PPL (PPL) Q3 2024 earnings summary

Executive summary

• Q3 2024 GAAP EPS was $0.29 and ongoing EPS was $0.42, with year-to-date ongoing EPS at $1.34, up from $1.20 year-over-year; 2024 ongoing EPS guidance narrowed to $1.67–$1.73, midpoint raised to $1.70.

• Achieved strong progress on 2024 priorities, including $3.1 billion in infrastructure improvements and full integration of Rhode Island Energy.

• On track for $120–$130 million in O&M savings in 2024 and at least $175 million by 2026 compared to 2021 baseline.

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

• $14.3 billion capital investment plan through 2027, with $3.1 billion capex planned for 2024.

Financial highlights

• Q3 2024 ongoing EPS was $0.42, nearly flat year-over-year; YTD ongoing EPS rose to $1.34 from $1.20; Q3 GAAP EPS was $0.29, down from $0.31; YTD GAAP EPS was $0.96, up from $0.85.

• Segment ongoing EPS for Q3 2024: Kentucky $0.24, Pennsylvania $0.19, Rhode Island $0.04, Corporate & Other ($0.05).

• Ongoing earnings growth driven by higher transmission and distribution revenue, partially offset by increased O&M and interest expenses.

• Q3 2024 net income was $214M, down from $230M in Q3 2023; nine-month net income was $711M, up from $627M.

• Cash from operations for nine months 2024 was $1.83B, up from $1.65B in 2023.

Outlook and guidance

• 2024 ongoing EPS guidance narrowed to $1.67–$1.73, midpoint $1.70, expecting to exceed original midpoint.

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

• No equity issuances required through at least 2027; capital plan to be updated in Q4 earnings call.

• Focused on timely recovery of capital investments through regulatory mechanisms in all jurisdictions.

• Targeting at least $175M in annual O&M savings by 2026, with $120–$130M expected by end of 2024.