Duke Energy(DUK) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q3 2025 was $1.81, up from $1.62 in the previous year, representing over 11% growth [3][11] - The company narrowed its full-year guidance range to $6.25-$6.35 [3][20] - Long-term EPS growth rate is reaffirmed at 5-7% through 2029, with confidence to earn in the top half of the range beginning in 2028 [4][20] Business Line Data and Key Metrics Changes - Electric utilities and infrastructure segment increased by $0.24, driven by higher retail sales volumes and new rates [11] - Gas utilities and infrastructure results remained largely flat compared to last year [11] - The other segment decreased by $0.04, primarily due to higher interest expenses [11] Market Data and Key Metrics Changes - The company expects a new five-year capital plan between $95 billion and $105 billion, marking the largest investment plan in the industry [4][20] - The updated Carolinas resource plan anticipates annual customer bill impacts of approximately 2% over the coming decade, below inflation [7] Company Strategy and Development Direction - The company is focused on an ambitious generation build, adding over 13 gigawatts of capacity in the next five years [3][4] - The strategy includes leveraging AI for cost management and pursuing technology-enabled cost structures [5] - The company aims to solidify its late-stage economic development pipeline, converting prospects into firm projects, with significant commitments from data centers and other commercial customers [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the narrowed EPS guidance range and highlighted strong year-to-date results [12][20] - The company is optimistic about regulatory outcomes and expects continued growth from multi-year rate plans in various states [13][15] - Management emphasized the importance of affordability and customer value, noting that average rate changes have been below inflation over the last decade [5][6] Other Important Information - The company has secured all major permit approvals and contracts for new generation projects, with construction already underway [7][8] - The 10-year capital plan is projected to generate over $370 billion in economic output and support nearly 170,000 jobs annually [9] Q&A Session Summary Question: Can you speak to the incremental capital you are looking at? - Management indicated that the capital plan will see investments every year, with a focus on large load customers and energy modernization [25][29] Question: What does the advanced pipeline for large load look like? - Management confirmed a large and diverse pipeline of projects, focusing on credible hyperscalers and third-party developers [58] Question: How does the high end of the 5-7% growth range reflect incremental capital? - Management clarified that the top half of the growth range is included within the provided capital range and is not dependent on being at the high end [55]