PPL (PPL) Q2 2024 earnings summary

Executive summary

• Q2 2024 GAAP EPS was $0.26, up from $0.15 in Q2 2023; ongoing EPS (non-GAAP) was $0.38, up from $0.29, driven by higher sales, capital investment returns, and O&M savings.

• Net income for Q2 2024 was $190M, up from $112M in Q2 2023; ongoing operations net income was $282M, up from $215M.

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

• On track with $3.1B 2024 capex, $14.3B capital plan through 2027, and $120–$130M O&M savings in 2024, targeting $175M by 2026.

• Advancing Utility of the Future strategy with grid modernization, net zero by 2050, and leveraging AI and advanced technologies.

Financial highlights

• Q2 2024 operating revenues were $1.88B, up from $1.82B in Q2 2023; operating income was $390M, up from $305M.

• Year-to-date GAAP EPS was $0.67, up from $0.54; ongoing EPS was $0.92, up from $0.77.

• Cash provided by operating activities for the first half of 2024 was $1.05B, up from $842M.

• Q2 2024 net income margin was 10.1%; operating margin was 20.7%.

• Interest expense for Q2 2024 was $182M, up from $165M year-over-year.

Outlook and guidance

• 2024 ongoing EPS guidance reaffirmed at $1.63–$1.75, with at least midpoint expected; $14.3B capital plan through 2027.

• Projected 6–8% annual EPS and dividend growth through at least 2027.

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