PPL Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported third-quarter 2026 earnings were $367 million ($0.49 per share), up 15% from $318 million ($0.43 per share) in the same period in 2025.
• Earnings from ongoing operations (non-GAAP) for the third quarter were $411 million ($0.54 per share), a 16% increase from $355 million ($0.48 per share) in 2025.
• Year-to-date reported earnings for the first nine months of 2026 were $1.049 billion ($1.38 per share), a 15% increase from $915 million ($1.23 per share) in 2025.
• Year-to-date earnings from ongoing operations were $1.136 billion ($1.50 per share), a 9% increase from $1.039 billion ($1.40 per share) in 2025.
• Operating revenues for the third quarter were $2.497 billion, compared to $2.239 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.
• Short-term debt increased to $679 million at September 30, 2026, from $456 million at December 31, 2025.
• Long-term debt increased to $19.853 billion at September 30, 2026, from $17.990 billion at December 31, 2025.
• Total assets were $47.346 billion at September 30, 2026, compared to $45.244 billion at December 31, 2025.
• Reported earnings included net special-item after-tax charges of $44 million ($0.05 per share) in Q3 2026, primarily related to system integration impacts and Rhode Island hold harmless commitments.

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.
• Provided 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 midpoint.
• Increased long-term annual EPS growth target to 7% to 9% through at least 2030, off the 2026 ongoing earnings midpoint, expecting growth in the top half of the range.
• Announced a $25 billion capital plan for 2027 to 2030, which is $2 billion higher than the prior plan, targeting average annual rate base growth of 10% over the period.
• Identified $12 billion to $16 billion of potential additional generation investment opportunities through 2032, which could drive EPS CAGR to 9%+ from 2026 to 2030 if realized.
• Targets annual dividend per share growth of about 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 year-over-year; ongoing earnings per share increased $0.04. Drivers included higher retail rates effective January 1, 2026, and higher sales volumes.
• Pennsylvania Regulated: Reported earnings per share increased $0.04 in Q3 2026 year-over-year; ongoing earnings per share increased $0.03. Drivers included new distribution base rates effective July 1, 2026, and higher transmission revenue.
• Rhode Island Regulated: Reported earnings per share decreased $0.04 in Q3 2026 year-over-year; ongoing earnings per share were flat. Drivers included new gas and electric distribution base rates effective September 1, 2026, offset by higher operating costs and depreciation.
• Corporate and Other: Reported earnings per share increased $0.01 in Q3 2026 year-over-year; ongoing earnings per share decreased $0.02. Drivers included higher interest expense.
• Invitium Energy: Agreed to terms for approximately 2 GW of generation capacity to supply power to QTS's Salem Township data center project in Pennsylvania.
• Data Center Pipelines: Kentucky's large-load pipeline grew to approximately 14.7 GW through 2032, including 12.8 GW from data centers. Pennsylvania's data center pipeline grew to approximately 35.3 GW in advanced planning stages, including 11.4 GW under signed agreements.
• Retail Sales: PA Regulated segment retail delivered electricity sales increased 3.0% in Q3 2026 year-over-year. KY Regulated segment retail delivered electricity sales increased 3.7% in Q3 2026 year-over-year.

Market and Competitive Landscape

• Strong economic development activity in Pennsylvania and Kentucky is driving significant large-load demand, particularly from data centers.
• PPL's approved large-load tariffs are designed to ensure large-load customers driving incremental infrastructure needs bear associated costs, protecting existing customers.
• Invitium Energy is in active discussions with multiple counterparties for additional generation projects in Pennsylvania.
• The proposed generation portfolio aligns with Pennsylvania's clean and firm energy requirements under Governor Josh Shapiro's Responsible Infrastructure Development (GRID) Standards.

Risks and Challenges

• Special items impacting earnings include system integration impacts, IT transformation costs, and Rhode Island hold harmless commitments.
• Forward-looking statements are subject to risks including weather conditions, regulatory proceedings, war or conflicts, pandemic events, commodity price volatility, and capital market conditions.
• Execution of potential generation investments depends on customer agreements and regulatory approval.
• The term sheet for the Invitium Energy and QTS deal is nonbinding and subject to customary conditions precedent.

Management Commentary and Tone

• Vincent Sorgi, President and CEO, stated that strong third-quarter results reflect continued execution and keep the company on track to meet or exceed the 2026 forecast midpoint.
• Management highlighted progress in converting strong customer demand into tangible generation projects, specifically citing the Invitium/QTS agreement.
• The tone emphasizes responsible and efficient growth with affordability at the forefront, maintaining a "growth pays for growth" approach.
• Management noted that the updated business plan supports investments in regulated utility businesses and does not include potential capital investments or earnings contributions associated with Invitium Energy.

Other Key Points

• Invitium Energy, a joint venture with Blackstone Infrastructure, supports $6 billion to $9 billion of potential future generation project investment for PPL (51% ownership share) through 2032.
• The Invitium/QTS deal includes a 20-year initial term with provisions for multiple five-year renewals and a cost reimbursement agreement for specified development costs.
• The proposed Invitium generation portfolio includes two combined-cycle natural gas plants, fuel cells, and battery storage, with fuel cells and storage potentially online by 2029 and gas units by 2032-2033.
• PPL plans to fund the updated $25 billion capital plan while maintaining a strong balance sheet, requiring approximately $3.0 billion of equity financing in addition to over $1.5 billion already executed through forward sales agreements.
• Rhode Island Energy's reported earnings in Q3 2026 included a $10 million after-tax charge related to the hold harmless commitment.
• PPL Electric Utilities' data center pipeline in Pennsylvania grew for the 11th consecutive quarter.