Track market-moving stories before they get noisy

Key Takeaways PPL shares fell 11% in six months, underperforming the electric power industry's 8.7% decline.PPL plans $23 billion in infrastructure investment for 2026-2029 as data center demand drives load growth. PPL trades above the industry P/E, while its ROE and net margin remain below industry averages. PPL Corporation’s (PPL - Free Report) shares have declined 11% in the past six months, wider than the Zacks Utility-Electric Power industry’s decline of 8.7%. The company also underperformed the Zacks Utilities sector in the same time frame.

PPL reported a negative earnings surprise in the last reporting quarter due to an increase in operating expenses. PPL faces increasing competition in the transmission market, which could weigh on operational performance, while unexpected disruptions may negatively impact its financial results.

Yet, the company is benefiting from growing data center demand, particularly in Pennsylvania and Kentucky, where these energy-intensive facilities are driving higher electricity consumption.

Price Performance (Six months)
Image Source: Zacks Investment Research

Another operator in the same space, FirstEnergy Corp. (FE - Free Report) , is making a substantial investment to strengthen its infrastructure to provide reliable services to customers. The company’s shares have declined 9.1% in the past six months.

Does PPL’s recent share-price weakness offer investors an attractive entry point? Let us examine the key factors that could determine whether PPL stock is worth adding to a portfolio at current levels.

Factors That Could Strengthen PPL’s Growth OutlookPPL continues to benefit from rising large-load demand, which is expected to support electricity consumption and infrastructure investment over the coming years. In Pennsylvania, advanced-stage data center demand increased 12% sequentially to 31.8 gigawatts (“GW”) in the second quarter of 2026. In Kentucky, the economic development pipeline expanded to 13.7 GW through 2032, including 11.6 GW from data centers, while signed reimbursement agreements climbed to 1.3 GW from 0.9 GW in the first quarter.

PPL plans to invest $23 billion in regulated infrastructure during 2026-2029, including $5.1 billion in 2026. These investments are aimed at strengthening system reliability, modernizing infrastructure and supporting carbon-emission reduction efforts. The capital plan is expected to drive average annual rate base growth of 10.3% through 2029 and does not include potential contributions from Invitium Energy. The program remains a key pillar of PPL’s regulated growth strategy over the current planning period.

More than 60% of PPL’s capital investment plan qualifies for “contemporaneous recovery,” which mitigates the effects of regulatory lag on earnings. This expedited recovery of capital expenditures enables the company to efficiently fund its long-term projects.

PPL remains focused on disciplined cost management to create value for both customers and shareholders. Management estimates that every $1 of O&M savings can support roughly $8 of capital investment without raising customer bills. The company achieved $170 million in annual run-rate O&M savings in 2025 and is targeting $175 million of O&M reductions in 2026 compared with 2021 levels. These efficiencies should help PPL maintain competitive utility rates, support affordability and enhance its ability to attract and retain customers.

Headwinds for PPL StockPPL continues to encounter competition in Pennsylvania's transmission market. Moreover, adverse weather conditions, cybersecurity incidents, equipment outages and fuel supply interruptions could disrupt operations and pressure the company's earnings and profitability.

PPL Stock’s Earnings Estimate Moving UpPPL expects 2026 earnings to be in the range of $1.90-$1.98 per share. The Zacks Consensus Estimate for PPL’s 2026 and 2027 earnings per share indicates year-over-year growth of 7.18% and 8.32%, respectively.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for FE’s 2026 and 2027 earnings per share indicates year-over-year growth of 7.45% and 7.74%, respectively.

PPL’s Long-term Debt to CapitalUtility operations are capital-intensive, and companies in this sector often need to borrow to fund long-term projects when internal resources are insufficient. The company is also borrowing funds to meet its capital requirements.

PPL’s current long-term debt to capital is 56.81% compared with its industry average of 54.37%. This shows the company is utilizing more long-term debt than peers to run its operations.

Image Source: Zacks Investment Research

Another utility, Exelon Corporation (EXC - Free Report) , is making substantial investments to strengthen its transmission and distribution lines to provide reliable services to its customers. Currently, debt to capital of Exelon is pegged at 63.06%, which is higher than its industry peers.

PPL Stock Trades at a PremiumPPL Corporation is currently valued at a premium compared with its industry on a forward 12-month P/E basis. The stock is trading at a P/E F12M of 16.8X compared with its industry’s 15.29X.

Image Source: Zacks Investment Research

Exelon is currently trading at a P/E F12M of 14.71X, a discount compared with its industry at a P/E F12M of 15.29X.

PPL’s Return Is Lower Than the IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

PPL’s trailing 12-month ROE is 9.33%, lower than the industry average of 11.4%.

