $1 billion in capital investments [24][25] Market Data and Key Metrics Changes - PPL serves approximately 3.6 million customers across its service territories [23] - The company is experiencing unprecedented demand growth, particularly in Pennsylvania, with nearly 11 gigawatts of data center load in advanced planning stages [53] Company Strategy and Development Direction - PPL is focused on creating the utilities of the future, emphasizing innovation, efficiency, and advanced technology [29] - The company plans to invest $20 billion from 2025 to 2028 to strengthen reliability and advance a cleaner energy future [31] - PPL is committed to an all-of-the-above technology approach to achieve net zero carbon emissions by 2050 [52] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of affordability in energy services and ongoing engagement with stakeholders to identify opportunities [25] - The company is adapting to challenges in the energy sector, including the need for new technologies and infrastructure to meet growing demand [54] Other Important Information - PPL has implemented a wildfire mitigation plan, including public safety power shutoff policies and updated emergency response plans [62] - The company is actively exploring nuclear power as part of its strategy to achieve net zero emissions, while also considering advanced small modular reactors [56] Q&A Session Summary Question: Why does PPL have so many directors? - The board size is consistent with industry standards, with 10 members, nine of whom are independent, providing a mix of experience and perspectives [39][40] Question: Why does PPL employ so many contractors? - Contractors are used for specialized expertise, seasonal work, and to provide flexibility in scaling operations [43][45] Question: What impact will tariffs have on PPL's partnership with WindGrid? - Tariffs may affect pricing and timing of offshore wind projects, but PPL remains prepared to participate in future opportunities [48][50] Question: How does PPL support the development of nuclear and fusion power? - PPL recognizes the need for nuclear power in achieving net zero emissions and is exploring partnerships for advanced nuclear technologies [56][58] Question: How is PPL addressing wildfire risks? - PPL has developed a wildfire mitigation plan, including updated training and capital projects to enhance safety and reduce risks [62]

Utilities upgrading aging equipment to defend against stronger storms and support increased energy needs.LOUISVILLE, Ky., May 15, 2025 /PRNewswire/ -- If it feels like Kentucky has experienced Mother Nature's wrath more frequently over the last few years, that's not your imagination. Increasingly, scientists – including at the National Oceanic and Atmospheric Administration – are noting the extreme weather pattern of "Tornado Alley" is expanding eastward. In 2025 alone, Kentucky has experienced up to three ...

For the quarter ended March 2025, PPL (PPL) reported revenue of $2.5 billion, up 8.7% over the same period last year. EPS came in at $0.60, compared to $0.54 in the year-ago quarter.The reported revenue represents a surprise of +4.84% over the Zacks Consensus Estimate of $2.39 billion. With the consensus EPS estimate being $0.53, the EPS surprise was +13.21%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _________ to ___________ | Commission File | Registrant; State of Incorporation; | IRS Employer | | --- | --- | --- | | Number | Address and Telephone ...

Financial Data and Key Metrics Changes - The company reported first quarter GAAP earnings of $0.56 per share, an increase from $0.42 per share in Q1 2024 [6][23] - Adjusted for special items, first quarter earnings from ongoing operations were $0.60 per share, an 11% increase from $0.54 per share a year ago [7][23] - The company remains confident in achieving its 2025 ongoing earnings forecast of $1.75 to $1.87 per share, with a midpoint of $1.81 per share [7][24] Business Line Data and Key Metrics Changes - Kentucky segment results increased by $0.05 per share compared to Q1 2024, driven by higher sales volumes due to mild weather [25] - Pennsylvania regulated segment results increased by $0.03 per share, also due to higher sales volumes and increased transmission revenue [26] - Rhode Island segment results decreased by $0.01 per share, primarily due to lower transmission revenues and higher operating costs [27] Market Data and Key Metrics Changes - The company has nearly 11 gigawatts of data center projects in advanced planning stages in Pennsylvania, up from nearly 9 gigawatts [15] - In Kentucky, the company is managing nearly 6 gigawatts of active data center requests, with recent legislative changes expected to attract more data centers [18] Company Strategy and Development Direction - The company is focused on its "Utility of the Future" strategy, which includes significant infrastructure improvements and capital investments [7][9] - Plans include over $4 billion in infrastructure improvements in 2025 and projected capital investment needs of $20 billion from 2025 to 2028 [7][9] - The company is advocating for legislative changes in Pennsylvania to incentivize new generation construction and reduce reliance on the PJM market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and maintaining strong credit metrics [21] - The company is well-positioned to manage potential trade tariffs, with a significant portion of capital projects and materials sourced domestically [21] - Management highlighted ongoing economic development in Kentucky and the importance of new generation resources to support this growth [12][30] Other Important Information - The company has filed a CPCN request with the Kentucky Public Service Commission for new generation needs and received regulatory approval for cost recovery related to generation retirements [10][11] - The company is advancing key initiatives in Pennsylvania and Rhode Island to enhance energy service reliability [12][14] Q&A Session Summary Question: Advantages of resource adequacy legislation versus IPPs - Management discussed the limitations of the current market and the benefits of a regulated utility model for stability and predictability in power pricing [34] Question: Consideration of equity block or ATM - Management confirmed that the ATM program is the primary tool for equity needs, but they will remain opportunistic in assessing all options [36][38] Question: Impact of tariffs on battery storage projects - Management is actively working with vendors to minimize potential tariff impacts on battery projects and sees a need for these projects due to increasing demand [44] Question: Update on Project Lincoln in Kentucky - Management acknowledged ongoing discussions with the developer and expressed excitement about the project, which is part of the broader interest in Kentucky [47][48] Question: Coal executive order impact on generation planning - Management does not expect immediate impacts from the coal executive order on generation planning but will analyze demand and retirement schedules [56] Question: Data center announcements and ESA agreements - Management indicated that they are entering into ESAs and expect multiple gigawatts of interest, with announcements likely to follow as projects progress [91][73]

