Financial Data and Key Metrics Changes - For Q1 2025, operating revenue was $204 million, compared to $270.7 million in Q1 2024, reflecting a decrease due to interim rate relief recorded in the previous year [8] - Net income attributed to the group was $13.3 million or $0.22 per diluted share, down from $69.9 million or $1.21 per diluted share in Q1 2024 [9] - Adjusted for interim rate relief, Q1 revenue increased by 13% over non-GAAP 2024 revenue of $180.5 million, and net income increased by 225% over non-GAAP income of $4.1 million [10] Business Line Data and Key Metrics Changes - Capital investments during the quarter totaled $110.1 million, consistent with the record quarter reported in Q1 2024 [11] - The company expects annual capital expenditures to increase over the next five years due to ongoing infrastructure needs [12] Market Data and Key Metrics Changes - As of March 31, 2025, the company had $44.5 million in unrestricted cash, $45.7 million in restricted cash, and $315 million available on credit lines, indicating a strong liquidity profile [12] Company Strategy and Development Direction - The company is focused on rate base growth, targeting a compounded annual growth rate of approximately 11.7% [12] - The ongoing greenfield development in Texas is progressing well, with a focus on the South Austin corridor [23] - The company is also evaluating domestic M&A opportunities as a supplemental growth strategy [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the 2021 general rate case, noting that discussions with the California Public Advocates are ongoing [14][15] - The company is managing controllable expenses tightly due to market volatility and inflation, while maintaining a focus on capital execution [22][23] - Management is optimistic about the water supply situation in California, with strong snowpack and reservoir levels above historical averages [20][21] Other Important Information - The Board of Directors approved a quarterly dividend of $0.30 per share, representing a 10.7% increase from the previous year [13] - The company received regulatory approvals for various projects, including the Palos Verdes Peninsula Water Reliability Project, which is the largest in the company's history [17][18] Q&A Session Summary Question: Key points of contention in the California GRC - Management indicated that they cannot disclose specific details due to ongoing settlement discussions but are identifying non-contested areas for submission to the judge [28][30] Question: Comparison of the current GRC to the previous one - Management noted that the current GRC is progressing better than the previous one, with more positive engagement from the commissioner and advocates [36][39] Question: Managing costs amid market volatility - Management stated that it is too early to predict the impact of tariffs and supply chain issues but remains optimistic based on past experiences managing supply constraints [41][42] Question: Drivers behind better-than-expected Q1 results - Management attributed the positive results to effective budget management, a more accurate water mix in the rate case, and higher customer usage [51][55] Question: Potential for a global settlement in the GRC - Management expressed uncertainty about achieving a global settlement but remains hopeful as they proceed with the hearings [60][62]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q1 2025 were $1.05, an increase of nearly 11% compared to $0.95 in Q1 2024, affirming the company's full-year EPS guidance of 8% growth [7][12] - Consolidated reported earnings were $1.50 per share, up $0.10 per share versus the same period in 2024, with revenues higher by $0.44 per share due to authorized rate increases and acquisitions [13][14] - Operating costs increased by $0.15 per share, primarily due to employee-related costs and acquisition-related expenses [14] Business Line Data and Key Metrics Changes - The company achieved a constructive settlement in the general rate case in Missouri, with an annualized revenue increase of $63 million expected [15] - In Virginia, a settlement approved a $15 million annualized increase in water and wastewater revenues [15] Market Data and Key Metrics Changes - The company continues to expect to grow its dividend at 7% to 9% per year, in line with its EPS growth target [11] - The total debt to capital ratio was 58%, within the target of less than 60%, with strong credit ratings affirmed by S&P and Moody's [21] Company Strategy and Development Direction - The company aims for long-term earnings and dividend growth of 7% to 9%, driven by a capital investment program targeting approximately $3.3 billion in 2025 [10][22] - The company is focused on infrastructure investments, particularly in PFAS remediation and lead service line replacement, while maintaining a strong regulatory and operational execution [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute financial and operational plans, with no expected material impact from recent tariff-related announcements [20] - The company highlighted the need for significant investments in U.S. water infrastructure, estimating a total of $625 billion over the next twenty years [29] Other Important Information - The Board approved an increase in the quarterly cash dividend from $0.765 to $0.825 per share, marking an 8.2% increase [11] - The company is well-positioned for growth through acquisitions, with approximately 37,000 customer connections under agreement [26] Q&A Session Summary Question: Thoughts on pulling forward 2026 equity issuance - Management stated there are no plans to pull forward equity issuance and will evaluate the market as needed [37] Question: Acquisition outlook under potential recession - Management expects a continuous flow of acquisition opportunities, potentially driven by recession or reduced federal funding [38] Question: Update on California rate case - Management did not disclose the percentage increase for the California rate case and confirmed a separate proceeding for cost of capital [43][44] Question: Update on California desalination project - Management confirmed that the