PPL Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 8 May 2026: press release. Guidance figures: 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Ongoing EPS rose to $0.63: Earnings from ongoing operations were $478 million, or $0.63 per share, compared with $444 million, or $0.60 per share a year earlier. Reported diluted EPS was $0.60 against $0.56. Source
• Kentucky ongoing EPS up three cents: Kentucky Regulated ongoing EPS was $0.33 against $0.30. Higher retail rates effective January 1, 2026 were the main driver, partly offset by lower sales volumes, higher operating costs, depreciation and interest. Source
• Pennsylvania rate case settled: PPL Electric's settlement in its first base rate case in over 10 years adds affordability enhancements, including protections under a new large-load customer rate class. Source
• Special items cut reported EPS $0.03: Reported earnings included net special-item after-tax charges of $26 million, or $0.03 per share, mostly prior-year impacts, partly offset by regulatory asset treatment of Kentucky IT transformation costs. Source
• Capital spending rose to $1.06 billion: Expenditures for property, plant and equipment were $1,058 million against $793 million, while operating cash flow was $557 million against $513 million. Source
• Blackstone joint venture takes steps: The Blackstone Infrastructure joint venture is pursuing hyperscaler and gas pipeline discussions, turbine reservations, PJM queue requests and land evaluation. Source

“keep us on track to achieve our 2026 earnings guidance range”

Vincent Sorgi, PPL president and chief executive officer

Guidance

What changed from last quarter

• Guidance kept: The 2026 ongoing EPS forecast range of $1.90 to $1.98 was reaffirmed without change from the prior release. Source
• Guidance kept: The 6% to 8% annual EPS growth target was reaffirmed without change. Source
• New: PPL Electric reached a settlement in its base rate case, its first base rate case filing in over 10 years, with most intervening parties. Source
• New: The joint venture’s objectives were described as aligned with technology company commitments to bring their own generation. Source

Results and growth drivers

• Ongoing EPS rose to $0.63: Earnings from ongoing operations were $478 million, or $0.63 per share, compared with $444 million, or $0.60 per share a year earlier. Reported diluted EPS was $0.60 against $0.56. Source
• Operating revenue and income increased: Operating revenues were $2,774 million, up from $2,504 million. Operating income was $745 million, up from $678 million. Source
• Reported earnings rose 9%: Reported earnings were $452 million, up 9% from $414 million, and reported EPS was $0.60 against $0.56, up 7%. Source

Segments and regions

• Kentucky ongoing EPS up three cents: Kentucky Regulated ongoing EPS was $0.33 against $0.30. Higher retail rates effective January 1, 2026 were the main driver, partly offset by lower sales volumes, higher operating costs, depreciation and interest. Source
• Pennsylvania flat at $0.25: Pennsylvania Regulated EPS was $0.25 in both periods. Higher transmission revenue from capital investment was offset by higher operating costs, depreciation and interest. Source
• Rhode Island reported EPS down: Rhode Island Regulated reported EPS fell to $0.05 from $0.10, while ongoing EPS held at $0.10. Higher rider revenue was offset by higher depreciation expense. Source
• Corporate loss narrowed on reported basis: Corporate and Other reported loss was $0.05 per share against $0.09. The ongoing loss stayed at $0.05, with higher interest expense the cited factor. Source

“We’re on pace to complete $5.1 billion in 2026 infrastructure investments to strengthen and modernize our electric and gas networks,”

Vincent Sorgi, PPL president and chief executive officer

Demand and electricity sales

• Pennsylvania retail deliveries grew: Pennsylvania Regulated retail delivered electricity rose 1.7% to 10,315 GWh from 10,144 GWh. Kentucky Regulated retail deliveries fell 2.0% to 7,645 GWh from 7,803 GWh. Source
• Wholesale sales fell sharply: FERC-regulated wholesale sales, municipal and off-system, fell 29.8% to 308 GWh. Total delivered electricity was 18,268 GWh, down 0.6%. Source
• Rhode Island sales excluded from totals: Electricity sales totals exclude the Rhode Island Regulated segment because its revenues are decoupled from volumes delivered. Source
• Pennsylvania data center pipeline: The company cited investment needs in Pennsylvania to support a growing data center pipeline, alongside continued expansion in Kentucky. Source

Regulatory proceedings

• Pennsylvania rate case settled: PPL Electric's settlement in its first base rate case in over 10 years adds affordability enhancements, including protections under a new large-load customer rate class. Source
• Two-year pause on Pennsylvania rate filings: The settlement includes an agreement not to file another base rate case for at least two years from the effective date of the new rates. Source
• Rhode Island plans approved: Rhode Island Energy received approval for its latest annual electric and gas infrastructure, safety and reliability plans, supporting over $330 million of investment needs. Source
• Hold-harmless proposal accelerates commitment: The new Rhode Island hold-harmless proposal addresses and accelerates a deferred tax commitment from the acquisition, and will be reviewed with the pending base rate case. Source

Costs, special items and margins

• Special items cut reported EPS $0.03: Reported earnings included net special-item after-tax charges of $26 million, or $0.03 per share, mostly prior-year impacts, partly offset by regulatory asset treatment of Kentucky IT transformation costs. Source
• O&M fell while depreciation and interest rose: Other operation and maintenance fell to $579 million from $598 million. Depreciation rose to $351 million from $322 million. Source
• Total operating expenses rose: Total operating expenses were $2,029 million against $1,826 million. Other income rose to $39 million from $28 million. Source

Capital, cash and financing

• Capital spending rose to $1.06 billion: Expenditures for property, plant and equipment were $1,058 million against $793 million, while operating cash flow was $557 million against $513 million. Source
• Cash balance increased: Cash and cash equivalents were $1,241 million at March 31, 2026, up from $1,071 million at December 31, 2025. Source

Strategy and investment

• Blackstone joint venture takes steps: The Blackstone Infrastructure joint venture is pursuing hyperscaler and gas pipeline discussions, turbine reservations, PJM queue requests and land evaluation. Source
• Joint venture excluded from plan: The business plan includes no earnings contributions or capital investments from the joint venture. Source
• Kentucky generation build-out continues: Kentucky utilities report progress on over 1,900 MW of gas combined-cycle capacity, plus 240 MW of solar and 120 MW of battery storage. Source

Coming up, as management said on 8 May 2026

• Pennsylvania decision and new rates: The Pennsylvania Public Utility Commission decision is expected by the end of the second quarter of 2026, with new rates effective July 1, 2026. Source
• Rhode Island bill credits begin 2027: The hold-harmless proposal would provide bill credits to Rhode Island customers starting in the first quarter of 2027, and will be reviewed in the pending rate case. Source
• Joint venture advancing toward agreements: The joint venture is advancing hyperscaler discussions so it can move quickly once energy supply services agreements are signed. No signing date is given. Source

Figures management reported

Risks management discussed

• Regulatory: The Rhode Island hold-harmless proposal will be reviewed alongside the pending base rate case, so its outcome depends on that proceeding. Source
• Demand: Kentucky Regulated segment earnings were partly offset by lower sales volumes in the quarter. Source
• Financial: Interest expense rose to $224 million from $190 million, with higher interest expense cited at the corporate level. Source

Earlier plans management reported on

• On track: Management said first-quarter results keep the company on track to achieve the 2026 earnings guidance range. Source
• On track: The company stated it is on pace to complete $5.1 billion of 2026 infrastructure investments. Source
• Not stated: The company reaffirmed that compound annual growth is expected near the top end of its targeted range through 2029. Source
• Not stated: The new proposal addresses and accelerates the deferred tax hold-harmless commitment from the Rhode Island Energy acquisition. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.