PPL Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 7 August 2026: press release. Guidance figures: 1 lowered, 3 new, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Ongoing EPS rose to $0.33: Earnings from ongoing operations were $247 million, or $0.33 per share, against $240 million, or $0.32, a year earlier. Reported earnings were $230 million, or $0.30 per share, against $0.25. Source
• Second-half earnings growth expected: Management continues to expect stronger earnings growth in the second half, supported by improved rate recovery and capital tracking mechanisms. Source
• Pennsylvania data center pipeline grew: PPL Electric Utilities’ advanced-stage data center pipeline reached 31.8 GW in the second quarter, with over 11 GW under signed agreements and 6.5 GW under construction. Source
• Invitium land and interconnection progress: Invitium Energy has land for 8 GW to 14 GW, PJM has accepted over 5 GW of its interconnection requests, and it holds reservations for over 5 GW of combined-cycle gas turbines. Source
• Second-quarter special charges $17 million: Net special-item after-tax charges were $17 million, or $0.03 per share, mainly from IT transformation and system integration impacts. Source

“Our solid second-quarter results demonstrate continued execution across our regulated utility portfolio and keep us on track to deliver our 2026 commitments,”

Vincent Sorgi, PPL president and chief executive officer

Guidance

What changed from last quarter

• Guidance lowered: The reported EPS estimate range moved to $1.84 to $1.92 from $1.87 to $1.95. The ongoing forecast range was kept. Source
• New: A $10 billion to $12 billion economic development investment estimate through 2032 was added this quarter. Source
• New: A Kentucky CPCN filing is now expected by the end of 2026 for additional generation. Source
• New: A $12.5 billion to $15.0 billion potential investment estimate tied to 5 GW of gas turbine capacity was added. Source

Second-quarter results and drivers

• Ongoing EPS rose to $0.33: Earnings from ongoing operations were $247 million, or $0.33 per share, against $240 million, or $0.32, a year earlier. Reported earnings were $230 million, or $0.30 per share, against $0.25. Source
• First-half ongoing EPS up four percent: Six-month ongoing earnings were $725 million, or $0.96 per share, against $684 million, or $0.92. Six-month reported earnings were $682 million, or $0.90 per share. Source
• Second-half earnings growth expected: Management continues to expect stronger earnings growth in the second half, supported by improved rate recovery and capital tracking mechanisms. Source
• Revenue and operating income rose: Operating revenues were $2,111 million against $2,025 million, and operating income was $475 million against $406 million in the quarter. Source

Segment earnings and drivers

• Kentucky ongoing earnings flat: Kentucky ongoing earnings were $0.18 per share in both quarters, and $0.51 against $0.48 for six months. Higher retail rates were offset by higher operating costs. Source
• Pennsylvania ongoing down one cent: Pennsylvania ongoing earnings were $0.18 per share against $0.19. Higher transmission revenue from capital investments partly offset higher depreciation and interest. Source
• Rhode Island ongoing up two cents: Rhode Island ongoing earnings were $0.03 per share against $0.01. Lower operating costs and higher rider revenue were partly offset by higher depreciation. Source
• Corporate and Other unchanged: Corporate and Other ongoing results were a loss of $0.06 per share in both quarters, with higher interest expense cited as the main factor. Source

“With constructive regulatory frameworks across our jurisdictions and a clear capital investment plan, we believe PPL is well positioned to capture emerging growth opportunities while maintaining our commitment to affordability and reliability.”

Vincent Sorgi, PPL president and chief executive officer

Electricity sales volumes

• Kentucky retail volumes lower: Kentucky retail deliveries fell 1.2% in the quarter and 1.6% for six months, with lower sales volumes cited as a factor for the six months. Source
• Pennsylvania volumes rose on weather: Pennsylvania retail deliveries rose 0.7% for six months. Management cited weather as the reason for higher sales volumes in the period. Source

Costs, fuel and interest

• Depreciation and interest expense rose: Depreciation was $362 million against $324 million in the quarter. Interest expense was $232 million against $199 million. Source
• Other operation and maintenance fell: Other operation and maintenance expense was $572 million against $614 million in the quarter. Energy purchases rose to $403 million from $388 million. Source
• Fuel and purchased energy costs rose: Fuel expense was $195 million against $192 million in the quarter, and $469 million against $426 million for six months. Source

