PPL(PPL) - 2024 Q4 - Annual Results

Financial Performance - PPL Corporation reported 2024 earnings of $888 million, or $1.20 per share, a 20% increase from 2023 earnings of $740 million, or $1.00 per share[2]. - Adjusted earnings from ongoing operations for 2024 were $1.25 billion, or $1.69 per share, compared to $1.18 billion, or $1.60 per share in 2023, reflecting a 6% increase[2]. - The company achieved a midpoint ongoing earnings forecast of $1.69 per share for 2024, representing a 7% increase over the midpoint of the 2023 target[5]. - Net income for 2024 increased to $888 million, up from $740 million in 2023, representing a 20% growth[48]. - Reported earnings for the full year 2024 totaled $888 million, compared to $756 million in 2023, indicating a 17.5% increase[54]. - Net income for Q4 2024 was $177 million, compared to $113 million in Q4 2023, reflecting a 56.6% increase[46]. - Earnings per share (EPS) for Q4 2024 was $0.24, up from $0.15 in Q4 2023, representing a 60% increase[46]. - Diluted earnings per share for Q4 2023 were $0.15, while for the full year 2023, it was $1.00[60]. Revenue and Sales - PPL Corporation reported operating revenues of $2,211 million for Q4 2024, an increase of 8.9% from $2,031 million in Q4 2023[46]. - Retail electricity sales in the PA Regulated Segment for 2024 were 36,611 GWh, a 2.5% increase from 35,704 GWh in 2023[50]. - Total electricity sales for 2024 reached 66,720 GWh, reflecting a 3.4% increase from 64,513 GWh in 2023[50]. Capital Investments and Growth Initiatives - PPL completed $3.1 billion in capital investments in 2024 to enhance grid resilience and advance a cleaner energy mix[6]. - PPL increased its planned infrastructure investments to $20 billion from 2025 through 2028, resulting in an average annual rate base growth of 9.8%[11]. - The company projects equity needs of $2.5 billion over the plan period to support its growth initiatives[12]. - PPL expects to achieve cumulative annual O&M efficiencies of at least $150 million in 2025, building on previous transformation initiatives[13]. Dividends and Shareholder Returns - An approximately 6% increase in the quarterly common stock dividend was announced, raising it from $0.2575 to $0.2725 per share[14]. - The company extended its annual EPS and dividend growth targets of 6% to 8% through at least 2028, with expected EPS growth in the top half of this range[10]. Operating Expenses and Financial Position - Total operating expenses for Q4 2024 were $1,834 million, an increase from $1,641 million in Q4 2023, reflecting a rise of 11.7%[46]. - The company’s cash and cash equivalents decreased to $306 million as of December 31, 2024, down from $331 million in 2023[44]. - PPL's long-term debt increased to $15,952 million in 2024 from $14,611 million in 2023, a rise of 9.2%[44]. - Net cash provided by operating activities rose to $2,340 million in 2024, compared to $1,758 million in 2023, marking a 33% increase[48]. - The company reported a net cash used in investing activities of $2,818 million in 2024, compared to $2,383 million in 2023[48]. Special Items and Litigation Costs - The company incurred $2 million in litigation costs related to its former affiliate, impacting reported earnings[55]. - Special items reduced earnings from ongoing operations by $362 million for the full year 2024[54]. - The acquisition of Narragansett Electric resulted in a cash outflow of $3,660 million, affecting investing activities[48]. - The company incurred Talen litigation costs of $(99) million for the full year 2023, affecting net income[60]. - Acquisition integration costs for the full year 2023 were $(274) million, primarily related to the acquisition of Rhode Island Energy[60]. - The PPL Electric billing issue resulted in a $(24) million impact on earnings for the full year 2023[60]. - Unbilled revenue estimate adjustments negatively impacted earnings by $(5) million for the full year 2023[60]. - The company reported a total of $(443) million in special items for the full year 2023, which included various non-recurring charges[60]. - The strategic corporate initiatives incurred costs of $(13) million for the full year 2023, reflecting ongoing centralization efforts[60]. Management Focus and Strategic Initiatives - The company is focused on building smarter and more resilient power grids and advancing sustainable energy solutions[35]. - PPL Corporation's management emphasizes the importance of "Earnings from Ongoing Operations" as a non-GAAP measure for assessing performance[39].