Duke Energy(US:DUK)2025-11-07 17:13Financial Performance - Duke Energy's adjusted EPS for Q3 2025 was $1.81, an increase from $1.62 in Q3 2024, driven by new rates and higher sales volumes [413]. - GAAP reported EPS for Q3 2025 was $1.81, up from $1.60 in Q3 2024, primarily due to the net impact of prior year adjustments [412]. - GAAP reported EPS for the nine months ended September 30, 2025, was $4.81, an increase from $4.17 for the same period in 2024, primarily due to prior year impairments and nonrecurring charges [417]. - Adjusted EPS for the nine months ended September 30, 2025, was $4.81, compared to $4.24 in 2024, driven by new rates, higher retail sales volumes, and partially offset by increased expenses [418]. - Operating income for the nine months ended September 30, 2025, was $552 million, up 19.5% from $462 million in 2024 [438]. - Net income for the nine months ended September 30, 2025, was $1,622 million, an increase of 15.4% compared to $1,405 million in 2024 [456]. - Operating revenues for the nine months ended September 30, 2025, increased to $11,110 million, up from $10,445 million in 2024, representing a variance of $665 million [461]. - Operating income rose to $2,892 million in 2025, compared to $2,572 million in 2024, reflecting an increase of $320 million [461]. - Net income for the period was $1,910 million, an increase of $276 million from $1,634 million in 2024 [461]. Revenue and Sales - Operating revenues for the three months ended September 30, 2025, were $8,180 million, up $328 million from $7,852 million in 2024 [425]. - Total electric utilities and infrastructure GWh sales for the three months ended September 30, 2025, were 72,880 GWh, slightly up from 72,756 GWh in 2024 [425]. - Operating revenues for Duke Energy Progress increased by $274 million to $5,612 million in 2025, compared to $5,338 million in 2024 [469]. - Duke Energy Florida's operating revenues rose by $394 million to $5,486 million in 2025, up from $5,092 million in 2024 [474]. - Duke Energy Indiana reported operating revenues of $2,671 million for the nine months ended September 30, 2025, an increase of $329 million (14.0%) compared to $2,342 million in 2024 [484]. - Piedmont's operating revenues increased to $1,463 million in 2025, up $324 million (28.5%) from $1,139 million in 2024, primarily driven by higher pricing from the 2024 Indiana rate case [489]. Expenses and Costs - Operating expenses for the three months ended September 30, 2025, totaled $5,878 million, an increase of $135 million from $5,743 million in 2024 [425]. - A $940 million decrease in fuel used in electric generation and purchased power was noted, primarily due to lower fuel cost recovery and the expiration of contracts in the prior year [437]. - Operating expenses for the same period rose to $382 million, a 19.7% increase from $319 million in 2024, primarily driven by a $40 million increase in the cost of natural gas [438]. - Total operating expenses for the nine months ended September 30, 2025, were $8,237 million, an increase of $344 million from $7,893 million in 2024 [461]. - Fuel used in electric generation and purchased power decreased by $423 million to $3,306 million in 2025, down from $3,729 million in 2024 [461]. Investments and Agreements - Duke Energy entered into an investment agreement to receive $6 billion for a 19.7% indirect investment in Duke Energy Florida, expected to close between 2026 and mid-2028 [394]. - The sale of Piedmont's Tennessee business to Spire Inc. for $2.48 billion is anticipated to be completed by March 31, 2026, subject to regulatory approvals [394]. - Duke Energy filed applications to merge Duke Energy Progress into Duke Energy Carolinas, targeting an effective date of January 1, 2027, pending regulatory approvals [397]. - Piedmont plans to sell its Tennessee business for $2.48 billion, with proceeds expected to be used for debt reduction and to fund Duke Energy's capital plan [497]. Regulatory and Legislative Developments - Duke Energy Florida's storm cost recovery of approximately $1.1 billion was approved to be recovered over 12 months starting March 2025 [396]. - Duke Energy's regulatory efforts include securing critical investments for reliable customer service while ensuring timely cost recovery across service territories [396]. - The South Carolina Energy Security Act promotes new generation resources and establishes a rate stabilization mechanism for electric utilities [515]. - The North Carolina Power Bill Reduction Act targets carbon neutrality by 2050 and enhances cost recovery mechanisms for baseload generation [516]. - Duke Energy filed the 2025 Carolinas Resource Plan, outlining strategies for diverse generation assets and energy demand management [517]. - The EPA is reconsidering GHG emissions regulations, with a final rule expected by December 2025 [512]. - Duke Energy is involved in legal challenges regarding the 2024 CCR Rule, with proceedings currently in abeyance until December 15, 2025 [513]. - The company anticipates cost recovery for future expenditures through the normal ratemaking process with utility commissions [514]. Customer Metrics - The average number of customers increased by 1.9% for the nine months ended September 30, 2025, compared to the previous year [457]. - The average number of customers for Duke Energy Progress increased by 1.7% in 2025 compared to the prior period [470]. Cash Flow and Financing - Duke Energy's cash flows from operating activities were $8,672 million for the nine months ended September 30, 2025, a decrease of $279 million (3.1%) from $8,951 million in 2024 [506]. - The company had $739 million in cash, cash equivalents, and restricted cash at the end of the period, up from $447 million at the beginning of the period [504]. - Duke Energy extended its Master Credit Facility from $9 billion to $10 billion, with $688 million in cash on hand and $7.5 billion available under the facility as of September 30, 2025 [495]. - Net cash provided by financing activities increased by $632 million to $1,622 million for the nine months ended September 30, 2025, compared to $990 million in 2024 [510]. - The variance in financing activities was primarily due to a $1 billion increase from the redemption of Series B preferred stock in the prior year [510]. - Issuances of long-term debt decreased by $121 million, from $4,927 million in 2024 to $4,806 million in 2025 [510]. - Dividends paid increased by $44 million, from $2,411 million in 2024 to $2,455 million in 2025 [510]. Interest and Tax Expenses - Interest expense for the nine months ended September 30, 2025, increased by $86 million compared to the same period in 2024, driven by higher outstanding debt balances [435]. - The effective tax rates for the three months ended September 30, 2025, and 2024, were 13.5% and 14.1%, respectively, reflecting an increase in pretax income [431]. - The effective tax rate (ETR) for the three months ended September 30, 2025, decreased to 27.8% from 35.9% in 2024, attributed to AFUDC equity and amortization of EDIT [439]. - Interest expense for the nine months ended September 30, 2025, rose to $584 million, an increase of 8.7% from $537 million in 2024 [456]. - Income tax expense rose to $361 million in 2025, an increase of $41 million from $320 million in 2024, mainly due to higher pretax income [461]. Operational Performance - Operating income for the three months ended September 30, 2025, was $2,314 million, an increase of $203 million compared to $2,111 million in 2024 [425]. - Segment income for Electric Utilities and Infrastructure for the three months ended September 30, 2025, was $1,658 million, up from $1,451 million in 2024, indicating strong operational performance [425]. - Duke Energy Indiana experienced a 5.5% increase in residential sales and a 5.3% increase in commercial sales, while industrial sales decreased by 4.4% [487]. - Piedmont reported a 5.2% increase in residential deliveries and a 6.2% increase in commercial deliveries, with total throughput deliveries increasing by 0.9% [492].