Image Source: Zacks Investment Research

PPL’s Net Margin Lower Than IndustryNet margin measures the percentage of revenues retained as profit after deducting all expenses, taxes and interest. PPL’s net margin is currently pegged at 14.74% compared with the industry’s 15.81%.

Image Source: Zacks Investment Research

Rounding UpPPL Corporation is strengthening its grid through major infrastructure investments, IT modernization and an expanded $23 billion capital expenditure plan, which will assist in improving system reliability and resilience. The company is also benefiting from rising data center-driven load growth and timely rate recovery, which enables it to efficiently fund the long-term projects. PPL currently has Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, PPL Corporation is currently trading at a premium valuation, while its returns and net margin remain below the industry averages. Given these concerns, investors may prefer to wait now and look for a more attractive entry point.

Danske Bank A S bought a new position in shares of PPL Corporation (NYSE:PPL – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 23,395 shares of the utilities provider’s stock, valued at approximately $850,000.

Several other institutional investors have also recently made changes to their positions in the business. Allied Private Wealth LLC purchased a new stake in PPL in the second quarter valued at $42,000. Covestor Ltd grew its position in PPL by 206.7% during the 2nd quarter. Covestor Ltd now owns 1,291 shares of the utilities provider’s stock worth $47,000 after purchasing an additional 870 shares during the period. Root Financial Partners LLC raised its stake in shares of PPL by 72.5% during the 1st quarter. Root Financial Partners LLC now owns 2,587 shares of the utilities provider’s stock valued at $99,000 after buying an additional 1,087 shares during the last quarter. Rossby Financial LCC raised its stake in shares of PPL by 70.0% during the 4th quarter. Rossby Financial LCC now owns 3,012 shares of the utilities provider’s stock valued at $105,000 after buying an additional 1,240 shares during the last quarter. Finally, Elyxium Wealth LLC acquired a new position in shares of PPL in the 4th quarter valued at about $119,000. Hedge funds and other institutional investors own 76.99% of the company’s stock.

Insider Buying and Selling In other PPL news, CFO Ashley F. Johnson sold 34,993 shares of the firm’s stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $22.08, for a total value of $772,645.44. Following the sale, the chief financial officer directly owned 561,482 shares of the company’s stock, valued at approximately $12,397,522.56. This trade represents a 5.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kristen Robinson sold 37,107 shares of the firm’s stock in a transaction that occurred on Wednesday, July 15th. The shares were sold at an average price of $25.05, for a total value of $929,530.35. Following the completion of the sale, the director directly owned 222,897 shares in the company, valued at approximately $5,583,569.85. The trade was a 14.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.34% of the company’s stock.

Analysts Set New Price Targets PPL has been the topic of a number of recent research reports. Barclays upped their target price on PPL from $39.00 to $41.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. BMO Capital Markets reduced their price target on PPL from $40.00 to $38.00 and set an “outperform” rating for the company in a research report on Monday, August 10th. Bank of America decreased their price target on PPL from $42.00 to $39.00 and set a “buy” rating for the company in a report on Monday, July 20th. JPMorgan Chase & Co. upped their price objective on PPL from $42.00 to $45.00 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Finally, BTIG Research reaffirmed a “buy” rating on shares of PPL in a research note on Thursday, June 4th. Ten investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $41.33. Get Our Latest Analysis on PPL

PPL Trading Down 2.2% Shares of PPL stock opened at $34.42 on Friday. The firm has a 50-day simple moving average of $35.83 and a two-hundred day simple moving average of $36.75. The company has a market cap of $25.90 billion, a P/E ratio of 20.37, a price-to-earnings-growth ratio of 2.35 and a beta of 0.57. PPL Corporation has a fifty-two week low of $33.17 and a fifty-two week high of $40.10. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.73 and a current ratio of 0.91.

PPL (NYSE:PPL – Get Free Report) last posted its earnings results on Friday, August 7th. The utilities provider reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.01). PPL had a return on equity of 9.33% and a net margin of 13.47%.The firm had revenue of $2.11 billion for the quarter, compared to analysts’ expectations of $2.19 billion. During the same period in the previous year, the company earned $0.32 earnings per share. The company’s revenue was up 4.2% compared to the same quarter last year. PPL has set its FY 2026 guidance at 1.900-1.980 EPS. As a group, equities analysts predict that PPL Corporation will post 1.94 earnings per share for the current fiscal year.

PPL Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a dividend of $0.285 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.14 dividend on an annualized basis and a yield of 3.3%. PPL’s dividend payout ratio is currently 67.46%.

PPL Profile (Free Report)

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.

Featured Articles Five stocks we like better than PPL 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit?

