PPL Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported earnings (GAAP) for the second quarter of 2026 were $230 million ($0.30 per share), a 26% increase from $183 million ($0.25 per share) in the second quarter of 2025.
• Earnings from ongoing operations (non-GAAP) for the second quarter of 2026 were $247 million ($0.33 per share), a 3% increase from $240 million ($0.32 per share) in the second quarter of 2025.
• Year-to-date reported earnings for the first six months of 2026 were $682 million ($0.90 per share), a 14% increase from $597 million ($0.80 per share) in the same period in 2025.
• Year-to-date earnings from ongoing operations for the first six months of 2026 were $725 million ($0.96 per share), a 6% increase from $684 million ($0.92 per share) in the first six months of 2025.
• Operating revenues for the second quarter of 2026 were $2.111 billion, compared to $2.025 billion in the second quarter of 2025.
• Operating revenues for the first six months of 2026 were $4.885 billion, compared to $4.529 billion in the first six months of 2025.
• Net cash provided by operating activities for the first six months of 2026 was $1.140 billion, compared to $1.115 billion in the first six months of 2025.
• Net cash used in investing activities for the first six months of 2026 was $2.407 billion, compared to $1.713 billion in the first six months of 2025.
• Net cash provided by financing activities for the first six months of 2026 was $520 million, compared to $577 million in the first six months of 2025.
• Total assets as of June 30, 2026, were $46.301 billion, compared to $45.244 billion as of December 31, 2025.
• Long-term debt as of June 30, 2026, was $19.789 billion, compared to $17.990 billion as of December 31, 2025.
• Cash and cash equivalents as of June 30, 2026, were $332 million, compared to $1.071 billion as of December 31, 2025.

Guidance and Future Outlook

• PPL reaffirmed its 2026 ongoing earnings forecast range of $1.90 to $1.98 per share, with a midpoint of $1.94.
• The company reaffirmed its annual earnings-per-share (EPS) growth target of 6% to 8% through at least 2029, expecting compound annual growth near the top end of that range compared to 2025 actual ongoing earnings.
• PPL expects stronger earnings growth beginning in 2027 and continuing through 2029.
• Management anticipates stronger earnings growth in the second half of 2026, supported by improved rate recovery and capital tracking mechanisms.
• The company estimates current economic development in Pennsylvania and Kentucky could present $10 billion to $12 billion of total investment upside through 2032 tied to generation needs.
• PPL expects to have one or more commercial agreements for Invitium Energy generation by the end of 2026.
• Earnings contributions from the Invitium Energy joint venture are not expected to be material through 2030, though batteries or shorter-lead-time technologies could begin contributing in 2029 or 2030.
• Combined-cycle gas turbines for Invitium Energy could come online as early as the 2031 to 2032 timeframe.
• LG&E and KU in Kentucky are expected to file a CPCN request by the end of 2026 to build additional generation beyond the 2.3 GW already under prior approvals, representing an estimated $3.5 billion to $4.0 billion of incremental investment need between 2027 and 2032.

Business Segments and Product Lines

• Kentucky Regulated: Reported earnings per share increased $0.01 in Q2 2026 to $0.18; ongoing earnings per share were flat at $0.18. Year-to-date reported earnings per share increased $0.06 to $0.53; ongoing earnings per share increased $0.03 to $0.51. Drivers included higher retail rates effective January 1, 2026, offset by higher operating costs, depreciation, and interest expense.
• Pennsylvania Regulated: Reported earnings per share decreased $0.02 in Q2 2026 to $0.17; ongoing earnings per share decreased $0.01 to $0.18. Year-to-date reported earnings per share decreased $0.02 to $0.42; ongoing earnings per share decreased $0.01 to $0.43. Drivers included higher depreciation and interest expense, partially offset by higher transmission revenue and sales volumes.
• Rhode Island Regulated: Reported earnings per share increased $0.03 in Q2 2026 to $0.01; ongoing earnings per share increased $0.02 to $0.03. Year-to-date reported earnings per share decreased $0.01 to $0.06; ongoing earnings per share increased $0.01 to $0.12. Drivers included lower operating costs and higher rider revenue, offset by higher depreciation and interest expense.
• Corporate and Other: Reported earnings per share increased $0.03 in Q2 2026 to $(0.06); ongoing earnings per share were flat at $(0.06). Year-to-date reported earnings per share increased $0.07 to $(0.11); ongoing earnings per share increased $0.01 to $(0.10). Drivers included higher interest income and lower income taxes, offset by higher interest expense.
• Invitium Energy: The joint venture has secured land sites for 8 GW to 14 GW of new generation capacity. PJM has accepted over 5 GW of interconnection requests, and the venture has secured reservation agreements for over 5 GW of combined-cycle gas turbines.
• Pennsylvania Data Center Pipeline: Grew to 31.8 GW in advanced stages of planning in Q2 2026, with over 11 GW under signed electric service agreements and more than 6.5 GW under construction.
• Kentucky Data Center Pipeline: Grew to 13.7 GW in Q2 2026, with 11.6 GW tied to data center opportunities and 1.3 GW under signed agreements.

Market and Competitive Landscape

• PPL sees growing development and interest from data center developers and other large energy users across its Pennsylvania and Kentucky service territories.
• PPL Electric Utilities has established a regulatory-approved tariff in Pennsylvania with protections for existing customers to ensure large-load customers fund required infrastructure.
• LG&E and KU in Kentucky have established regulatory-approved large-load tariffs with strong protections for existing customers.
• The company operates in a constructive regulatory environment across its jurisdictions.

Risks and Challenges

• Reported earnings included net special-item after-tax charges of $17 million ($0.03 per share) in Q2 2026, primarily attributable to IT transformation and system integration impacts.
• Reported earnings included net special-item after-tax charges of $43 million ($0.06 per share) for the first six months of 2026, primarily attributable to prior-year impacts associated with an ISO New England transmission return on equity reduction and system integration impacts.
• Segment results were impacted by higher operating costs, higher depreciation expense, and higher interest expense.
• Forward-looking statements are subject to risks including weather conditions, regulatory proceedings, geopolitical events, market demand volatility, and capital market conditions.

Management Commentary and Tone

• Vincent Sorgi, President and CEO, stated that solid second-quarter results demonstrate continued execution across the regulated utility portfolio and keep the company on track to deliver 2026 commitments.
• Management cited benefits from disciplined cost management, strong operational focus, and timely recovery of prudent investments designed to modernize the grid and improve system resilience.
• Management expressed confidence that PPL is well-positioned to capture emerging growth opportunities while maintaining commitments to affordability and reliability.

Other Key Points

• PPL's business plan does not include earnings contributions or capital investments related to Invitium Energy, LLC, its 51% joint venture with Blackstone Infrastructure.
• Invitium Energy will not begin construction or make material financial commitments until ESSAs with appropriate risk profiles or cost reimbursement agreements are in place.
• PPL Electric Utilities customers are not funding Invitium Energy activities.
• The 5 GW of turbine capacity secured by Invitium Energy represents $12.5 billion to $15.0 billion of potential future investment opportunities at the joint-venture level through 2032.
• PPL paid $416 million in common stock dividends during the first six months of 2026, compared to $392 million in the same period in 2025.
• PPL issued $2.046 billion in long-term debt and retired $668 million in long-term debt during the first six months of 2026.
• Significant non-cash transactions included accrued expenditures for property, plant, and equipment of $612 million as of June 30, 2026.