PPL

PPL Corporation PPL benefits from improved operating income, which enhances profitability and strengthens its financial flexibility. This can help the company fund capital investments, meet debt obligations, sustain dividends and manage financing requirements more effectively.In the second quarter of 2026, operating income increased 17% year over year to $475 million from $406 million, supporting a 20% rise in earnings per share (EPS) and a 3.1% increase in ongoing earnings. The increase in operating income reflects improved profitability and coincided with growth in both reported and ongoing earnings. The company benefits from rising data-center demand and economic development, which support sustainable earnings growth. PPL’s Pennsylvania segment has 31.8 gigawatts (GW) of potential data-center demand, while Kentucky has 13.7 GW of potential load growth through 2032.PPL expects improved earnings growth from the Pennsylvania rate-case settlement, which took effect July 1 and provides an approved $275 million annual revenue increase, as well as from the Rhode Island rate case, with new rates expected to take effect soon. The company expects EPS to grow at an annual rate of 6-8% through 2029. The company is making significant infrastructure investments to improve service reliability and expand its rate base. It plans to invest about $5.1 billion in 2026, with $23 billion expected through 2029, supporting an average annual rate-base growth of 10.3%.Overall, PPL is well positioned for earnings growth, supported by data center demand, rate recovery and investment-driven revenue gains. Higher operating income can strengthen a utility’s financial capacity, providing greater flexibility to fund capital projects while supporting balance-sheet stability. Sustained earnings growth can help fund grid modernization, generation expansion and reliability upgrades to meet rising demand.FirstEnergy FE reported a 4.8% year-over-year increase in operating income in the second quarter of 2026, strengthening its financial capacity to execute the $36 billion Energize365 program and support long-term rate-base growth.Duke Energy DUK reported a 12% year-over-year increase in operating income in the second quarter of 2026, strengthening its ability to fund its $103 billion capital program and support grid modernization and generation expansion. The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.32%, respectively. Image Source: Zacks Investment Research PPL's debt-to-capital currently stands at 57.46%, lower than the electric power industry’s 61.32%. Image Source: Zacks Investment Research In the past month, the company’s shares have plunged 3.1% compared with the industry’s 4.6% decline. Image Source: Zacks Investment Research PPL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 PPL Corporation (PPL) : Free Stock Analysis Report FirstEnergy Corporation (FE) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. PPL (PPL) recently affirmed a quarterly dividend of $0.2850 per share and outlined nearly $5.1b of planned capital investments for 2026, drawing fresh attention to the stock’s income and infrastructure story. See our latest analysis for PPL. PPL’s recent dividend affirmation and 2026 capital plan land at a time when the stock has eased in the short term, with the 30 day share price return down 3.4%, yet the 3 year total shareholder return of 53.16% points to stronger momentum over a longer horizon. If this kind of grid and infrastructure story interests you, it could be worth broadening your watchlist with the 38 power grid technology and infrastructure stocks PPL trades at a clear discount to average analyst targets after its recent pullback. Is that a sign that the market is too cautious about the capital plan and earnings outlook, or is it a fair reflection of the risks? PPL’s most followed narrative sets a fair value of $41.20 per share, which is above the recent $34.99 close, and ties that gap to long term grid spending and demand trends. Read the complete narrative. Curious what underpins that fair value gap for PPL. The narrative leans heavily on steady revenue expansion, rising margins, and a future earnings profile tied to a premium P/E multiple. Want to see exactly how those moving parts add up. Result: Fair Value of $41.20 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the PPL story still hinges on smooth regulatory outcomes and accurate data center demand forecasts. Any setback on either front could quickly challenge this optimism. Find out about the key risks to this PPL narrative. While the most popular PPL narrative points to a fair value of $41.20 per share, the SWS DCF model tells a different story. On that view, PPL’s current price of $34.99 sits above an estimated future cash flow value of $19.92, which screens as overvalued. Which set of assumptions do you find more convincing? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out PPL for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With both concerns and optimism around PPL clear in this article, it makes sense to look at the underlying data for yourself and move quickly. To see the balance of caution and opportunity in one place, start with the 2 key rewards and 2 important warning signs If you stop with PPL, you miss a wider set of opportunities. Use the Simply Wall Street Screener to surface fresh ideas that match what you care about most. Target resilient balance sheets by scanning companies with the solid balance sheet and fundamentals stocks screener (51 results) and focus on businesses that aim for financial strength and flexibility. Hunt for potential mispricings with the 49 high quality undervalued stocks so you can quickly spot stocks that may trade below their underlying fundamentals. Prioritize stability and income by checking out the 12 dividend fortresses and find companies aiming to combine higher yields with consistent dividend histories. 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 PPL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

PPL Corporation’s PPL expanding revenues are helping the company offset higher costs and strengthen its operating performance. This revenue growth can help strengthen margins and support PPL’s overall financial performance.In the second quarter of 2026, PPL’s operating revenues increased 4.2% year over year to $2.11 billion from $2.03 billion. The improvement was supported by stronger rate recovery and transmission revenues. Rate recovery provided a 5-cent benefit, while transmission revenues added 1 cent, helping offset operating costs, depreciation and interest expenses. PPL’s operating income increased 17% year over year to $475 million in the second quarter, up from $406 million. This indicates that revenue growth translated into higher operating income despite increased depreciation and other expenses. Revenue growth is also important for PPL’s long-term prospects as the company invests heavily in its regulated operations. The company plans nearly $5.1 billion of capital investments in 2026 and $23 billion through 2029, supporting average annual rate-base growth of 10.3%. PPL expects improved rate recovery and capital-tracking mechanisms to support stronger earnings growth in the second half of 2026. The company also projects 2026 ongoing earnings per share (EPS) of $1.90-$1.98 and annual EPS growth of 6-8% through 2029.Overall, rising revenues, combined with regulatory recovery and capital investment, provide PPL with a supportive foundation for sustainable earnings growth. Rising utility revenues can help absorb higher operating, maintenance and financing costs, supporting earnings stability. Stronger revenues also preserve financial flexibility for infrastructure upgrades and other essential capital investments.FirstEnergy FE: Revenues increased 8.8% to $3.68 billion from $3.38 billion, outpacing growth in operating costs and lifting operating income about 4.8% to $677 million.Evergy EVRG: In the second quarter of 2026, revenues increased 4.4% to $1.50 billion, while operating income rose 10.7% to $380.6 million, helping absorb higher operations and maintenance and depreciation. The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.32%, respectively. Image Source: Zacks Investment Research PPL's debt-to-capital ratio currently stands at 57.46%, lower than the electric power industry’s 61.32%. Image Source: Zacks Investment Research In the past month, the company’s shares have plunged 3.9% compared with the industry’s 7.1% decline. Image Source: Zacks Investment Research PPL currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 PPL Corporation (PPL) : Free Stock Analysis Report FirstEnergy Corporation (FE) : Free Stock Analysis Report Evergy Inc. (EVRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Evergy, Inc. EVRG continues to benefit from strong economic development in its service areas, including data centers, manufacturing and industrial projects.  Rising electricity demand could support higher capital investment and rate-base growth.The company’s large and diverse customer base directly aids its long-term financial growth. These customers can create incremental electricity demand while supporting investment in generation and transmission infrastructure. Evergy recorded 3.3% year-to-date weather-normalized retail sales growth, supported by data-center project ramps and Panasonic’s continued industrial expansion. The company expects large-load demand to grow to about 2.05-2.25 gigawatts by 2030, while total electricity demand is projected to increase at a 7-8% compound annual growth rate through 2030. Evergy continues to witness strong interest from large customers across Kansas and Missouri and plans to add at least one new electric service agreement in 2026.EVRG plans to invest nearly $21.6 billion through 2030, supporting significant rate-base expansion. This investment is expected to drive around 12% annual rate-base growth and 6-8% EPS growth, with EPS growth projected to exceed 8% annually from 2028 through 2030.Overall, strong economic development and rising demand from large customers could drive higher electricity sales and encourage additional infrastructure investment. This combination is expected to provide a stronger foundation for Evergy’s long-term earnings growth. Economic development can strengthen utility growth as new businesses, manufacturing facilities, data centers and electric vehicle adoption increase electricity consumption. Rising demand encourages infrastructure investment, expands the regulated rate base and creates opportunities for sustainable earnings growth and long-term shareholder value.PPL Corporation PPL: Growing economic activity across Pennsylvania and Kentucky is driving data-center and large-load demand, supporting potential generation investments of $10-$12 billion through 2032.Alliant Energy LNT: Strong economic development, including three data centers moving through construction, could help drive 60% load growth by 2031 and support higher investment and earnings. The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 10.97% and 7.06%, respectively, year over year. Image Source: Zacks Investment Research EVRG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 18.21X compared with the industry average of 15.05X. Image Source: Zacks Investment Research In the past year, the company’s shares have risen 12.5% compared with the industry’s 10% growth. Image Source: Zacks Investment Research EVRG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Evergy Inc. (EVRG) : Free Stock Analysis Report PPL Corporation (PPL) : Free Stock Analysis Report Alliant Energy Corporation (LNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:30 a.m. ET Vice President of Investor Relations - Andy Ludwig President and Chief Executive Officer - Vincent Sorgi Chief Financial Officer - Joe Bergstein Operator: Good day, and welcome to the PPL Corporation's Conference Call on Second Quarter 2026 Financial Results. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Andy Ludwig, Vice President of Investor Relations. Please go ahead. Andy Ludwig: Good morning, and thank you for joining PPL Corporation's Conference Call on Second Quarter 2026 Financial Results. We provided presentation materials on the Investors section of our website. This morning, you will hear from Vince Sorgi, PPL President and CEO; and Joe Bergstein, Chief Financial Officer. We'll conclude with a Q&A session following our prepared remarks. Before we get started, please turn to Slide 2 for our cautionary statement. Today's presentation contains forward-looking statements subject to risks and uncertainties. Actual results may differ materially. Please refer to our SEC filings and the appendix for additional information. We will also refer to non-GAAP measures, including earnings from ongoing operations. Reconciliations to the corresponding GAAP measures are provided in the appendix. I'll now turn the call over to Vince. Vincent Sorgi: Thank you, Andy, and good morning, everyone. Let's begin on Slide 4 with an overview of our second quarter performance. Q2 was another quarter of disciplined execution, supporting our 2026 commitments while strengthening confidence in our long-term outlook. Today, we reported ongoing earnings of $0.33 per share. Based on our results through the first half of the year and our expectations for the remainder of 2026, we are reaffirming our ongoing earnings forecast range of $1.90 to $1.98 per share, with a midpoint of $1.94 per share. We expect stronger earnings growth in the second half of the year, supported by rate case outcomes in both Pennsylvania and Rhode Island, with Pennsylvania rates effective July 1, and Rhode Island rates expected to be effective September 1. We are on pace to deploy approximately $5 billion of capital investments in 2026 to support the delivery of safe, reliable, and affordable energy service. As our investment plan has expanded, our teams have continued to demonstrate the ability to execute these programs safely, efficiently and on schedule. Longer term, we continue to project $23 billion of capital investment needs through 2029, supporting average annual rate base growth of over 10%. We also reaffirmed our long-term financial targets, including 6% to 8% annual EPS growth through at least 2029 with compound annual growth expected to be near the top end of that range, 4% to 6% annual dividend growth and FFO to debt of 16% to 18%. Importantly, these targets exclude any contribution from Invitium Energy, our joint venture with Blackstone, which represents meaningful long-term earnings and cash flow upside beyond the current plan. Turning to Slide 5 for a more comprehensive regulatory update. Coming into 2026, we had base rate case proceedings underway in all 3 of our primary jurisdictions. These rate case filings were after significant periods of stay out, ranging from 5 years in Kentucky, 8 years in Rhode Island and over 10 years in Pennsylvania. We made excellent progress in these proceedings during the second quarter, continuing to achieve constructive outcomes that derisk our plan. In Pennsylvania, PPL Electric's rate case settlement became effective July 1 with a positive outcome for both customers and shareowners. The approved increase of $275 million supports critical investments we are making while reflecting less than a 4% increase across all of our rate classes. Importantly, even after our recent rate adjustment, PPL Electric's delivery rates remain nearly 20% below the latest published state average. This outcome reflects the benefits of our utility of the future strategy, that prioritizes system hardening, disciplined cost management, strategic use of technology, constructive engagement with stakeholders, and a strong focus on affordability. The settlement also includes a 2-year stay-out provision. Through the continued use of the DSIC mechanism and disciplined cost management, we will target remaining out of base rate cases beyond that period. In Kentucky, we're awaiting the commission's decision on our reconsideration request following another thorough and constructive regulatory process. While we believe the original KPSC decision allows us to deliver on our overall plan objectives, we believe there were some flaws in that decision that require reconsideration by the KPSC. We appreciate the commission's thoughtful review of our filing and continue to believe the investments and mechanisms supporting this filing are important to maintaining safe, reliable and increasingly resilient service to our customers. We've requested a decision from the KPSC by August 14. Turning to Rhode Island. Our base rate case proceeding remains on track. Hearings were completed in mid-July, briefs have been filed, and public meetings are scheduled for August 12 to the 20th. New rates are expected to become effective September 1. As mentioned earlier, this is the first base rate increase Rhode Island Energy has requested in 8 years and builds on the significant reliability improvements we've achieved since our acquisition of the utility back in 2022. The filing supports the continued investment needed to strengthen the system and prepare for frequent and severe weather events and continued distributed renewable deployment in the state. We also continue to make progress with our Hold Harmless Bill Credit proposal, which is being considered in parallel with the broader rate case proceeding. As a reminder, we've proposed accelerating customer bill credits associated with the deferred tax hold harmless commitment that we made when we acquired Rhode Island Energy. If approved, the credits would significantly offset the impact of the requested base rate increase for customers. This is another example of our balanced approach to affordability and investment, proposing creative solutions to help moderate customer bill impacts while continuing to invest in system reliability and resilience. Overall, these proceedings highlight the effectiveness of our regulatory strategy and provide a stronger foundation for continued investment. Moving to Slide 6. Against the backdrop of increasing national scrutiny around data center development, our Pennsylvania service territory continues to stand out because of its strong transmission reliability and access, proximity to major demand centers and disciplined customer protections. Signed data center agreements with PPL Electric Utilities increased for the tenth consecutive quarter to about 32 gigawatts, an increase of 3.5 gigawatts from last quarter, with over 1 gigawatt coming from signed electric service agreements or ESAs. We now have more than 11 gigawatts under ESAs, which carry meaningful financial commitments from the customer, which I'll cover in more detail in a few slides. We also continue to see these projects enter the construction phase with more than 6.5 gigawatts now under construction. And during the quarter, 2 of these data centers began taking utility service, which are expected to ramp to about 2 gigawatts of load by 2031. This continued progression from agreement to construction to taking service is improving our line of sight into future infrastructure and generation needs, including from our Invitium Energy joint venture with Blackstone. Turning to Slide 7. Our Invitium joint venture continues to make progress across a number of critical paths. Ratepayer protection pledges and PJM's recent FERC proposal reinforce the need for new generation to serve large-load customers. While strong data center activity in PPL Electric Utilities service territory is expanding the opportunity for long-term energy supply services agreements or ESSAs. During the quarter, we continued to move the joint venture from concept to execution. We now have strategic land sites capable of supporting between 8 and 14 gigawatts of new generation depending on the technology selected, and we are continuing to build our inventory of viable sites. We have over 5 gigawatts of new CCGT generation that has been accepted in the PJM interconnection queue. We also have over 5 gigawatts of reservation agreements for combined cycle gas turbines. Using the market consensus project cost of approximately $2,500 to $3,000 per kW, that 5 gigawatts represents between $12.5 billion and $15 billion of potential future investment through 2032, of which PPL share would be 51%. Collectively, these milestones give us increasing confidence that Invitium can support contracted growth and create incremental value for shareowners. While we do not expect the earnings contributions from the JV to be material through 2030, batteries or other shorter-lead-time technologies could begin contributing earnings in 2029 or 2030, which could enhance our projected EPS growth rate above the top end of our 6% to 8% range. We would expect more meaningful earnings and cash flows when the CCGTs come online, which could be as early as the 2031, 2032 time frame. And as we've said, we will not move forward with construction or make material financial commitments until we have executed ESSAs with appropriate risk profiles in those contracts or have cost reimbursement agreements in place. Based on progress to date, we expect to have one or more commercial agreements by year-end. Turning to Slide 8. Kentucky also continues to see strong economic development activity. The current development pipeline has expanded to 13.7 gigawatts of potential load growth with data center demand representing 11.6 gigawatts and manufacturing and other non-data center projects totaling 2.1 gigawatts. This is an increase of roughly 800 megawatts from last quarter. Of that pipeline, approximately 1.3 gigawatts is now supported by signed reimbursement agreements, up from approximately 900 megawatts in the first quarter. Our updated probability-weighted projections now indicate 3.7 gigawatts of expected new load by 2032, more than double the amount reflected in our 2025 CPCN filing. That demand is making it even more likely that we will need to file a CPCN for additional generation resources by year-end. Potential resources for the CPCN include the 266-megawatt Lewis Ridge pumped storage project, the 400 megawatts of batteries that were deferred in the 2025 CPCN and additional natural gas combined cycle generation. While we won't know the exact resource mix until we file the next CPCN, those projects represent an incremental $3.5 billion to $4 billion of potential investment to be incurred between 2027 and 2032. As you can see, Kentucky is emerging as a significant platform for incremental growth, which is why we've been so focused on large-load tariff protections designed to preserve affordability for our existing customers. Let's turn to Slide 9 for a discussion on how those large-load tariffs are protecting our customers. The tariffs approved in Pennsylvania and Kentucky are grounded in a simple principle. Large-load customers pay their own way with enforceable provisions that protect existing customers from cost shifts. First, these tariffs require long contracts with a minimum term of 10 years in Pennsylvania and 15 years in Kentucky. Kentucky's term is longer because of the fully integrated business model with generation resources as well. Second, customers commit to guaranteed payments of at least 80% of the capacity they reserve, whether they use it or not. Third, we require collateral upfront. And finally, although no projects with signed ESAs have been canceled to date, there are material termination fees in the event a developer walks away, even if they walk away pre-COD. So with all of these elements in mind, our existing customers are protected from bearing costs for projects that do not move forward. These financial commitments materially improve project quality and increase our confidence that signed ESAs represent serious executable demand. These tariffs also provide tangible customer benefits. Starting in 2027, Pennsylvania's large-load customer class will contribute $11 million annually to low-income assistance, which was previously funded by our existing customers. Our existing Pennsylvania customers could also see about $25 a month come off the transmission component of their bills over time if the 31.8 gigawatts in advanced stages is realized. That would help offset the more than $20 per month our Pennsylvania customers are currently paying as a result of higher PJM capacity prices. Bottom line, these tariffs provide a disciplined framework to capture growth responsibly while ensuring that growth pays for growth. With that, I'll turn the call over to Joe for the financial update. Joe Bergstein: Thank you, Vince, and good morning, everyone. Let's turn to Slide 11. PPL's second quarter GAAP earnings were $0.30 per share compared to $0.25 per share in Q2 2025. We recorded special items of $0.03 per share during the second quarter, primarily due to IT transformation costs and system integration impacts. Adjusting for these special items, second quarter earnings from ongoing operations were $0.33 per share, an improvement of $0.01 per share compared to Q2 2025, which was in