PPL Corporation Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Ongoing Earnings: Reported ongoing earnings of $0.33 per share, a slight increase from $0.32 per share in Q2 2025.

GAAP Earnings: GAAP earnings were $0.30 per share, up from $0.25 per share in the same quarter last year.

Capital Investments: Approximately $2.3 billion deployed in capital investments in H1 2026, a 30% increase compared to the previous year.

Earnings Forecast: Reaffirmed ongoing earnings forecast for 2026 in the range of $1.90 to $1.98 per share, with a midpoint of $1.94.

2Strategic Updates and Business Highlights

Rate Case Outcomes: Positive outcomes from base rate cases in Pennsylvania and Rhode Island, with Pennsylvania rates effective July 1, 2026, and Rhode Island rates expected by September 1, 2026.

Capital Investment Plan: On track to invest $5 billion in 2026, with a long-term projection of $23 billion through 2029.

Data Center Agreements: Continued growth in data center agreements, reaching 32 gigawatts, with 6.5 gigawatts currently under construction.

Joint Venture Progress: Advancements in the Invitium Energy joint venture with Blackstone, with expectations for commercial agreements by year-end.

3Forward Guidance and Outlook

Earnings Growth: Anticipated stronger earnings growth in the second half of 2026, supported by regulatory outcomes and capital investments.

Long-Term Financial Targets: Reaffirmed targets of 6% to 8% annual EPS growth through at least 2029 and 4% to 6% annual dividend growth.

Incremental Investment Opportunities: Potential for $10 billion to $12 billion in incremental capital investment through 2032, driven by growth in Kentucky and the Invitium joint venture.

4Bad News, Challenges, or Points of Concern

Kentucky Regulatory Process: Awaiting a decision from the Kentucky Public Service Commission on a reconsideration request, with concerns about flaws in the original decision.

Weather Impact: Lower sales volumes in Kentucky due to less favorable weather conditions compared to Q2 2025.

Increased Costs: Higher operating costs, depreciation, and interest expenses impacting profitability across segments.

Regulatory Scrutiny: Ongoing scrutiny around data center development and potential legislative changes could impact future operations.

5Notable Q&A Insights

Invitium JV and PJM Process: The company is actively negotiating bilateral contracts for the Invitium joint venture, independent of the PJM capacity matching process.

CPCN Filing Triggers: Increased data center demand and signed agreements are key triggers for potential future CPCN filings in Kentucky.

Legislative Environment: Local legislative efforts are focused on ensuring community protections amid data center development, which may slow down project approvals but are not expected to halt them.

Customer Protections: Large-load tariffs in Pennsylvania and Kentucky are designed to protect existing customers from cost shifts associated with new developments. Overall, PPL Corporation demonstrated solid financial performance and strategic execution in Q2 2026, while navigating regulatory challenges and preparing for future growth opportunities.