last major permit approval was received, and they expect to break ground on the desalination project this year [49] Question: Legislative progress and opportunities - Management did not quantify the opportunities from legislative changes but noted they would help earned returns in each state [56]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $3.6 per share for Q2 FY 2025, an increase from $3.45 per share in the same quarter last year, reflecting strong growth in utility and midstream segments [7] - Adjusted earnings for the quarter totaled over $214 million, an increase of almost $18 million compared to the previous year [17] - The Gas Utilities segment had earnings of approximately $195 million, over $7 million higher than last year, driven by increased ISRS revenues and usage [18] Business Line Data and Key Metrics Changes - The utility CapEx increased nearly 27% year over year, focusing on upgrading distribution infrastructure and connecting more homes to natural gas [14] - Midstream segment earnings showed strong growth due to new contracts and higher rates on contract renewals [19] - Marketing segment earnings were strong but slightly lower than the prior year due to reduced market volatility [20] Market Data and Key Metrics Changes - The labor market in St. Louis has fully recovered, reaching pre-pandemic employment levels, which is expected to drive economic growth [12] - The Missouri Public Service Commission staff recommended a $19 million revenue increase in the infrastructure system replacement surcharge [8] Company Strategy and Development Direction - The company remains focused on organic growth, infrastructure investment, and continuous improvement, with a long-term EPS growth target of 5% to 7% [11][26] - A ten-year capital investment plan of $7.4 billion is in place to support growth [11] - The company is committed to modernizing systems and enhancing regulatory engagement to maximize value for stakeholders [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 adjusted earnings guidance of $4.4 to $4.6 per share, despite challenges from weather-related margin headwinds [22][26] - The company is focused on executing its capital investment plan and driving operational excellence to strengthen utility and gas-related business performance [11][26] Other Important Information - The company is increasing its fiscal 2025 capital investment target by $50 million to $840 million, with significant investments in both utility and midstream segments [14] - The Missouri rate case is ongoing, with proposed revenue increases and discussions on weather mechanisms being a key focus [15][42] Q&A Session Summary Question: Can you speak about 1H trends and full-year guidance? - Management acknowledged margin weakness in Missouri and adjusted guidance accordingly, while midstream performance exceeded expectations [31][32] Question: What are the prospects for a settlement within the rate case? - Management indicated that settlement discussions are anticipated, with community meetings and public hearings scheduled [46] Question: Can you elaborate on the weather mechanism in the rate case? - Management confirmed that the weather mechanism is a significant focus and they are working on options to address it with stakeholders [42][44] Question: How does the passage of SB4 affect future rate cases? - Management stated that the first opportunity to file based on a future test year will be in July 2026, and they are focused on the current rate case [51][53] Question: How does the guidance modification reflect the utility business's earnings power? - Management confirmed that fixing the weather mechanism could restore earnings power, while midstream and marketing businesses show slight structural uplift [61][64]

Financial Data and Key Metrics Changes - The company reported a 2.4% increase in first quarter sales to $1.4 billion, driven by a 4.9% benefit from acquisitions and a 2.6% increase from higher prices, partially offset by a 3.8% decline in volumes [13] - Adjusted operating income margin declined by 60 basis points to 16.9%, with acquisitions and the impact from Turkey contributing to an unfavorable 110 basis point impact [7][16] - Adjusted earnings per share were $2.16, slightly lower than expected, impacted by a $0.05 headwind from Turkey and unfavorable foreign exchange [8][16] - The company generated record cash flows with a 130% cash conversion ratio and returned $150 million to shareholders through dividends and share repurchases [8][22] Business Line Data and Key Metrics Changes - Americas Welding sales increased approximately 5%, driven by nearly 8% from acquisitions and 2% from higher prices, but were offset by 4% lower volumes [16] - International Welding segment sales declined approximately 7%, primarily due to 6% lower volumes, but would have increased 3% excluding Turkey's impact [19] - Harris Products Group saw a 9% increase in sales, with a 9.5% increase in price and a 60 basis point increase in volumes, reflecting strength in the HVAC industry [20] Market Data and Key Metrics Changes - Organic sales declined 1.2% in the quarter, with a 190 basis point unfavorable impact from Turkey [10] - Automation's organic sales remained steady year over year, with double-digit international growth offset by ongoing compression in the American region [10] - Heavy Industries remained challenged, with expectations of continued difficulties until production activity normalizes in the agricultural sector [11] Company Strategy and Development Direction - The company is focused on driving margin improvement and increasing returns to shareholders while managing evolving market conditions [5] - Strategic operational initiatives are being advanced to mitigate inflation and improve profitability [12] - The company is committed to maintaining a price-cost neutral position while responding to tariffs and inflationary pressures [78] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding customer capital spending, which is impacting automation demand and overall volume performance [39][40] - The company expects to generate incremental savings of $15 million to $20 million year over year in the second quarter, with a potential easing in savings rate in the third quarter [9] - There is uncertainty regarding the back half of the year due to delayed decision-making from customers and evolving trade policies [72] Other Important Information - The company has temporarily suspended merit increases to manage costs until customer demand trends are clearer [9] - Full year 2025 organic sales are expected to be relatively flat year over year, with a focus on mitigating the impact of tariffs through pricing and operational initiatives [23][25] Q&A Session Summary Question: Can you discuss growth excluding heavy industries and volume trends? - Management noted that while four out of five end markets showed growth, there is uncertainty about sustaining that momentum due to cautious capital investment spending [30][34] Question: What are customers looking for to resume capital projects? - Management indicated that customers are delaying decisions due to uncertainty in trade policies and macroeconomic conditions [38] Question: What is the split between direct price increases and surcharges? - Management stated that pricing is essentially flattish in the first quarter, with a mix of traditional pricing and surcharges to address tariffs [44] Question: How are the integrations of Red Viking and Van Aire progressing? - Integration of both acquisitions is on schedule, but results are expected to be dilutive in the first three years [47][49] Question: What is the outlook for automation business hitting $1 billion this year? - Management expressed that while the fundamentals are strong, they do not expect to hit the $1 billion target due to current order patterns and capital investment trends [56] Question: How are tariffs impacting cost structures? - Management highlighted that approximately 20% of overall COGS is exposed to tariffs, affecting steel and components sourced from various countries [74] Question: Will pricing gains be retained if the tariff situation improves? - Management indicated they will remain agile and responsive to market conditions, managing pricing based on evolving circumstances [80]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $3.6 per share for Q2 FY 2025, an increase from $3.45 per share a year ago, reflecting strong growth in utility and midstream segments [8][12] - Adjusted earnings for the quarter totaled over $214 million, an increase of almost $18 million compared to the previous year [18] - The Gas Utilities segment had earnings of approximately $195 million, over $7 million higher than last year, driven by increased ISRS revenues and usage [19] Business Line Data and Key Metrics Changes - The utility CapEx increased nearly 27% year over year, focusing on upgrading distribution infrastructure and connecting more homes to natural gas [15] - Midstream segment earnings showed strong growth due to new contracts and higher rates on contract renewals [19] - Marketing segment earnings were strong but slightly lower than the prior year due to reduced market volatility [19] Market Data and Key Metrics Changes - The company experienced colder temperatures in both Missouri and Alabama compared to last year, impacting volumetric margins [20] - The weather mitigation adjustment in Missouri was ineffective, leading to misalignment between revenues and usage [20] Company Strategy and Development Direction - The company is focused on organic growth, infrastructure investment, and continuous improvement, with a long-term EPS growth target of 5% to 7% [12][27] - A ten-year capital investment plan of $7.4 billion is in place, with an increased fiscal 2025 capital investment target of $840 million [15][12] - The company aims to modernize systems and enhance regulatory engagement to maximize value for customers and stakeholders [7][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 adjusted earnings guidance of $4.4 to $4.6 per share, despite challenges from weather-related margin headwinds [12][22] - The company is committed to executing its capital investment plan and driving operational excellence [12][27] - Management highlighted the positive economic developments in St. Louis, including job growth from Boeing's new contracts [13] Other Important Information - The Missouri Public Service Commission staff recommended a $19 million revenue increase in the infrastructure system replacement surcharge [10] - Senate Bill four was signed into law, allowing utilities to set rates based on projected costs, which is expected to enhance system reliability [11] Q&A Session Summary Question: Can you speak about 1H trends and full-year guidance? - Management acknowledged margin weakness in Missouri but noted strong performance in the midstream segment, indicating a mixed outlook for the utility business [32][34] Question: Is weather the sole deviation on the utility side? - Management confirmed that weather-related margin issues were the main driver of the deviation, with some minor additional factors [34] Question: Is the $8 million increase in midstream guidance a one-off? - Management indicated that while there is some optimization contributing to the increase, it suggests a potential uplift in run rate over time [36] Question: What are the prospects for a settlement within the rate case? - Management expressed optimism about engaging in constructive discussions with stakeholders regarding the rate case [48][49] Question: Timing on future rate cases after SB4? - Management clarified that the first opportunity to file based on a future test year would be in July 2026, with current focus on the ongoing rate case [56] Question: Will there be a rulemaking process before filing for a future test year? - Management confirmed that rulemaking is required and they will actively participate once it begins [72]

1 st Quarter 2025 Investor Update April 30, 2025 PPL CORPORATION Cautionary Statements and Factors That May Affect Future Results Statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the forward-looking statements. A discussion of some of the factors that could cause actual results or events to vary is contain ...

