PPL Q2 Earnings Call Highlights

PPL reaffirmed its 2026 outlook, reporting second-quarter ongoing earnings of $0.33 per share and maintaining its full-year forecast of $1.90–$1.98 per share. The company expects stronger earnings growth in the second half following Pennsylvania and Rhode Island rate outcomes. PPL deployed $2.3 billion in capital during the first half of 2026 and remains on track for roughly $5 billion for the year, while targeting more than 10% annual rate-base growth and 6%–8% annual EPS growth through at least 2029. Data-center and generation opportunities are expanding: Pennsylvania signed data-center agreements reached roughly 32 gigawatts, while Kentucky’s pipeline grew to 13.7 gigawatts. PPL also expects Invitium, its Blackstone joint venture, to secure one or more commercial agreements by year-end, though material earnings are not expected before 2030.

PPL NYSE: PPL reported second-quarter 2026 GAAP earnings of $0.30 per share, up from $0.25 per share a year earlier, while ongoing earnings rose to $0.33 per share from $0.32 per share. The company reaffirmed its full-year ongoing earnings forecast of $1.90 to $1.98 per share, with a midpoint of $1.94 per share, citing expected stronger earnings growth in the second half following rate outcomes in Pennsylvania and Rhode Island. President and CEO Vince Sorgi said the utility is pursuing its existing capital plan while building visibility into additional growth opportunities tied to large-load customers, including data centers, and its Invitium Energy joint venture with Blackstone.

Capital plan and financial outlook PPL said it deployed approximately $2.3 billion of capital through the first six months of 2026, about 30% more than it deployed during the same period in 2025. The company remains on pace to invest about $5 billion for the full year and continues to project $23 billion of capital investment needs through 2029. The company reaffirmed its targets for average annual rate-base growth of more than 10%, annual earnings-per-share growth of 6% to 8% through at least 2029, annual dividend growth of 4% to 6%, and funds from operations-to-debt of 16% to 18%. PPL expects EPS growth to be near the upper end of its stated range, excluding any contribution from Invitium.

Chief Financial Officer Joe Bergstein said PPL completed its 2026 financing needs earlier in the second quarter through debt offerings at PPL Electric and Rhode Island Energy. He said the offerings were oversubscribed and secured long-dated capital at attractive terms. By segment, Kentucky results were flat year over year, as higher base-rate recovery was offset by less favorable weather-driven sales volumes, higher operating costs, depreciation and interest expense. Pennsylvania regulated earnings declined by $0.01 per share, while Rhode Island earnings increased by $0.02 per share, aided by higher rider revenue and lower operating costs.

Rate cases advance in Pennsylvania and Rhode Island PPL Electric’s Pennsylvania rate-case settlement took effect July 1, approving a $275 million increase. Sorgi said the increase supports infrastructure investment while representing less than a 4% increase across rate classes. He added that PPL Electric delivery rates remain nearly 20% below the latest published state average. The settlement includes a two-year stay-out provision for base-rate increases through July 1, 2028. Bergstein said PPL intends to use the state’s Distribution System Improvement Charge, or DISC, mechanism and cost discipline to maximize the period between rate cases. The company plans to file an updated fiv...