PPL (PPL) Q2 2024 earnings summary

Executive summary

• Reported Q2 2024 GAAP EPS of $0.26, up from $0.15 in Q2 2023; ongoing EPS (non-GAAP) of $0.38, up from $0.29, with net income of $190M, up 70% year-over-year, and ongoing operations net income of $282M, up 31%.

• Reaffirmed 2024 ongoing EPS guidance of $1.63–$1.75, targeting at least the midpoint, and projected 6–8% annual EPS and dividend growth through at least 2027.

• On track for $3.1B in 2024 infrastructure improvements and $14.3B capital plan through 2027, with focus on grid modernization, clean energy, and technology investments.

• Achieving O&M savings targets, with $120–$130M expected in 2024 and $175M by 2026, and advancing the Utility of the Future strategy.

• Special items in 2024 mainly related to Rhode Island Energy acquisition integration.

Financial highlights

• Q2 2024 operating revenues were $1.88B, up from $1.82B in Q2 2023; operating income was $390M, up from $305M; net cash from operations for the first half was $1.05B, up from $842M.

• Q2 2024 GAAP EPS: $0.26; ongoing EPS: $0.38; YTD GAAP EPS: $0.67; ongoing EPS: $0.92.

• Segment Q2 2024 ongoing EPS: KY $0.18, PA $0.21, RI $0.04, Corp & Other ($0.05).

• Ongoing earnings growth driven by higher distribution and transmission revenue, improved sales volumes, and O&M savings.

• Special items included acquisition integration and billing issues, impacting reported earnings.

Outlook and guidance

• 2024 ongoing EPS guidance reaffirmed at $1.63–$1.75, targeting at least the midpoint; projected 6–8% annual EPS and dividend growth through at least 2027.

• $14.3B capital investment plan through 2027, with average annual rate base growth of 6.3%.

• No equity issuances needed through at least 2027; targeting 16–18% FFO/CFO to debt.

• O&M savings target of $120–$130M in 2024, aiming for $175M by 2026.

• No material impact anticipated from final IRS regulations on credit transfers under the Inflation Reduction Act.