PPL (PPL) Q4 2025 earnings summary

Executive summary

• Achieved 2025 ongoing earnings of $1.81 per share, a 7.1% increase year-over-year, meeting financial targets and delivering strong operational performance across all jurisdictions.

• Delivered electricity and natural gas safely to over 3.6 million customers, advancing digital technologies and customer experience initiatives.

• Executed $4.4 billion in capital investments focused on grid modernization, advanced metering, pipeline replacement, and new generation in Kentucky.

• Outperformed O&M savings target, achieving $170 million in run rate savings from the 2021 baseline, a year ahead of schedule.

• Supported major economic development projects, including a $3.5 billion advanced manufacturing investment in Pennsylvania.

Financial highlights

• 2025 GAAP earnings were $1.59 per share, up from $1.20 in 2024; ongoing earnings were $1.81 per share, up $0.12 year-over-year.

• Fourth-quarter 2025 ongoing EPS was $0.41, up from $0.34 in Q4 2024.

• Kentucky segment ongoing EPS rose to $0.93, Pennsylvania to $0.86, Rhode Island to $0.19, and Corporate & Other improved to $(0.17).

• Dividend increased nearly 5% to $1.14 per share annualized, with a payout ratio expected to remain within 50%-60%.

• Net cash provided by operating activities in 2025 was $2.63 billion.

Outlook and guidance

• Issued 2026 ongoing earnings guidance of $1.90-$1.98 per share, midpoint $1.94, representing 7.2% growth from 2025.

• Extended 6%-8% annual EPS growth target through at least 2029, expecting CAGR near the top end of the range.

• Capital investment plan of $23 billion from 2026-2029, up from $20 billion previously, supporting a 10.3% rate base CAGR.

• Dividend growth target revised to 4%-6% annually during equity issuance period.

• Total return proposition targeted at 10%-12%.