PG&E : Reports First Quarter 2025 Results

Published: 2025-04-24 06:12:19 ET PCG

Investor Relations: [email protected] | Media: 415.973.5930 | www.pgecorp.com

April 24, 2025

PG&E Corporation Reports First-Quarter Results; On Track to Deliver Solid 2025;

Residential Electric Rates Lower Today Than a Year Ago

OAKLAND - PG&E Corporation (NYSE: PCG) is on track to deliver solid 2025 financial results. Financial progress includes:

Operational progress during the first quarter of 2025 continued to focus on physical safety and delivery of affordable and resilient energy. Pacific Gas and Electric Company (the Utility):

"My coworkers at PG&E continue our operational progress with a focus on safety as our foundation. We've also stabilized customer bills over the past year. For the long term, we're building infrastructure for purpose that enables electric load growth and delivers affordable and resilient energy for all," said PG&E Corporation CEO Patti Poppe.

2025 Guidance

PG&E Corporation is updating 2025 GAAP earnings guidance to the range of $1.29 to $1.35 per share. Factors expected to drive GAAP earnings include customer capital investment and costs related to unrecoverable interest expense of $350 million to $400 million after tax and other earnings factors, including allowance for funds used during construction, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. Additional factors include the amortization of the Wildfire Fund asset and accretion of the related Wildfire Fund liability,

SB 901 impacts, costs related to PG&E Corporation's and the Utility's reorganization cases under Chapter 11, wildfire-related costs, and investigation remedies, partially offset by prior period net regulatory impact.

PG&E Corporation is reaffirming projected 2025 non-GAAP core earnings of $1.48 to $1.52 per share. The guidance range for non-core items, which management does not consider representative of ongoing earnings, is updated to $400 million to $430 million after tax.

Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, and certain other factors, which are inherently uncertain. See "Forward-Looking Statements" below.

Financial Results

PG&E Corporation recorded first-quarter 2025 income available for common shareholders of $607 million, or $0.28 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with income available for common shareholders of $732 million, or $0.34 per share, for first-quarter 2024.

The decrease in first-quarter GAAP results is primarily driven by the lower return on equity related to the most recent cost of capital decision that saw a reduction from 10.7% to 10.28%, and the dilutive impact of PG&E Corporation's 2024 equity offering. PG&E Corporation remains on track to achieve non-fuel O&M savings throughout 2025 to meet earnings guidance through continued efforts in improving planning, execution, and automation, as well as resource management.

PG&E Corporation uses "non-GAAP core earnings," which is a non-GAAP financial measure, in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items. See the accompanying tables for a reconciliation of non-GAAP core earnings (including non-GAAP core EPS) to consolidated earnings available for common shareholders.

Non-GAAP Core Earnings

PG&E Corporation's non-GAAP core earnings, which exclude non-core items, were $728 million, or $0.33 per share, for first-quarter 2025, compared to earnings of $800 million, or $0.37 per share, for first-quarter 2024.

The decrease in non-GAAP core earnings is primarily driven by similar factors to the GAAP results as described above.

Non-core items, which management does not consider representative of ongoing earnings, totaled $120 million after tax, or $0.05 per share, for first-quarter 2025, compared with $68 million after tax, or $0.04 per share, for the first-quarter 2024.

Supplemental Financial Information

In addition to the financial information accompanying this release, presentation slides have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation's website at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/ default.aspx.

Earnings Conference Call

PG&E Corporation will also hold a conference call on April 24, 2025, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its first quarter 2025 results. The public can access the conference call through a simultaneous webcast. The link is provided below and will also be available from the PG&E Corporation website.

What: First Quarter 2025 Earnings Call

When: Thursday, April 24, 2025 at 11:00 a.m. Eastern Time

Where: http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx

A replay of the conference call will be archived at http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx.

Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through May 1, 2025, by dialing (800) 770-2030. The confirmation code 92587 will be required to access the replay.

Public Dissemination of Certain Information

PG&E Corporation and the Utility routinely provide links to the Utility's principal regulatory proceedings with the California Public Utilities Commission and the Federal Energy Regulatory Commission at http://investor.pgecorp.com, under the "Regulatory Filings" tab, so that such filings are available to investors upon filing with the relevant agency. PG&E Corporation and the Utility also routinely post, or provide direct links to, presentations, documents, and other information that may be of interest to investors at http://investor.pgecorp.com, under the "Wildfire and Safety Updates" and "News & Events: Events & Presentations" tabs, respectively, in order to publicly disseminate such information. It is possible that any of these filings or information included therein could be deemed to be material information.

About PG&E Corporation

PG&E Corporation (NYSE: PCG) is a holding company headquartered in Oakland, California. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16

million Californians across a 70,000-square-mile service area in Northern and Central California. For more information, visit http://www.pgecorp.com.

Forward-Looking Statements

This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, guidance, estimates, future plans, and strategies of PG&E Corporation and the Utility, including regarding earnings, customer bills, and load growth. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by such forward-looking statements include factors disclosed in PG&E Corporation's and the Utility's joint Annual Report on Form 10-K for the year ended December 31, 2024 and their most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC's website at www.sec.gov. PG&E Corporation and the Utility undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.