Receive News & Ratings for PPL Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PPL and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways PPL reaffirmed 2026 EPS guidance of $1.90-$1.98 and 6-8% annual earnings growth through 2029.PPL Electric's Pennsylvania data center pipeline reached 31.8 GW in advanced stages, with 11 GW signed.Kentucky generation needs and Invitium could support $10B-$12B of incremental investment through 2032. PPL Corporation (PPL - Free Report) 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 Holds the 2026 Outlook SteadyPresident 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.

PPL Corporation Leans on Rate RecoverySorgi 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.

PPL Expands the Pennsylvania Data Center CaseSorgi 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.

PPL Corporation Pushes Invitium Toward DealsSorgi 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.

PPL Q&A Tests Funding and Kentucky TimingA 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.

PPL Corporation Keeps the Base Plan SeparateSorgi 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.

Zacks Signals Point to Uneven Style SupportWithin 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.

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. , /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.

(Dollars in millions, except for per share amounts)

2nd Quarter

Year to Date

2026

2025

Change

2026

2025

Change

Reported earnings

$     230

$     183

26 %

$     682

$     597

14 %

Reported earnings per share

$    0.30

$    0.25

20 %

$    0.90

$    0.80

13 %

2nd Quarter

Year to Date

2026

2025

Change

2026

2025

Change

Earnings from ongoing operations

$     247

$     240

3 %

$     725

$     684

6 %

Earnings from ongoing operations per share

$    0.33

$    0.32

3 %

$    0.96

$    0.92

4 %

Second-Quarter 2026 Earnings by Segment

2nd Quarter

Year to Date

Per share

2026

2025

2026

2025

Reported earnings

Kentucky Regulated

$            0.18

$            0.17

$            0.53

$          0.47

Pennsylvania Regulated

0.17

0.19

0.42

0.44

Rhode Island Regulated

0.01

(0.02)

0.06

0.07

Corporate and Other

(0.06)

(0.09)

(0.11)

(0.18)

    Total

$            0.30

$            0.25

$            0.90

$          0.80

2nd Quarter

Year to Date

2026

2025

2026

2025

Special items (expense) benefit

Kentucky Regulated

$              —

$          (0.01)

$            0.02

$         (0.01)

Pennsylvania Regulated

(0.01)

—

(0.01)

—

Rhode Island Regulated

(0.02)

(0.03)

(0.06)

(0.04)

Corporate and Other

—

(0.03)

(0.01)

(0.07)

Total

$          (0.03)

$          (0.07)

$          (0.06)

$         (0.12)

2nd Quarter

Year to Date

2026

2025

2026

2025

Earnings from ongoing operations

Kentucky Regulated

$            0.18

$            0.18

$            0.51

$          0.48

Pennsylvania Regulated

0.18

0.19

0.43

0.44

Rhode Island Regulated

0.03

0.01

0.12

0.11

Corporate and Other

(0.06)

(0.06)

(0.10)

(0.11)

    Total

$            0.33

$            0.32

$            0.96

$          0.92

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.

PPL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL INFORMATION(1)

Condensed Consolidated Balance Sheets (Unaudited)

(Millions of Dollars)

June 30,

December 31,

2026

2025

Assets

Cash and cash equivalents

$            332

$          1,071

Accounts receivable

1,248

1,225

Unbilled revenues

416

558

Fuel, materials and supplies

597

551

Regulatory assets

279

308

Other current assets

293

218

Property, Plant and Equipment

Regulated utility plant

44,248

42,953

Less: Accumulated depreciation - regulated utility plant

10,683

10,303

Regulated utility plant, net

33,565

32,650

Non-regulated property, plant and equipment

82

71

Less: Accumulated depreciation - non-regulated property, plant and equipment

26

26

Non-regulated property, plant and equipment, net

56

45

Construction work in progress

4,149

3,437

Property, Plant and Equipment, net

37,770

36,132

Noncurrent regulatory assets

2,148

2,092

Goodwill and other intangibles

2,578

2,574

Other noncurrent assets

640

515

Total Assets

$         46,301

$         45,244

Liabilities and Equity

Short-term debt

$             65

$            456

Long-term debt due within one year

469

904

Accounts payable

1,360

1,559

Other current liabilities

1,603

1,627

Long-term debt

19,789

17,990

Deferred income taxes and investment tax credits

3,776

3,615

Accrued pension obligations

262

281

Asset retirement obligations

109

133

Noncurrent regulatory liabilities

3,253

3,318

Other deferred credits and noncurrent liabilities

570

480

Common stock and additional paid-in capital

12,339

12,451

Treasury stock

(547)

(575)

Earnings reinvested

3,458

3,207

Accumulated other comprehensive loss

(205)

