PPL(PPL) - 2025 Q3 - Quarterly Results

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]