PPL's Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

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].