PPL : First-Quarter 2026 Earnings Results the Presentation

Published: 2026-05-08 07:51:13 ET PPL

Published on 05/08/2026 at 07:51 am EDT

PPL CORPORATION

1st Quarter 2026 Investor Update

May 8, 2026

Business Update

VINCE SORGI

President & Chief Executive Officer

PPL CORPORATION

1st Quarter 2026 Investor Update

May 8, 2026

1st Quarter Financial Highlights

Advancing PPL's financial objectives with strong start to 2026

Reported Q1 2026 GAAP results of $0.60 per share and ongoing earnings of $0.63 per share

Reaffirmed 2026 ongoing EPS forecast range of $1.90 - $1.98 per share with a midpoint of $1.94 per share

On track to complete ~$5.1 billion of capital investments to support the delivery of safe, reliable, and

affordable energy

Continue to project $23 billion of capital investment needs through 2029, resulting in average annual rate base growth of 10.3% over the period; excludes any capital investments related to the joint venture with Blackstone Infrastructure

Reaffirmed long-term financial targets

6% - 8% annual EPS growth through at least 2029; expect EPS CAGR from 2025 through 2029 to be near top

end of targeted range, with stronger growth beginning in 2027 and continuing through 2029

4% - 6% annual dividend growth through at least 2029(1)

16% - 18% FFO/CFO to debt throughout plan

Note: See Appendix for the reconciliation of reported earnings to earnings from ongoing operations.

Dividends subject to Board of Directors approval.

Regulatory and Business Updates

Advancing key initiatives across PPL's jurisdictions

PPL Electric Utilities reached constructive rate case settlement with majority of intervenors on March 5th (1)

PPL Electric's delivery rates continue to be among the lowest in the state; focus on affordability with rate increases less than 4% for all rate

classes despite PPL Electric's first distribution base rate case in a decade (2)

Following the implementation of new base rates, PPL Electric has agreed to a two year stay out from base rate requests

Administrative Law Judges recommended approval of settlement without modification on April 17th

PUC decision expected by the end of Q2 2026; new rates effective July 1, 2026

LG&E and KU granted reconsideration of its base rate case decisions by the KPSC (3)

All LG&E and KU petitions were granted, while all intervenor petitions were denied

Procedural schedule established to allow Commission to gather additional information on rehearing issues

LG&E and KU evaluating 266MW pumped storage hydro project with Rye Development

Preliminary permit from FERC received in 2022; final license expected in Q2 2027

Construction to begin as early as 2027 with a potential commercial operation date in 2031

Initial cost estimate is $1.3 billion (excluding eligibility for up to 50% ITC); not included in PPL's capex or EPS projections

New collaboration with X-energy to explore future of advanced nuclear in Kentucky to support significant large load customer growth, including data centers, in the Commonwealth

Strong state support for nuclear energy, including recently passed legislation establishing a Nuclear Reactor Site Readiness Pilot Program with $75 million in grant funding for up to three sites ($25 million per site) and allows utilities to apply for cost recovery of early site work

LG&E and KU will take a disciplined approach in considering any new nuclear development

Pennsylvania rate case docket: R-2025-3057164.

Total monthly bill impact calculated for average residential, commercial, and industrial customer using 1,000 kWh, 1,000 kWh and 3 kW, and 150,000 kWh and 50 kW per month, respectively, vs. average bills as of January 1, 2026.

Case No. 2025-00113 (KU) and Case No. 2025-00114 (LG&E). The February 16, 2026, KPSC Order remains in effect. Per the procedural schedule, parties have until May 26th to request a hearing or to ask for a decision based on the record in the case, and we hope to get a decision by the KPSC in the third quarter.

Additional Regulatory and Business Updates

Advancing key initiatives across PPL's jurisdictions

Rhode Island Energy (RIE) received approval for ~$333 million related to annual Infrastructure, Safety and Reliability (ISR) plans that support critical investment needs in Rhode Island (1)

Includes ~$155 million for electric infrastructure investments and vegetation management costs ($168 million requested)

Includes ~$178 million for gas infrastructure investments ($184 million requested)

Investments recovered through rider mechanism beginning April 1, 2026

RIE honored by Rhode Island House of Representatives for its response to historic Blizzard of 2026

RIE's base rate case remains on track (2)

Requested revenue requirement increase over two years ($181 million in year one and an additional $49 million in year two)

Intervenor testimony filed on April 16th with evidentiary hearings planned for June and July (if necessary)

New rates are expected to become effective September 1, 2026

New Hold Harmless Commitment proposal filed with the RIPUC in April, providing meaningful bill credits to customers (3)

Total bill credits expected to significantly offset the impact of the requested base rate increase (4)

Credits under new proposal expected to be provided to customers starting in Q1 2027

RIE Fiscal Year 2027 ISR plans: Docket Nos. 25-54-EL and 25-55-NG.

