PPL (PPL) Q4 2025 earnings summary

Executive summary

• Delivered on 2025 operational and financial targets, achieving first quartile T&D reliability and top decile generation performance in Kentucky, while serving over 3.6 million customers and advancing digital technologies.

• Ongoing earnings reached $1.81 per share, up 7.1% year-over-year, in line with guidance midpoint.

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

• Outperformed O&M savings target, achieving $170 million in run rate savings from 2021 baseline, supporting affordability.

• Announced updated business plan extending growth outlook, balancing customer affordability and strong credit profile.

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.

• Kentucky segment earnings rose $0.09 per share, Pennsylvania up $0.04, Rhode Island down $0.02 year-over-year.

• Fourth quarter saw incremental improvements in all segments, with Kentucky and Pennsylvania leading.

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

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

Outlook and guidance

• 2026 ongoing earnings guidance set at $1.90-$1.98 per share, midpoint $1.94, representing 7.2% growth.

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

• Capital investment plan of $23 billion from 2026-2029, up from $20 billion previously, supporting ~10.3% average annual rate base growth.

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

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