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 non-GAAP core EPS at $1.06 and GAAP EPS at $0.85; 2024 EPS guidance narrowed to $1.34–$1.37 and 2025 guidance set at $1.47–$1.51, reflecting 10% growth over 2023 at the midpoint.

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

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

• Focus on safety, wildfire risk mitigation, and strategic undergrounding in high-risk areas, with no major fires due to company equipment in recent years and significant investments in system hardening.

• Operational improvements and process efficiencies are reducing costs, improving customer outcomes, and supporting decarbonization leadership.

Financial highlights

• Q3 2024 GAAP net income was $579 million ($0.27/share), up from $351 million ($0.16/share) in Q3 2023; non-GAAP core earnings for Q3 2024 were $791 million ($0.37/share), up from $513 million ($0.24/share) in Q3 2023.

• Year-to-date non-GAAP core EPS reached $1.06, compared to $0.76 for the same period last year; nine-month GAAP EPS was $0.85, up from $0.62.

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

• Operating and maintenance expenses decreased 15% year-over-year in Q3 2024, with at least 2% annual savings targeted and $200 million net savings planned for 2024.

• Utility operating revenues for Q3 2024 were $5.94 billion, up from $5.89 billion in Q3 2023; nine-month revenues were $17.79 billion, up from $17.39 billion.

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.

• At least 9% annual core EPS growth targeted for 2026–2028, based on the new 2025 midpoint.

• Five-year rate base CAGR increased to 9.5%–10%, with 2024–2028 CapEx plan raised to $63 billion.

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

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