PPL (PPL) Q4 2024 earnings summary

Executive summary

• Achieved ongoing earnings of $1.69 per share for 2024, at the midpoint of original guidance and up from $1.60 in 2023, despite mild weather impacting Q4 results.

• Completed integration of Rhode Island Energy, exiting transition services with National Grid.

• Executed $3.1 billion in infrastructure investments on time and on budget, focusing on grid reliability, resilience, and advanced meter deployment.

• Announced a refreshed business plan with a $20 billion capital plan for 2025–2028, supporting 6%-8% annual EPS and dividend growth through at least 2028.

• Realized ~$130 million in annual O&M savings from 2021 baseline.

Financial highlights

• 2024 GAAP earnings were $1.20 per share, up from $1.00 in 2023; ongoing earnings were $1.69 per share, up $0.09 year-over-year.

• Q4 2024 GAAP earnings were $0.24 per share, with ongoing operations at $0.34 per share, down $0.06 from Q4 2023.

• Segment 2024 ongoing EPS: KY Regulated $0.84, PA Regulated $0.82, RI Regulated $0.21, Corp & Other ($0.18).

• Achieved top end of $130 million cumulative annual O&M savings from 2021 baseline.

• Quarterly dividend increased ~6% to $0.2725 per share, annualized to $1.09.

Outlook and guidance

• 2025 ongoing earnings forecast range is $1.75–$1.87 per share, midpoint $1.81, representing 7% growth from 2024.

• Extended 6%-8% annual EPS and dividend growth target through at least 2028, aiming for the top half of the range.

• $20B capital plan for 2025–2028, up from $14.3B in prior plan, supporting 9.8% rate base CAGR.

• Cumulative annual O&M savings of at least $175 million expected through 2026.

• Projected $2.5B equity needs through 2028 to support capex and maintain 16%-18% FFO/CFO to debt.