PG&E (PCG) Q2 2025 earnings summary

Executive summary

• Q2 2025 non-GAAP core EPS was $0.31 and GAAP EPS was $0.24, both flat year-over-year; first half non-GAAP core EPS was $0.64, with full-year non-GAAP core EPS guidance reaffirmed at $1.48–$1.52 and at least 9% annual growth targeted through 2028.

• $63 billion five-year capital plan through 2028 is fully funded, with no further equity needs, focusing on grid safety, reliability, and supporting economic growth.

• Customer bills are projected to remain flat or decrease through 2027, supported by cost controls, capital investments, and beneficial load growth from data centers.

• Legislative and regulatory developments on wildfire risk, affordability, and safety remain top priorities, with confidence in constructive policy outcomes.

• Significant wildfire-related liabilities and recoveries continue to impact financials, with ongoing cost recovery efforts and reliance on the Wildfire Fund.

Financial highlights

• Q2 2025 net income available for common shareholders was $521 million; non-GAAP core earnings were $674 million ($0.31/share), and GAAP EPS was $0.24, all flat year-over-year.

• Total operating revenues for Q2 2025 were $5.9 billion, down from $6.0 billion in Q2 2024, mainly due to lower interim rate relief and reduced pass-through costs.

• Operating and maintenance expenses increased 4% in Q2 2025, mainly due to extended operations at DCPP and interim rate relief costs.

• Adjusted EBITDA for Q2 2025 was $2,362 million, up from $2,283 million in Q2 2024.

• $2.5 billion in capital and expense savings achieved from 2022–2024, with annual non-fuel O&M cost reductions exceeding $200 million.

Outlook and guidance

• 2025 non-GAAP core EPS guidance reaffirmed at $1.48–$1.52; 2026–2028 core EPS growth targeted at least 9% annually.

• Dividend payout ratio targeted at 20% by 2028.

• Customer bills expected to remain flat in 2025, decrease in 2026, and be flat or down in 2027 compared to today.

• Capital expenditures for 2025 are estimated at $12.9 billion.

• Guidance incorporates assumptions on capital expenditures, rate base, equity issuances, and regulatory outcomes.