(202)

Total Liabilities and Equity

$         46,301

$         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
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Operating Revenues

$     2,111

$     2,025

$     4,885

$     4,529

Operating Expenses

Operation

Fuel

195

192

469

426

Energy purchases

403

388

1,106

947

Other operation and maintenance

572

614

1,151

1,212

Depreciation

362

324

713

646

Taxes, other than income

104

101

226

214

Total Operating Expenses

1,636

1,619

3,665

3,445

Operating Income

475

406

1,220

1,084

Other Income (Expense) - net

43

23

82

51

Interest Expense

232

199

456

389

Income Before Income Taxes

286

230

846

746

Income Taxes

56

47

164

149

Net Income

$       230

$       183

$       682

$       597

Earnings Per Share of Common Stock:

Net Income Available to PPL Common Shareowners

Basic

$      0.31

$      0.25

$      0.91

$      0.81

Diluted

$      0.30

$      0.25

$      0.90

$      0.80

Weighted-Average Shares of Common Stock Outstanding (in thousands)

Basic

752,358

739,276

752,062

738,986

Diluted

757,225

742,541

757,193

741,972

 PPL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions of Dollars)

Six Months Ended June 30,

2026

2025

Cash Flows from Operating Activities

Net income

$          682

$          597

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation

713

646

Amortization

65

49

Defined benefit plans - income

(7)

(30)

Deferred income taxes and investment tax credits

137

104

Equity component of AFUDC

(52)

(35)

Other

12

38

Change in current assets and current liabilities

Accounts receivable

(31)

(91)

Accounts payable

(192)

(167)

Unbilled revenues

138

63

Fuel, materials and supplies

(42)

13

Prepayments

(67)

(56)

Taxes payable

(72)

40

Regulatory assets and liabilities, net

(10)

64

Accrued interest

6

(5)

Other

(36)

(52)

Other operating activities

Defined benefit plans - funding

(8)

(7)

Other

(96)

(56)

Net cash provided by operating activities

1,140

1,115

Cash Flows from Investing Activities

Expenditures for property, plant and equipment

(2,339)

(1,723)

Other investing activities

(68)

10

Net cash used in investing activities

(2,407)

(1,713)

Cash Flows from Financing Activities

Issuance of long-term debt

2,046

—

Retirement of long-term debt

(668)

—

Payment of common stock dividends

(416)

(392)

Net increase (decrease) in short-term debt

(391)

983

Debt issuance costs

(38)

(5)

Other financing activities

(13)

(9)

Net cash provided by financing activities

520

577

Net Decrease in Cash, Cash Equivalents and Restricted Cash

(747)

(21)

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

1,086

339

Cash, Cash Equivalents and Restricted Cash at End of Period

$          339

$          318

Supplemental Disclosures of Cash Flow Information

Significant non-cash transactions:

Accrued expenditures for property, plant and equipment at June 30,

$          612

$          450

Operating - Electricity Sales (Unaudited)(1)

Three Months Ended

June 30,

Six Months Ended
June 30,

Percent

Percent

(GWh)

2026

2025

Change

2026

2025

Change

PA Regulated Segment

Retail Delivered(2)

8,382

8,426

(0.5) %

18,696

18,569

0.7 %

KY Regulated Segment

Retail Delivered

6,958

7,043

(1.2) %

14,603

14,846

(1.6) %

Wholesale(3)

151

268

(43.7) %

459

707

(35.1) %

Total

7,109

7,311

(2.8) %

15,062

15,553

(3.2) %

Total

15,491

15,737

(1.6) %

33,758

34,122

(1.1) %

(1)

Excludes the Rhode Island Regulated segment electricity sales as revenues are decoupled from volumes delivered.

(2)

2025 includes estimated volumes for industrial customers that were not billed during the period.

(3)

Represents FERC-regulated municipal and unregulated off-system sales.

Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations

(After-Tax)

(Unaudited)

2nd Quarter 2026

(millions of dollars)

 KY

 PA

RI

 Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$       131

$       132

$        10

$       (43)

$       230

Less: Special Items (expense) benefit:

    IT transformation, net of tax of $0, $1, $1, $1(2)

(1)

(3)

(2)

(3)

(9)

    Customer system integration impacts, net of tax of $2(3)

—

—

(6)

—

(6)

    ISO-NE transmission rates ROE reduction, net of tax of $0(4)

—

—

(1)

—

(1)

    Safety transformation, net of tax of $0(5)

(1)

—

—

—

(1)

Total Special Items

(2)

(3)

(9)

(3)

(17)

Earnings from Ongoing Operations

$       133

$       135

$        19

$       (40)

$       247

(per share - diluted)

 KY

 PA

RI

 Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$      0.18

$      0.17

$      0.01

$     (0.06)

$      0.30

Less: Special Items (expense) benefit:

    IT transformation(2)

—

(0.01)

(0.01)

—

(0.02)

    Customer system integration impacts(3)

—

—

(0.01)

—

(0.01)

Total Special Items

—

(0.01)

(0.02)

—

(0.03)

Earnings from Ongoing Operations

$      0.18

$      0.18

$      0.03

$     (0.06)

$      0.33

(1)

Reported Earnings represents Net Income.

