PG&E (PCG) Q4 2025 earnings summary

Executive summary

• Reported full-year 2025 non-GAAP core EPS of $1.50, up 10% year-over-year, with four consecutive years of double-digit core EPS growth and $0.36 for Q4 2025.

• Tightened 2026 core EPS guidance to $1.64–$1.66, targeting 9%+ annual growth through 2030.

• Achieved fourth electric rate reduction in two years; 2025 bundled residential electric rates now 11% lower than January 2024.

• Significant wildfire mitigation progress: 43% reduction in ignitions, third consecutive year without a major wildfire caused by equipment, and major safety improvements.

• Focused on affordability, safety, reliability, and customer growth, including over 12,730 new electric customers and 18,750 new EV charging ports.

Financial highlights

• Full year 2025 non-GAAP core earnings were $3.3B ($1.50/share), up from $2.9B ($1.36/share) in 2024; GAAP net income for 2025 was $2.7B, up from $2.5B in 2024.

• Adjusted EBITDA reached $10.3B in 2025, up from $9.3B in 2024; operating cash flow increased to $8.7B.

• O&M savings contributed $0.20 per share, with $0.09 redeployed for customer benefit; cumulative four-year O&M savings exceeded $700 million.

• Doubled annual share dividend to $0.20 for 2026, with consistent increases expected over the next two years and a payout ratio targeted at 20% by 2028.

• Operating revenues reached $24,935 million in 2025, up from $24,419 million in 2024.

Outlook and guidance

• 2026 core EPS guidance set at $1.64–$1.66, targeting 9%+ annual EPS growth through 2030.

• No new common equity required through 2030; five-year capital plan (2026–2030) includes $73B in investments, with 94% already authorized for 2026.

• Updated bill trajectory target to 0%-3% annual increase, with potential for 0% bill inflation.

• O&M savings target increased to 2%-4% annually.

• Guidance driven by customer capital investment returns, unrecoverable interest expense, and cost savings.