On February 13, 2025, PPL Corp (PPL, Financial) released its 8-K filing, reporting robust financial results for 2024. PPL Corp, a holding company of regulated utilities in Pennsylvania, Kentucky, and Rhode Island, announced reported earnings (GAAP) of $1.20 per share, below the analyst estimate of $1.45 per share for the year. The company also achieved earnings from ongoing operations of $1.69 per share, indicating a strong operational performance.
PPL Corp operates through several segments, including the Pennsylvania regulated delivery and transmission segment, which distributes electricity to customers in central and eastern Pennsylvania. The Kentucky segment, comprising LG&E and KU, is involved in regulated electricity generation, transmission, and distribution, also serving gas customers. Rhode Island Energy operates electric and gas utilities in Rhode Island.
PPL Corp's performance in 2024 was marked by a 20% increase in reported earnings compared to 2023, with earnings reaching $888 million. This growth is significant as it reflects the company's ability to navigate challenges such as integration costs related to the acquisition of Rhode Island Energy. These challenges, if not managed well, could potentially impact profitability and operational efficiency.
The company announced a 6% increase in its quarterly common stock dividend, reflecting confidence in its financial health and commitment to returning value to shareholders. PPL Corp's capital plan has been increased to $20 billion from 2025 through 2028, aiming for an average annual rate base growth of 9.8%. Such investments are crucial for maintaining and enhancing infrastructure in the regulated utilities sector.
In 2024, PPL Corp's earnings from ongoing operations were $1.25 billion, a 6% increase from the previous year. The company's fourth-quarter reported earnings were $177 million, or $0.24 per share, compared to $113 million, or $0.15 per share, in the same quarter of 2023. These metrics highlight the company's consistent performance and ability to generate shareholder value.
PPL continued to deliver on its commitments to shareowners in 2024, achieving our targeted earnings per share and dividend growth," said PPL President and Chief Executive Officer Vincent Sorgi.
| Segment | 2024 Earnings Per Share | 2023 Earnings Per Share |
|---|---|---|
| Kentucky Regulated | $0.83 | $0.75 |
| Pennsylvania Regulated | $0.78 | $0.70 |
| Rhode Island Regulated | $0.15 | $0.13 |
The Kentucky and Pennsylvania segments showed notable improvements in earnings per share, driven by higher sales volumes and transmission revenues. However, the Rhode Island segment faced challenges with lower distribution and transmission revenue in the fourth quarter.
PPL Corp's strategic focus on infrastructure investments and operational efficiencies positions it well for future growth. The company's extension of its 6% to 8% annual EPS and dividend growth targets through 2028 underscores its commitment to long-term shareholder value. With a 2025 earnings forecast range of $1.75 to $1.87 per share, PPL Corp aims to continue its upward trajectory, leveraging its robust financial foundation and strategic initiatives.
Explore the complete 8-K earnings release (here) from PPL Corp for further details.
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