POR

Image source: The Motley Fool. Friday, July 31, 2026 at 11:00 a.m. ET Senior Manager of Investor Relations - Erin Schwartz President and Chief Executive Officer - Maria Pope Senior Vice President of Finance and Chief Financial Officer - Joseph Trpik Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good morning, everyone, and welcome to today's conference call with Portland General Electric. Today is Friday, July 31, 2026. This call is being recorded. [Operator Instructions] For opening remarks, I will turn the conference call over to Portland General Electric's Senior Manager of Investor Relations, Erin Schwartz. Please go ahead. Erin Schwartz: Thank you, Didi. Good morning, everyone, and thank you for joining us today. Before we begin, I would like to remind you that we issued a press release this morning and have prepared a presentation to supplement our discussion, which we will be referencing throughout the call. The press release and slides are available on our website at investors.portlandgeneral.com. Referring to Slide 2, some of our remarks this morning will constitute forward-looking statements. We caution you that such statements involve inherent risks and uncertainties, and actual results may differ materially from our expectations. For a description of some of the factors that could cause actual results to differ materially, please refer to our press release and our most recent forms 10-K and 10-Q, which are available on our website. Turning to Slide 3. Leading our discussion today are Maria Pope, President and CEO; and Joe Trpik, Senior Vice President of Finance and CFO. Following their prepared remarks, we will open the line for your questions. Now I will turn things over to Maria. Maria Pope: Thank you, Erin, and good morning, everyone. We appreciate you joining us today. The second quarter was marked by continued execution across our strategic priorities. Strong industrial demand growth of 11% when compared to second quarter of last year, advancement of key proceedings -- excuse me, key regulatory proceedings, disciplined cost management and continued progress on resource planning. Beginning with Slide 4, I'll speak to our financial results and key drivers. For the second quarter, we reported GAAP net income of $68 million or $0.59 per diluted share and non-GAAP net income of $74 million or $0.64 per diluted share. Our non-GAAP results exclude business transformation, optimization and acquisition-related expenses, which are not reflective of ongoing operational performance. These costs relate to the holding company formation, the pending Washington acquisition and our customer affordability work. These results were in line with our expectations for the quarter and reflect strong execution. As a result, we are reaffirming our full year earnings guidance of $3.33 to $3.53 per diluted share and our long-term earnings and dividend growth guidance of 5% to 7%. Turning to Slide 5 for updates on our 5 strategic priorities. First, industrial demand growth remains an important element of our long-term outlook. Today, we serve 12 different data center customers, which make up approximately 1/3 of our total industrial usage. Total industrial load growth was approximately 10% compounded annually over the last 5 years. We continue to see strong demand from technology, semiconductor and data center customers with approximately 10% compounded annual growth expected through 2030. This outlook is supported by customers who are under contract and whom are already energized or actively advancing construction and facility development in our service area. Second, affordability remains a national focus. We've taken proactive steps to address customer cost pressures, mitigate stranded asset cost risk and enable growth that supports the long-term strength of our communities and continued economic development. In Q2, the OPUC issued a final order approving PGE's New Large Load Tariff effective in July, raising average prices approximately 30% for data centers, while lowering rates for all other customers and capping several years of legislative and regulatory work. This important framework aligns infrastructure costs on an ongoing basis to customers driving new system investments while helping reduce costs for residential and small business customers. The tariff also creates greater certainty for large load customers by providing a clear pricing framework, which supports investment decisions and continued economic development across our region. In addition to the changes implemented with our large load tariff, we continue to focus on operating costs and executing across our financial and operational priorities, which Joe will cover in more detail in a minute. Third, we're advancing our 2025 renewable RFP. During the quarter, the OPUC acknowledged the short list, marking an important milestone in the procurement process. The short list includes a diverse mix of wind, solar, battery storage and hybrid resources with both purchase power and company-owned structures under consideration. We are now moving into commercial negotiations and expect to execute contracts by early 2027, subject to final negotiations and approvals. Fourth, our year-round wildfire mitigation work remains on track. We continue executing the actions identified in our 2026 through 2028 wildfire mitigation plan and remain engaged with policymakers and stakeholders regarding long-term wildfire policy discussions. Across Oregon, there are several active wildfires, and we appreciate the significant actions that first responders and local communities are taking. None of these wildfires are in PGE's service territory. And fifth, next week, we will file our 2027 general rate case. As proposed, the case would result in approximately 4.8% overall increase relative to currently approved prices effective July 1, 2027, with residential customers seeking an approximately 3.9% increase. The residential increase would have been higher if not but for the large load tariff. The rate case increase is expected to be partially offset by lower net variable power costs, which are addressed separately through the annual update cost tariff and are currently forecast to reduce customer prices by approximately 2.4% beginning in January 1. The filing is based on a proposed 50% debt, 50% equity capital structure and a 9.75% return on equity. It reflects a balanced approach that supports continued investment in reliability, resiliency and infrastructure needed to meet growing customer demand while maintaining affordability and delivering the financial foundation necessary to serve customers safely and effectively over the long term. In parallel, we continue to advance our proposed holding company structure. We expect the final order at the end of August. The proposed structure will enhance financing flexibility and support our ability to invest in clean energy and meet significant customer and infrastructure needs over time. Lastly, our teams remain focused on the regulatory work to obtain approvals for the Washington acquisition and continue to target a mid-2027 closing. As we move through the second half of 2026, we remain focused on delivering safe, reliable and affordable service while advancing clean energy investments, our expansion into Washington and completing the formation of the holding company. At the same time, we are operating to our plan and executing on actions to deliver on shareholder and customer commitments. With that, I'll turn things over to Joe. Thank you. Joseph Trpik: Thank you, Maria, and good morning, everyone. Turning to Slide 6. Our second quarter results were consistent with our guidance and reflect solid execution across the business. Beginning with load trends year-over-year. Total retail energy deliveries increased 3.9% compared to the second quarter of 2025 on a nominal basis and were up 2.7% weather adjusted. As Maria mentioned, we continue to see strong demand from our technology, semiconductor and data center customers with approximately 10% annual large customer capacity growth expected through 2030. Industrial demand remained a key driver in the second quarter, increasing 11.2% year-over-year, reflecting continued demand from high-tech and data center customers. Residential deliveries increased 1.3% on a nominal basis and were down 1.4% on a weather-adjusted basis, while commercial deliveries decreased 2% nominally and were down 2.8% weather adjusted. Overall, weather-adjusted load across customer classes was largely consistent with our expectations. Therefore, we are reaffirming our 2026 weather-adjusted load growth guidance of 1.5% to 2.5%. Now I'll cover the primary year-over-year drivers for the -- earnings drivers for the quarter. A decrease from power cost of $0.18 was primarily driven by expected intra-year timing of revenue collection and power cost recognition. We experienced a $0.22 increase in retail revenues, including a $0.10 increase from industrial demand, a $0.12 increase from additional cost recovery, reflecting the Seaside battery asset included in customer rates beginning in November 2025 and the distribution system planning recovery that began in April of 2026. Note that there was not a meaningful impact to our revenues from changes in residential or commercial customer usage over the year. A $0.12 decrease from other capital and financing costs in support of our ongoing rate base investments made up of $0.07 from higher depreciation and amortization, $0.03 from dilution and $0.02 of additional interest expense, a $0.06 increase from O&M, reflecting strong cost management and productivity improvements across the organization. On to Slide 7 for our 5-year capital forecast, which includes the 2026 and 2027 spend from the incoming 2023 RFP. I will note that this view does not contemplate CapEx from the 2025 RFP or the Washington acquisition, which, as