PPL Corporation delivers solid first-quarter 2026 earnings; reaffirms full‑year guidance and long‑term growth targets
Rhea-AI Summary
PPL (NYSE: PPL) reported Q1 2026 GAAP earnings of $452 million or $0.60 per share, and ongoing earnings of $478 million or $0.63 per share. The company reaffirmed 2026 ongoing EPS guidance of $1.90–$1.98 (midpoint $1.94) and reiterated a 6%–8% annual EPS growth target through 2029. PPL plans about $5.1 billion of infrastructure investment in 2026 and advanced regulatory settlements and generation projects across its service territories.
AI-generated analysis. Not financial advice.
Positive
- Reaffirmed 2026 ongoing EPS guidance of $1.90–$1.98 per share
- $5.1 billion planned infrastructure investments in 2026
- 6%–8% annual EPS growth target through at least 2029
- 1,900 MW of planned new natural-gas combined-cycle capacity in Kentucky
Negative
- Net special-item after-tax charges of $26 million in Q1 2026
- Higher operating, depreciation and interest expenses pressured segment results
- Rhode Island reported earnings per share decreased by $0.05 year-over-year
Key Figures
Market Reality Check
Peers on Argus
PPL slipped 0.3% with mixed peer moves: AEE (-0.58%), DTE (-0.2%), ES (-0.96%) declined while FE (+0.04%) and FTS (+0.41%) edged higher, pointing to stock-specific trading rather than a unified sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Nuclear SMR partnership | Positive | +0.4% | Collaboration to evaluate Xe-100 SMR deployment in Kentucky for clean baseload power. |
| Apr 24 | Green energy partnership | Positive | +0.5% | Extended renewable energy partnership powering Kentucky Derby Week with RECs and green blocks. |
| Apr 17 | Earnings webcast notice | Neutral | -0.8% | Announcement of first-quarter 2026 earnings release date and investor conference call. |
| Mar 13 | Rate case settlement | Positive | +1.2% | Joint settlement for first base distribution rate increase since 2016 to fund reliability and support programs. |
| Feb 25 | Employee giving campaign | Positive | +0.4% | Employee and retiree campaign raising $10 million for nonprofits across PPL’s service territories. |
Recent PPL headlines have generally seen modest positive price reactions, including regulatory and partnership updates, with only occasional divergence on neutral items.
Over the past few months, PPL has reported several developments, including nuclear SMR feasibility work in Kentucky on Apr 30 2026, a green energy partnership for the Kentucky Derby on Apr 24 2026, and a Pennsylvania distribution rate settlement filing on Mar 13 2026. These, along with community and earnings call notices, mostly saw small positive reactions. Today’s first‑quarter 2026 earnings, with higher GAAP and ongoing EPS and reaffirmed guidance, extend that trajectory of steady operational and regulatory progress.
Market Pulse Summary
This announcement highlighted first‑quarter 2026 GAAP EPS of $0.60 and ongoing EPS of $0.63, both up from 2025, alongside reaffirmed 2026 ongoing EPS guidance of $1.90–$1.98. Management maintained a 6%–8% annual EPS growth target through at least 2029 and outlined about $5.1 billion of 2026 infrastructure investments. Investors may focus on regulatory proceedings in Pennsylvania and Rhode Island, progress on new Kentucky generation, and how data center‑related joint ventures evolve relative to current plans.
Key Terms
gaap financial
non-gaap financial
megawatts (mw) technical
interconnection queue technical
AI-generated analysis. Not financial advice.
- Announces 2026 first-quarter earnings (GAAP) of
$0.60 - Achieves 2026 first-quarter ongoing earnings per share of
$0.63 $0.60 - Reaffirms 2026 ongoing earnings forecast of
$1.90 $1.98 $1.94 - Reaffirms annual EPS growth target of
6% to8% through at least 2029 with compound annual growth expected to be near top end of the target range.
