Duke Energy — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported EPS for Q2 2026 was $1.38, compared to $1.25 in Q2 2025.
• Adjusted EPS for Q2 2026 was $1.43, compared to $1.25 in Q2 2025.
• Electric Utilities and Infrastructure segment income increased to $1,271 million (reported) and $1,310 million (adjusted) in Q2 2026, up from $1,194 million in Q2 2025.
• Gas Utilities and Infrastructure segment income was $10 million in Q2 2026, up from $6 million in Q2 2025.
• Other segment loss was $204 million in Q2 2026, an improvement from a $228 million loss in Q2 2025.
• Consolidated reported effective tax rate was 12.3% in Q2 2026, compared to 10.6% in Q2 2025.
• Consolidated adjusted effective tax rate was 12.6% in Q2 2026, compared to 10.6% in Q2 2025.
• Total operating revenues were $7,592 million for the three months ended June 30, 2026, compared to $7,508 million in the same period of 2025.
• Net income available to common stockholders was $1,077 million for the three months ended June 30, 2026, compared to $971 million in Q2 2025.
• Net cash provided by operating activities was $4,272 million for the six months ended June 30, 2026, compared to $5,040 million in the same period of 2025.
• Net cash used in investing activities was $6,209 million for the six months ended June 30, 2026, compared to $6,264 million in the same period of 2025.
• Net cash provided by financing activities was $2,424 million for the six months ended June 30, 2026, compared to $1,245 million in the same period of 2025.
• Long-term debt increased to $82,242 million as of June 30, 2026, from $80,108 million as of December 31, 2025.
• Total assets were $201,091 million as of June 30, 2026, compared to $195,736 million as of December 31, 2025.

Guidance and Future Outlook

• Reaffirmed 2026 adjusted EPS guidance range of $6.55 to $6.80.
• Reaffirmed long-term adjusted EPS growth rate of 5% to 7% through 2030, off the 2025 midpoint of $6.30.
• Management expressed confidence to earn in the top half of the 2026 guidance range beginning in 2028.
• Management does not forecast reported GAAP EPS or related long-term growth rates.

Business Segments and Product Lines

• Electric Utilities and Infrastructure results were driven by the recovery of infrastructure investments to reliably serve customers in growing jurisdictions, partially offset by higher depreciation on a growing asset base and interest expense.
• Gas Utilities and Infrastructure results were flat, driven by the recovery of infrastructure investments to reliably serve customers in growing jurisdictions, offset by lower earnings from the sale of Piedmont's Tennessee business.
• Other segment results improved due to higher returns on investments and lower interest expense.
• The company serves 8.7 million electric utility customers and 1.6 million natural gas utility customers across North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky.
• The company owns 55,700 megawatts of energy capacity.

Market and Competitive Landscape

• Management highlighted opportunities in some of the most economically attractive states in the country.
• The company is executing an energy modernization strategy involving electric grid upgrades and efficient generation resources.

Risks and Challenges

• Risks include the ability to implement business strategy, meet forecasted load growth, and reduce carbon emissions while balancing reliability and costs.
• Regulatory and legislative initiatives, including environmental requirements and climate change rulings, may affect cost recovery and rate structures.
• Uncertainties exist regarding costs for coal ash remediation, nuclear decommissioning, and asset retirement obligations.
• External events such as pandemics, trade wars, military conflicts, and severe weather could disrupt operations and supply chains.
• Competition, municipalization, and industry consolidation pose risks to market share.
• Technology advancements, including artificial intelligence, and changes in energy efficiency or distributed generation technologies could impact customer usage and resource value.
• Financing efforts may be affected by credit ratings, interest rate fluctuations, and debt covenants.
• Integration risks and costs associated with the combination of Duke Energy Progress into Duke Energy Carolinas.

Management Commentary and Tone

• Harry Sideris, President and CEO, stated the company had a "strong first half of the year" with constructive regulatory outcomes and maintained excellence in operational and financial performance.
• Management expressed confidence in delivering on 2026 commitments and seizing growth opportunities.
• The tone emphasized building critical infrastructure to support economic growth and create long-term value while providing reliable energy at the lowest possible cost.

Other Key Points

• Q2 2026 reported EPS included charges related to regulatory settlements, specifically Duke Energy Carolinas' North Carolina rate case settlements, which were excluded from adjusted EPS.
• The sale of Piedmont's Tennessee business resulted in lower earnings for the Gas Utilities and Infrastructure segment in Q2 2026.
• The company held an earnings conference call for analysts on August 4, 2026, hosted by Harry Sideris and Brian Savoy.
• Weighted average shares outstanding increased from 777 million in Q2 2025 to 779 million in Q2 2026.
• Regulatory assets increased to $17,056 million (current and noncurrent combined) as of June 30, 2026, from $16,313 million as of December 31, 2025.
• Cash and cash equivalents increased to $673 million as of June 30, 2026, from $245 million as of December 31, 2025.