Maria noted, are progressing as expected. On to Slide 8 for financing. We remain well positioned. We have completed the majority of our 2026 financing activity, providing clear visibility to our funding needs for the year, and this included $550 million equity issued under forward sale, a $500 million ATM facility to further support the equity needs, a $350 million 24-month term loan satisfying our 2026 financing needs and a $680 million delayed draw term loan related to the Washington acquisition available until specific acquisition milestones are achieved and maturing 364 days after funding. And our investment-grade credit ratings remain unchanged. In July, the Board of Directors declared a quarterly common dividend of $0.55125 per share, representing an increase of 5% on an annualized basis. We remain committed to paying a competitive dividend in line with our 60% to 70% payout target while balancing overall financing needs. Our plan focuses on maintaining strong operating cash flows while supporting continued investment in customer-focused capital projects, all while advancing us towards our authorized capital structure. As we look to the second half of the year, we have a clear path to deliver on our guidance. We are providing quarterly guidance as the shape of our earnings is different than it has been in prior years. First, we expect improved power costs over the remainder of 2026, helping offset the first half timing headwind. Second, in Q4 2025, the weather detriment is not expected to recur with our 2026 forecast assuming normal weather. Third, we expect margin improvement from the New Large Load Tariff approved earlier this year. Fourth, we expect continued increased regulatory recovery, including the Seaside and DSP alternative recovery mechanisms. And finally, we are executing management actions across operating and power costs to support earnings through the remainder of the year. We remain focused on safe, reliable and efficient operations, advancing our strategic priorities and delivering value for our customers, communities and shareholders. And now, operator, we are ready for questions. Operator: [Operator Instructions] And our first question comes from Julien Dumoulin-Smith of Jefferies. Brian Russo: It's Brian Russo on for Julien. I was just curious, if you could comment on the slide presentation, you have 1.7 gigawatts of additional data center pipeline. What kind of investment would be needed to support that? Is it generation and is it part of the '25 RFP? I just want to understand if that's like another bucket of potential growth investments for you guys. Maria Pope: Sure. First of all, let me give you a little bit of background on the 1.7 gigawatts. The investments are in a number of different counties across our service territory. And the vast majority of that represents projects that are already in the permitting process. Many projects already have land ownership and are progressing really nicely. The 1.7 gigawatts will also be under the UM 2377, which enables growth pace -- for growth, as I like say, or our peak growth modifier and the most recent higher customer prices for data centers. But we have not included any of the additional generation. And you can see some transmission investments in our forecast, but not all of them and some of them are beyond the 2030 time period. Brian Russo: Okay. Great. And then just on the upcoming multiyear rate plan filing. Looking ahead to the framework, are there any key areas to focus on in terms of the mechanisms to help you maintain that just inherent lag, which I think is -- you're trying to close that gap to 50 basis points on the structural side. Just wondering what we might expect in terms of proactive mechanics in the MRP filing? Joseph Trpik: Brian, I mean, the multiyear framework, considering that it lists out for 5 years, right, our focus will be making sure it has flexibility for us to operate the business as expected and to be able to adapt to change. So -- but before we get to the multiyear, right, the way I focus on this is we have the general rate case this year that will cover a period of time. And then we're proposing a bridge mechanism to get to the multiyear because the multiyear rate would not be filed until '29 that would have rates effective in '30. So we're focused on this GRC, which would have rates effective July of next year and then a bridge mechanism that would bridge '28 and '29. And so starting with the bridge mechanism, the design here is to be able to address inflation and cost between these full GRC type cases. And then to the multiyear, as I said, it's really about being able to balance and make sure that we can adapt considering it's 5 years, there's an amount of uncertainty in that, that will occur. So having the flexibility to balance and adapt will be key for us. Brian Russo: Okay. Great. And then just lastly on wildfire legislation as we quickly approach the 2027 legislative session. What's going to be like the key focus for you or how you're preparing for that to make some constructive steps in the upcoming session? Maria Pope: Sure. So it's a great question, and we will continue the discussions that we've been having over the last couple of years with a variety of stakeholders. One thing I would note that's really constructive and an improvement this year is the Oregon Public Utility Commission's work so they've hired Boston Consulting Group to do a study on wildfire and obviously, utilities. And we look forward to the results of that report probably in the early fall time period and are very encouraged with that next good step as well as working with stakeholders across the state and key customers as well. Operator: And our next question comes from Shar Pourreza of Wells Fargo Securities. Shahriar Pourreza: Maria, just on the Salem data center, I guess, since the state's pullback only affects kind of the state-owned portion of the site, not the private land, does that kind of change how you think about the 1.6 gig large load queue at all? Should we expect that to convert at the pace you guided to or some haircut the right way to think about it? Maria Pope: Sure. So first of all, the $1.7 billion is not in our guidance. It would be in addition and upside to our guidance. And just for those of you who are not tracking everything that's taken place with regards to the data centers and -- in Oregon, for the Salem region, one of our large customers had anticipated purchasing some state land, and the governor will be reviewing that sale and has not made any final determination at this point in time. That is just a portion of the land that they own or planning on owning. And the bulk of their investment would actually be on non-state land. In addition, there has been some discussion in Hillsboro on data center moratorium. And most of our customers that are not in our forecast, but that we are working with, with additional upside are actually already in the existing permitting process and grandfathered. Shahriar Pourreza: Got it. Okay. That's helpful. That clears up some confusion this morning. And then just with the holdco approval process now kind of getting to the finish line, I guess, how are you thinking about maybe updating the Street and what it means to the current plan, including maybe the balance sheet, EPS, financing flexibility? I mean it's obviously accretive. So how should we think about a plan update? Or do you want to wait for other items to kind of play out like the Washington acquisition, Seaside, et cetera? Joseph Trpik: Shar, we will give as much of an update as this process resolves itself, we will give an update to how we can. But you're right, Shar. I mean we have multiple growth and earnings catalysts that sit in front of us that would have an interplay here. So any type of guidance we give will be somewhat of a flexible view of the world is we don't want to front run the other processes that are out here. I mean I agree with you, there's having a holding company to align us with where the industry is and give us the flexibility to drive benefits for our customers and that further, I think, is important. And we'll just -- we'll balance how we guide this as these items in front of us are critical to its true ability to drive value. Operator: And our next question comes from Sophie Karp with KeyBanc. Sophie Karp: So I wanted to ask you, with the large load ramp that you may be seeing, is there a scenario where this incremental load and associated cash flow offset some of your financing needs? And is there a line of sight to that or too early to speculate? Maria Pope: Yes, that's a great question. It's probably too early to speculate, but we're really pleased with the cooperation we had from all of our customers, the partnership with the PUC, the [ legislative ] changes that were made that resulted in a 30% customer price increase for data centers effective in early July. And the resulting impact of that as we move forward through the general rate case as well as future years. It will be very helpful as we move forward to our overall P&L. Sophie Karp: Yes. Yes, for sure. Okay. And then on the holdco outcome, I guess the hearings have concluded, as I understand. We heard the price positions. So everybody is kind of set their piece. Like at this point, what do you see as the most likely outcome? And how would you frame the positive impact from it as you see it today versus maybe where you started? Maria Pope: Sure. So first of all, it has been a process that's gone on for over a year, and we've had many discussions, and we hope to conclude by the end of August. The most recent discussions that you're referring to were some concluding public testimony where this -- people pretty much reiterated their same and sort of from the beginning public statements. There have been a number of settlement conferences. Some of these