PPL Earnings Miss Estimates in Q4, Revenues Increase Y/Y

PPL Corporation PPL has reported fourth-quarter 2025 operating earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of 42 cents by 2.4%. In the year-ago quarter, the company reported earnings of 34 cents. 

On a GAAP basis, PPL recorded EPS of 36 cents compared with 24 cents in the year-ago quarter. The difference in GAAP and operating EPS in the fourth quarter was due to the impacts of 5 cents from special items.

Operating EPS in 2025 were $1.81, up 7.1% from $1.69 in 2024.

PPL’s Revenues

Total revenues of $2.27 billion lagged the Zacks Consensus Estimate of $2.34 billion by 2.7%. However, the top line increased 2.8% from the year-ago figure of $2.21 billion.

Revenues for 2025 totaled $9.04 billion compared with $8.46 billion last year.

Highlights of PPL’s Q4 Release

In the fourth quarter, the company sold 16,487 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, reflecting a year-over-year increase of 4%.

Total operating expenses were $1.8 billion, down 2% from the year-ago quarter’s $1.83 billion. This was due to a decrease in energy purchases.

Operating income totaled $476 million, up 26.3% from the year-ago figure of $377 million.

Interest expenses amounted to $209 million, up 10.6% from $189 million in the corresponding period of 2024.

PPL’s Segmental Updates

Pennsylvania Regulated: Adjusted EPS was 21 cents, up 5% from the year-ago figure of 20 cents. Earnings were driven by increased transmission revenues from new capital investments, higher distribution regulatory rider recovery and lower operating costs.

Kentucky Regulated: Adjusted EPS was 19 cents compared with 17 cents in the year-ago quarter. The year-over-year improvement in earnings was caused by higher sales volumes due to weather and higher earnings from additional capital investments.

Rhode Island Regulated: Adjusted EPS was 3 cents, up 50% from the year-ago figure of 2 cents.

Corporate and Other: The segment incurred a loss of 2 cents per share compared with a loss of 5 cents in the year-ago quarter.

PPL’s Financial Position

As of Dec. 31, 2025, PPL had cash and cash equivalents of $1.07 billion compared with $0.31 billion as of Dec. 31, 2024.

The long-term debt was $17.99 billion as of Dec. 31, 2025, compared with $15.95 billion as of Dec. 31, 2024.

Net cash provided by operating activities in 2025 was $2.63 billion compared with $2.34 billion last year.

PPL’s Guidance

PPL expects 2026 earnings to be $1.90-$1.98 per share. The Zacks Consensus Estimate is pegged at $1.95, higher than the mid-point of the company’s guided range. PPL expects a long-term annual earnings growth rate of 6-8% through 2029.

The company has raised its guidance for planned infrastructure investments to $23 billion for 2026-2029 from the prior plan of $20 billion for 2025-2028.

PPL’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

Evergy, Inc. EVRG reported fourth-quarter 2025 operating earnings per share (EPS) of 42 cents, which missed the Zacks Consensus Estimate of 57 cents by 26.3%. In the year-ago quarter, the company reported earnings of 35 cents.

Quarterly revenues totaled $1.34 billion, which surpassed the Zacks Consensus Estimate of $1.29 billion by 4.3%. In the year-ago quarter, the company posted revenues of $1.26 billion.

Ameren Corporation AEE posted fourth-quarter 2025 earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 77 cents by 1.3%. The bottom line also increased 1.3% from the year-ago quarter’s recorded figure.

Total revenues came in at $1.78 billion in the reported quarter, down 8.2% year over year. The top line also missed the Zacks Consensus Estimate of $2.09 billion by 14.9%.

FirstEnergy Corp. FE registered fourth-quarter 2025 operating earnings of 53 cents per share, which beat the Zacks Consensus Estimate of 52 cents by 1.92%. In the year-ago quarter, the company reported earnings of 67 cents.

Operating revenues of $3.78 billion surpassed the Zacks Consensus Estimate of $3.25 billion by 16.9%. The top line increased 19.6% from $3.18 billion in the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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