(2)

Costs associated with PPL's restructuring and rebuilding of its IT infrastructure, organization and systems.

(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)

Costs associated with an enterprise-wide safety transformation program.

Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations

(After-Tax)

(Unaudited)

Year-to-Date June 30, 2026

(millions of dollars)

 KY

 PA

RI

 Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$       401

$       316

$        46

$       (81)

$       682

Less: Special Items (expense) benefit:

    IT transformation, net of tax of ($5), $2, $1, $2(2)

15

(5)

(4)

(6)

—

    Customer system integration impacts, net of tax of $3(3) 

—

—

(13)

—

(13)

    ISO-NE transmission rates ROE reduction, net of tax of $5(4)

—

—

(20)

—

(20)

    Meter system integration impacts, net of tax of $2(5)

—

—

(9)

—

(9)

    Safety transformation, net of tax of $0(6)

(1)

—

—

—

(1)

Total Special Items

14

(5)

(46)

(6)

(43)

Earnings from Ongoing Operations

$       387

$       321

$        92

$       (75)

$       725

(per share - diluted)

 KY

 PA

RI

 Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$      0.53

$      0.42

$      0.06

$     (0.11)

$      0.90

Less: Special Items (expense) benefit:

    IT transformation(2)

0.02

(0.01)

—

(0.01)

—

    Customer system integration impacts(3)

—

—

(0.02)

—

(0.02)

    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

(0.01)

(0.06)

(0.01)

(0.06)

Earnings from Ongoing Operations

$      0.51

$      0.43

$      0.12

$     (0.10)

$      0.96

(1)

Reported Earnings represents Net Income.

(2)

Costs associated with PPL's restructuring and rebuilding of its IT infrastructure, organization and systems. Kentucky Regulated 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.

(6)

Costs associated with an enterprise-wide safety transformation program.

Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations

(After-Tax)

(Unaudited)

2nd Quarter 2025

(millions of dollars)

 KY

 PA

RI

 Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$       126

$       139

$       (17)

$       (65)

$       183

Less: Special Items (expense) benefit:

    Talen litigation costs, net of tax of ($1)(2)

—

—

—

4

4

    Acquisition integration, net of tax of $4(3)

—

—

—

(13)

(13)

    IT transformation, net of tax of $2, $1, $4(4)

(5)

—

(3)

(16)

(24)

    Energy efficiency programs settlement(5)

—

—

2

—

2

    Office relocation and related costs, net of tax of $0, $0(6)

(1)

(1)

—

—

(2)

    Post TSA adjustments, net of tax of $7(7)

—

—

(24)

—

(24)

Total Special Items

(6)

(1)

(25)

(25)

(57)

Earnings from Ongoing Operations

$       132

$       140

$         8

$       (40)

$       240

(per share - diluted)

 KY

 PA

RI

Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$      0.17

$      0.19

$     (0.02)

$     (0.09)

$      0.25

Less: Special Items (expense) benefit:

    Talen litigation costs(2)

—

—

—

0.01

0.01

    Acquisition integration(3)

—

—

—

(0.02)

(0.02)

    IT transformation(4)

(0.01)

—

—

(0.02)

(0.03)

    Post TSA adjustments(7)

—

—

(0.03)

—

(0.03)

Total Special Items

(0.01)

—

(0.03)

(0.03)

(0.07)

Earnings from Ongoing Operations

$      0.18

$      0.19

$      0.01

$     (0.06)

$      0.32

(1)

Reported Earnings represents Net Income.

(2)

PPL incurred legal expenses and received insurance reimbursement related to litigation associated with its former affiliate, Talen Montana, LLC and certain affiliated entities.

(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)

Tax effect of 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.

(7)

Adjustments related to account reconciliations and process alignment subsequent to the end of the transition services agreement associated with the acquisition of Rhode Island Energy.

Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations

(After-Tax)

(Unaudited)

Year-to-Date June 30, 2025

(millions of dollars)

 KY

 PA

RI

 Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$       349

$       323

$       53

$     (128)

$       597

Less: Special Items (expense) benefit:

    Talen litigation costs, net of tax of $1(2)

—

—

—

3

3

    Acquisition integration, net of tax of ($2), $7(3)

—

—

7

(27)

(20)

    IT transformation, net of tax of $2, $1, $7(4)

(6)

—

(4)

(26)

(36)

    Energy efficiency programs settlement, net of tax of $2(5)

—

—

(6)

—

(6)

    Office relocation and related costs, net of tax of $0, $0(6) 

(2)

(2)

—

—

(4)

    Post TSA adjustments, net of tax of $7(7)

—

—

(24)

—

(24)

Total Special Items

(8)

(2)

(27)

(50)

(87)

Earnings from Ongoing Operations

$       357

$       325

$       80

$       (78)

$       684

(per share - diluted)

 KY

 PA

RI

 Corp.

 Reg.

 Reg.

Reg.

 & Other

 Total

Reported Earnings(1)

$      0.47

$      0.44

$     0.07

$     (0.18)

$      0.80

Less: Special Items (expense) benefit:

    Acquisition integration(3)

—

—

0.01

(0.04)

(0.03)

    IT transformation(4)

(0.01)

—

(0.01)

(0.03)

(0.05)

    Energy efficiency programs settlement(5)

—

—

(0.01)

—

(0.01)

    Post TSA adjustments(7)

—

—

(0.03)

—

(0.03)

Total Special Items

(0.01)

—

(0.04)

(0.07)

(0.12)

Earnings from Ongoing Operations

$      0.48

$      0.44

$     0.11

$     (0.11)

$      0.92

(1)

Reported Earnings represents Net Income.

(2)

PPL incurred legal expenses and received insurance reimbursement related to litigation associated with its former affiliate, Talen Montana, LLC and certain affiliated entities.

(3)

Rhode Island Regulated primarily includes a transition services settlement agreement. Corporate and Other primarily includes 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.

(7)

Adjustments related to account reconciliations and process alignment subsequent to the end of the transition services agreement associated with the acquisition of Rhode Island Energy.

Reconciliation of PPL's Earnings Forecast

After-Tax (Unaudited)

(per share - diluted)

2026 Forecast Range

Midpoint

High

Low

Estimate of Reported Earnings

$    1.88

$    1.92

$    1.84

Less: Special Items (expense) benefit:(1)

    Customer system integration impacts(2)

(0.02)

(0.02)

(0.02)

    ISO-NE transmission rates ROE reduction(3)

(0.03)

(0.03)

(0.03)

    Meter system integration impacts(4)

(0.01)

(0.01)

(0.01)

Total Special Items

(0.06)

(0.06)

(0.06)

Forecast of Earnings from Ongoing Operations

$    1.94

$    1.98

$    1.90

(1)

Reflects only special items recorded through June 30, 2026. PPL is not able to forecast special items for future periods.

(2)

Certain collection process costs incurred due to the timing and implementation of the customer system integration.

(3)

Prior period impact of an ISO New England transmission rates return on equity reduction.

(4)

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

SOURCE PPL Services Corporation

Key Takeaways PPL cut first-quarter 2026 O&M expenses to $579 million from $598 million a year earlier. PPL targets $175 million in 2026 O&M savings versus 2021 to help fund its $23 billion plan. PPL expects 2026 EPS of $1.90-$1.98 and 6-8% annual EPS growth through 2029. PPL Corporation (PPL - Free Report) is benefiting from a disciplined cost management strategy that helps control operating expenses and improve efficiency. These efforts support financial stability and create greater flexibility to invest in infrastructure.

The company has steadily improved efficiency across its businesses, helping control operating and maintenance (O&M) expenses while maintaining reliable service. PPL Electric has kept O&M increases about 25% below the inflation rate over the past decade, demonstrating the benefits of its cost-control efforts.

In the first quarter of 2026, consolidated O&M expenses decreased to $579 million from $598 million in the year-ago quarter. O&M expenses also decreased across the company’s regulated operations in Kentucky and Rhode Island. However, Pennsylvania O&M expenses increased due to higher storm and power restoration costs, underscoring that weather-related events remain a risk.

The need for cost control is increasing as PPL expands its investment program. The company plans to invest $23 billion through 2029 to modernize networks and support demand growth. As per the company’s management, every $1 of O&M savings can support about $8 of capital investment without increasing customer bills. PPL achieved $170 million in annual run-rate O&M savings in 2025 and is targeting a $175-million reduction in O&M in 2026 compared with 2021.

These savings could help offset higher depreciation, interest and operating costs while supporting 2026 earnings per share (EPS) guidance of $1.90-$1.98 and 6-8% annual EPS growth through 2029. Therefore, continued O&M efficiency, combined with strong rate-base growth and regulatory recovery, could support sustained earnings growth and shareholder returns.

