PG&E (PCG) Q4 2024 earnings summary

Executive summary

• Core/non-GAAP core EPS for 2024 was $1.36, up 11% year-over-year, with full-year GAAP net income of $2.5B and non-GAAP core EPS guidance for 2025 raised to $1.48–$1.52, targeting at least 9% annual growth through 2028.

• Dividend payout ratio targeted at 20% of core/non-GAAP core EPS by 2028, with 2025 dividend set at $0.10, up from $0.04 in 2024.

• Achieved 4% O&M cost reductions in 2024, continuing multi-year efficiency gains and stabilizing residential bills.

• Beneficial load growth, especially from data centers, is driving new demand and supporting affordability.

• Achieved a second consecutive year of zero major wildfires caused by company equipment and completed significant system hardening.

Financial highlights

• Non-GAAP core EPS increased from $1.23 in 2023 to $1.36 in 2024; GAAP EPS rose from $1.05 to $1.15.

• Adjusted EBITDA grew to $9.3B in 2024 from $8.4B in 2023.

• Operating cash flow more than doubled from $4.7B in 2023 to $8.0B in 2024.

• Over $350 million in O&M savings achieved in 2024, with $200 million+ saved each of the past three years.

• Rate base grew to $69B in 2024, with a five-year capital plan of $63B through 2028.

Outlook and guidance

• 2025 non-GAAP core EPS guidance is $1.48–$1.52, with at least 9% annual EPS growth targeted for 2026–2028.

• Five-year $63 billion capital plan through 2028 remains unchanged, with at least $5 billion in incremental investment needs identified.

• Dividend payout ratio to reach 20% of core/non-GAAP core EPS by 2028, with annual increases planned.

• Customer bills expected to remain at or below assumed inflation through 2028.

• Equity needs fully satisfied to fund $63 billion capital plan through 2028.