PEG — Public Service Enterprise Group Incorporated

PEG Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Net Income: $0.67 per share for Q2 2026, down from $1.17 per share in Q2 2025.
• Non-GAAP Operating Earnings: $0.86 per share for Q2 2026, up from $0.77 per share in Q2 2025.
• First Half Results: Net income of $2.15 per share and non-GAAP operating earnings of $2.41 per share.
• PSE&G Performance: Reported net income and non-GAAP operating earnings of $342 million in Q2 2026, slightly up from $332 million in Q2 2025.

2. Strategic Updates and Business Highlights:

• Operational Efficiency: Successful storm restoration efforts during a challenging July 4 weekend, reconnecting approximately 380,000 customers within 24 hours.
• Clean Energy Future Programs: Generated over $1 billion in annual customer savings, benefiting 525,000 customers since 2020.
• Capital Investments: PSEG plans to invest $24 billion to $28 billion over the next five years, focusing on infrastructure modernization and energy efficiency.
• Nuclear Operations: PSEG Nuclear achieved a capacity factor of 92% and cleared 3,600 megawatts in the latest PJM capacity auction.

3. Forward Guidance and Outlook:

• Full-Year Guidance: Reaffirmed non-GAAP operating earnings guidance of $4.28 to $4.40 per share for 2026.
• Long-Term Growth: Maintained a 5-year non-GAAP operating earnings growth outlook of 6% to 8% through 2030, supported by ongoing capital investments and potential nuclear revenue opportunities.

4. Bad News, Challenges, or Points of Concern:

• Declining Net Income: Notable decrease in net income per share compared to the previous year.
• Regulatory Risks: Potential loss of the 50 basis point RTO incentive could represent a $40 million annual headwind starting in 2027.
• Market Pressures: The absence of Zero Emission Certificate programs and challenges in the PJM capacity auction pricing could impact future earnings.

5. Notable Q&A Insights:

• Base Rate Case Filing: Management indicated plans to file a base rate case by year-end 2026, aligning with state regulatory goals and addressing the need for more transparency and performance-based rates.
• Bilateral Contracting Opportunities: Interest in both existing and new generation assets, with a focus on utility-like returns amidst changing market conditions.
• Nuclear Development: Discussions around new nuclear generation highlight bipartisan support but emphasize the need for clear risk allocation to protect ratepayers from cost overruns.
• Regulatory Clarity: Management expressed optimism about ongoing regulatory discussions and the potential for favorable outcomes that align with state energy policies.

Overall, PSEG demonstrated solid operational performance amid challenges, reaffirming its growth outlook while navigating regulatory and market dynamics.