are confidential, and we are really pleased with being able to come to an alignment on a number of important governance conditions as well as customer benefits and other items. The case overall has great merit. Much of what we have proposed and agreed upon to is not just similar to Northwest Natural and other utilities concluded results, but in some instances, absolutely identical in the types of conditions and aligned with the precedents that have been set. Operator: And our next question comes from Aidan Kelly of JPMorgan. Aidan Kelly: If I could, maybe just picking up again on the holdco front. Just how would you kind of characterize the delta between Portland and key stakeholders at this point? And just like do you see any risk of the proceeding getting further delayed or punted into next year at all? Or do you feel firm on that August 25 deadline? Joseph Trpik: So I think as we are working backwards here, I mean, I think all the key facts and all the key dialogue are really laid out pretty cleanly in the testimony. So I think the facts are there to be considered pretty cleanly. I think when you talk to delta here, which obviously varies by parties. But there's pretty good alignment as it relates to a lot of the conditions that would fall through here on the case. I mean there's always a bit of a delta on what I'll call the bid-ask spread on what is the benefit to the customers or what is the rate credit to the customer. But I mean, I think fundamentally, as to the conditions, we're relatively aligned. So I mean, I think it comes down to maybe some of the finer points on the conditions and then it's really the bid-ask spread here is really where we sit. You can see that cleanly in some of the testimony from some of the parties. You'll notice that we're just really relatively aligned and it comes down to dollars. So we're pretty satisfied with the way we've laid out the case. We think it's pretty clear on the benefits that are available to the customers. We're pretty clear on it is not a -- obviously, as you all know, a pretty consistent practice to have across the industry. So -- but we think that I'll close with the facts are there to have them decide the case. We haven't seen any indicators yet that it would extend. But obviously, we're waiting to see just like you would be. Aidan Kelly: Yes, I appreciate the color there. Maybe if I could just shift to the GRC backdrop. I appreciate you guys kind of laying out your thoughts and goals there. I guess just zooming out, how would you kind of rate the current affordability backdrop versus the recent past and your kind of key, I guess, items in proposal that kind of drive that 4.8% net increase? And maybe if you could tee that up kind of compared to prior GRC cycles. Just any thoughts kind of going into this filing next week. Maria Pope: Sure. So first of all, I want to note that we have not filed a general rate case in 2.5 years. So we take affordability very seriously, and we have been working diligently and effectively on our operating costs through our customer affordability commitments. And this rate case reflects the benefits for residential small business and other customers from the most recent New Load Tariff beyond 2377, which, as I noted, raised customer or data center prices by about 30%. Data center prices will go up much more than the -- significantly more than the average of 4.8% and residential customers are lower at about 3.9%. So we think that we have really done a lot to address affordability. When you factor in at January 1, our proposal to reduce energy costs through the annual update tariff by 2.4%, it's really just a couple of percent increase for our customers as they move forward. And we have also reflected really important infrastructure investments, some smart grid and grid-enhancing technology investments as well as reflect the things that customers, particularly on the residential, small commercial side, value and have been fairly vocal about. So we look forward to proceeding over the next year through discussions collaboratively with all stakeholders in the commission. Aidan Kelly: I appreciate the color. Sorry, there's just one more question I keep getting asked is, is it possible for you guys to still settle the holdco today, just like yes or no? Maria Pope: Absolutely. As you know, we have a record of settling most of our discussions. It's August or going into August, and there's people on vacation [indiscernible]. So my hope is that we do settle quickly, but the date is August 25. So we may end up with a commission decision, and we look forward to continuing the conversations. Operator: And our next question comes from Anthony Crowdell of Mizuho. Anthony Crowdell: If I could just jump on the last question to start off. Any chance that it seems that there's -- and hopefully, I'm not putting words in your mouth, it seems that there's active settlement discussions going on. Is there any chance that commission, actually, I think Sophie asked how hard is that August 25 deadline. Is there any chance that they would move that out knowing that there's active settlement discussions? Joseph Trpik: Yes. I guess, Anthony, Joe Trpik. So one, we haven't heard any dialogue to that. And to your comment on the settlement dialogue, the settlement dialogues are always open and part of the process. So this type of dialogue and settlement discussion is no different than other cases. So I'm not sure that it would be some indicator that says to prolong the hearings. Anthony Crowdell: And again, are the settlement discussions going on with all the major parties? Or are you kind of focused on maybe a smaller group of interveners? Joseph Trpik: Yes. And considering on how that we're in the middle of the year, there are discussions that are out there. I think any further detail would really front-run some items. So they're just open discussions that are out there. Anthony Crowdell: Great. And then if I -- and I apologize if I'm just getting things confused. I believe maybe earlier this year, you guys had pulled a transmission case not to confuse the holding company approval with the transmission rate case, the holding company approval still pending and the thoughts of maybe the timing of why file the general rate case now prior to maybe closing the transmission -- I'm sorry, the holding company case up. It seems that -- just curious on you pulled one case because you really wanted to focus be on the holding company structure and now possibly going in to file another case prior to the holding company structure. Maria Pope: Sure. So first of all, thank you for the question. And we do remain focused long term on the transmission. But knowing that there was a considerable amount of work in front of the commission, we really narrowed to the holding company, which includes the Washington acquisition, of course, and have had quite a few discussions with parties with regards to the general rate case and felt that this was an optimal time. As you may recall, led by the Citizens Utility Board and some others, we worked with parties to come up with something, some legislation in addition to the POWER Act, which resulted in larger customer price increases for data centers, but for not having rate increases go in during certain times of the year. And so given the discussions that we've had so far with parties on the general rate case, we really felt that filing in August would be workable for everyone. And since we've not have had a rate case for 2.5 years timely. Joseph Trpik: And Anthony, just a reminder, obviously, the transco filing was a structural filing here and didn't really impact how or when we collect rates on the transmission assets. Those have worked themselves through the same process that they did before. So they don't -- any of that timing or pulling of things doesn't have anything to do with rate recovery. It was solely structured. Anthony Crowdell: Got it. So just to make sure I have the sequence right, general rate case filing, expectation holding company formation hopefully later in the month? Joseph Trpik: That is correct. Yes, that is correct. Operator: And our next question comes from Gregg Orrill of UBS. Gregg Orrill: Just regarding the reliability contingency structure, just maybe you could talk to what that -- what the prospects are for continuing that and how that was viewed by the commission? Why did they decide not to continue to move forward with that? And then maybe also just on the O&M reduction plan, if there's any sort of update on that and sort of the prospects going forward, given its exception. Joseph Trpik: So the reliability contingency event or RCE was a mechanism that was afforded us in the last case that had a 2-year period, which expired here. That mechanism, we felt worked quite effectively here. We had an unusual ice storm and had some significant deviations in cost, and it pretty effectively captured those differences. It was put in initially with a 2-year time frame with the expectation that we would ultimately align aligned to broader power cost reform. That has not occurred as of yet. But the RCE did expire. I think the staff at least viewed as an experiment, it worked the way it's worked, and they ultimately would like to get away from that type of mechanism and just address -- ultimately address broader reform at some point in time in the future. So this is -- that is sort of an expired item that we're not subject to currently. Obviously, we like that. Maria Pope: Joe will go on and talk to your question about O&M, but I do want to just comment that I do -- we are aligned with staff and with policymakers across the state on the impacts of extreme weather and whether that is impacting customer energy usage, power costs, and we need to look more holistically at all of these things combined as we move forward. Joe, do you want to cover this question