RIE base rate case: Docket No. 25-45-GE.

RIE Hold Harmless Commitment proposal: Docket No. 25-33-GE.

Actual credits to be issued may vary depending on several factors, including the cost of capital and timing of the issuance of the credits.

PA Economic Development Powered by Data Centers

Momentum continues in PA data center development

Growth in PA Data Centers in Advanced Stages (1)

PPL Electric Utilities Signed Data Center Agreements (in GW)

28.3

25.2

20.5

14.4

10.9

8.3

8.6

~10GW under ESAs with 5GW under construction

Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26

PPL Electric continues to see significant demand for

new data centers in its service territory due to its unique competitive advantages, including its advanced transmission system that enables speed to market for hyperscalers

Data centers with signed agreements have increased to 28.3GW (up from 25.2GW in Q4), a 12% increase

Our Electric Service Agreements (ESAs) help protect our other utility customers by requiring data center customers to pay approximately 80% of anticipated load, even if they use less electricity, until the costs incurred to extend service are fully recovered (2)

The data centers in advanced stages represent projects that have signed agreements with developers and costs being incurred are reimbursable by the developers if they do not move forward with the projects. Signed agreements include customer protections

like pre-payments to cover customer CIAC costs prior to work being performed, credit support to cover all project upgrade costs that are socialized, and minimum load demand that obligates the data center customers to cover their peak demand on the system.

In PPL Electric Utilities' rate case settlement, a large load tariff was agreed upon with a majority of the intervenors, subject to PA PUC approval. Separately, the PA PUC issued for comment in November 2025 a proposed model tariff outlining areas it suggested the electric distribution companies (EDCs) include in proposed tariffs. PPL Electric awaits further Commission action on finalizing a model tariff.

KY Economic Development Update

Kentucky continues to attract significant interest from the private sector

LG&E/KU's Current Development Pipeline

Electric Peak (in GW)

Non-data centers 1GW

12.9GW

of new load potential by 2032

Data centers 11.9GW

2025 CPCN filing load forecast assumed

~1.8GW of additional load

Economic development queue in KY shows total potential load growth of 12.9GW through 2032

Data center related load exceeds 11.9GW (up from 8.2GW in previous update); about 4GW are considered highly active, of which ~650MW is under construction or agreement

Manufacturing and other non-data center project requests have increased from previous update, including ~600MW of new non-data center load that is highly active (1)

Kentucky continues to see robust economic expansion

beyond data centers

In Q1, Global Laser Enrichment and Toyota Motor Manufacturing announced $1.8B and $0.8B investment plans within LG&E & KU's service territories, respectively

Updated projections indicate ~3.5GW of expected new load by 2032 (increase from ~1.8GW in CPCN forecast)

As new load materializes, we could need to file a CPCN for additional generation resources as early as this year

(1) The change in the non-data center pipeline when compared to the previous quarter reflects a downward shift of ~90MW that has materialized from the pipeline into production.

Update on Generation Joint Venture with Blackstone

Momentum continues, increasing probability of JV-owned generation

Ratepayer Protection Pledges driving significant momentum for Bring Your Own Generation (BYOG) solutions with both hyperscalers and third-party data center developers

Continued growth in high-probability data center pipeline in PPL's PA service territory (now more than

28GW) increases opportunities to secure energy supply services agreements (ESSAs)

Engaged in strategic discussions with key gas pipeline companies to ensure access to low-cost Marcellus shale gas for future generation projects

Executing multiple reservation agreements for gas turbines for new NGCCs

Submitted requests for multiple potential generation projects into PJM's interconnection queue for

certain land sites currently under control

Ongoing evaluation of additional strategic land parcels, further expanding access to key sites for

development

Note: Blackstone refers to Blackstone Infrastructure.