Adjusting for special items, first-quarter 2026 earnings from ongoing operations (non-GAAP) were
"Our first-quarter results reflect strong financial and operational results and keep us on track to achieve our 2026 earnings guidance range," said Vincent Sorgi, PPL president and chief executive officer. "We're on pace to complete
Based on the company's financial performance year to date, PPL reaffirmed its 2026 ongoing earnings forecast range of
The company also reaffirmed its projection of
During the quarter, PPL advanced several regulatory processes across its service territories that support improved service for its customers while strengthening the company's visibility and confidence in its outlook.
In
Rhode Island Energy received approval for its latest annual electric and gas infrastructure, safety and reliability plans, supporting over
Throughout the first quarter, PPL also remained focused on opportunities to support significant economic development across its service territories, including continued robust expansion in
PPL's joint venture with Blackstone Infrastructure also continues to gain momentum and is making significant progress as it seeks to build, own and operate generation in
First-Quarter 2026 Earnings Details
As discussed in this news release, reported earnings are calculated in accordance with
(Dollars in millions, except for per share amounts) | 1st Quarter | ||||
2026 | 2025 | Change | |||
Reported earnings | $ 452 | $ 414 | 9 % | ||
Reported earnings per share | $ 0.60 | $ 0.56 | 7 % | ||
1st Quarter | |||||
2026 | 2025 | Change | |||
Earnings from ongoing operations | $ 478 | $ 444 | 8 % | ||
Earnings from ongoing operations per share | $ 0.63 | $ 0.60 | 5 % | ||
First-Quarter 2026 Earnings by Segment | |||
1st Quarter | |||
Per share | 2026 | 2025 | |
Reported earnings | |||
Kentucky Regulated | $ 0.35 | $ 0.30 | |
Pennsylvania Regulated | 0.25 | 0.25 | |
Rhode Island Regulated | 0.05 | 0.10 | |
Corporate and Other | (0.05) | (0.09) | |
Total | $ 0.60 | $ 0.56 | |
1st Quarter | |||
2026 | 2025 | ||
Special items (expense) benefit | |||
Kentucky Regulated | $ 0.02 | $ — | |
Pennsylvania Regulated | — | — | |
Rhode Island Regulated | (0.05) | — | |
Corporate and Other | — | (0.04) | |
Total | $ (0.03) | $ (0.04) | |
1st Quarter | |||
2026 | 2025 | ||
Earnings from ongoing operations | |||
Kentucky Regulated | $ 0.33 | $ 0.30 | |
Pennsylvania Regulated | 0.25 | 0.25 | |
Rhode Island Regulated | 0.10 | 0.10 | |
Corporate and Other | (0.05) | (0.05) | |
Total | $ 0.63 | $ 0.60 | |
Key Factors Impacting Earnings
In addition to the segment drivers outlined below, PPL's reported earnings in the first quarter of 2026 included net special-item after-tax charges of
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 first quarter of 2026 increased by
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated electricity delivery operations of PPL Electric Utilities.
Reported earnings and earnings from ongoing operations in the first quarter of 2026 were even compared with a year ago. Factors driving earnings results primarily included higher transmission revenue from additional capital investments, offset by higher operating costs, higher depreciation expense and higher interest expense.
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 first quarter of 2026 decreased by
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
Reported earnings in the first quarter of 2026 increased by
2026 Earnings Forecast
PPL's 2026 earnings from ongoing operations forecast range is
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
(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 first-quarter 2026 financial results at 11 a.m. Eastern time on Friday, May 8. 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: 5534427. 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
Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation.
