Public Service Enterprise Group (PEG) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $520 million ($1.04 per share), up from $139 million ($0.27 per share) in Q3 2023, with non-GAAP operating earnings of $448 million ($0.90 per share), reflecting improved energy margin and nuclear PTC benefits.

• Year-to-date net income was $1.49 billion ($2.97 per share), down from $2.02 billion ($4.03 per share) in 2023, mainly due to prior year pension settlement gains.

• Regulatory settlements on PSE&G's base rate case and Clean Energy Future–Energy Efficiency II programs, including a $505 million annual revenue increase and $1.9–$3 billion in energy efficiency investments, enhance earnings predictability and support long-term growth.

• PSE&G's operational excellence, smart meter rollouts, and infrastructure upgrades contributed to results, while the nuclear fleet benefited from the federal production tax credit.

• The company maintains a net zero GHG emissions goal by 2030 and continues to invest in clean energy and grid modernization.

Financial highlights

• Q3 2024 net income: $520 million ($1.04 per share); Q3 2023: $139 million ($0.27 per share).

• Q3 2024 non-GAAP operating earnings: $448 million ($0.90 per share); Q3 2023: $425 million ($0.85 per share).

• PSE&G Q3 2024 net income: $379 million ($0.76 per share), down from $401 million ($0.80 per share) in Q3 2023, due to higher O&M and interest expense.

• PSEG Power & Other Q3 2024 net income: $141 million ($0.28 per share), up from a loss of $262 million (–$0.53 per share) in Q3 2023, reflecting improved trust investment returns and nuclear PTC.

• Capital spending for 2024 projected at $3.5 billion, with $2.7 billion invested year-to-date, driven by new business and energy efficiency investments.

Outlook and guidance

• Full-year 2024 non-GAAP operating earnings guidance narrowed to $3.64–$3.68 per share.

• Long-term non-GAAP operating earnings growth targeted at 5%–7% CAGR through 2028.

• Five-year capital plan of $19–$22.5 billion through 2028, with $18–$21 billion regulated.

• Rate base CAGR projected at 6%–7.5% from 2024–2028.

• No new equity or asset sales required to fund the five-year capital plan.