on O&M? Joseph Trpik: Yes. Thanks for asking on the O&M. I'm pretty happy with where we sit on the O&M side. As you may recall, we entered into this -- last year, we entered into a cost management program here, yielded about $25 million in benefits. In fact, those benefits are part included in the general rate case to help mitigate what cost considering it has been 2.5 years since we filed the case. And we'll continue to proceed with the program. You can see some of the results this year as they fall through the earnings waterfall year-to-date. The company has been pretty committed to not just squeezing to find savings, but to transform, and we find ourselves, we probably got another couple of years of this left. I think to date, you would score the effort as successful and very aligned with our expectations and very aligned with how it ties into our longer-term strategy. Operator: And our next question comes from Paul Fremont of Ladenburg Thalmann & Company. Paul Fremont: I guess my first question is, I think earlier in the year and maybe towards the end of last year, you were pretty optimistic about being able to settle the holdco case. Do you feel less optimistic at this point? Or do you still -- are you still in the camp that it's highly probable that you'll be -- that you will settle the case? Maria Pope: Sure. So we were optimistic then, and we are optimistic now. We have a strong case, good benefits for customers and the discussions are ongoing. Joseph Trpik: Great. And then I guess during oral arguments, some of the commissioners sort of asked, do you -- whether there are alternative mechanisms to double leverage to fund capital spending in the future. I think they mentioned securitization. Sort of any thoughts along those lines in terms of what alternatives might be available to the company? Maria Pope: I don't think we want to be front running the process. The discussion that took place in oral arguments was as expected and one part of the process. But clearly, it's important to the company to have the flexibility afforded to the vast majority of utilities across the country in terms of having a holding company structure. Joseph Trpik: Yes. Paul, can I just add? I mean this -- the focus on the holding company was about this is the structure that can yield the greatest benefits to the customers by a good distance and give us the tools that -- the one that gives us the most tools there. So there are always alternatives out there, but those alternatives will -- they can yield benefits, but they will not yield as meaningful to both the customer and design benefits as the structure that we proposed. Operator: And our next question comes from Travis Miller of Morningstar. Travis Miller: You answered most of my questions, but just a couple of quick clarifying ones. What's the earnings impact from the large load tariff that you have in the guidance? And what was initially included in the guidance? Has that changed at all? Joseph Trpik: So initially in the guidance, obviously, we gave our broad guidance for the year. The large load tariff was not a proposed document, and there was nothing included in. As we've gone through the year and as the large load tariff, we've incorporated the effects. We haven't to date quantified that, but we've incorporated the effects as a -- really as a balancing. As you know, we were reacting to some of the first quarter items. So there's a modest amount of benefit that's layered in here for the year. Maybe I'll just leave it at that. Travis Miller: Okay. And presumably, that would carry over at least through the first half of next year, right? So it should be a little bump in growth all else equal. Joseph Trpik: That's correct. Travis Miller: Okay. Okay. And then one other quick clarifying one. The 10% 5-year CAGR you're talking about at least through 2030 with the new customers, is that the ramp -- the ramping of existing contracted customers? Or is there an assumption of some additional large load customers that you'll get in the next couple of years? Joseph Trpik: So what I feel makes our disclosure there a bit unique is these are contracted customers. These are customers who are already either have constructed facilities or facilities that are under construction currently. So this ramp is really about this contracted and constructed assets here for us, which I feel makes it a little different is we don't have -- there is not a speculative queue here. I mean the opportunity for it that we talked to earlier on this call, that 1.7, I guess, some of that could have a different level of certainty. But the ramp that we have at 10% is solid. They have names, they have locations, they have companies to them. So we are pretty confident with the work that's laid out for the 10% ramp. Travis Miller: Perfect. And presumably, those customers, at least most of them would pay that large load low tariff? Joseph Trpik: Yes. Those customers, the large load tariff is applicable to all customers that once you meet certain megawatt of criteria, yes. And they obviously -- those parties were able to respond and then we're engaged in the process that ultimately resulted in the large load tariff. Maria Pope: Thank you very much. So I think with that, we are finished and don't have any more questions. We want to thank everyone for your time today. We look forward to further conversations at conferences through the balance of the quarter and the fall. And thank you for your interest in Portland General Electric. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Before you buy stock in Portland General Electric, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Portland General Electric wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Portland General Electric (POR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Industrial demand growth of 11% in Q2 was primarily driven by technology and semiconductor sectors, with data centers now representing approximately one-third of total industrial usage. The OPUC's approval of the New Large Load Tariff in July establishes a framework where infrastructure costs for new system investments are aligned to the large-load customers driving them. Management attributes the 30% price increase for data centers as a critical mechanism to lower rates for residential and small business customers while mitigating stranded asset risk. Operational performance was supported by disciplined cost management and productivity improvements, yielding approximately $25 million in benefits from the ongoing cost management program. Strategic positioning is being enhanced through the proposed holding company formation, intended to provide financing flexibility comparable to industry peers for clean energy investments. The 2025 renewable RFP reached a milestone with the OPUC acknowledging a short list of wind, solar, and battery resources, moving the company toward commercial negotiations. Management expects approximately 10% compounded annual industrial load growth through 2030, supported by customers already under contract or with facilities under active development. The 2027 general rate case filing proposes a 4.8% overall price increase, while the residential increase of 3.9% would have been higher if not for the impact of the large load tariff. Second-half 2026 earnings are expected to benefit from improved power costs, the absence of 2025's weather detriments, and margin improvement from the new tariff structure. The Washington acquisition remains on track for a mid-2027 closing, with a $680 million delayed draw term loan secured to satisfy specific acquisition milestones. A proposed 'bridge mechanism' for 2028 and 2029 is intended to address inflation and cost lag between the current rate case and the anticipated 2030 multiyear rate plan. Non-GAAP results exclude expenses related to business transformation, the Washington acquisition, and holding company formation to reflect ongoing operational performance. The Reliability Contingency Event (RCE) mechanism has expired; management is now working with regulators to address extreme weather impacts more holistically through broader power cost reform. Wildfire mitigation remains a priority with the 2026-2028 plan execution underway, though management noted no active wildfires are currently within PGE's service territory. The holding company formation awaits a final order expected at the end of August, which is viewed as essential for achieving the authorized capital structure and enhancing financing tools. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the 1.7 gigawatt pipeline represents upside beyond current guidance and consists of projects already in the permitting process. Current capital forecasts include some transmission investments for this load, but do not yet include the additional generation that would be required to serve it. Management expressed continued optimism regarding a settlement, noting that while public testimony showed differing positions, confidential settlement conferences have aligned on many governance conditions. The 'bid-ask spread' regarding the specific dollar amount of rate credits to customers remains the primary point of negotiation before the August 25 deadline. Management stated that potential state land sale reviews in Salem and moratoriums in Hillsboro do not impact the 10% growth forecast as those customers are already grandfathered or own non-state land. The 10% CAGR is described as 'solid' because it is based on named, contracted customers with specific locations rather than a speculative queue. The company is proposing a bridge mechanism to cover 2028 and 2029 to address inflation and cost changes before the formal multiyear plan begins in 2030. The goal is to create a flexible framework that allows the utility to adapt to uncertainty over a five-year period while maintaining a balanced capital structure.

