PPL Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported earnings (GAAP) for Q3 2026 were $367 million ($0.49 per share), up from $318 million ($0.43 per share) in Q3 2025.
• Earnings from ongoing operations (non-GAAP) for Q3 2026 were $411 million ($0.54 per share), up 16% from $355 million ($0.48 per share) in Q3 2025.
• Year-to-date reported earnings for the first nine months of 2026 were $1.049 billion ($1.38 per share), compared to $915 million ($1.23 per share) in 2025.
• Year-to-date earnings from ongoing operations for the first nine months of 2026 were $1.136 billion ($1.50 per share), up 9% from $1.039 billion ($1.40 per share) in 2025.
• Operating revenues for Q3 2026 were $2.497 billion, compared to $2.239 billion in Q3 2025.
• Operating revenues for the first nine months of 2026 were $7.382 billion, compared to $6.768 billion in 2025.
• Net cash provided by operating activities for the first nine months of 2026 was $2.056 billion, compared to $2.081 billion in 2025.
• Net cash used in investing activities for the first nine months of 2026 was $3.616 billion, compared to $2.860 billion in 2025.
• Net cash provided by financing activities for the first nine months of 2026 was $870 million, compared to $1.559 billion in 2025.
• Total assets as of September 30, 2026, were $47.346 billion, compared to $45.244 billion as of December 31, 2025.
• Long-term debt as of September 30, 2026, was $19.853 billion, compared to $17.990 billion as of December 31, 2025.
• Short-term debt as of September 30, 2026, was $679 million, compared to $456 million as of December 31, 2025.
• Segment reported earnings per share (Q3 2026): Kentucky Regulated $0.30 (vs. $0.25 in 2025); Pennsylvania Regulated $0.25 (vs. $0.21 in 2025); Rhode Island Regulated $0.00 (vs. $0.04 in 2025); Corporate and Other $(0.06) (vs. $(0.07) in 2025).
• Segment earnings from ongoing operations per share (Q3 2026): Kentucky Regulated $0.30 (vs. $0.26 in 2025); Pennsylvania Regulated $0.25 (vs. $0.21 in 2025); Rhode Island Regulated $0.05 (vs. $0.05 in 2025); Corporate and Other $(0.06) (vs. $(0.04) in 2025).

Guidance and Future Outlook:

• Narrowed 2026 ongoing earnings forecast range to $1.92 to $1.96 per share, with a midpoint of $1.94 per share.
• Announced 2027 earnings forecast range of $2.06 to $2.14 per share, with a midpoint of $2.10 per share, representing an 8.2% increase over the 2026 ongoing earnings midpoint.
• Increased long-term annual EPS growth target to 7% to 9% through at least 2030, off the 2026 ongoing earnings midpoint, with growth expected in the top half of the range.
• Announced a $25 billion capital plan for 2027 to 2030, $2 billion higher than the prior plan, targeting average annual rate base growth of 10% over the period.
• Projects $12 billion to $16 billion of potential additional generation investment through 2032, which could drive EPS CAGR to 9%+ from 2026 to 2030 if realized.
• Targets annual dividend per share growth of 4% to 6%, expected at the low end of the range to support reinvestment.
• Targets a Funds from Operations (FFO)/Cash Flow from Operations (CFO) to debt ratio of 16% to 18%, expected to improve toward the midpoint over the plan period.

Business Segments and Product Lines:

• Kentucky Regulated: Reported earnings per share increased $0.05 in Q3 2026, driven by higher retail rates effective Jan 1, 2026, and higher sales volumes, partially offset by higher operating costs and depreciation.
• Pennsylvania Regulated: Reported earnings per share increased $0.04 in Q3 2026, driven by new distribution base rates effective July 1, 2026, and higher transmission revenue, partially offset by higher depreciation and operating costs.
• Rhode Island Regulated: Reported earnings per share decreased $0.04 in Q3 2026, driven by higher operating costs and depreciation offsetting new gas and electric distribution base rates effective Sept 1, 2026. Earnings from ongoing operations per share were flat year-over-year.
• Invitium Energy: Agreed to terms with QTS for approximately 2 GW of generation capacity to supply power to the Salem Township data center project in Pennsylvania, with a 20-year initial term.
• Data Center Pipeline: Pennsylvania data center pipeline grew to 35.3 GW in advanced stages of planning (11.4 GW under signed agreements, 8.5 GW under construction). Kentucky pipeline grew to 14.7 GW through 2032 (12.8 GW associated with data centers), with 2.3 GW under signed reimbursement agreements.
• Invitium Investment Potential: Represents $6 billion to $9 billion of potential future generation project investment for PPL through 2032 based on executed reservation agreements for 5 GW of combined-cycle gas turbines.

Market and Competitive Landscape:

• Strong economic development activity in Pennsylvania and Kentucky is driving large-load demand, particularly from data centers.
• PPL's approved large-load tariffs are designed to ensure large-load customers bear the costs of incremental infrastructure needs, protecting existing customers.
• The proposed Invitium generation portfolio aligns with Pennsylvania's clean and firm energy requirements under Governor Shapiro's GRID Standards and the White House's Ratepayer Protection Pledge.

Risks and Challenges:

• Special items impacted reported earnings, including net after-tax charges of $44 million in Q3 2026 and $87 million year-to-date, primarily related to system integration, IT transformation, and Rhode Island hold harmless commitments.
• Management notes that actual results may differ materially from forward-looking statements due to factors including weather, regulatory proceedings, geopolitical conflicts, commodity price volatility, and capital market conditions.

Management Commentary and Tone:

• Vincent Sorgi, President and CEO, stated that strong Q3 results reflect continued execution and keep the company on track to meet or exceed the 2026 forecast midpoint.
• Management highlighted progress in converting customer demand into tangible generation projects and emphasized a "growth pays for growth" approach to protect existing customers.
• The tone reflects confidence in the updated business plan, the strength of the Invitium platform, and the momentum behind large-load growth opportunities.

Other Key Points:

• Invitium Energy executed a cost reimbursement agreement with QTS providing risk mitigation for development costs if project approvals are not achieved.
• The Invitium deal structure includes a fixed monthly payment covering return of and on invested capital, with variable payments for fuel and operating costs.
• The proposed Invitium portfolio includes two combined-cycle natural gas plants (expected online 2032-2033) complemented by fuel cells and battery storage (potentially online as early as 2029).
• PPL plans to fund the $25 billion capital plan while maintaining a strong balance sheet, with approximately $3.0 billion of equity financing needs in addition to $1.5 billion already executed through forward sales agreements.
• Rhode Island Energy's new gas and electric distribution base rates became effective September 1, 2026.
• Pennsylvania Regulated segment's new distribution base rates became effective July 1, 2026.
• Kentucky Regulated segment's new retail rates became effective January 1, 2026.