line with our expectations. With the first half of 2026 now complete, we remain firmly on track to achieve at least the midpoint of our 2026 ongoing earnings forecast of $1.94 per share. Base rate case outcomes in both Pennsylvania and Rhode Island support the stronger second half earnings profile embedded in our plan. We've also made great progress on our CapEx program and have deployed approximately $2.3 billion through the end of the second quarter. This is roughly 30% more than what we deployed last year through the first 6 months as we continue to strengthen the safety and reliability of our networks. This also includes the great progress on our generation projects in Kentucky, which continue to be on budget and on schedule. Lastly, we continue to maintain a strong balance sheet supported by an improving credit profile with enhanced cash flows following our base rate cases and the settlement of previously priced equity, improving our credit metrics over time. That financial strength positions us to deliver our existing capital plan while maintaining flexibility as the additional investment opportunities, including those that Vince discussed, emerge across our service territories. We completed our financing needs for 2026 earlier in the second quarter with successful debt offerings at PPL Electric and Rhode Island Energy. Both transactions were very well subscribed and secured long-dated capital at attractive terms. Turning to the ongoing segment drivers for the second quarter on Slide 12. Our Kentucky segment results were flat compared to the second quarter of 2025. These results were driven by higher base rate recovery due to higher retail rates that were effective on January 1. This was offset by lower sales volumes due to less favorable weather than experienced in Q2 2025, higher operating costs, higher depreciation expense and higher interest expense. Our Pennsylvania Regulated segment results were $0.01 lower compared to the same period a year ago. These results were driven by higher depreciation expense and higher interest expense, partially offset by higher transmission revenue from additional capital investments. Our Rhode Island segment results increased by $0.02 compared to Q2 2025, driven by higher rider revenue and lower operating costs, partially offset by higher depreciation expense. Lastly, results at Corporate and Other remained flat compared to Q2 of 2025, mainly driven by higher interest expense, offset by other factors that were not individually significant. Overall, our growth drivers are in motion to deliver on our commitments for the year. Our financing plan continues to advance, and we see ongoing opportunities to build on the plan that we've outlined for both our customers and shareowners. This concludes my financial update. I'll now turn the call back over to Vince. Vincent Sorgi: Thanks, Joe. Before we open it up for questions, I'll leave you with a few closing thoughts. The headline for this quarter is straightforward. We are executing on our current plan while creating more visible upside beyond it. We delivered solid second quarter results, reaffirmed our 2026 earnings forecast and long-term financial outlook. We've made great progress in achieving constructive outcomes in our base rate cases, supporting timely recovery of critical investments while maintaining customer affordability. At the same time, accelerating customer demand across our Pennsylvania and Kentucky service territories is giving us a clearer line of sight into the infrastructure and generation investments required to support meaningful future growth. We've also advanced tariffs that protect our existing customers as that large-load demand becomes more visible. We continue to make considerable progress on the Invitium Energy joint venture with Blackstone and expect one or more commercial agreements to be announced by year-end. And finally, the Kentucky generation and Invitium Energy potential upsides could drive between $10 billion and $12 billion of incremental capital investment through 2032, which strengthens our growth outlook beyond the current plan period. With that, operator, let's open it up for questions. Operator: [Operator Instructions] The first question today comes from Michael Lonegan with Barclays. Michael Lonegan: Just wondering if you could talk about the interaction of the Invitium JV with the bilateral process and RBA (sic) [ RBP ] procurement. Would you have to wait for procurement to happen? Or could you announce at any time? And if you announce a deal, would it be included in the procurement? Vincent Sorgi: Yes. So we are actively negotiating bilaterally, and we've been doing that way before the PJM RBP process, Michael. So our ability to get to closure on bilateral contracts is irrespective of the PJM process. We did submit proposals into that process just to maximize our customer contacts, but the 2 are not necessarily related given the activity we've been doing before the PJM process. Michael Lonegan: Great. And then sticking with the JV, you said you could reach one or more agreements by year-end. Anything you could say about the size of the near-term ones in terms of gigawatts and investment opportunity? And could the announcement come when the agreements are reached? Or would that be potentially a Q4 update? Vincent Sorgi: Yes, sure. So not able to give a size at this point depending on which ones happen first. So we'll defer that until we actually make the announcements. I would say timing of the announcements, again, materiality will really dictate that, Michael. So anything material, we would certainly not wait for an earnings call to announce. We would do that, I would say, in concert with signing of those agreements. Maybe just broadly on timing, I'll make a few comments where in terms of announcement timing. I would say the PJM RBP process is likely affecting the timing for some of our counterparties, but our customer engagement really, I would say, remains very strong, and we're continuing to see a clear path to the bilateral commercial agreements that support all this new generation. I would say, even with the PJM proposal and the rules in their FERC filing, right, they are really pushing towards bilateral contracting, and we continue to believe that bilateral contracting will likely be the predominant path for getting new generation development in PJM at least. Given the progress that we've made to date and what I've said on the call, again, with the discussions we're having with our customers, but all of the other development work around site readiness, the turbine access, the interconnection activity that we've done with PJM, and I'd even add fuel supply to that. That's why we're expecting that we would have one or more announcements by year-end. I will say it could happen sooner. But I wouldn't want to speculate on exact timing just because these are complex, they're long-term agreements. And of course, it takes 2 parties to finalize them. So I think the key for us is we're not waiting for those ESSAs to begin that development work that we've talked about on the call today. We're running those in parallel. And so we're ready to respond very quickly in concert with the customer negotiation. Operator: The next question comes from Jeremy Tonet with JPMorgan. Jeremy Tonet: Just wanted to maybe follow up a little bit on the last point there. Just when do you expect to see the first results from the PJM capacity matching process? And how do you view this process versus bidding into the actual RBP auction? Vincent Sorgi: Yes. So we have not committed yet into bidding into the RBP auction. We did provide a proposal for the matchmaking part of the process, right? Ultimately, PJM is looking to come out at the end of September with all of that. We'll ultimately see how that plays out. Just the caps that we're seeing in the PJM auction part of it, those are well below CONE on certainly some of the assets that we're talking about, Jeremy. So more to come on how aggressively we're participating in that process. I will say, just like last quarter, our focus continues to be on the bilateral contracting process directly with our customer base. Jeremy Tonet: Got it. That makes sense. Just wondering maybe a little bit on timing. If the assets you bid into the matching process were selected, will we know by the end of September? Or how should we think about next steps? Vincent Sorgi: I'm not exactly sure of the timing on when we would know that, Jeremy. Certainly, something we'll continue to think through as we progress through that process. I'm not exactly sure of the timing on when we'll hear back from them. Jeremy Tonet: Got it. Fair enough. And maybe going over to Kentucky, everything you talked about there, a lot of upsizing opportunities -- and just wondering, I guess, is there a milestone for -- that you need to hit before you could do the additional CPCN filing that could be filed by year-end? Vincent Sorgi: Yes, you cut out on us there, but I think you were asking about what are maybe some triggers for the CPCN filing? Jeremy Tonet: Yes. Vincent Sorgi: Do I have that right? Okay. Yes. So look, I think we are seeing some of those triggers already as we're seeing, right, the continued increase in the pipeline. We are signing various agreements for new load with data center developers and also with non-data center customers. So all of that continues to move in the right direction. And that's really what's driving our new probability weighted load of 3.7 gigawatts. That's twice what we had in the last CPCN. So I would say, the one area that we would want to see in addition to the commission is the conversion from the data center developer to an actual hyperscaler contract. And those -- I will say, those activities are happening as we speak. And I would say once we have one of those, that would be a pretty big trigger to prompt us to make that filing before year-end. Operator: The next question comes from Paul Zimbardo with Jefferies. Paul Zimbardo: I just wanted to dive a little bit more, of course, into the joint venture. So I know you've been consistent that we shouldn't expect to see material earnings before 2030. Just how would you envision articulating what the earnings contribution is? Would you do like a separate joint venture earnings separate from kind of the base business, more long-duration CAGR beyond 2030? Just if you could help on kind of what kind of disclosures we should expect? Joe Bergstein: Yes. Paul, it's Joe. Yes, we would give something separate from the base utility business. So you can see the earnings and the growth and the trajectory of earnings coming out of the JV. And then obviously, we would provide an update on its impact on the CAGR that we have currently. So yes, I think you're right. You're thinking about it correctly on both of those. Vincent Sorgi: Yes. And Paul, this is equity method for accounting purposes, so right, single line items on the financials. So we'll clearly break all that out in additional disclosure for this part of the business once it starts to materialize. Paul Zimbardo: Okay. Great. I understand there. And then shifting to Kentucky for a second. I saw the governor's executive order around data centers and kind of focus on emissions, water and some of those things. Does that shift what you could procure to support the data centers? Like I know you mentioned the pumped storage, but just any thoughts on the executive order would be helpful. Vincent Sorgi: Yes. No, it was good to see the order come out. We view it as fully consistent with the ratepayer protection principles that we've been championing and even the Ratepayer Protection Pledge that we signed recently, where new large-load customers should be supporting and paying for the infrastructure and the resources that are needed to serve them. So importantly, right, the order did not prohibit or put a moratorium on data center development. It simply is reinforcing that we need to have customer protections built into the process, which, of course, we have built into our approach. So I would say that LG&E and KU, with our tariff structure that we've gotten approved in the state, we're well positioned within that tariff structure to align very nicely with our governor's executive order. So not concerned at all. We don't think it will slow down the development that we're seeing in Kentucky or our ability to serve it. Operator: The next question comes from Shar Pourreza with Wells Fargo. Andrew Kadavy: Actually, it's Andrew Kadavy on for Shar. So