Interested in Portland General Electric Company? Here are five stocks we like better. PGE reaffirmed its 2026 earnings guidance of $3.33–$3.53 per diluted share after reporting second-quarter non-GAAP earnings of $0.64 per share. Management also maintained its long-term 5%–7% earnings and dividend growth targets. Industrial and data-center demand remain major growth drivers: industrial deliveries rose 11.2% year over year, and PGE expects roughly 10% annual growth from large customers through 2030. A potential additional 1.7 gigawatts of data-center demand is not included in guidance and could provide upside. Regulatory and cost actions are expected to support future results. A new tariff raises data-center prices by about 30% while reducing pressure on other customers, while improved power costs, regulatory recovery and a cost-management program that has delivered about $25 million in benefits should aid second-half performance. Portland General Electric (NYSE:POR) reported second-quarter GAAP net income of $68 million, or $0.59 per diluted share, and non-GAAP net income of $74 million, or $0.64 per diluted share, as industrial demand growth and regulatory recovery helped offset power-cost timing effects and financing costs. President and CEO Maria Pope said the results were in line with the company’s expectations and reflected execution across its strategic priorities. The company reaffirmed its 2026 earnings guidance of $3.33 to $3.53 per diluted share, as well as its long-term earnings and dividend growth guidance of 5% to 7%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Total retail energy deliveries rose 3.9% from the second quarter of 2025 on a nominal basis and increased 2.7% on a weather-adjusted basis, according to Chief Financial Officer Joe Trpik. Industrial deliveries increased 11.2% year over year, driven by demand from technology, semiconductor and data-center customers. Pope said PGE serves 12 data-center customers, which represent about one-third of total industrial usage. Industrial load has grown at roughly a 10% compounded annual rate during the past five years, and the company expects approximately 10% annual growth from large customers through 2030. Trpik said that outlook is based on contracted customers with completed facilities or projects already under construction, rather than a speculative interconnection queue. → Microsoft Just Flipped the AI Spending Narrative Overnight Residential deliveries increased 1.3% on a nominal basis but declined 1.4% after adjusting for weather. Commercial deliveries fell 2% nominally and 2.8% on a weather-adjusted basis. PGE reaffirmed its forecast for 2026 weather-adjusted load growth of 1.5% to 2.5%. Management also discussed a potential 1.7-gigawatt pipeline of additional data-center demand across its service area. Pope said this potential load is not included in the company’s guidance and would represent upside. She added that many of the projects are already in the permitting process and that most have land ownership or are progressing in development. → Carrier Earnings Could Send the Stock to a New All-Time High The Oregon Public Utility Commission approved PGE’s new large-load tariff during the quarter, effective in July. Pope said the tariff raises average prices for data centers by approximately 30% while lowering rates for other customers. The framework is designed to align infrastructure costs with customers driving system investment, while reducing cost pressures for residential and small-business customers, according to Pope. The tariff applies to customers that meet specified megawatt thresholds. Trpik said PGE has incorporated a modest benefit from the tariff into its 2026 outlook, though the company did not quantify the earnings contribution. He said the effect should continue into at least the first half of 2027. Separately, PGE plans to file its 2027 general rate case the following week. The proposal would seek an overall price increase of approximately 4.8% effective July 1, 2027, including an approximately 3.9% increase for residential customers. Pope said the residential increase would have been higher without the large-load tariff. The company expects the proposed increase to be partly offset by a forecast 2.4% reduction in customer prices beginning Jan. 1 through its annual update tariff for net variable power costs. The rate filing is based on a proposed capital structure of 50% debt and 50% equity, along with a 9.75% return on equity. Trpik outlined several major year-over-year factors affecting second-quarter earnings. Power costs reduced earnings by $0.18 per share, primarily due to the expected timing of revenue collection and power-cost recognition during the year. Retail revenue increased earnings by $0.22 per share, including $0.10 from industrial demand and $0.12 from added cost recovery. The cost recovery included the Seaside battery asset, which entered customer rates in November 2025, and distribution system planning recovery that began in April 2026. Other capital and financing costs reduced earnings by $0.12 per share, including higher depreciation and amortization, dilution and additional interest expense. Operations and maintenance expense contributed $0.06 per share, reflecting cost management and productivity improvements. PGE said there was no meaningful year-over-year revenue impact from changes in residential or commercial usage. The company expects improved power costs in the second half, no recurrence of a fourth-quarter 2025 weather detriment under its normal-weather forecast, additional margin from the large-load tariff and further regulatory recovery. Trpik also cited management actions on operating and power costs. PGE said a cost-management program launched last year generated about $25 million in benefits. Trpik said those savings are included in the upcoming rate case and that the company expects to continue the effort for another couple of years. The OPUC acknowledged PGE’s shortlist for its 2025 renewable request for proposals during the quarter. The list includes wind, solar, battery storage and hybrid resources, with both power-purchase and company-owned options under consideration. PGE expects commercial negotiations to continue, with contracts targeted for execution by early 2027, subject to approvals. The company’s five-year capital forecast includes 2026 and 2027 spending associated with its incoming 2023 resource procurement, but does not include potential capital spending from the 2025 request for proposals or the pending Washington acquisition. PGE said it has completed most of its 2026 financing activity, including a $550 million equity issuance under a forward sale, a $500 million at-the-market facility, and a $350 million 24-month term loan. It also has a $680 million delayed-draw term loan connected to the Washington acquisition. Investment-grade credit ratings remained unchanged. The board declared a quarterly common dividend of $0.55125 per share in July, representing a 5% annualized increase. PGE said it continues to target a payout ratio of 60% to 70%. Management expects a final order by the end of August on its proposed holding-company structure and continues to target a mid-2027 closing for the Washington acquisition. Pope said the company also remains on track with its 2026 through 2028 wildfire mitigation plan, while noting that active Oregon wildfires were not located in PGE’s service territory. Portland General Electric (NYSE:POR) is an investor-owned electric utility headquartered in Tigard, Oregon, with roots tracing back to the late 19th century. The company generates, transmits and distributes electricity to residential, commercial and industrial customers across a broad territory in Oregon, primarily encompassing the Portland metropolitan area and surrounding regions. As one of Oregon's largest electric utilities, Portland General Electric operates a diverse portfolio of generation assets, including hydroelectric facilities, natural gas–fired plants and renewable energy sources. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Portland General Electric Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second quarter financial results were consistent with guidance and reflect strong operational execution Industrial customer demand grew 11% year-over-year, driven by continued growth from high-tech and data center customers Reaffirming 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share PORTLAND, Ore., July 31, 2026 /PRNewswire/ -- Portland General Electric Company (NYSE: POR) today reported second quarter 2026 net income of $68 million, or $0.59 per diluted share, on a generally accepted accounting principles (GAAP) basis. After adjusting for business transformation, optimization and acquisition expenses, second quarter 2026 non-GAAP net income was $74 million, or $0.64 per diluted share. This compares with second quarter 2025 GAAP net income of $62 million, or $0.56 per diluted share, and non-GAAP net income of $73 million, or $0.66 per diluted share. "Affordability remains a national focus, and we have taken proactive steps to address customer cost pressures while supporting continued economic growth in our region. The approval of our large customer tariff reflects several years of legislative and regulatory work. It results in data center pricing increasing by approximately 30%, while lowering costs for all other customers," said Maria Pope, President and CEO. "As we enter the second half of 2026, we are focused on operational execution, meeting the opportunities of continued customer growth, and advancing major regulatory proceedings including our holding company and Washington acquisition filings." Second Quarter 2026 Earnings Compared to Second Quarter 2025 Earnings On a GAAP basis, total revenues increased due to higher cost recovery and increased energy deliveries, primarily driven by continued industrial load growth of 11.2%, while residential and commercial loads were relatively flat year over year. Purchased power and fuel expense increased due to expected intra-year timing differences between power cost recognition and revenue collections. Operations and maintenance expense decreased, reflecting ongoing cost management efforts, while depreciation and interest expense increased due to continued capital investment in the system. Additional Company Updates Regulatory Update The New Large Load Tariff (docket UM 2377) was approved by the OPUC in May 2026 and established a new rate class for large load customers. It also established an important framework that better aligns infrastructure costs with the customers driving new system growth while helping reduce costs for residential and small business customers. New prices became effective July 8, 2026, which included an average rate increase of approximately 30% for data center and other new large load customers, while lowering rates for all other customers. Corporate Structure / Holding Company Update PGE continued to advance its proposed holding company structure, with OPUC Staff recommending approval of the proposal, subject to certain conditions. The proposed structure is expected to enhance financing flexibility and support continued investment in clean energy, reliability, and infrastructure needed to serve customers over time. General Rate Case Next week, PGE will file its 2027 general rate case with the OPUC. As proposed, the case would result in an approximate 4.8% overall increase relative to currently approved prices. If approved, new rates would take effect July 1, 2027. This increase is expected to be partially offset by lower net variable power costs in 2027, which are addressed separately through the Annual Power Cost Update Tariff, and are currently forecasted to reduce customer prices by approximately 2.4% beginning January 1, 2027. 