PPL CORPORATION AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED FINANCIAL INFORMATION(1) | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(Millions of Dollars) | |||
March 31, | December 31, | ||
2026 | 2025 | ||
Assets | |||
Cash and cash equivalents | $ 1,241 | $ 1,071 | |
Accounts receivable | 1,423 | 1,225 | |
Unbilled revenues | 413 | 558 | |
Fuel, materials and supplies | 536 | 551 | |
Regulatory assets | 375 | 308 | |
Other current assets | 333 | 218 | |
Property, Plant and Equipment | |||
Regulated utility plant | 43,480 | 42,953 | |
Less: Accumulated depreciation - regulated utility plant | 10,493 | 10,303 | |
Regulated utility plant, net | 32,987 | 32,650 | |
Non-regulated property, plant and equipment | 91 | 71 | |
Less: Accumulated depreciation - non-regulated property, plant and equipment | 29 | 26 | |
Non-regulated property, plant and equipment, net | 62 | 45 | |
Construction work in progress | 3,688 | 3,437 | |
Property, Plant and Equipment, net | 36,737 | 36,132 | |
Noncurrent regulatory assets | 2,100 | 2,092 | |
Goodwill and other intangibles | 2,573 | 2,574 | |
Other noncurrent assets | 573 | 515 | |
Total Assets | $ 46,304 | $ 45,244 | |
Liabilities and Equity | |||
Short-term debt | $ 220 | $ 456 | |
Long-term debt due within one year | 994 | 904 | |
Accounts payable | 1,403 | 1,559 | |
Other current liabilities | 1,690 | 1,627 | |
Long-term debt | 19,024 | 17,990 | |
Deferred income taxes and investment tax credits | 3,731 | 3,615 | |
Accrued pension obligations | 272 | 281 | |
Asset retirement obligations | 112 | 133 | |
Noncurrent regulatory liabilities | 3,283 | 3,318 | |
Other deferred credits and noncurrent liabilities | 556 | 480 | |
Common stock and additional paid-in capital | 12,324 | 12,451 | |
Treasury stock | (548) | (575) | |
Earnings reinvested | 3,443 | 3,207 | |
Accumulated other comprehensive loss | (200) | (202) | |
Total Liabilities and Equity | $ 46,304 | $ 45,244 | |
(1) | The Financial Statements in this news release have been condensed and summarized for purposes of this presentation. Please refer to PPL Corporation's periodic filings with the Securities and Exchange Commission for full financial statements, including note disclosure. |
PPL CORPORATION AND SUBSIDIARIES | ||||
Condensed Consolidated Statements of Income (Unaudited) | ||||
(Millions of Dollars, except share data) | ||||
Three Months Ended | ||||
2026 | 2025 | |||
Operating Revenues | $ 2,774 | $ 2,504 | ||
Operating Expenses | ||||
Operation | ||||
Fuel | 274 | 234 | ||
Energy purchases | 703 | 559 | ||
Other operation and maintenance | 579 | 598 | ||
Depreciation | 351 | 322 | ||
Taxes, other than income | 122 | 113 | ||
Total Operating Expenses | 2,029 | 1,826 | ||
Operating Income | 745 | 678 | ||
Other Income (Expense) - net | 39 | 28 | ||
Interest Expense | 224 | 190 | ||
Income Before Income Taxes | 560 | 516 | ||
Income Taxes | 108 | 102 | ||
Net Income | $ 452 | $ 414 | ||
Earnings Per Share of Common Stock: | ||||
Net Income Available to PPL Common Shareowners | ||||
Basic and Diluted | $ 0.60 | $ 0.56 | ||
Weighted-Average Shares of Common Stock Outstanding (in thousands) | ||||
Basic | 751,764 | 738,691 | ||
Diluted | 757,158 | 741,400 | ||
PPL CORPORATION AND SUBSIDIARIES | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
(Millions of Dollars) | |||
Three Months Ended | |||
2026 | 2025 | ||
Cash Flows from Operating Activities | |||
Net income | $ 452 | $ 414 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 351 | 322 | |
Amortization | 38 | 20 | |
Defined benefit plans - income | (2) | (16) | |
Deferred income taxes and investment tax credits | 94 | 38 | |
Equity component of AFUDC | (24) | (16) | |