with the longer-dated opportunities kind of on your plate, could we see maybe a longer planning window next time you guys update guidance? And what are some of the considerations that go into that decision? Joe Bergstein: Yes. I think that's certainly possible, right, given the timing that we're talking about as to when we see earnings contributions from these agreements and given the logistics and timing around getting CCGTs into service. So that's certainly a consideration. Andrew Kadavy: And then just circling back to PJM. Can you share how potential Invitium customers are viewing the connect and manage and ERIS rulings in PJM? And has the clarity around that helped progress some of your commercial discussions? Vincent Sorgi: Well, so right, the ERIS framework was not included in -- what was in the letter, at least was not included in the filing last week. We are expecting that imminently, perhaps even today. So I'll reserve judgment on that until I see the actual filing. But I would say coming from the letter that PJM put out with their guiding principles, I think what you're starting to see is some clarity on what large loads will need to procure during the ramp phases, right? So there was a lot of early questions on do you need to just have BYONG online when you hit your max load? Or do you need to follow your ramp? Or can you do it in chunks? Obviously, the load comes on in different megawatt chunks than you're able to bring generation on if you're using certain types of generation. So I think you'll see, certainly, as we think about following ramps so that the hyperscalers are not in that connect and manage or interruptible phase, they'll want to try to match that ramp the best they can. And that, I think, will prompt batteries and other types of smaller generation that can come online quickly and at smaller amounts. And then you're kind of anchored with some of the larger asset types that we're talking about. But all of those are part of our discussions with the hyperscalers, all of those types of technologies and following ramp curves for sure. Operator: The next question comes from Steve Fleishman with Wolfe Research. Steven Fleishman: So a couple of questions on the joint venture. Just going back to the shorter-term potential projects, you mentioned batteries. What other technologies are you likely to be using for shorter term? Is it mainly just like recips or aeros or anything else? Vincent Sorgi: Yes. I would say those are the main, right? The CTs are still -- I would say the CTs are quicker than the CCGTs, but probably outside of our '29, right, which is our current plan period, Steve. So CTs could be probably in the '30, '31 range with the CCGTs in the '31, '32 range. And then, yes, you mentioned the types of technologies that could get in more in that '29, '30 time frame. Steven Fleishman: Fuel cells? Vincent Sorgi: We are engaged with the fuel cell manufacturers. So it is on the list of technologies ultimately will depend on what the hyperscalers would like us to procure and operate, but we are open to those as well, yes. Steven Fleishman: And then just in thinking about the -- how should we think about funding the joint venture and the projects? And just how much is likely to be equity from PPL? And are you looking at kind of alternative financing structures? And even just the economics, are you just going to do a straight 50-50 or sometimes you can -- when you have a financial partner, you can kind of manage the path of cash flow and earnings? So just any thoughts on all that? Joe Bergstein: Yes, sure. So first on the financing question, during the construction period, we'll use construction period type financing structures that will keep that off balance sheet to limit any near-term dilution. And then once those projects go COD, we'll put in place a permanent financing structure. As far as the cap structure, I mean, we've talked about utility-like risk profile and returns, but we obviously have some flexibility in and around where that cap structure could be, but we'll keep that in mind as we think about longer-term credit implications. And we obviously want to maintain our strong credit position. So we'll have to take that into consideration with discussions with the rating agencies as they think about it as well. Operator: The next question comes from Angie Storozynski with Seaport. Agnieszka Storozynski: I wanted to ask about Pennsylvania, how you -- on the regulatory side. So you have concluded your rate case. You are not allowed to have another one until, what, middle of 2028, at least, yes. And then just wondering, I mean, are you hoping to maybe rely more on the DSIC mechanism, any ways to maybe reduce costs so that you don't have to file that rate case anywhere near that '28, '29 time frame? Joe Bergstein: Yes, Angie, you're exactly right on the settlement provisions. There's a 2-year stay-out agreement that we will not increase base rates during that period, which extends through July 1, 2028. We always look to maximize the time between rate cases, and we've done that very effectively across all jurisdictions. And as you know, in Pennsylvania, it was 10 years since our last rate case prior to this one. I don't know that we can go another 10 years, but we'll certainly use that same discipline that we have. We've utilized the DSIC extremely effectively over that time period, and we'll look to continue to do so. We've also managed our costs very, very well, and we continue to focus on that in that area as we've been and we'll continue to be focused on affordability for customers. Our current LTIP plan, which is the capital that is eligible for the DSIC, runs through 2027. So we'll be looking to file an updated 5-year LTIP plan next year. Again, looking to maximize that and maximizing the use of the DSIC mechanism. So I think too early to tell as to what our next rate case would be, but we are always looking to, as I said, maximize the time between cases. Vincent Sorgi: Yes. And I would just add to that, Angie. You've heard from our Chair and our commission that they want to take a look at the DSIC mechanism where maybe have more formula-based ROE setting in the mechanism, maybe provide some performance band around that base ROE. But the goal is really to provide a mechanism for the utilities to be able to stay out of base rate cases longer. And so we will certainly be engaging with our commission, obviously, the other EDCs in the state and other stakeholders as we go through that process with the PUC. But I think that could be encouraging as well. And so depending on how that plays out, we'll have to factor that into our rate case timing. But I think all of that is boding well for our likely being able to stay out beyond just the 2 years that are in the settlement. Agnieszka Storozynski: Great. And then changing topics to the data centers in the PPL zone. So the projects that you have already supported by ESAs are well above the current excess generation in the PPL zone. And I know that we're still waiting for the connect and manage filing. But I'm just wondering if there were to be forced curtailment in the future, I suppose that will be in your zone, that would be pretty much least likely, again, given excess generation capacity. But again, it will be depleted. So how do you see it? Do you think that the connect and manage could potentially actually give you a competitive advantage versus other zones in PJM simply because, again, the forced curtailment will be probably least likely in your zone? Vincent Sorgi: You cut out on us a little bit there, but I think what you were saying was just with the generation length that we currently have and then that being depleted by the ESAs, the 11 gigs of ESAs. And of course, that continues to grow. Yes, I mean, I think it's one of the reasons why we have so much interest in the sites that we have in our joint venture, and we've been very strategic in accumulating the sites that we have. So in order to qualify for BYONG now with the end, even under the new proposed rules, right, you don't have to be co-located to the load. But the fact that we are very near the load creates a very competitive position for us as you think about PJM planning, interconnection studies, all of that where the generation and the load are very tightly situated. So that all bodes well, I would say, for our territory and where we're siting or proposing to site all of this new generation. It really helps to strengthen the reliability of the grid overall and then get back to that long position for generation coming from Pennsylvania, which, as you know, us in West Virginia are the 2 power generation sources for PJM. So I think that -- again, you cut out on me, but I think that's what you were asking. And I agree that our position within the state provides that advantage -- a competitive advantage. Operator: The next question comes from Nick Amicucci with Evercore ISI. Nicholas Amicucci: So it's Amicucci, but vowels -- we know how it goes. I wanted to ask quickly just kind of piggybacking on Steve's question before. Just when we think about kind of those shorter-lead-time technologies as early as 2029 or 2030, are those going to require a separate ESSA? Or could they -- are they going to be typically riding on the CCGT contracts? Vincent Sorgi: Yes. No, the ESSA contract is for generation to supply a data center. So it does not need to be limited to the CCGT. It will be whatever suite of assets that we ultimately agree with the hyperscaler for or the third-party data center developers, which are also now getting involved in the BYONG and then providing that full rack service to hyperscalers as one package. So we're now seeing other entrants into the interest into the product offering. I will say, though, while the batteries are certainly the fastest to market, they're also the easiest for the hyperscalers to embed in their designs and just make it part of the data center construction projects. So part of the issue that we have with predicting how much will show up through '29 is I'm convinced there'll be batteries that are coming on system by 2029, but some of that could be owned directly by the hyperscalers as opposed to third-party generators like Invitium, if that makes sense. Nicholas Amicucci: Got it. Yes. No, that makes perfect sense. And then just really quickly, too, on the 2 data centers that began taking service within Pennsylvania in 2Q. So has the LP-6 minimum demand billing started? Or is there kind of like a ramp schedule associated with that, too, as those continue to come online? Vincent Sorgi: Yes. So that 2 gig is not until -- that's the ramp through 2031. So it's the -- yes, it's the smaller ramp that's kicking in now under the tariff, yes. Operator: [Operator Instructions] The next question comes from Paul Patterson with Glenrock Associates. Paul Patterson: Just one question left here. With Pennsylvania, I know we're on resets and stuff, but any thoughts or outlook about what we might see legislatively with respect to some of the legislation that's passed or anything perhaps on the -- I mean, all the stuff that was happening this spring, I'm just wondering, have you heard anything over the summer here about what might happen in the next few months in Harrisburg? Vincent Sorgi: Yes. So there was quite a bit of activity prior to the budget being approved, as you're alluding to. Look, I would just say, overall, as you can see from our pipeline alone, right, that there's tremendous data center interest in Pennsylvania and in particular, our zone. And look, for some of our local communities, right, these projects represent very material investments, right, which is good, but it also can overwhelm these local communities. And so I think what we're seeing, Paul, is just at the local level with the support of their elected officials, right, just this move to slow down a little bit. So that they can effectively review the projects, update their zoning requirements as needed, but really just take some time to make sure that they're doing this the right way. And that seems very reasonable to us. And I think that's what you're seeing with some of the proposed legislation coming from some of our elected officials. And while there was some legislation advanced in the House, I would say that the state continues to remain supportive of this type of development in the sector as long as our customers and our communities are protected. And so you're starting to see some of that legislation designed to ensure that those protections