Efficient Cost Management Fuels Long-Term Utility GrowthUtilities that optimize operations, embrace digitalization and control spending can expand margins, fund infrastructure upgrades and keep customer rates affordable. Efficient cost management strengthens financial flexibility, enabling utilities to fund infrastructure investments, improve operations and support sustainable long-term earnings growth.

Duke Energy (DUK - Free Report) recently finalized initiatives expected to generate more than $5 billion in customer savings through utility consolidation, operational efficiencies and tax-credit monetization. These efforts can strengthen long-term earnings growth while helping maintain customer affordability.

NiSource (NI - Free Report) continues to enhance operating efficiency through its multiyear Project Apollo, which targets sustainable cost savings and streamlined operations. These initiatives can improve customer service and support long-term earnings growth.

The Zacks Rundown on PPLPPL’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 7.73% and 8.06%, respectively.

Image Source: Zacks Investment Research

Debt to CapitalPPL's debt-to-capital ratio currently stands at 57.40%, lower than the Zacks Utility - Electric Power industry’s 60.71%.

Image Source: Zacks Investment Research

PPL’s Stock Price PerformanceIn the past month, the company’s shares have risen 0.7% compared with the industry’s 0.9% growth.

Image Source: Zacks Investment Research

PPL’s Zacks Rank

Key Takeaways PPL plans to invest $23 billion from 2026 to 2029, supporting annual rate base growth of about 10.3%.Data center demand has climbed to 28.3 GW in Pennsylvania, while Kentucky's pipeline reached 12.9 GW.PPL trades at 17.74X forward earnings, while its trailing ROE of 9.41% remains below the industry average. PPL Corporation’s (PPL - Free Report) shares are trading at a premium to the Zacks Utility -Electric Power industry. Its 12-month forward price-to-earnings of 17.74X is higher than the industry average of 15.6X and the broader Zacks Utility sector’s 15.45X.

PPL Corporation is well-positioned to capitalize on increasing electricity demand from data centers, particularly in Pennsylvania and Kentucky, where the rapid expansion of these energy-intensive facilities is driving long-term load growth.

However, PPL faces rising competition in the transmission business, which could pressure operations, while unforeseen operational disruptions may adversely affect its financial performance.

PPL Trading at a Premium Valuation
Image Source: Zacks Investment Research

Other operators in this space, Duke Energy (DUK - Free Report) and Ameren Corporation (AEE - Free Report) , are trading at P/EF12M of 18.28 and 20.3, respectively, a premium to the industry.

PPL’s shares have lost 8.4% in the past three months, wider than the Zacks Utility-Electric Power industry’s decrease of 1.5%.

Price Performance (Three Months)
Image Source: Zacks Investment Research

Despite trading at a premium valuation, PPL Corporation's recent share price weakness may have investors wondering whether now is an opportune time to buy. Let’s explore the key factors that will help determine if the stock merits consideration at current levels.

Factors Supporting PPL’s Earnings GrowthPPL continues to benefit from economic expansion and robust data center demand across its service territories. In Pennsylvania, advanced-stage data center demand has increased to nearly 28.3 gigawatts (“GW”) from 25.2 GW, while Kentucky's economic development pipeline now indicates potential load growth of 12.9 GW through 2032, up from the earlier estimate of 8.5 GW.

To capitalize on these opportunities, PPL plans to invest approximately $23 billion between 2026 and 2029, supporting an average annual rate base growth of about 10.3% through 2029. The company's investments in generation, transmission and distribution infrastructure, coupled with ongoing grid modernization initiatives, are enhancing system reliability and reducing customer outages.

A key advantage is that more than 60% of PPL's capital investment program qualifies for contemporaneous recovery, mitigating the effects of regulatory lag on earnings. This framework enables the company to recover capital investments more quickly, strengthening cash flows and supporting the timely execution of its long-term growth strategy.

Additionally, it remains committed to disciplined cost management, creating value for both the company and customers. Since 2021, PPL has reduced total operating expenses by $170 million as of 2025. Continued focus on cost-control initiatives is expected to support margin expansion, improve profitability and reinforce the company's long-term financial performance.

Headwinds for PPL StockPPL continues to encounter competition in Pennsylvania's transmission market. Moreover, adverse weather conditions, cybersecurity incidents, equipment outages and fuel supply interruptions could disrupt operations and pressure the company's earnings and profitability.

PPL Stock’s Earnings Estimate Moving UpPPL expects 2026 earnings to be in the range of $1.90-$1.98 per share. The Zacks Consensus Estimate for PPL’s 2026 and 2027 earnings per share indicates year-over-year growth of 7.73% and 8.06%, respectively.