2025 All-Source Request for Proposals The OPUC acknowledged our 2025 RFP final shortlist on May 26, 2026, marking an important milestone in the resource procurement process. We are now moving into commercial negotiations and expect to execute contracts by early 2027, subject to final negotiations and Board approvals. Quarterly Dividend As previously announced, on July 24, 2026, the board of directors of Portland General Electric Company approved a quarterly common stock dividend of 55.125 cents per share. The quarterly dividend is payable on or before October 15, 2026 to shareholders of record at the close of business on September 25, 2026. 2026 Earnings Guidance PGE is reaffirming its estimate for full-year 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share based on the following assumptions: An increase in energy deliveries between 1.5% and 2.5%, weather adjusted; Execution of power cost and financing plans; Execution of operating cost management plan; Normal temperatures in its utility service area for the remainder of the year; Hydro conditions for the year that reflect current estimates; Wind generation based on five years of historical levels or forecast studies when historical data is not available; Normal thermal plant operations; Operating and maintenance expense between $810 million and $830 million which includes approximately $150 million of wildfire, vegetation management, deferral amortization and other expenses that are offset in other income statement lines and $26 million of business transformation, optimization and acquisition expenses and $4 million of regulatory deferral adjustments related to the January 2024 storm and 2024 reliability contingency event; Depreciation and amortization expense between $570 million and $590 million; Effective tax rate of 15% to 20%; Cash from operations of $1,000 to $1,200 million; Capital expenditures of $1,655 million; and Average construction work in progress balance of $780 million. Second Quarter 2026 Earnings Call and Webcast — July 31, 2026 PGE will host a conference call with financial analysts and investors on Friday, July 31, 2026, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A webcast replay will also be available on PGE's investor website "Events & Presentations" page beginning at 2 p.m. ET on July 31, 2026. Maria Pope, President and CEO; Joe Trpik, Senior Vice President of Finance and CFO; and Erin Schwartz, Senior Manager of Investor Relations, will participate in the call. Management will respond to questions following formal comments. Non-GAAP Financial Measures This press release contains certain non-GAAP measures, such as adjusted earnings, adjusted EPS and adjusted earnings guidance. These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities, are infrequent in nature, or both. PGE believes that excluding the effects of these items provides an alternative measure of the Company's comparative earnings per share and enables investors to evaluate the Company's operating financial performance trends, exclusive of items that are not normally associated with ongoing operations. Management utilizes non-GAAP measures to assess the Company's current and forecasted performance, and for communications with shareholders, analysts and investors. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Items in the periods presented, which PGE believes impact the comparability of comparative earnings and do not represent ongoing operating financial performance, include the following: Business transformation and optimization expenses, including strategic advisory, workforce realignment, corporate structure update costs and Washington acquisition related expenses including legal, financing and strategic advisory costs. Due to the forward-looking nature of PGE's non-GAAP adjusted earnings guidance, and the inherently unpredictable nature of items and events which could lead to the recognition of non-GAAP adjustments (such as, but not limited to, regulatory disallowances or extreme weather events), management is unable to estimate the occurrence or value of specific items requiring adjustment for future periods, which could potentially impact the Company's GAAP earnings. Therefore, management cannot provide a reconciliation of non-GAAP adjusted earnings per share guidance to the most comparable GAAP financial measure without unreasonable effort. For the same reasons, management is unable to address the probable significance of unavailable information. PGE's reconciliation of non-GAAP earnings for the quarters ended June 30, 2026 is below. About Portland General Electric Company Portland General Electric (NYSE: POR) is an integrated energy company that generates, transmits and distributes electricity to nearly 960,000 customers serving an area of approximately 2 million Oregonians. Since 1889, Portland General Electric (PGE) has been powering economies, delivering safe, affordable and reliable electricity while working to transform energy systems to meet evolving customer needs. PGE continues to make progress towards emissions reduction targets, and customers have set the standard for prioritizing clean energy with the No. 1 voluntary renewable energy program in the country. PGE is ranked a top ten utility in the 2025 Forrester U.S. Customer Experience Index. In 2025, PGE employees and retirees volunteered over 18,300 hours to more than 400 nonprofits organizations. Through the PGE Foundation, along with corporate contributions and the employee matching gift program, more than $5 million was directed to charitable organizations supporting economic growth and community resilience across our service area. For information: portlandgeneral.com/news. Safe Harbor Statement Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent our estimates and assumptions as of the date of this report, and PGE assumes no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. Investors should not rely unduly on any forward-looking statements. Forward-looking statements include statements, other than statements of historical or current fact, regarding PGE's earnings guidance (including all the assumptions and expectations upon which such guidance is based), PGE's proposed purchase of electric utility operations and certain assets in Washington state from PacifiCorp (Acquisition), and PGE's operating and financing plans, as well as other statements containing words such as "anticipates," "assumptions," "believes," "continue," "could," "estimates," "expected," "forecast," "guidance," "may," "plans," "proposed," "seeks," "should," "will," "working to," or similar expressions. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Such risks, uncertainties and other factors include, without limitation: wildfire and public safety risks, including ignitions caused by PGE assets, the effectiveness of wildfire mitigation, vegetation management, and system hardening, the ability to implement public safety power shutoffs (PSPS), related liability exposure, and the timing and extent of regulatory cost recovery; severe weather, climate, and catastrophe risks, including extreme or unseasonable weather and other natural or human caused disasters that could endanger public safety, disrupt operations, damage assets, limit access to power or fuel supplies, increase costs, or adversely affect cost recovery; electric system operational risks, including forced outages, fires, equipment failures, adverse hydro or wind conditions, fuel supply disruptions, and complications at jointly owned facilities, resulting in increased costs or the need to procure replacement power; power and fuel supply and price risks, including availability, counterparty nonperformance, and volatility in wholesale electricity, natural gas, coal, and other fuel markets; regulatory, legislative, and policy risks, including new or revised laws, regulations, executive actions, audits, investigations, and proceedings that could affect rates, cost recovery, operations, capital plans, or financial results; Acquisition risks, including risks related to regulatory approvals, financing and joint‑venture arrangements, integration and operational execution, cost recovery, and the possibility that the anticipated benefits of the Acquisition are delayed, not realized, or cost more than expected; environmental compliance and permitting risks, including evolving environmental laws and permitting requirements and site specific remediation obligations, such as Superfund liabilities, where uncertainties regarding remediation scope, cost allocation, litigation, and regulatory cost recovery could result in material costs or adversely affect PGE's financial position, results of operations, or cash flows; capital investment and execution risks, including supply chain disruptions, cost inflation, labor constraints, permitting delays, contractual disputes, counterparty failures, or project abandonment, which could impair timely completion or cost recovery; load growth and demand uncertainty, including accelerated or uneven growth from large customers such as data centers, changes in customer usage patterns, variability in demand driven by weather variations, and reduced consumption or load shifting resulting from price increases, energy efficiency measures or other changes in customer