happen. I will say I'm seeing a shift in the developers and how they're engaging with the local communities and putting together differentiated community benefit packages, right, what one community might think is a benefit, another may not. So doing that kind of community by community, engaging earlier, more transparently, I think all of that, while we wish it had happened from day 1, we're starting to see the shifts in that. And I know the folks are appreciating that level of transparency and really willingness to work and come up with a win-win for both the data center and for the community. And it's the same areas that you're hearing, right? It's the water, it's the land, it's the noise. It's power prices and power reliability, both of which we have well at hand, and we will be I would say, pushing that even further as we can build new generation under Invitium and just take some pressure off the supply-demand curve at the wholesale level. But all of these things, I think, are moving us in a consistent direction with where some of this legislation or at least the ideas behind some of this legislation were coming from. Again, I don't think it's misplaced. I don't think you're going to see moratoriums or we just can't add data centers in Pennsylvania. We just need to make sure that our customers and our communities are protected as we do it. And again, I think all that is reasonable. Paul Patterson: Okay. So when you look at that sort of on the wholesale side, do you think that sort of transfers this sort of constructive way of sort of putting some relief on the wholesale prices that sort of translates to some of this regulated generation legislation, related generation -- excuse me, regulated utility legislation. Do you see that -- how do you see that impacting that? Does that -- do you think that's pretty much sort of on ice as a result of what you're doing on the wholesale side, if you follow what I'm saying? Does it make sense? Vincent Sorgi: Yes, yes. No, I do think -- I don't know if it's totally on ice. It is still part of the discussion, but I would say with all of the moving parts that we've been seeing at PJM and at FERC, the legislature is certainly, I would say, keyed into all of those moving parts and seeing if, in fact, they will help address the resource adequacy concerns that we've been talking about. Again, we have -- we're a bit skeptical that the PJM FERC filing will, in fact, resolve that long term. And we think the bilat process is probably going to be the predominant way to get things built in PJM. But I think the legislature needs to see that play out. Our governor needs to see that play out a little bit. So while regulated generation, I wouldn't say that it's totally off the table. I think they want to see how some of these other things progress to see if they need to pull that lever or not. And of course, we continue to have regular discussions with them. And this will play out as those bills are debated in their respective committees, and we'll see whether they come out of committee or not. But there's been so much activity, as you know, at both FERC and PJM that, that legislation, I don't think, has been the highest priority for obvious reasons. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Vince Sorgi for any closing remarks. Vincent Sorgi: Great. Thank you, operator. So look, as we wrap up, the key takeaway from today is our investment case continues to get stronger. We're executing a strong base plan today while building additional strong growth opportunities for tomorrow. And with continued regulatory execution, accelerating demand growth and the progress that we're making at Invitium Energy, we believe the upside is increasingly visible and remains incremental to the outlook that we've reaffirmed today. Thanks for joining us, and we look forward to seeing you soon. Operator: The conference has concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in PPL, 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 PPL wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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. PPL (PPL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

PPL Corporation PPL used its second-quarter 2026 earnings call to emphasize expanding data center-driven investment opportunities while keeping the existing earnings plan unchanged. Ongoing earnings of 33 cents per share missed the Zacks Consensus Estimate of 35 cents. Second-quarter revenues of $2.11 billion fell short of the Zacks Consensus Estimate of $2.18 billion. PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote President and CEO Vincent Sorgi reaffirmed PPL’s 2026 ongoing earnings forecast of $1.90 to $1.98 per share, with a midpoint of $1.94. He said stronger earnings growth is expected in the second half. Sorgi tied that improvement to rate outcomes in Pennsylvania and Rhode Island. Pennsylvania rates took effect July 1, while Rhode Island rates are expected to become effective Sept. 1, 2026. Executive vice president and CFO Joe Bergstein said the company remains on track to achieve at least the guidance midpoint. PPL also reaffirmed 6% to 8% annual earnings growth through at least 2029, with compound growth near the top end. Sorgi highlighted the $275 million Pennsylvania rate increase and its two-year stay-out provision. He said PPL plans to use capital tracking mechanisms and cost discipline to extend the time between base rate cases. In Rhode Island, Sorgi said hearings were completed in mid-July and the proceeding remained on track for Sept. 1 rates. The company is also pursuing bill credits tied to its deferred tax hold-harmless commitment. Bergstein said PPL deployed about $2.3 billion of capital through the first half, roughly 30% more than a year earlier. The company remains on pace for approximately $5 billion of investment in 2026. Sorgi said PPL Electric’s data center pipeline reached 31.8 gigawatts in advanced stages, including more than 11 GW under signed electric service agreements and more than 6.5 GW under construction. He stressed that Pennsylvania’s large-load tariff requires long contracts, minimum demand payments, upfront collateral and termination fees. Management presented those provisions as safeguards against shifting development costs to existing customers. Two data centers began taking service during the quarter and are expected to ramp to about 2 GW of load by 2031. Sorgi said that progression is improving visibility into infrastructure and generation needs. Sorgi said Invitium Energy, PPL’s 51% joint venture with Blackstone Infrastructure, controls sites capable of supporting 8 GW to 14 GW of generation and has more than 5 GW of turbine reservations. More meaningful CCGT earnings and cash flows could begin as early as 2031 to 2032. The venture also has more than 5 GW accepted in the PJM interconnection queue. Management expects one or more commercial agreements by year-end, while material construction commitments require contracts or cost reimbursement protections. A Barclays analyst asked whether Invitium must wait for PJM’s process before signing deals. Sorgi said bilateral negotiations can close independently, and material agreements would be announced when signed. A Wolfe Research analyst asked how PPL expects to finance Invitium. Bergstein said construction-period financing structures would be kept off balance sheet to limit near-term dilution, followed by permanent financing after projects enter service. In Kentucky, Sorgi said the development pipeline reached 13.7 GW, including 11.6 GW tied to data centers. Probability-weighted expected new load by 2032 rose to 3.7 GW. A JPMorgan analyst asked what could trigger another generation filing. Sorgi said conversion from a data center developer to an actual hyperscaler contract would be a major trigger for a filing by year-end. Sorgi closed by emphasizing execution of the regulated utility plan while developing growth options beyond it. The current business plan excludes earnings and capital contributions from Invitium Energy. Management estimates Kentucky generation needs and Invitium could support $10 billion to $12 billion of incremental investment through 2032. The call framed those opportunities as additions to the reaffirmed outlook. Within the Zacks framework, PPL’s Zacks Rank #4 (Sell) reflects unfavorable earnings estimate-revision trends. PPl’s Value, Growth and VGM Scores are D, while its Momentum Score is B, marking momentum as the stronger style signal. Style Scores complement the rank rather than override it, and A or B scores are most favorable when paired with a Zacks Rank #1 (Strong Buy) or 2 (Buy). The Zacks Rank can change as analysts revise estimates following the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. 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 PPL Corporation (PPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in PPL Corporation? Here are five stocks we like better. PPL reaffirmed its 2026 outlook, reporting second-quarter ongoing earnings of $0.33 per share and maintaining its full-year forecast of $1.90–$1.98 per share. The company expects stronger earnings growth in the second half following Pennsylvania and Rhode Island rate outcomes. PPL deployed $2.3 billion in capital during the first half of 2026 and remains on track for roughly $5 billion for the year, while targeting more than 10% annual rate-base growth and 6%–8% annual EPS growth through at least 2029. Data-center and generation opportunities are expanding: Pennsylvania signed data-center agreements reached roughly 32 gigawatts, while Kentucky’s pipeline grew to 13.7 gigawatts. PPL also expects Invitium, its Blackstone joint venture, to secure one or more commercial agreements by year-end, though material earnings are not expected before 2030. PPL (NYSE:PPL) reported second-quarter 2026 GAAP earnings of $0.30 per share, up from $0.25 per share a year earlier, while ongoing earnings rose to $0.33 per share from $0.32 per share. The company reaffirmed its full-year ongoing earnings forecast of $1.90 to $1.98 per share, with a midpoint of $1.94 per share, citing expected stronger earnings growth in the second half following rate outcomes in Pennsylvania and Rhode Island. President and CEO Vince Sorgi said the utility is pursuing its existing capital plan while building visibility into additional growth opportunities tied to large-load customers, including data centers, and its Invitium Energy joint venture with Blackstone. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “The headline for this quarter is straightforward,” Sorgi said. “We are executing on our current plan while creating more visible upside beyond it.” PPL said it deployed approximately $2.3 billion of capital through the first six months of 2026, about 30% more than it deployed during the same period in 2025. The company remains on pace to invest about $5 billion for the full year and continues to project $23 billion of capital investment needs through 2029. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company reaffirmed its targets for average annual rate-base growth of more than 10%, annual earnings-per-share growth of 6% to 8% through at least 2029, annual dividend growth of 4% to 6%, and funds from operations-to-debt of 16% to 18%. PPL expects EPS growth to be near the upper end of its stated range, excluding any contribution from Invitium. Chief Financial Officer Joe Bergstein said PPL completed its 2026 financing needs earlier in the second quarter through debt offerings at PPL Electric and Rhode Island Energy. He said the offerings were oversubscribed and secured long-dated capital at attractive terms. → No Hangover: Revisiting Microsoft One Week After Earnings By segment, Kentucky results were flat year over year, as higher base-rate recovery was offset by less favorable weather-driven sales volumes, higher operating costs, depreciation and interest expense. Pennsylvania regulated earnings declined by $0.01 per share, while Rhode Island earnings increased by $0.02 per share, aided by higher rider revenue and lower operating costs. PPL Electric’s Pennsylvania rate-case settlement took effect July 1, approving a $275 million increase. Sorgi said the increase supports infrastructure investment while representing less than a 4% increase across rate classes. He added that PPL Electric delivery rates remain nearly 20% below the latest published state average. The settlement includes a two-year stay-out provision for base-rate increases through July 1, 2028. Bergstein said PPL intends to use the state’s Distribution System Improvement Charge, or DISC, mechanism and cost discipline to maximize the period between rate cases. The company plans to file an updated five-year long-term infrastructure improvement plan next year. In Rhode Island, hearings in PPL’s base-rate case were completed in mid-July, with public meetings scheduled from Aug. 12 through Aug. 20 and new rates expected to take effect Sept. 1. The filing is Rhode Island Energy’s first requested base-rate increase in eight years, according to PPL. PPL also continues to pursue a proposal to accelerate customer bill credits associated with its deferred-tax hold-harmless commitment made when it acquired Rhode Island Energy. The company said the credits, if approved, would significantly offset the requested base-rate increase for customers. In Kentucky, PPL is awaiting a decision on its request for reconsideration of a Kentucky Public Service Commission ruling. The company requested a decision by Aug. 14 and said it believes the original decision permits it to meet overall plan objectives, though it seeks changes it considers important for reliability and resilience investments. Signed data-center agreements in PPL Electric’s Pennsylvania service territory rose for a 10th consecutive quarter to roughly 32 gigawatts, an increase of 3.5 gigawatts from the prior quarter. More than 11 gigawatts are covered by electric service agreements, or ESAs, which carry financial commitments from customers, while more than 6.5 gigawatts of projects are under construction. Two data centers began taking utility service during the quarter and are expected to ramp to about 2 gigawatts of load by 2031. Sorgi said the company’s large-load tariffs require long contract terms, capacity payments of at least 80% of reserved capacity, upfront collateral and termination fees. Beginning in 2027, Pennsylvania’s large-load customer class is expected to contribute $11 million annually to low-income assistance, which PPL said was previously funded by existing customers. If 31.8 gigawatts of advanced-stage projects are realized, existing Pennsylvania customers could see approximately $25 per month reduced from the transmission component of bills over time, according to the company. In Kentucky, PPL’s development pipeline expanded to 13.7 gigawatts, including 11.6 gigawatts of data-center demand and 2.1 gigawatts from manufacturing and other projects. The company’s probability-weighted forecast calls for 3.7 gigawatts of new load by 2032, more than double the amount reflected in its 2025 certificate filing. PPL said it may file for additional generation resources by year-end. Potential projects include the 266-megawatt Lewis Ridge Pumped Storage Project, 400 megawatts of previously deferred battery storage and additional natural-gas combined-cycle generation. Those projects could represent $3.5 billion to $4 billion of investment between 2027 and 2032. PPL said Invitium, its joint venture with Blackstone, has secured strategic land sites capable of supporting 8 to 14 gigawatts of generation, depending on technology choices. More than 5 gigawatts of combined-cycle natural-gas generation has been accepted in the PJM interconnection queue, and the venture has reservation agreements for more than 5 gigawatts of combined-cycle gas turbines. Using estimated project costs of $2,500 to $3,000 per kilowatt, PPL placed the potential investment associated with that 5-gigawatt pipeline at $12.5 billion to $15 billion through 2032, of which PPL’s share would be 51%. Sorgi said PPL expects one or more commercial agreements by year-end, though he declined to specify the potential size or timing of individual deals. He said bilateral agreements can proceed independently of PJM’s capacity-matching process, and PPL remains focused on bilateral contracting with customers. The company does not expect material earnings from Invitium through 2030. However, batteries and other shorter-lead-time technologies could begin contributing in 2029 or 2030, while combined-cycle projects could enter service as early as 2031 or 2032. PPL said it will not begin construction or make material financial commitments without executed energy supply service agreements or cost-reimbursement arrangements. PPL Corporation is an energy company that owns and operates electric transmission and distribution infrastructure and provides related customer services. The company's core business centers on delivering electricity to residential, commercial and industrial customers through regulated utility operations, maintaining grid reliability, responding to outages and managing customer billing and account services. PPL's activities include construction and maintenance of distribution and transmission lines, meter and grid management, and programs to support energy efficiency and the interconnection of distributed resources. 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 "PPL Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

PPL Corporation’s second-quarter 2026 results, released on August 7, showed sales rising to US$2,111 million and net income to US$230 million, but both revenue and earnings per share came in below Wall Street estimates. Despite the quarterly miss, PPL reaffirmed its 2026 ongoing earnings guidance of US$1.90 to US$1.98 per share and pointed to expanding data center-related demand and its Invitium Energy joint venture with Blackstone as key long-term earnings drivers. We’ll now examine how PPL’s reaffirmed 2026 earnings guidance, despite a quarterly miss, may influence its existing investment narrative. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. To own PPL today, you need to believe in a regulated-utility story that leans heavily on data center-led load growth and ongoing rate base investment, while accepting funding and regulatory risks. The latest quarter’s earnings and revenue miss slightly weakens the near term earnings catalyst, but reaffirmed 2026 guidance suggests management still sees its investment and data center pipeline underpinning the outlook. For now, the miss does not materially reset the core thesis or its key risk drivers. The reaffirmed 2026 ongoing earnings forecast of US$1.90 to US$1.98 per share is the announcement that matters most here, because it ties directly to PPL’s capital plan and data center-related growth projects. Keeping that range in place after a softer quarter signals that, in management’s view, cost pressures and timing issues have not yet derailed the planned build out that underpins both earnings and the dividend policy. Yet investors should not overlook how heavily this investment plan relies on timely and favorable regulatory cost recovery and what that might mean if... Read the full narrative on PPL (it's free!) PPL's narrative projects $11.0 billion revenue and $1.9 billion earnings by 2029. This requires 5.6% yearly revenue growth and a roughly $0.7 billion earnings increase from $1.2 billion today. Uncover how PPL's forecasts yield a $41.20 fair value, a 16% upside to its current price. Two fair value estimates from the Simply Wall St Community span a wide range, from about US$19.75 up to US$41.20, showing how differently you and other investors might price PPL. Set against reaffirmed 2026 earnings guidance and a data center driven growth narrative, this spread underlines why you may want to weigh both regulatory and execution risks before forming your own view. Explore 2 other fair value estimates on PPL - why the stock might be worth as much as 16% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your PPL research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free PPL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PPL's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. 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 PPL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Ongoing Earnings Per Share (EPS): $0.33 per share for Q2 2026, an improvement of $0.01 per share compared to Q2 2025. GAAP Earnings Per Share (EPS): $0.30 per share for Q2 2026, compared to $0.25 per share in Q2 2025. Special Items: Recorded special items of $0.03 per share during Q2 2026, primarily due to IT transformation costs and system integration impacts. 2026 Ongoing Earnings Forecast: Reaffirmed range of $1.90 to $1.98 per share, with a midpoint of $1.94 per share. Capital Investments: Deployed approximately $2.3 billion through the end of Q2 2026, roughly 30% more than the same period last year. Kentucky Segment Results: Flat compared to Q2 2025, driven by higher base rate recovery offset by lower sales volumes, higher operating costs, higher depreciation, and higher interest expense. Pennsylvania Regulated Segment Results: $0.01 lower compared to Q2 2025, driven by higher depreciation and interest expense, partially offset by higher transmission revenue. Rhode Island Segment Results: Increased by $0.02 compared to Q2 2025, driven by higher rider revenue and lower operating costs, partially offset by higher depreciation expense. Corporate and Other Results: Remained flat compared to Q2 2025, mainly driven by higher interest expense offset by other factors. Warning! GuruFocus has detected 6 Warning Signs with PPL. Is PPL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PPL Corp (NYSE:PPL) reaffirmed its 2026 ongoing earnings forecast of $1.90-$1.98 per share, with a midpoint of $1.94, and expects stronger earnings growth in the second half of the year. The company achieved a constructive rate case settlement in Pennsylvania, effective July 1, with a $275 million increase that supports investments while keeping delivery rates nearly 20% below the national average. PPL Corp (NYSE:PPL) continues to see strong data center demand, with signed agreements increasing to about 32 gigawatts, including over 11 gigawatts under ESAs with meaningful financial commitments. The Invitium Energy joint venture with Blackstone is progressing well, with over 5 gigawatts of CCGT generation accepted in the PJM queue and expectations of one or more commercial agreements by year-end. Kentucky's economic development pipeline has expanded to 13.7 gigawatts of potential load growth, with probability-weighted projections of 3.7 gigawatts by 2032, more than double the previous CPCN filing. The company's large-load tariffs in Pennsylvania and Kentucky protect existing customers through long contracts, guarantee payments, collateral, and termination fees, ensuring growth pays for growth. PPL Corp (NYSE:PPL) reaffirmed its long-term financial targets, including 6%-8% annual EPS growth through at least 2029, with compound annual growth expected near the top end of the range. PPL Corp (NYSE:PPL) reported second quarter ongoing earnings of $0.33 per share, only a $0.01 improvement year-over-year, which was in line with expectations but reflects modest near-term growth. The company is awaiting a decision from the Kentucky Public Service Commission on its reconsideration request, which introduces regulatory uncertainty. Higher depreciation and interest expenses negatively impacted segment results in Kentucky and Pennsylvania during the second quarter. The Invitium Energy joint venture is not expected to contribute material earnings through 2030, with meaningful contributions only possible from 2031-2032, limiting near-term upside. PPL Corp (NYSE:PPL) faces potential delays in commercial agreements for Invitium due to the PJM RBP process and the complexity of long-term negotiations, with no guarantee of year-end announcements. The company's capital expenditure program is running 30% higher than last year, which could pressure cash flows and credit metrics if not managed carefully. Regulatory and legislative scrutiny in Pennsylvania, including local community concerns and proposed legislation, could slow data center development and impact growth plans. Q: Can you discuss the interaction of the Invitium JV with the bilateral process and PJM's RBA procurement? Would you have to wait for procurement to happen, or could you announce a deal at any time?A: Vince Sorgi (President and CEO) stated that PPL is actively negotiating bilateral contracts, a process that began well before the PJM RBP process. The ability to close bilateral contracts is independent of the PJM process. While proposals were submitted to the PJM process to maximize customer contacts, the two paths are not necessarily related given the prior activity. Q: Can you provide any details on the size of the near-term Invitium agreements expected by