PG&E (PCG) Q3 2024 earnings summary

Executive summary

• Core and GAAP EPS for Q3 2024 were $0.37 and $0.27, respectively, with nine-month core EPS at $1.06 and net income at $1.84 billion; 2024 EPS guidance was raised to $1.34–$1.37 and 2025 to $1.47–$1.51, targeting at least 9% annual growth through 2028.

• Five-year capital plan increased by $1 billion to $63 billion through 2028, driven by strong customer demand, regulatory approvals, and system investments.

• No new equity planned for 2024; $3 billion equity issuance expected from 2025–2028, ratably through an ATM program.

• Focus on wildfire mitigation, system hardening, and regulatory compliance, with significant investments and progress on undergrounding and decarbonization.

• Regulatory and legal proceedings, including cost recovery applications and wildfire litigation, continue to materially impact financial results and outlook.

Financial highlights

• Q3 2024 non-GAAP core earnings were $791 million ($0.37/share), up from $513 million ($0.24/share) in Q3 2023; nine-month non-GAAP core EPS reached $1.06, up from $0.76.

• Q3 2024 GAAP net income was $579 million ($0.27/share), up from $351 million ($0.16/share) in Q3 2023; nine-month net income was $1.84 billion.

• Operating cash flow grew to $8.3 billion as of September 30, 2024, up from $4.7 billion at year-end 2023.

• O&M cost reductions on track for at least 2% annual savings, with $200 million net savings planned for 2024.

• Operating income for Q3 2024 was $1.03 billion, up from $401 million in Q3 2023.

Outlook and guidance

• 2024 non-GAAP core EPS guidance raised to $1.34–$1.37; 2025 guidance set at $1.47–$1.51, both up 10% year-over-year.

• Five-year CapEx plan now $63 billion, with at least 9% annual core EPS growth targeted for 2026–2028.

• No new equity planned for 2024; $3 billion equity issuance planned for 2025–2028.

• Capital expenditures for 2024 are estimated at $10.8 billion, with continued focus on safety, climate goals, and wildfire mitigation.

• The CPUC lowered the Utility's allowed ROE from 10.70% to 10.28% effective January 1, 2025.