PEG Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Net Income: $1.48 per share, up from $1.18 per share in Q1 2025.
Non-GAAP Operating Earnings: $1.55 per share, compared to $1.43 per share in Q1 2025.
PSEG Utility Earnings: $577 million for Q1 2026, up from $546 million in Q1 2025.
PSEG Power Earnings: Net income of $164 million, significantly higher than $43 million in Q1 2025.
Capital Spending: Approximately $800 million in Q1 2026, on track for a full-year plan of $4.2 billion.

2. Strategic Updates and Business Highlights

Continued investment in utility infrastructure focused on reliability and energy efficiency.
Successful storm response during harsh winter conditions, maintaining high reliability.
PSEG Power achieved a 95.5% capacity factor at Salem Unit 2, contributing to reliable energy supply.
Launch of new demand response and time-of-use rate programs aimed at reducing customer energy costs.
FERC's ruling on transmission cost allocations expected to provide over $100 million in refunds to customers.
Engagement in new nuclear development following the lifting of a moratorium in New Jersey.

3. Forward Guidance and Outlook

Full-Year Non-GAAP Operating Earnings Guidance: Maintained at $4.28 to $4.40 per share.
Long-Term Growth: Projected 6% to 8% compound annual growth rate (CAGR) for non-GAAP operating earnings through 2030.
Capital Investment Plan: Five-year plan of $22.5 billion to $25.5 billion for PSEG, focusing on infrastructure and modernization.

4. Bad News, Challenges, or Points of Concern

Absence of zero-emission certificates negatively impacted PSEG Power's revenue.
Increased operating costs due to inflation and extreme weather conditions.
Future capacity costs and energy pricing remain uncertain, particularly with upcoming PJM capacity auctions.
The potential for regulatory changes and challenges in the utility business model in New Jersey could impact operations.

5. Notable Q&A Insights

Management acknowledged the need for collaboration among state regulators, utilities, and customers to address affordability and reliability.
Discussions on PJM capacity auctions highlighted concerns about cost allocation and the need for a balanced planning process.
Interest in new nuclear projects is contingent on federal and state support, alongside favorable market conditions.
The company is monitoring data center demand but noted that without significant tax incentives, interest in New Jersey remains limited.
Management emphasized the importance of summer weather patterns in determining future earnings and operational performance.

Overall, PEG reported a strong start to 2026 with solid financial performance and strategic initiatives aimed at enhancing customer service and reliability, while also navigating regulatory and market challenges.

PEG — Public Service Enterprise Group Incorporated