year-end, and when might an announcement come?A: Vince Sorgi (President and CEO) noted that the size cannot be disclosed yet as it depends on which agreements finalize first. Material announcements would be made in concert with signing, not deferred to an earnings call. He added that the PJM RBP process is affecting timing for some counterparties, but customer engagement remains strong. The expectation for one or more announcements by year-end is driven by progress on site readiness, turbine access, interconnection activity, and fuel supply, all running in parallel with customer negotiations. Q: When do you expect to see the first results from the PJM capacity matching process, and how do you view this versus bidding into the actual RBP auction?A: Vince Sorgi (President and CEO) said PPL has not committed to bidding into the RVP option but did provide a proposal for the matchmaking part. PJM is expected to release results at the end of September. He noted that the caps seen in the PJM auction are well below the cost of the assets being discussed, so the focus remains on bilateral contracting directly with customers. Q: With the longer-dated opportunities on your plate, could we see a longer planning window or an update to guidance? What are the considerations?A: Joe Bergstein (CFO) confirmed that extending the planning window is possible given the timing of earnings contributions from these agreements and the logistics of bringing CCGTs into service. This is a consideration the company is evaluating. Q: How are potential Invitium customers viewing the 'connect and manage' and IRS rulings in PJM, and has the clarity helped progress commercial decisions?A: Vince Sorgi (President and CEO) explained that the IRS framework was not included in the recent filing but is expected imminently. The PJM guiding principles have provided clarity on what large loads need to procure during ramp phases. Hyperscalers will likely want to match load ramps with generation, prompting the use of batteries and smaller generation that can come online quickly, anchored by larger assets like CCGTs. These considerations are part of ongoing discussions with hyperscalers. Q: What other technologies besides batteries are you considering for shorter-term projects in the JV?A: Vince Sorgi (President and CEO) identified combustion turbines (CTs) as quicker than CCGTs but likely outside the '29 plan period, potentially in the '30-'31 range. He also confirmed engagement with fuel cell manufacturers, noting fuel cells are on the list of technologies, with the final choice depending on hyperscaler preferences. Q: How should we think about funding the joint venture and its projects? How much equity will PPL provide, and what financing structures are being considered?A: Joe Bergstein (CFO) stated that during the construction period, project-level financing structures will be used to limit near-term dilution to the balance sheet. Once projects reach COD, a permanent financing structure will be put in place. While the risk profile and returns are utility-like, there is flexibility in the capital structure, and maintaining a strong credit position will be a key consideration in discussions with rating agencies. Q: Regarding the Pennsylvania rate case, you have a 2-year stay-out. Are you hoping to rely more on the DISC mechanism to avoid filing another rate case near 2028-2029?A: Joe Bergstein (CFO) confirmed the 2-year stay-out extends through July 1, 2028. PPL aims to maximize time between rate cases, having previously gone 10 years in Pennsylvania. The company will continue using the DISC mechanism effectively and managing costs. The current LTIP plan runs through 2027, and an updated 5-year plan will be filed next year. Vince Sorgi (President and CEO) added that the Pennsylvania commission is exploring making the DISC mechanism more formula-based with performance bands, which could help utilities stay out of base rate cases longer. Q: With data center projects supported by ESAs depleting excess generation in the PPL zone, could forced curtailments under 'connect and manage' give PPL a competitive advantage versus other PJM zones?A: Vince Sorgi (President and CEO) agreed that PPL's strategic site accumulation near load creates a competitive position. The proximity of generation to load strengthens grid reliability and helps maintain Pennsylvania's long position as a power generation source for PJM. This provides a competitive advantage for the territory. Q: Will the shorter lead-time technologies, such as batteries, require a separate ESSA, or will they typically be part of the CCGT contracts?A: Vince Sorgi (President and CEO) clarified that an ESSA contract is for generation to supply a data center and is not limited to CCGTs; it covers whatever suite of assets is agreed upon with the hyperscaler. While batteries are the fastest to market, they are also the easiest for hyperscalers to embed in their own designs. Some battery capacity coming online by 2029 could be owned directly by hyperscalers rather than third-party generators like Invitium. Q: Have the two data centers that began taking service in Pennsylvania in Q2 started the LTC minimum demand billing, or is there a ramp schedule?A: Vince Sorgi (President and CEO) confirmed that the 2 gigawatts of load is expected to ramp through 2031, with a smaller ramp currently kicking in under the tariff. Q: What is the outlook for legislation in Pennsylvania regarding data centers and regulated generation, given the activity this spring?A: Vince Sorgi (President and CEO) noted that local communities are slowing down to review projects and update zoning, which For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Announces 2026 second-quarter reported earnings (GAAP) of $0.30 per share. Achieves 2026 second-quarter ongoing earnings per share of $0.33 versus $0.32 in 2025. Reaffirms 2026 ongoing earnings forecast range of $1.90 to $1.98 per share with a midpoint of $1.94. Reaffirms annual EPS growth target of 6% to 8% through at least 2029 with compound annual growth expected to be near top end of the target range. Estimates current economic development in Pennsylvania and Kentucky could present potential generation investment upside of $10 billion to $12 billion through 2032. ALLENTOWN, Pa., Aug. 7, 2026 /PRNewswire/ -- PPL Corporation (NYSE: PPL) today announced second-quarter 2026 reported earnings (GAAP) of $230 million, or $0.30 per share, compared with second-quarter 2025 reported earnings of $183 million, or $0.25 per share. PPL reported earnings of $682 million, or $0.90 per share for the first six months of 2026, compared with reported earnings of $597 million, or $0.80 per share, for the first six months of 2025. Adjusting for special items, second-quarter 2026 earnings from ongoing operations (non-GAAP) were $247 million, or $0.33 per share, compared with $240 million, or $0.32 per share, a year ago. Earnings from ongoing operations for the first six months of 2026 were $725 million, or $0.96 per share, compared with $684 million, or $0.92 per share, for the first six months of 2025. "Our solid second-quarter results demonstrate continued execution across our regulated utility portfolio and keep us on track to deliver our 2026 commitments," said Vincent Sorgi, PPL president and chief executive officer. "We are benefiting from disciplined cost management, strong operational focus and timely recovery of prudent investments that strengthen service for customers. Those investments are designed to modernize the grid, improve system resilience and support growing demand in a way that protects our existing customers while delivering long-term shareowner returns. "With constructive regulatory frameworks across our jurisdictions and a clear capital investment plan, we believe PPL is well positioned to capture emerging growth opportunities while maintaining our commitment to affordability and reliability." Based on the company's financial performance year to date, PPL reaffirmed its 2026 ongoing earnings forecast range of $1.90 to $1.98 per share with a midpoint of $1.94 per share. The company continues to expect stronger earnings growth in the second half of 2026, supported by improved rate recovery and capital tracking mechanisms that enable timely recovery of investments. PPL also reaffirmed its projection of 6% to 8% annual earnings-per-share (EPS) growth through at least 2029 and continues to expect compound annual growth near the top end of that range compared with 2025 actual ongoing earnings. The company expects stronger earnings growth beginning in 2027 and continuing through 2029. PPL's business plan does not include any earnings contributions or capital investments related to Invitium Energy, LLC, its 51% joint venture with Blackstone Infrastructure to build and operate generation resources to directly support data centers in Pennsylvania. Economic Development Expands Long-Term Investment Opportunities PPL continues to see growing development and interest from data center developers and other large energy users across its Pennsylvania and Kentucky service territories, creating greater visibility into future infrastructure and generation investment opportunities. The company estimates current economic development activity in its Pennsylvania and Kentucky service territories could present $10 billion to $12 billion of total investment upside through 2032 tied to generation needs. The estimated opportunity includes regulated generation investment to support growing demand in Kentucky, as well as PPL's ownership interest in generation development opportunities through Invitium Energy in Pennsylvania. Pennsylvania PPL Electric Utilities' data center pipeline grew to 31.8 gigawatts (GW) in advanced stages of planning in the second quarter, with over 11 GW under signed electric service agreements and more than 6.5 GW under construction. Importantly, PPL Electric Utilities has established a regulatory-approved tariff that includes strong protections for existing customers as large-load development expands. These protections help ensure that data centers and other large-load customers fund the infrastructure required to serve them, helping support continued affordability for existing customers while enabling economic development across the Commonwealth. In Pennsylvania, Invitium Energy remains focused on building, owning and operating new generation to serve new data center demand under long-term energy supply services agreements (ESSAs). The joint venture has secured land sites capable of supporting 8 GW to 14 GW of new generation capacity, depending on the type of generation resources built, and it continues to develop and build its inventory of viable generation sites. PJM has accepted more than 5 GW of Invitium Energy generation interconnection requests, and the joint venture has secured reservation agreements for more than 5 GW of combined-cycle gas turbines. The 5 GW of turbine capacity alone represents $12.5 billion to $15.0 billion of potential future investment opportunities at the joint-venture level through 2032. And Invitium Energy's continued progress positions the joint venture to move quickly upon signing ESSAs. Importantly, Invitium Energy will not begin construction or make material financial commitments until it has signed ESSAs with appropriate risk profiles or cost reimbursement agreements are in place. Based on progress to date, PPL expects to have one or more commercial agreements by the end of 2026. PPL said it does not expect the earnings contributions from the joint venture to be material through 2030 but said batteries or other shorter-lead-time technologies could begin contributing earnings in 2029 or 2030, potentially enhancing PPL's projected earnings-per-share growth rate above the top end of the company's 6% to 8% range. The company would expect more meaningful earnings and cash flows when the combined-cycle gas turbines come online, which could be as early as the 2031 to 2032 timeframe. Invitium Energy operates separately from PPL Electric Utilities, and PPL Electric Utilities customers are not funding these activities. Kentucky The potential economic development pipeline in the Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) service territories grew to 13.7 GW in the second quarter, of which 11.6 GW are tied to data center opportunities, with 1.3 GW under signed agreements. PPL said the growing Kentucky project pipeline makes it more likely LG&E and KU will file a CPCN request by the end of 2026 to build additional generation