behavior; customer choice and market structure risks, including reduced demand or usage shifts due to distributed generation or increased procurement from alternative providers, such as registered Electricity Service Suppliers (ESSs) or community choice aggregation programs; cybersecurity and physical security risks, including cyberattacks, data breaches, physical attacks, the use or misuse of artificial intelligence technologies, or other malicious acts that could damage assets, disrupt systems, or result in the disclosure of sensitive information; geopolitical and macroeconomic risks, including acts of war, terrorism, or civil unrest—such as the escalation of US operations in the Middle East—that could disrupt energy markets or supply chains, increase costs, or contribute to volatility in capital markets, inflation, or interest rates; economic and financial market risks, including availability and cost of capital, interest rate and equity market volatility, inflation, and trade tariffs affecting operating or capital costs; legal and litigation risks, including the timing and outcome of judicial, administrative, or regulatory proceedings, which may result in material liabilities or costs; workforce and labor risks, including labor strikes, work stoppages, collective bargaining disputes, the ability to attract and retain skilled employees, and transitions in senior management; resource procurement and All-Source Request for Proposals (RFP) project risks, including uncertainties related to the availability, cost, permitting, financing, and performance of resources selected through RFP or other regulatory processes and associated regulatory and counterparty risks; insurance availability and cost, particularly for wildfire or catastrophe related coverage; accounting, tax, and policy changes, including changes in accounting standards, tax laws, or regulatory accounting policies that could affect reported results or cash flows; and the other risks and uncertainties set forth in PGE's Annual Report on Form 10‑K for the year ended December 31, 2025, as filed with the SEC. Source: Portland General Electric Company Media Contact:Drew HansonCorporate CommunicationsPhone: 503-464-2067 Investor Contact:Erin SchwartzInvestor RelationsPhone: 503-464-7751 View original content:https://www.prnewswire.com/news-releases/portland-general-electric-announces-second-quarter-2026-results-302839616.html

This article first appeared on GuruFocus. GAAP Net Income: $68 million, or $0.59 per diluted share for Q2. Non-GAAP Net Income: $74 million, or $0.64 per diluted share for Q2. Full-Year Earnings Guidance: Reaffirmed at $3.33 to $3.53 per diluted share. Total Retail Energy Deliveries: Increased 3.9% year-over-year on a nominal basis and 2.7% on a weather-adjusted basis. Industrial Demand: Increased 11.2% year-over-year in Q2. Residential Deliveries: Increased 1.3% on a nominal basis and decreased 1.4% on a weather-adjusted basis. Commercial Deliveries: Decreased 2% nominally and 2.8% on a weather-adjusted basis. Retail Revenues: Increased $0.22 per share, including a $0.10 increase from industrial demand and a $0.12 increase from additional cost recovery. Power Costs: Decreased earnings by $0.18 per share due to timing of revenue collection and power cost recognition. Other Capital and Financing Costs: Decreased earnings by $0.12 per share, driven by higher depreciation and amortization ($0.07), dilution ($0.03), and additional interest expense ($0.02). O&M: Increased earnings by $0.06 per share, reflecting strong cost management. Dividend: Quarterly common dividend declared at $0.55125 per share, a 5% increase on an annualized basis. Warning! GuruFocus has detected 12 Warning Signs with POR. Is POR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong industrial demand growth of 11% year-over-year, driven by 12 data center customers, with a 10% compounded annual growth rate expected through 2030. Approval of the New Large Load Tariff, which raises prices for data centers by ~30% while lowering rates for residential and small business customers. Reaffirmed full-year 2026 earnings guidance of $3.33 to $3.53 per diluted share and long-term 5% to 7% earnings and dividend growth guidance. Successful execution of cost management programs, yielding $25 million in benefits and contributing to a $0.06 increase from O&M improvements. Completed the majority of 2026 financing activity, including a $550 million equity forward sale and a $680 million delayed draw term loan for the Washington acquisition, with investment-grade credit ratings unchanged. Advancing the 2025 renewable RFP with a short list of diverse wind, solar, battery storage, and hybrid resources, targeting contracts by early 2027. Power costs decreased earnings by $0.18 per share due to expected intra-year timing of revenue collection and power cost recognition. Higher depreciation, dilution, and interest expenses reduced earnings by $0.12 per share, reflecting ongoing capital investments. Weather-adjusted residential deliveries declined 1.4% and commercial deliveries fell 2.8% year-over-year, indicating softness in those customer classes. The reliability contingency event mechanism expired, and the commission has not yet implemented broader power cost reform, creating uncertainty. The proposed 2027 general rate case seeks a 4.8% overall price increase, which may face regulatory scrutiny and customer pushback despite mitigation efforts. The holding company formation and Washington acquisition remain pending regulatory approvals, with potential for delays or unfavorable conditions. Q: Can you comment on the 1.7 gigawatts of additional data center pipeline and what kind of investment would be needed to support it? Is it generation and is it part of the '25 RFP?A: Maria Pope (President and CEO): The 1.7 gigawatts represents projects already in the permitting process, with many having land ownership and progressing nicely. This load will be under the UM 2377 framework, which enables growth and higher customer prices for data centers. However, we have not included any of the additional generation needed to support this pipeline in our forecast. Some transmission investments are included, but not all, and some extend beyond the 2030 time period. Q: With the large load ramp you may be seeing, is there a scenario where this incremental load and associated cash flow offset some of your financing needs?A: Maria Pope (President and CEO): It's probably too early to speculate, but we're really pleased with the cooperation from customers and the partnership with the PUC that resulted in a 30% customer price increase for data centers effective in early July. The resulting impact will be very helpful to our overall P&L as we move forward through the general rate case and future years. Q: How are you thinking about updating the Street on the holdco approval process and what it means to the current plan, including the balance sheet, EPS, and financing flexibility?A: Joseph Trpik (CFO): We will give as much of an update as this process resolves itself. We have multiple growth and earnings catalysts that sit in front of us that would have an interplay here, so any guidance we give will be somewhat of a flexible view. Having a holding company aligns us with the industry and gives us the flexibility to drive benefits for customers. We'll balance how we guide this as these items are critical to its true ability to drive value. Q: On the upcoming general rate case filing, what are the key areas to focus on in terms of mechanisms to help maintain the inherent lag? What might we expect in terms of proactive mechanics in the multiyear rate plan filing?A: Joseph Trpik (CFO): The multiyear framework lists out for five years, so our focus will be making sure it has flexibility to operate the business and adapt to change. Before the multiyear, we have the general rate case this year that will cover a period of time, and then we're proposing a bridge mechanism to get to the multiyear rate that would not be filed until '29 with rates effective in '30. The bridge mechanism is designed to address inflation and cost between full GRC-type cases. Q: On the Salem data center, since the state's pullback only affects the state-owned portion of the site, not the private land, does that change how you think about the 1.6 gig large load queue? Should we expect that to convert at the pace you guided to?A: Maria Pope (President and CEO): The $1.7 billion is not in our guidance; it would be upside. For the Salem region, one of our large customers had anticipated purchasing some state land, and the governor will be reviewing that sale without a final determination yet. That is just a portion of the land they plan on owning, and the bulk of their investment would be on non-state land. Most of our customers that represent additional upside are already in the existing permitting process and grandfathered. Q: How would you characterize the delta between Portland and key stakeholders on the holdco proceeding? Do you see any risk of the proceeding getting further delayed or punted into next year?A: Joseph Trpik (CFO): All the key facts and dialogue are laid out pretty cleanly in the testimony. There's pretty good alignment on a lot of the conditions, though there's always a bit of a delta on the bid-ask spread regarding the benefit or rate credit to the customer. It comes down to dollars. We're pretty satisfied with the way we've laid out the case, and we haven't seen any indicators yet that it would extend beyond the August 25 deadline. Q: How would you rate the current affordability backdrop versus the recent past, and what are the key items in the proposal that drive that 4.8% net increase?A: Maria Pope (President and CEO): We have not filed a general rate case in 2.5 years, so we take affordability very seriously. This rate case reflects the benefits for residential and small business customers from the New Load Tariff, which raised data center prices by about 30%. Data center prices will go up significantly more than the average of 4.8%, while residential customers are lower at about 3.9%. When you factor in the January 1 proposal to reduce energy costs through the annual update tariff by 2.4%, it's really just a couple of percent increase for customers. Q: Regarding the reliability contingency structure, what are the prospects for continuing that, and how was that viewed by the commission? Also, any update on the O&M reduction plan?A: Joseph Trpik (CFO): The reliability contingency event was a mechanism with a two-year period