PG&E CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts)

(Unaudited)

Three Months Ended March 31,

2025

2024

Operating Revenues

Electric

4,135

4,052

Natural gas

1,848

1,809

Total operating revenues

5,983

5,861

Operating Expenses

Cost of electricity

399

321

Cost of natural gas

496

529

Operating and maintenance

2,646

2,636

Wildfire-related claims, net of recoveries

(1)

Wildfire Fund expense

Depreciation, amortization, and decommissioning

1,097

1,022

Total operating expenses

4,763

4,585

Operating Income

1,220

1,276

Interest income

117

137

Interest expense

(734)

(715)

Other income, net

Income Before Income Taxes

673

774

Income tax provision

Net Income

634

735

Preferred stock dividend requirement

Income Available for Common Shareholders

607

732

Weighted Average Common Shares Outstanding, Basic

2,195

2,134

Weighted Average Common Shares Outstanding, Diluted

2,200

2,139

Net Income Per Common Share, Basic

0.28

0.34

Net Income Per Common Share, Diluted

0.28

0.34

Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings

First Quarter, 2025 vs. 2024

Three Months Ended

March 31,

Earnings per

Earnings

Common

(in millions, except per share amounts)

2025

2024

2025

2024

PG&E Corporation's earnings/EPS on a GAAP basis

607

732

$ 0.28

$ 0.34

Non-core items: (1)

Amortization of Wildfire Fund contribution (2)

0.03

Bankruptcy and legal costs (3)

0.01

Investigation remedies (4)

0.01

Prior period net regulatory impact (5)

(6)

SB 901 securitization (6)

(2)

Wildfire-related costs, net of recoveries (7)

0.02

PG&E Corporation's non-GAAP core earnings/EPS (8)

728

800

$ 0.33

$ 0.37

All amounts presented in the table above and footnotes below are tax adjusted at PG&E Corporation's statutory tax rate of 27.98% for 2025 and 2024, except for certain costs that are not tax deductible. Amounts may not sum due to rounding.

(in millions)

Three Months Ended

March 31, 2025

Wildfires OII disallowance and system enhancements

Locate and mark OII system enhancements

Paradise restoration and rebuild

2020 Zogg fire settlement

Investigation remedies

Tax impacts

(1)

Investigation remedies (post-tax)

(in millions)

Three Months Ended

March 31, 2025

2019

Kincade fire

2021

Dixie fire

Wildfire-related costs, net of recoveries

Tax impacts

(15)

Wildfire-related costs, net of recoveries (post-tax)

(8) "Non-GAAP core earnings" is a non-GAAP financial measure. See Non-GAAP Financial Measures below.

Undefined, capitalized terms have the meanings set forth in PG&E Corporation's and the Utility's joint Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

PG&E Corporation's 2025 Earnings Guidance

2025

EPS guidance

Low

High

Estimated EPS on a GAAP basis

~ $

1.29

~ $

1.35

Estimated non-core items: (1)

Amortization of Wildfire Fund contribution (2)

0.10

Bankruptcy and legal costs (3)

0.02

0.01

Investigation remedies (4)

0.04

Prior period net regulatory impact (5)

(0.01)

SB 901 securitization (6)

0.01

Wildfire-related costs, net of recoveries (7)

0.02

Estimated EPS on a non-GAAP core earnings basis

~ $

1.48

~ $

1.52

All amounts presented in the table above and footnotes below are tax adjusted at PG&E Corporation's statutory tax rate of 27.98% for 2025, except for certain costs that are not tax deductible. Amounts may not sum due to rounding.

2025

Low

High

(in millions)

guidance

range

Amortization of Wildfire Fund contribution

~ $

310

~ $

310

Amortization of Wildfire Fund contribution

~ $

310

~ $

310

Tax impacts

(87)

Amortization of Wildfire Fund contribution (post-tax)

~ $

223

~ $

223

2025

Low

High

(in millions)

guidance

range

Legal and other costs

~ $

Bankruptcy and legal costs

~ $

Tax impacts

(18)

(6)

Bankruptcy and legal costs (post-tax)

~ $

2025

Low

High

(in millions)

guidance

range

2020 Zogg fire settlement

~ $

Wildfires OII disallowance and system enhancements

Paradise restoration and rebuild

Investigation remedies

~ $

Tax impacts

(7)

Investigation remedies (post-tax)

~ $

2025

Low

High

(in millions)

guidance

range

2011-2014 GT&S capital audit

~ $

(20)

~ $

(20)

Prior period net regulatory impact

~ $

(20)

~ $

(20)

Tax impacts

Prior period net regulatory impact (post-tax)

~ $

(14)

~ $

(14)

2025

Low

High

(in millions)

guidance

range

SB 901 securitization charge

~ $

SB 901 securitization

~ $

Tax impacts

(10)

SB 901 securitization (post-tax)

~ $

2025

Low

High

(in millions)

guidance

range

2019

Kincade fire

2021

Dixie fire

Wildfire-related costs, net of recoveries

Tax impacts

(21)

Wildfire-related costs, net of recoveries (post-tax)

~ $

Undefined, capitalized terms have the meanings set forth in PG&E Corporation's and the Utility's joint Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

Disclaimer

PG&E Corporation published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 10:11 UTC.