Financial Data and Key Metrics Changes - Revenues for the quarter were nearly $1 billion, while EBITDAR was $338 million, maintaining property level margins of 40%, consistent with the prior year [5][19] - The company reported a 28% increase in weather-impacted days compared to last year, yet managed to grow revenues and EBITDAR in the Midwest and South segment [10][19] - The online segment grew EBITDAR by nearly 14% year over year, driven by stable performance from market access agreements and strong growth from Boyd Interactive [11] Business Line Data and Key Metrics Changes - In the Las Vegas Locals segment, revenues were nearly even with the prior year, while EBITDAR was down less than 4%, primarily due to competitive pressures at the Orleans [8] - Downtown Las Vegas achieved both revenue and EBITDAR growth during the first quarter, with solid visitation from Hawaii and healthy pedestrian traffic along Fremont Street [9] - The managed and other business saw strong growth driven by management fees from Sky River Casino, with ongoing expansion activities set to enhance future growth [12] Market Data and Key Metrics Changes - Customer trends remained consistent through April, with no meaningful shifts in consumer behavior or spending patterns observed thus far in the second quarter [6][20] - The company noted that Hawaiian visitation to the downtown segment was temporarily impacted last year by higher airfares related to the Super Bowl, creating a favorable comparison for the first quarter of this year [9] Company Strategy and Development Direction - The company is focused on enhancing competitiveness through property renovations and expansions, including a $750 million resort project in Norfolk, Virginia, scheduled for completion in late 2027 [17][18] - Capital investment programs are aimed at creating long-term shareholder value, with a commitment to return capital through stock repurchases and dividends [19][26] - The company remains cautious about M&A opportunities, emphasizing a disciplined approach to acquisitions that align with strategic goals [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the company, citing a strong balance sheet and diversified business as key strengths in navigating economic uncertainty [7][20] - The company acknowledged the potential for increased costs due to tariffs but indicated that current budgets would not be significantly impacted [49][52] Other Important Information - The company repurchased $328 million in stock during the first quarter and paid $15 million in dividends, with plans to continue repurchasing $100 million in shares per quarter [19][26] - The company is actively managing operating expenses and exploring efficiencies to mitigate inflationary pressures [96] Q&A Session Summary Question: Plans for Paradise Riverboat Casino - The company has a list of development projects prioritized based on expected returns, with plans to upgrade older riverboats over time [33][34] Question: Outlook for Core and Retail Customers - Management sees core customer trends continuing to grow, with retail customers performing consistently, despite some noise from external factors [38][39] Question: Buyback Strategy and Timing - The company balanced its buyback strategy with maintaining a strong balance sheet, taking advantage of favorable stock prices in Q1 while remaining cautious moving forward [44][46] Question: Impact of Tariffs on Capital Projects - The company evaluated capital projects for potential deferral and identified sources to mitigate tariff impacts, ensuring budgets remain intact [49][50] Question: Competitive Landscape in Locals Market - The locals market has seen slight shrinkage, but the company has outperformed the overall market, particularly excluding the Orleans property [78][80] Question: Hawaiian Travel and Weather Impact - The company estimated a $5 million impact from weather on EBITDA for the quarter, with Hawaiian travel normalized compared to last year [74][71] Question: Non-Gaming Amenities Spending - Spending on food and beverage and hotel services is up on a cash basis, with no significant declines noted in non-gaming amenities [66] Question: Canadian Travel Impact - Canadian visitation is a minor segment for the company, accounting for less than 0.1% of business, thus not significantly impacting overall performance [103] Question: Future of iGaming Platform - The company aims to grow its Stardust iGaming platform modestly, focusing on markets where it operates, without significant acquisitions planned [90][91]