Financial Data and Key Metrics Changes - The company reported first quarter GAAP earnings of $0.56 per share, an increase from $0.42 per share in Q1 2024 [21] - Adjusted for special items, first quarter earnings from ongoing operations were $0.60 per share, an 11% increase from $0.54 per share a year ago [7][21] - The company remains confident in achieving its 2025 ongoing earnings forecast of $1.75 to $1.87 per share, with a midpoint of $1.81 per share [7] Business Line Data and Key Metrics Changes - Kentucky segment results increased by $0.05 per share compared to Q1 2024, driven by higher sales volumes due to mild weather [23] - Pennsylvania Regulated segment results increased by $0.03 per share, also due to higher sales volumes and increased transmission revenue from capital investments [23] - Rhode Island segment results decreased by $0.01 per share, primarily due to lower transmission revenues and higher operating costs [24] Market Data and Key Metrics Changes - In Pennsylvania, nearly 11 gigawatts of data center projects are in advanced planning stages, up from nearly 9 gigawatts [14] - The potential capital investment related to these data centers ranges from $700 million to $850 million, with $400 million already in the plan [15] - In Kentucky, the company is managing nearly 6 gigawatts of active data center requests, with recent legislative changes expected to attract more data centers [16] Company Strategy and Development Direction - The company is focused on its "Utility of the Future" strategy, which includes significant infrastructure improvements and capital investments [8] - Plans include over $4 billion in infrastructure improvements in 2025 to enhance grid reliability and resiliency [7] - The company aims for average annual rate base growth of 9.8% from 2025 to 2028, with a target of $20 billion in capital investment needs [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and trade tariffs, noting that 70% to 80% of capital projects are labor-based and most materials are sourced domestically [19] - The company is well-positioned to manage supply chain disruptions and is optimistic about achieving its long-term business plan [20] - Management highlighted ongoing economic development in Kentucky and the importance of new generation resources to support this growth [11] Other Important Information - The company filed a CPCN request with the Kentucky Public Service Commission for new generation needs and received regulatory approval for cost recovery related to the retirement of Mill Creek Unit 1 [9][10] - In Pennsylvania, the company secured approval to increase PPL Electric Utilities' DISC revenue cap to 7.5% [12] Q&A Session Summary Question: Advantages of resource adequacy legislation versus IPPs - Management discussed the limitations of the current capacity market and the benefits of a regulated utility model for stability and predictability in power pricing [31] Question: Consideration of block equity or ATM sufficiency - Management confirmed that the ATM program is the primary tool for equity needs, but they will remain opportunistic in assessing all options [35][36] Question: Impact of tariffs on battery storage projects - Management is actively working with vendors to minimize potential tariff impacts on battery projects and sees a need for these projects due to increasing demand [42] Question: Concerns regarding coal executive order and generation planning - Management does not expect immediate impacts from the executive order on generation planning but will analyze demand and retirement schedules [50] Question: Status of data center announcements in Pennsylvania - Management indicated that they are making progress on projects but do not control the timing of data center announcements [58] Question: Flexibility in large load tariff structures - Management expressed that they are already achieving objectives with existing ESA agreements and would want to maintain flexibility if a model tariff is introduced [62]

Core Viewpoint - PPL Corporation reported strong first-quarter 2025 results, with operating earnings per share (EPS) exceeding estimates and significant revenue growth compared to the previous year [1][2]. Financial Performance - Operating EPS for Q1 2025 was 60 cents, surpassing the Zacks Consensus Estimate of 53 cents by 13.2%, and up from 54 cents in the same quarter last year [1]. - Total revenues reached $2.50 billion, exceeding the Zacks Consensus Estimate of $2.39 billion by 4.8%, and increased by 8.7% from $2.30 billion year-over-year [2]. - Operating income was $678 million, reflecting a 24.4% increase from $545 million in the prior year [3]. Sales and Expenses - The company sold 18,386 gigawatt hours of electricity, marking a 6.6% year-over-year growth [3]. - Total operating expenses were $1.83 billion, up 4% from $1.76 billion in the previous year, primarily due to increased fuel and energy purchases [3]. - Interest expenses rose to $190 million, a 6.1% increase from $179 million in the same period of 2024 [4]. Segment Performance - In the Pennsylvania Regulated segment, adjusted EPS was 25 cents, up 13.6% from 22 cents year-over-year [5]. - The Kentucky Regulated segment reported adjusted EPS of 30 cents, a 20% increase from 25 cents in the previous year [5]. - The Rhode Island Regulated segment saw adjusted EPS of 10 cents, down 9.1% from 11 cents due to lower distribution and transmission revenues [5]. - The Corporate and Other segment incurred a loss of 5 cents per share, compared to a loss of 4 cents in the prior year [6]. Financial Position - As of March 31, 2025, PPL had cash and cash equivalents of $312 million, slightly up from $306 million at the end of 2024 [7]. - Long-term debt was $15.94 billion, a slight decrease from $15.95 billion at the end of 2024 [7]. - Net cash provided by operating activities was $513 million, compared to $282 million in the same quarter last year [7]. Guidance and Future Outlook - PPL reaffirmed its 2025 earnings projection in the range of $1.75-$1.87 per share, with the Zacks Consensus Estimate at $1.82 per share [8]. - The company maintains a long-term annual earnings growth rate target of 6-8% through 2028 [8]. - Planned infrastructure investments are expected to total $20 billion for the period from 2025 to 2028 [8]. - Management anticipates operational and maintenance savings of at least $150 million by 2025 [9].