Other | 1 | 29 | |
Change in current assets and current liabilities | |||
Accounts receivable | (221) | (277) | |
Accounts payable | (56) | (120) | |
Unbilled revenues | 145 | 108 | |
Fuel, materials and supplies | 19 | 37 | |
Prepayments | (84) | (87) | |
Taxes payable | (48) | 40 | |
Regulatory assets and liabilities, net | (54) | 79 | |
Accrued interest | 49 | 67 | |
Other | (31) | (80) | |
Other operating activities | |||
Defined benefit plans - funding | (5) | (5) | |
Other | (67) | (40) | |
Net cash provided by operating activities | 557 | 513 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (1,058) | (793) | |
Other investing activities | 12 | 10 | |
Net cash used in investing activities | (1,046) | (783) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 1,150 | — | |
Retirement of long-term debt | (18) | — | |
Payment of common stock dividends | (202) | (190) | |
Net increase (decrease) in short-term debt | (236) | 475 | |
Debt issuance costs | (27) | (5) | |
Other financing activities | (13) | (9) | |
Net cash provided by financing activities | 654 | 271 | |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 165 | 1 | |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 1,086 | 339 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 1,251 | $ 340 | |
Supplemental Disclosures of Cash Flow Information | |||
Significant non-cash transactions: | |||
Accrued expenditures for property, plant and equipment at March 31, | $ 560 | $ 397 | |
Operating - Electricity Sales (Unaudited)(1) | |||||
Three Months Ended | |||||
Percent | |||||
(GWh) | 2026 | 2025 | Change | ||
PA Regulated Segment | |||||
Retail Delivered | 10,315 | 10,144 | 1.7 % | ||
KY Regulated Segment | |||||
Retail Delivered | 7,645 | 7,803 | (2.0) % | ||
Wholesale(2) | 308 | 439 | (29.8) % | ||
Total | 7,953 | 8,242 | (3.5) % | ||
Total | 18,268 | 18,386 | (0.6) % | ||
(1) | Excludes the Rhode Island Regulated segment electricity sales as revenues are decoupled from volumes delivered. |
(2) | Represents FERC-regulated municipal and unregulated off-system sales. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||
(After-Tax) | |||||||||
(Unaudited) | |||||||||
Year-to-Date March 31, 2026 | (millions of dollars) | ||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 270 | $ 184 | $ 36 | $ (38) | $ 452 | ||||
Less: Special Items (expense) benefit: | |||||||||
IT transformation, net of tax of ( | 16 | (2) | (2) | (3) | 9 | ||||
Customer system integration impacts, net of tax of | — | — | (7) | — | (7) | ||||
ISO-NE transmission rates ROE reduction, net of tax of | — | — | (19) | — | (19) | ||||
Meter system integration impacts, net of tax of | — | — | (9) | — | (9) | ||||
Total Special Items | 16 | (2) | (37) | (3) | (26) | ||||
Earnings from Ongoing Operations | $ 254 | $ 186 | $ 73 | $ (35) | $ 478 | ||||
(per share - diluted) | |||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 0.35 | $ 0.25 | $ 0.05 | $ (0.05) | $ 0.60 | ||||
Less: Special Items (expense) benefit: | |||||||||
IT transformation(2) | 0.02 | — | — | — | 0.02 | ||||
Customer system integration impacts(3) | — | — | (0.01) | — | (0.01) | ||||
ISO-NE transmission rates ROE reduction(4) | — | — | (0.03) | — | (0.03) | ||||
Meter system integration impacts(5) | — | — | (0.01) | — | (0.01) | ||||
Total Special Items | 0.02 | — | (0.05) | — | (0.03) | ||||
Earnings from Ongoing Operations | $ 0.33 | $ 0.25 | $ 0.10 | $ (0.05) | $ 0.63 | ||||
(1) | Reported Earnings represents Net Income. |
(2) | Costs associated with PPL's restructuring and rebuilding of its IT infrastructure, organization and systems. KY Reg. received regulatory asset treatment for 2025 costs. |