that expired. It worked quite effectively, especially during the unusual ice storm, but staff viewed it as an experiment and would like to address broader power cost reform in the future. On O&M, we entered a cost management program last year that yielded about $25 million in benefits, which are included in the general rate case. We'll continue with the program and probably have another couple of years of this left. The effort has been successful and aligned with our longer-term strategy. Q: What's the earnings impact from the large load tariff that you have in the guidance? Has that changed at all?A: Joseph Trpik (CFO): Initially, the large load tariff was not a proposed document, and nothing was included in the guidance. As we've gone through the year, we've incorporated the effects as a balancing item. There's a modest amount of benefit layered in for the year, and that would carry over at least through the first half of next year, providing a bump in growth all else equal. Q: The 10% 5-year CAGR you're talking about through 2030 with new customersis that the ramping of existing contracted customers or an assumption of additional large load customers?A: Joseph Trpik (CFO): What makes our disclosure unique is that these are contracted customers who already have constructed facilities or facilities under construction. This ramp For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Portland General Electric (POR) came out with quarterly earnings of $0.64 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this electric utility would post earnings of $0.83 per share when it actually produced earnings of $0.58, delivering a surprise of -30.12%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Portland General Electric, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $814 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.46%. This compares to year-ago revenues of $807 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Portland General Electric shares have added about 4.4% since the beginning of the year versus the S&P 500's gain of 8.7%. While Portland General Electric has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Portland General Electric was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.32 on $1.01 billion in revenues for the coming quarter and $3.39 on $3.73 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Pinnacle West (PNW), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This power company is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of -5.7%. The consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. Pinnacle West's revenues are expected to be $1.4 billion, up 3.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Portland General Electric Company (POR) : Free Stock Analysis Report Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Portland General Electric stock has delivered a 29.5% return over the past year, yet its valuation checks suggest the shares no longer look clearly cheap, with the intrinsic value estimate from a Dividend Discount Model (DDM) indicating the price is roughly in line with fair value. Over the last 12 months, Portland General Electric has returned 29.5%, which puts extra focus on whether the current share price still leaves much upside on the table. The recent move to acquire PacifiCorp’s Washington utility operations and the use of a US$681 million delayed draw term loan can support long term earnings and dividend capacity, but also adds financing and execution risk if cash flows do not track expectations. On Simply Wall St’s broader checks, Portland General Electric scores 1 out of 6 for value, which points to a stock that leans expensive rather than an obvious bargain. For investors, the debate is whether Portland General Electric’s recent share price gains and fairly valued DDM estimate still justify paying today’s multiple for its future dividends. Portland General Electric delivered 29.5% returns over the last year. See how this stacks up to the rest of the Electric Utilities industry. The Dividend Discount Model (DDM) values Portland General Electric based on the cash dividends it is expected to pay over time. For this stock, the model uses the current annual dividend per share of about $2.37, an implied return on equity of about 8.0% and a payout ratio around 72%, which together produce an estimated long term dividend growth rate of roughly 2.2% a year. Using these inputs, the DDM points to an intrinsic value close to $48.49 per share, which sits slightly below the current share price and indicates the stock may be about 5.5% overvalued. The acquisition of PacifiCorp’s Washington utility operations, and the funding taken on to support that, helps explain why investors may be comfortable paying a small premium for Portland General Electric’s dividend stream today. On balance, the Dividend Discount Model suggests Portland General Electric stock currently appears to be roughly fairly valued, with only a modest premium to its estimated intrinsic dividend value. Portland General Electric is fairly valued according to our Dividend Discount Model (DDM), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Portland General Electric. The P/E ratio is a useful way to quickly compare what you are paying for each dollar of Portland General Electric earnings against similar utility stocks. Portland General Electric currently trades on a P/E of about 23.6x, which is slightly above the Electric Utilities sector average of roughly 22.3x but below the broader peer group average of around 26.3x. A tailored fair P/E for Portland General Electric of about 21.8x suggests the current multiple carries a small premium to what the company’s profile might typically support. That gap is not extreme, given the regulated utility model and the focus on dividends highlighted earlier. As a result, the stock does not screen as obviously cheap or stretched on earnings alone. Overall, Portland General Electric appears to be priced roughly fairly on its P/E multiple when set against both its industry and a more tailored fair value benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the earlier Portland General Electric valuation checks leave off. They set out clear scenarios that spell out what would need to happen to Portland General Electric's growth, profit margins and earnings for the stock to be worth materially more or less than today’s price, tying each number to a concrete view of how growth, profitability and risks might evolve. You can revisit these scenarios on the Community page as new information emerges. Add your voice to the Simply Wall St community with a clear, number driven narrative on Portland General Electric's expansion into Washington and its dividend plans. Set out your view on whether Portland General Electric's acquisition and financing choices justify today’s price and track how your thesis holds up as new results arrive. Do you think there's more to the story for Portland General Electric? Head over to our Community to see what others are saying! Portland General Electric looks roughly fairly valued, with the Dividend Discount Model pointing to only a modest premium to intrinsic value and the P/E multiple sitting close to a tailored fair range. That combination suggests the stock is no longer an obvious bargain and instead prices in a reasonable share of its regulated earnings and dividend profile. The key issue from here is whether Portland General Electric can deliver the cash flows and dividend growth implied in the DDM while managing the financing and integration risks around the PacifiCorp acquisition. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include POR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

OGE Energy (OGE) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.75%. A quarter ago, it was expected that this energy services company would post earnings of $0.24 per share when it actually produced earnings of $0.24, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. OGE Energy, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $711.9 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 8.86%. This compares to year-ago revenues of $741.6 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OGE Energy shares have added about 15.5% since the beginning of the year versus the S&P 500's gain of 8.5%. While OGE Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for OGE Energy was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.08 on $1.09 billion in revenues for the coming quarter and $2.42 on $3.36 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Portland General Electric (POR), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31. This electric utility is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of -3%. The consensus EPS estimate for the quarter has been revised 9.6% higher over the last 30 days to the current level. Portland General Electric's revenues are expected to be $843.16 million, up 4.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OGE Energy Corporation (OGE) : Free Stock Analysis Report Portland General Electric Company (POR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Otter Tail (OTTR) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 3. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This power company and manufacturer is expected to post quarterly earnings of $1.48 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $334.5 million, up 0.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 8.92% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Otter Tail, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Otter Tail will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Otter Tail would post earnings of $1.34 per share when it actually produced earnings of $1.73, delivering a surprise of +29.10%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Otter Tail doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Utility - Electric Power industry, Portland General Electric (POR), is soon expected to post earnings of $0.64 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -3%. Revenues for the quarter are expected to be $843.16 million, up 4.5% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Portland General Electric has been revised 9.6% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Portland General Electric will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Otter Tail Corporation (OTTR) : Free Stock Analysis Report Portland General Electric Company (POR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research