Duke Energy (DUK) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EPS was $1.18, up from $0.91 in Q2 2023, driven by electric utility growth, rate increases, higher sales, and favorable weather; reported EPS was $1.13, compared to a loss of $0.32 last year.

• First half 2024 results are in line with expectations, positioning for full-year results within the reaffirmed adjusted EPS guidance of $5.85–$6.10 and long-term EPS growth of 5%-7% through 2028.

• Strong regulatory outcomes with ~$75 billion of rate base investments approved or settled since 2023 across multiple jurisdictions, supporting grid modernization and clean energy initiatives.

• Economic development, especially from data centers and advanced manufacturing, is driving robust load growth and customer expansion in key regions.

• Rapid response to Hurricane Debby, restoring 90% of affected customers within a day.

Financial highlights

• Q2 2024 adjusted EPS was $1.18, up from $0.91 in Q2 2023; reported EPS was $1.13; six-month adjusted EPS was $2.62, up from $2.10; net income for Q2 was $886 million, up from a $234 million loss.

• Operating revenues for Q2 2024 were $7.17 billion, up from $6.58 billion; six-month revenues reached $14.84 billion, up from $13.85 billion.

• Electric Utilities & Infrastructure segment income increased by $265M year-over-year, benefiting from rate increases, improved weather, and higher sales; Gas Utilities & Infrastructure segment income declined by $19M due to higher expenses.

• Consolidated adjusted net income for H1 2024 was $2,023M, up from $1,624M in H1 2023.

• Cash flow from operations for the first half of 2024 was $5.43 billion, up from $3.79 billion.

Outlook and guidance

• 2024 adjusted EPS guidance range reaffirmed at $5.85–$6.10, with a 5–7% annual growth rate targeted through 2028 off the 2024 midpoint.

• Projected total load growth of ~2% in 2024, with 1.5–2% annual growth expected through 2028; comprehensive update on load and capital plan expected in February 2025.

• Capital plan of $73 billion focused on grid and generation investments.

• Long-term dividend payout ratio targeted at 60–70% of adjusted EPS; 3.7% dividend yield as of August 2, 2024.

• Company expects to recover $1.9 billion of deferred fuel costs in 2024 and return to historical average balances by year-end.