(3) | Certain collection process costs incurred due to the timing and implementation of the customer system integration. |
(4) | Prior period impact of an ISO New England transmission rates return on equity reduction. |
(5) | Prior period impact of a meter data system integration post transition services agreement. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||
(After-Tax) | |||||||||
(Unaudited) | |||||||||
Year-to-Date March 31, 2025 | (millions of dollars) | ||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 223 | $ 184 | $ 70 | $ (63) | $ 414 | ||||
Less: Special Items (expense) benefit: | |||||||||
Talen litigation costs, net of tax of | — | — | — | (1) | (1) | ||||
Acquisition integration, net of tax of ( | — | — | 7 | (14) | (7) | ||||
IT transformation, net of tax of | (1) | — | (1) | (10) | (12) | ||||
Energy efficiency programs settlement, net of tax of | — | — | (8) | — | (8) | ||||
Office relocation and related costs, net of tax of | (1) | (1) | — | — | (2) | ||||
Total Special Items | (2) | (1) | (2) | (25) | (30) | ||||
Earnings from Ongoing Operations | $ 225 | $ 185 | $ 72 | $ (38) | $ 444 | ||||
(per share - diluted) | |||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 0.30 | $ 0.25 | $ 0.10 | $ (0.09) | $ 0.56 | ||||
Less: Special Items (expense) benefit: | |||||||||
Acquisition integration(3) | — | — | 0.01 | (0.02) | (0.01) | ||||
IT transformation(4) | — | — | — | (0.02) | (0.02) | ||||
Energy efficiency programs settlement(5) | — | — | (0.01) | — | (0.01) | ||||
Total Special Items | — | — | — | (0.04) | (0.04) | ||||
Earnings from Ongoing Operations | $ 0.30 | $ 0.25 | $ 0.10 | $ (0.05) | $ 0.60 | ||||
(1) | Reported Earnings represents Net Income. |
(2) | PPL incurred legal expenses related to litigation associated with its former affiliate. |
(3) | Primarily integration and related costs associated with the acquisition of Rhode Island Energy. |
(4) | Costs associated with PPL's restructuring and rebuilding of its IT infrastructure, organization and systems. |
(5) | Costs associated with a settlement agreement regarding energy efficiency programs prior to PPL's acquisition of Rhode Island Energy. |
(6) | Certain costs related to the relocation of corporate offices. |
Reconciliation of PPL's Earnings Forecast | |||||
After-Tax (Unaudited) | |||||
(per share - diluted) | |||||
2026 Forecast Range | |||||
Midpoint | High | Low | |||
Estimate of Reported Earnings | $ 1.91 | $ 1.95 | $ 1.87 | ||
Less: Special Items (expense) benefit:(1) | |||||
IT transformation(2) | 0.02 | 0.02 | 0.02 | ||
Customer system integration impacts(3) | (0.01) | (0.01) | (0.01) | ||
ISO-NE transmission rates ROE reduction(4) | (0.03) | (0.03) | (0.03) | ||
Meter system integration impacts(5) | (0.01) | (0.01) | (0.01) | ||
Total Special Items | (0.03) | (0.03) | (0.03) | ||
Forecast of Earnings from Ongoing Operations | $ 1.94 | $ 1.98 | $ 1.90 | ||
(1) | Reflects only special items recorded through March 31, 2026. PPL is not able to forecast special items for future periods. |
(2) | Costs associated with PPL's restructuring and rebuilding of its IT infrastructure, organization and systems. KY Reg. received regulatory asset treatment for 2025 costs. |
(3) | Certain collection process costs incurred due to the timing and implementation of the customer system integration. |
(4) | Prior period impact of an ISO New England transmission rates return on equity reduction. |
(5) | Prior period impact of a meter data system integration post transition services agreement. |
Contacts: | For news media: Ryan Hill, 610-774-4033 |
For financial analysts: Andy Ludwig, 610-774-3389 |
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SOURCE PPL Services Corporation