Financial Update

JOE BERGSTEIN

Executive Vice President & Chief Financial Officer

PPL CORPORATION

1st Quarter 2026 Investor Update

May 8, 2026

Financial Overview

Overview of 1st Quarter Financial Results

Q1 2026

Q1 2025

Reported Earnings (GAAP)

$0.60

$0.56

Less: Special Items

($0.03)

($0.04)

Ongoing Earnings

$0.63

$0.60

KY Regulated

$0.33

$0.30

PA Regulated

$0.25

RI Regulated

$0.10

Corp. and Other

($0.05)

(Earnings per share)

Q1 2026 GAAP earnings of $0.60 per share

Q1 2026 special items of ($0.03) per share, primarily attributable to prior-year impacts associated with an ISO-NE transmission ROE reduction and system integration impacts, partially offset by

regulatory asset treatment of costs associated with PPL's IT

transformation in KY

Q1 2026 ongoing earnings of $0.63 per share, a $0.03 per share increase from prior year

Results increased primarily due to higher base rate recovery in KY and higher transmission revenues from additional capital investments, partially offset by higher depreciation and higher financing costs

Successfully executed a $1.15 billion equity units offering in February 2026

Purchase contract for PPL common shares settles in February 2029

Provides path to permanent equity while enabling participation in share price appreciation

Following the offering, PPL has now de-risked about two-thirds of its estimated $3 billion equity need for the 2026 - 2029 plan

Note: See Appendix for the reconciliation of reported earnings to earnings from ongoing operations.

Review of 1st Quarter Financial Results

Ongoing Earnings Walk: Q1 2026 vs. Q1 2025

(Earnings per share)

$0.60 +$0.03 +$0.00 +$0.00 +$0.00 $0.63

Rate Recovery

+$0.07

Sales Volumes

(Primarily Weather)

($0.01)

Operating Costs

($0.01)

Depreciation

($0.01)

Interest Expense

($0.01)

Transmission Revenue

+$0.02

Operating Costs

($0.01)

Depreciation

($0.01)

Interest Expense

($0.01)

Other (1)

+$0.01

Rider Revenue (2)

+$0.01

Depreciation

($0.01)

Interest Expense

($0.01)

Other (1)

+$0.01

Q1 2025

Ongoing EPS

KY Regulated PA Regulated RI Regulated Corporate & Other Q1 2026

Ongoing EPS

Segment

KY Regulated

PA Regulated

RI Regulated

Corporate & Other

Total PPL

Q1 2026 Ongoing EPS

$0.33

$0.25

$0.10

($0.05)

$0.63

Note: See Appendix for the reconciliation of reported earnings to earnings from ongoing operations.

Reflects factors that were not individually significant.

Reflects total impact from the RI Regulated ISR distribution rider and FERC formula transmission rate.

Closing Remarks

VINCE SORGI

President & Chief Executive Officer

PPL CORPORATION

1st Quarter 2026 Investor Update

May 8, 2026

Key Takeaways

Strong start to 2026 with earnings on track and guidance reaffirmed

Strong operational and financial performance to start the year, reinforcing confidence in delivering

our 2026 outlook and long-term growth targets

Advancing constructive regulatory outcomes across all jurisdictions while maintaining a strong focus on customer affordability

Seeing tangible acceleration in large-load demand, creating significant incremental investment and

earnings opportunities

Increasing visibility to upside from additional generation needs and our partnership with Blackstone Infrastructure

PPL is uniquely positioned to convert accelerating load growth into sustained value creation for both customers and shareowners

Appendix

Investment Highlights

PPL CORPORATION

1st Quarter 2026 Investor Update

PPL Investment Thesis

Top-tier total return proposition of 10% - 12%, plus meaningful upside(1)

Committed to investing in and delivering safe, reliable and affordable energy for our customers…

Investments that Improve Service for Customers

$23 Billion Capital investment plan 2026 - 2029

Solid Foundation for Predictable Growth

10.3%

Projected annual rate base growth

Lower

Regional Rates

15.6%

Lower average residential bills(2)

And consistently delivering long-term value for our investors

Strong, Annual EPS Growth

6% - 8%

Expect to deliver EPS CAGR near top end

of range (2025-2029)(3)

80 Years of Consecutive Dividends

4% - 6%

Annual dividend

growth target(4)

Balance Sheet Strength and Stability

16% - 18%

FFO/CFO to Debt

target

Significant earnings upside potential from generation and transmission expansion resulting from economic development pipeline, additional competitive transmission projects, and our uniquely-positioned Blackstone Joint Venture

Total return reflects PPL's targeted EPS growth rate plus dividend yield based on targeted annualized dividend and PPL's closing share price as of May 7, 2026.

