PPL's Q2 Earnings Lag Estimates, Revenues Increase Y/Y

PPL Corporation PPL reported second-quarter 2025 operating earnings per share (EPS) of 32 cents, which missed the Zacks Consensus Estimate of 37 cents by 13.5%. In the year-ago quarter, the company reported earnings of 38 cents per share. 

On a GAAP basis, PPL recorded EPS of 25 cents compared with 26 cents in the year-ago quarter.

PPL’s Revenues

Total revenues of $2.03 billion surpassed the Zacks Consensus Estimate of $1.98 billion by 2.15%. The top line also increased 7.7% from the year-ago figure of $1.88 billion.

Highlights of PPL’s Q2 Release

In the second quarter, the company sold 15,737 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, reflecting a 0.9% year-over-year decline.

Total operating expenses were $1.62 billion, up 8.7% from the year-ago quarter’s $1.49 billion. This was due to an increase in fuel and energy purchases. 

Operating income totaled $406 million, up 4.1% from the year-ago figure of $390 million.

Interest expenses amounted to $199 million, up 9.3% from $182 million in the corresponding period of 2024.

PPL’s Segmental Updates

Pennsylvania Regulated: Adjusted EPS was 19 cents, down 9.5% from the year-ago figure of 21 cents.

Kentucky Regulated: Adjusted EPS was 18 cents, flat year over year. 

Rhode Island Regulated: Adjusted EPS was a cent, down 75% from the year-ago figure of 4 cents. Lower distribution and transmission revenues and other factors affected earnings.

Corporate and Other: The segment incurred a loss of 6 cents per share compared with a loss of 5 cents in the year-ago quarter.

PPL’s Financial Position

As of June 30, 2025, PPL had cash and cash equivalents of $294 million compared with $306 million as of Dec. 31, 2024.

The long-term debt was $15.29 billion as of June 30, 2025, compared with $15.95 billion as of Dec. 31, 2024.

Net cash provided by operating activities in the first six months of 2025 was $1.12 billion compared with $1.05 billion in the year-ago period.

PPL’s Guidance

PPL reaffirmed its 2025 earnings projection in the range of $1.75-$1.87 per share. The Zacks Consensus Estimate is pegged at $1.82 per share, higher than the midpoint of the company’s guided range. The company reaffirmed its long-term annual earnings growth rate guidance of 6-8% through 2028.

PPL continues to expect planned infrastructure investments of $20 billion for 2025-2028. 

Management continues to expect O&M savings of at least $150 million by 2025.

PPL’s Zacks Rank

PPL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

NRG Energy NRG is scheduled to report second-quarter results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.18 per share, which suggests a year-over-year decrease of 20.3%.

NRG’s long-term (three to five years) earnings growth rate is 15.4%. The Zacks Consensus Estimate for 2025 earnings is pinned at $7.81 per share, which implies a year-over-year improvement of 17.6%.

Pinnacle West Capital Corporation PNW is scheduled to report second-quarter results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.58 per share, which implies a year-over-year decrease of 10.2%.

PNW’s long-term earnings growth rate is 2.12%. The Zacks Consensus Estimate for 2025 earnings is pinned at $4.53 per share, which implies a year-over-year decline of 13.6%.

Alliant Energy LNT is slated to report second-quarter results on Aug. 7, after market close. The Zacks Consensus Estimate for second-quarter earnings is pegged at 62 cents per share, which implies a year-over-year increase of 8.8%.

LNT’s long-term earnings growth rate is 6.59%. The Zacks Consensus Estimate for 2025 earnings is pinned at $3.21 per share, which implies a year-over-year improvement of 5.6%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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