beyond the 2.3 GW the utilities are already developing from prior CPCN approvals. The company estimates the additional generation represents $3.5 billion to $4.0 billion of incremental investment need between 2027 and 2032. LG&E and KU also have established regulatory-approved large-load tariffs that include strong protection for their existing customers. Second-Quarter 2026 Earnings Details As discussed in this news release, reported earnings are calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP). "Earnings from ongoing operations" is a non-GAAP financial measure that is adjusted for special items. See the tables at the end of this news release for a reconciliation of reported earnings (net income) to earnings from ongoing operations, including an itemization of special items. Key Factors Impacting Earnings In addition to the segment drivers outlined below, PPL's reported earnings in the second quarter of 2026 included net special-item after-tax charges of $17 million, or $0.03 per share, primarily attributable to PPL's IT transformation and system integration impacts. Reported earnings in the second quarter of 2025 included net special-item after-tax charges of $57 million, or $0.07 per share, primarily attributable to PPL's IT transformation and integration-related expenses and adjustments associated with the acquisition of Rhode Island Energy. Reported earnings in the first six months of 2026 included net special-item after-tax charges of $43 million or $0.06 per share, primarily attributable to prior-year impacts associated with an ISO New England transmission return on equity reduction and system integration impacts. Reported earnings in the first six months of 2025 included net special-item after-tax charges of $87 million, or $0.12 per share, primarily attributable to PPL's IT transformation and integration-related expenses and adjustments associated with the acquisition of Rhode Island Energy. Kentucky Regulated Segment PPL's Kentucky Regulated segment primarily consists of the regulated electricity and natural gas operations of Louisville Gas and Electric Company and the regulated electricity operations of Kentucky Utilities Company. Reported earnings in the second quarter of 2026 increased by $0.01 per share compared with a year ago. Earnings from ongoing operations in the second quarter of 2026 were flat compared with a year ago. Factors driving earnings results primarily included higher income due to higher retail rates effective January 1, 2026, offset by higher operating costs, higher depreciation expense and higher interest expense. Reported earnings in the first six months of 2026 increased by $0.06 per share compared with a year ago. Earnings from ongoing operations in the first six months of 2026 increased by $0.03 per share compared with a year ago. Factors driving earnings results primarily included higher income due to higher retail rates effective January 1, 2026, and increased returns on capital investments, partially offset by lower sales volumes, higher operating costs, higher depreciation expense and higher interest expense. Pennsylvania Regulated Segment PPL's Pennsylvania Regulated segment consists of the regulated electricity delivery operations of PPL Electric Utilities. Reported earnings in the second quarter of 2026 decreased by $0.02 per share compared with a year ago. Earnings from ongoing operations in the second quarter of 2026 decreased by $0.01 per share compared with a year ago. Factors driving earnings results primarily included higher depreciation expense and higher interest expense, partially offset by higher transmission revenue from additional capital investments. Reported earnings in the first six months of 2026 decreased by $0.02 per share compared with a year ago. Earnings from ongoing operations in the first six months of 2026 decreased by $0.01 per share compared with a year ago. Factors driving earnings results primarily included higher operating costs, higher depreciation expense and higher interest expense, partially offset by higher transmission revenue from additional capital investments and higher sales volumes largely due to weather. Rhode Island Regulated Segment PPL's Rhode Island Regulated segment consists of the regulated electricity and natural gas operations of Rhode Island Energy. Reported earnings in the second quarter of 2026 increased by $0.03 per share compared with a year ago. Earnings from ongoing operations in the second quarter of 2026 increased by $0.02 per share compared with a year ago. Factors driving earnings results primarily included lower operating costs and higher rider revenue, partially offset by higher depreciation expense. Reported earnings in the first six months of 2026 decreased by $0.01 per share compared with a year ago. Earnings from ongoing operations in the first six months of 2026 increased by $0.01 per share compared with a year ago. Factors driving earnings results primarily included lower operating costs and higher rider revenue, partially offset by higher depreciation expense and higher interest expense. Corporate and Other PPL's Corporate and Other category primarily includes financing costs incurred at the corporate level, certain non-recoverable costs prior to 2026 resulting from commitments made to the Rhode Island Division of Public Utilities and Carriers and the Rhode Island Attorney General's Office in conjunction with the acquisition of Rhode Island Energy, and certain other unallocated costs. Reported earnings in the second quarter of 2026 increased by $0.03 per share compared with a year ago. Earnings from ongoing operations in the second quarter of 2026 were flat compared with a year ago. Factors driving earnings results primarily included higher interest expense, offset by factors that were not individually significant. Reported earnings in the first six months of 2026 increased by $0.07 per share compared with a year ago. Earnings from ongoing operations in the first six months of 2026 increased by $0.01 per share compared with a year ago. Factors driving earnings results primarily included higher interest income and lower income taxes, partially offset by higher interest expense. 2026 Earnings Forecast PPL's 2026 earnings from ongoing operations forecast range is $1.90 to $1.98 per share, with a midpoint of $1.94 per share. Earnings from ongoing operations is a non-GAAP measure that could differ from reported earnings due to special items that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations. PPL management is not able to forecast whether any of these factors will occur or whether any amounts will be reported for future periods. Therefore, PPL is not able to provide an equivalent GAAP measure for earnings guidance. See the table at the end of this news release for a complete reconciliation of the earnings forecast. About PPL PPL Corporation (NYSE: PPL), headquartered in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.6 million customers in the U.S. PPL's high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions. For more information, visit www.pplweb.com. (Note: All references to earnings per share in the text and tables of this news release are stated in terms of diluted earnings per share unless otherwise noted.) Conference Call and Webcast PPL invites interested parties to listen to a live internet webcast of management's teleconference with financial analysts about second-quarter 2026 financial results at 11 a.m. Eastern time on Friday, Aug. 7. The call will be webcast live, in audio format, together with slides of the presentation. For those who are unable to listen to the live webcast, a replay with slides will be accessible at www.pplweb.com/investors for 90 days after the call. Interested individuals can access the live conference call by telephone at 1-844-512-2926. International participants should call 1-412-317-6300. Participants will need to enter the following "Elite Entry" number to join the conference: 4896257. Callers can access the webcast link at www.pplweb.com/investors under "Events." Management utilizes "Earnings from Ongoing Operations" or "Ongoing Earnings" as a non-GAAP financial measure that should not be considered as an alternative to reported earnings, or net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management's view of PPL's earnings performance as another criterion in making investment decisions. In addition, PPL's management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance. Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the statutory tax rate of the entity where the activity is recorded. Special items may include items such as: Gains and losses on sales of assets not in the ordinary course of business. Impairment charges. Significant workforce reduction and other restructuring effects. Acquisition and divestiture-related adjustments. Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations. Statements contained in this news release, including statements with respect to future earnings, cash flows, dividends, financing, regulation and corporate strategy, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: weather conditions affecting customer energy usage and operating costs; strategic acquisitions, dispositions, joint ventures or similar transactions and our ability to consummate these business transactions, integrate the acquired entities or realize expected benefits from them; the outcome of rate cases or other cost recovery, revenue or regulatory proceedings; war, armed conflicts, terrorist attacks or similar disruptive events including ongoing conflicts in Ukraine and the Middle East; pandemic health events or other catastrophic events and their effect on financial markets, economic conditions and our businesses; market demand for energy in our service territories; volatility in or the impact of other changes on financial markets, commodity prices and economic conditions, including inflation; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of our facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and requirements and the related costs of compliance; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; any impact of severe weather on our business; receipt of necessary government permits, approvals, rate relief and regulatory cost recovery; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; PPL Corporation's stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in jurisdictions where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual cyberattack, terrorism or war or other hostilities; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with factors and other matters discussed in PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission. Contacts:For news media: Ryan Hill, 610-774-4033For financial analysts: Andy Ludwig, 610-774-3389 View original content to download multimedia:https://www.prnewswire.com/news-releases/ppl-corporation-delivers-solid-second-quarter-2026-earnings-reaffirms-guidance-and-longterm-growth-outlook-302846033.html

PPL (PPL) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.71%. A quarter ago, it was expected that this energy and utility holding company would post earnings of $0.61 per share when it actually produced earnings of $0.63, delivering a surprise of +3.28%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. PPL, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $2.11 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.03%. This compares to year-ago revenues of $2.03 billion. The company has topped consensus revenue estimates two times 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. PPL shares have lost about 1.1% since the beginning of the year versus the S&P 500's gain of 12.6%. While PPL 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 PPL was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $0.52 on $2.44 billion in revenues for the coming quarter and $1.94 on $9.78 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 29% 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. Cadiz (CDZI), another stock in the broader Zacks Utilities sector, has yet to report results for the quarter ended June 2026. This renewable resource company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has been revised 5% higher over the last 30 days to the current level. Cadiz's revenues are expected to be $4.22 million, up 2.1% 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 PPL Corporation (PPL) : Free Stock Analysis Report Cadiz, Inc. (CDZI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research