Economic development and generation pipeline

• Pennsylvania data center pipeline grew: PPL Electric Utilities’ advanced-stage data center pipeline reached 31.8 GW in the second quarter, with over 11 GW under signed agreements and 6.5 GW under construction. Source
• Kentucky pipeline reached 13.7 GW: The LG&E and KU pipeline grew to 13.7 GW, of which 11.6 GW is tied to data center opportunities and 1.3 GW is under signed agreements. Source
• Invitium land and interconnection progress: Invitium Energy has land for 8 GW to 14 GW, PJM has accepted over 5 GW of its interconnection requests, and it holds reservations for over 5 GW of combined-cycle gas turbines. Source

Large-load tariffs and joint venture earnings

• Large loads to fund own infrastructure: Regulatory-approved large-load tariffs are in place in Pennsylvania and Kentucky. Management says data centers and large loads are meant to fund the infrastructure needed to serve them. Source
• Invitium kept apart from ratepayers: Invitium Energy operates separately from PPL Electric Utilities, and PPL Electric Utilities customers are not funding its activities. Source
• Joint venture earnings timing: Joint venture earnings are not expected to be material through 2030. Batteries or shorter-lead-time technologies could begin contributing in 2029 or 2030. Source

Capital spending, cash and shareholder returns

• Capital spending rose to $2.3 billion: Expenditures for property, plant and equipment were $2,339 million in the first half, against $1,723 million a year earlier. Source
• Operating cash flow edged up: Net cash provided by operating activities was $1,140 million in the first half, against $1,115 million a year earlier. Source
• Long-term debt issued and repaid: Long-term debt issuance totaled $2,046 million and retirements $668 million in the first half. Net short-term debt repayment was $391 million. Source
• Cash balance fell from year-end: Cash and cash equivalents were $332 million at June 30, against $1,071 million at December 31, 2025. Source
• Dividends paid rose: Common stock dividends paid were $416 million in the first half, against $392 million a year earlier. Source

Special items and regulatory treatment

• Second-quarter special charges $17 million: Net special-item after-tax charges were $17 million, or $0.03 per share, mainly from IT transformation and system integration impacts. Source
• First-half charges tied to ISO-NE: Six-month special charges were $43 million, or $0.06 per share, mainly prior-year impacts from an ISO New England transmission ROE reduction. Source
• Kentucky IT costs given asset treatment: Kentucky Regulated received regulatory asset treatment for 2025 costs, according to the six-month reconciliation footnote. Source

Strategy, growth and affordability

• Invitium is a 51% joint venture: Invitium Energy is a 51% joint venture with Blackstone Infrastructure to build and operate generation for Pennsylvania data centers. The business plan includes no earnings or capital from it. Source
• Grid investment for resilience and demand: Management says investments are designed to modernize the grid and improve resilience while protecting existing customers. Source
• Growth paired with affordability: Management ties its growth plans to maintaining affordability and reliability for customers. Source

Coming up, as management said on 7 August 2026

• Invitium commercial agreements expected: PPL expects one or more commercial agreements for Invitium Energy by the end of 2026, based on progress to date. Source
• Kentucky CPCN filing likely by year-end: LG&E and KU are developing 2.3 GW from prior CPCN approvals. A further CPCN request for additional generation is more likely by the end of 2026. Source
• Stronger earnings growth from 2027: Management expects stronger earnings growth beginning in 2027 and continuing through 2029. Source
• Combined-cycle turbines online 2031 to 2032: Management expects more meaningful Invitium earnings and cash flows when the combined-cycle gas turbines come online, as early as 2031 to 2032. Source

Figures management reported

Risks management discussed

• Operational: Customer system integration created collection process costs, which were recorded as special items in the quarter. Source
• Financial: PPL does not forecast special items for future periods, so the reported EPS estimate reflects only items recorded to date. Source
• Demand: Invitium construction and material financial commitments depend on signed ESSAs or cost reimbursement agreements being in place. Source
• Regulatory: Corporate and Other includes certain non-recoverable costs before 2026 tied to Rhode Island acquisition commitments. Source

Earlier plans management reported on

• On track: Management says the second-quarter results keep the company on track for its 2026 commitments. Source
• Not stated: Management reiterated its expectation for stronger earnings growth from 2027 through 2029. Source
• Not stated: The prior quarter said a decision was expected by the end of the second quarter, with new rates effective July 1, 2026. The current release does not state the outcome.

Other quarters

• Q1 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.