Image Source: Zacks Investment Research

The same for DUK’s 2026 and 2027 earnings per share indicates year-over-year growth of 6.34% and 6.41%, respectively.

PPL Raises Shareholders' ValuePPL has a long history of returning value to shareholders through regular dividend payments and expects to increase its annual dividend by 4-6% over the long term, subject to board approval. The company currently pays a quarterly dividend of 28.5 cents per share, translating to an annualized dividend of $1.14. With a dividend yield of 3.19%, PPL offers a more attractive income stream than the S&P 500's average yield of 1.35%.

PPL has raised dividends for its shareholders four times in the past five years. Check PPL’s dividend history here.

Ameren also distributes dividends to its shareholders. The current annual dividend rate of Ameren is $3 per share, reflecting a dividend yield of 2.66%.

PPL’s Return Is Lower Than the IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

PPL’s trailing 12-month ROE is 9.41%, lower than the industry average of 11.21%.

Image Source: Zacks Investment Research

PPL’s Debt to CapitalUtility operations are capital-intensive and companies in this sector often need to borrow to fund long-term projects when internal resources are insufficient. The company is also borrowing funds to meet its capital requirements.

PPL’s current debt to capital is 55.88% compared with its industry average of 52.69%. This shows the company is utilizing lower debts than peers to run its operations.

Image Source: Zacks Investment Research

Summing UpPPL is benefiting from accelerating data center-driven electricity demand and timely rate recovery mechanisms, which enable it to efficiently finance the long-term growth initiatives. The company is also enhancing grid reliability through significant investments in infrastructure, IT modernization and an expanded $23 billion capital investment plan, positioning it to meet rising electricity demand across the service territories.

However, PPL is currently trading at a premium valuation, generates returns below the industry average and carries a higher debt burden than many of its peers. Given these factors, existing investors may continue holding this Zacks Rank #3 (Hold) stock, while prospective investors should wait for a more attractive entry point before initiating a position in PPL.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PPL benefits as data center, manufacturing and industrial investments lift demand across its territories. PPL plans $23B in investments through 2029, driving 10.3% annual rate base growth. PPL's 2026 and 2027 earnings estimates show year-over-year gains of 7.67% and 8.08%. PPL Corporation (PPL - Free Report) benefits from ongoing economic development across its service territories, driven by expanding data center, advanced manufacturing and industrial investments. Rising electricity demand supports higher infrastructure spending, expands the regulated rate base and strengthens long-term earnings visibility.

Pennsylvania has emerged as a key data-center growth market for PPL. During the first quarter of 2026, PPL disclosed that projects in advanced planning stages reached 28.3 gigawatts (GW), up 12% sequentially from 25.2 GW, with nearly 10 GW under signed Electric Service Agreements and about 5 GW already under construction. The company's reliable transmission network and fast interconnection capabilities continue to attract hyperscale customers.

In Kentucky, projected load growth increased to 12.9 GW through 2032 from the previously 8.5 GW, supported by interest from 13 new data center projects representing nearly 12 GW of potential demand. Global Laser Enrichment and Toyota Motor Manufacturing also announced combined investments of $2.6 billion in PPL's service territory, prompting management to raise its expected new load to 3.5 GW by 2032 from 1.8 GW.

To support this growth, PPL plans to invest about $23 billion through 2029, driving 10.3% annual rate base growth and upper-end 6-8% EPS growth.

Economic Development Drives Long-Term Utility GrowthUtilities benefit from economic development as new businesses, industries and data centers, and electric vehicle usage increases electricity demand. This drives infrastructure investments, expands the regulated rate base, supports earnings growth and enhances long-term shareholder value.

Alliant Energy (LNT - Free Report) is benefiting from ongoing economic development across its Iowa and Wisconsin service territories. The company is attracting data centers, advanced manufacturing facilities and other large industrial customers, increasing electricity demand while supporting regulated investments and long-term earnings growth.

Evergy (EVRG - Free Report) is benefiting from robust economic development across Kansas and Missouri, as growing investments in data centers, advanced manufacturing and commercial projects drive higher electricity demand. Its expanding large-customer pipeline supports long-term rate-base expansion and earnings growth.

PPL’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 7.67% and 8.08%, respectively.

Image Source: Zacks Investment Research

Debt to CapitalPPL's debt-to-capital ratio currently stands at 57.40%, lower than the electric power industry’s 60.71%.

Image Source: Zacks Investment Research

PPL’s Stock Price PerformanceIn the past month, the company’s shares have risen 6.2% compared with the industry’s 7.1% growth.

Image Source: Zacks Investment Research

PPL’s Zacks Rank