Represents the average difference between the average residential bill at each PPL utility and the average residential bill in each utility's respective region. Average residential bill for each utility reflects only the portion of the bill the utility controls: Transmission and Distribution services at PPL Electric Utilities and Rhode Island Energy, and the fully integrated rate at LG&E and KU. Data sourced from EEI and reflects an assumed 1,000 kWh bill.

Refers to PPL's projected earnings per share from 2025 to 2029.

Dividends subject to Board of Directors approval.

Delivering Strong, Sustainable Growth

Consistently achieved at least the midpoint of 6% - 8% EPS growth target

(Earnings per share)

7% CAGR

$1.81

$1.48

$1.58

$1.69

Base year of repositioning

Achieved $1.60

(8.1% growth)

Achieved $1.69 (7.0% growth)

Achieved $1.81

(7.1% growth)

2022

Forecast Midpoint

(Pro forma) (1)

2023

Forecast

Midpoint(2)

2024

Forecast

Midpoint (Original)(3)

2025

Forecast

Midpoint(4)

Represents the midpoint of PPL's 2022 pro forma forecast range of $1.40 - $1.55 per share, reflecting a full year of earnings contributions from Rhode Island Energy (RIE). RIE was acquired by PPL in May 2022.

Represents the midpoint of PPL's 2023 forecast range of $1.50 - $1.65 per share.

Represents the midpoint of PPL's 2024 original forecast range of $1.63 - $1.75 per share. Updated forecast range to $1.67 - $1.73 per share in November 2024.

Represents the midpoint of PPL's 2025 forecast range of $1.75 - $1.87 per share.

Projecting 6% - 8% Annual EPS Growth

Expects to achieve EPS CAGR near top end of targeted range (2025 - 2029)

Expecting EPS CAGR near the top end of 6% - 8% target (2025 - 2029)

(Earnings per share)

$1.81

ng stronger growth beginning in 2027 and continuing through 2029

Projecti

Midpoint reflects 7.2% growth

$1.94

Base transmission and distribution investments to support reliability and data center growth

Competitive transmission projects

Generation to support economic development in KY

Blackstone Joint Venture may generate earnings in back end of the plan

Earnings Upside Opportunities

2025

Ongoing Earnings

2026

Forecast Midpoint(1)

2027 2028 2029

Note: See Appendix for the reconciliation of reported earnings to earnings from ongoing operations.

Represents the midpoint of PPL's 2026 ongoing earnings forecast range of $1.90 - $1.98 earnings per share.

2026 - 2029 Capital Investment Plan

$23B capex plan to enable the delivery of safe, reliable, and affordable energy

($ in billions)

$23B

Updated Capex Plan

$1.6

$7.2

$4.1

$8.0

$0.5

Notable Plan Details:

Electric distribution underpinned by reliability investments such as system hardening projects

Electric transmission includes work to automate and harden the grid

Electric generation non-coal fired includes

~2,000MW of natural gas, ~240MW of

solar, and over 500MW of battery storage

Gas operations includes a focus on leak-prone pipe in Rhode Island

Note: Totals may not sum due to rounding.

Critical Investments Driving Substantial Growth

Projected annual rate base growth (2025 - 2029)

(Year-end rate base, $ in billions)(1)(2)

2025 2026 2027 2028 2029

Two-thirds of rate base relates to investments in electric transmission and distribution infrastructure

+10.3% CAGR

$29.0

11%

15%

$32.0

11%

13%

$36.0

10%

12%

11%

$39.9

10%

11%

12%

$42.9

10%

13%

33%

32%

33%

32%

35%

34%

Approximately 80% of total projected generation rate base growth relates to new generation projects that have already been approved by the KPSC

Note: Totals may not sum due to rounding.

Rhode Island rate base excludes acquisition-related adjustments for non-earning assets.

Kentucky figures reflect capitalization in 2025 and rate base in 2026 through 2029 per recent rate case Order.

Disclaimer

PPL Corporation published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 11:50 UTC.