Second quarter 2026
Filed Jul 31, 2026Portland General Electric Announces Second Quarter 2026 Results
GAAP net income and diluted EPS increased from the second quarter of 2025, industrial load growth remained strong, and the company reaffirmed full-year adjusted earnings guidance, although non-GAAP diluted EPS declined year over year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net incomeGAAP | $68 million | – | – |
| Diluted EPSGAAP | $0.59 per diluted share | – | – |
| Net incomenon-GAAP | $74 million | – | – |
| Diluted EPSnon-GAAP | $0.64 per diluted share | – | – |
| Business transformation, optimization and acquisition expenses exclusionnon-GAAP | $8 million | – | – |
| Business transformation, optimization and acquisition expenses exclusion per diluted sharenon-GAAP | $0.07 | – | – |
| Tax effectnon-GAAP | $(2) million | – | – |
| Tax effect per diluted sharenon-GAAP | $(0.02) | – | – |
| Industrial load growthother | 11.2% | – | 11.2% |
full-year 2026 outlook
- Operating expensesOperating and maintenance expense between $810 million and $830 million
- Tax rateEffective tax rate of 15% to 20%
- NoteAdjusted earnings guidance of $3.33 to $3.53 per diluted share
- NoteAn increase in energy deliveries between 1.5% and 2.5%, weather adjusted
- NoteDepreciation and amortization expense between $570 million and $590 million
- NoteCash from operations of $1,000 to $1,200 million
- NoteCapital expenditures of $1,655 million
- NoteAverage construction work in progress balance of $780 million
- NoteExecution of power cost and financing plans
- NoteExecution of operating cost management plan
- NoteNormal temperatures in its utility service area for the remainder of the year
- NoteHydro conditions for the year that reflect current estimates
- NoteWind generation based on five years of historical levels or forecast studies when historical data is not available
- NoteNormal thermal plant operations
Capital returns
- On July 24, 2026, the board of directors approved a quarterly common stock dividend of 55.125 cents per share.
- The quarterly dividend is payable on or before October 15, 2026 to shareholders of record at the close of business on September 25, 2026.
What drove it
- Total revenues increased due to higher cost recovery and increased energy deliveries.
- Continued industrial load growth of 11.2% drove increased energy deliveries.
- Residential and commercial loads were relatively flat year over year.
- Operations and maintenance expense decreased, reflecting ongoing cost management efforts.
- The New Large Load Tariff was approved by the OPUC in May 2026 and new prices became effective July 8, 2026.
- The new tariff included an average rate increase of approximately 30% for data center and other new large load customers while lowering rates for all other customers.
Concerns
- Purchased power and fuel expense increased due to expected intra-year timing differences between power cost recognition and revenue collections.
- Depreciation and interest expense increased due to continued capital investment in the system.
- Non-GAAP diluted EPS was $0.64 per diluted share, compared with $0.66 per diluted share in the second quarter of 2025.
- The company cites execution of power cost, financing and operating cost management plans as assumptions supporting guidance.
- Business transformation, optimization and acquisition expenses were excluded from non-GAAP results.
What to watch
- PGE expects to file its 2027 general rate case with the OPUC next week.
- As proposed, the 2027 general rate case would result in an approximate 4.8% overall increase relative to currently approved prices, with new rates taking effect July 1, 2027 if approved.
- Lower net variable power costs in 2027 are currently forecasted to reduce customer prices by approximately 2.4% beginning January 1, 2027.
- OPUC Staff recommended approval of the proposed holding company structure, subject to certain conditions.
- PGE expects to execute contracts from its 2025 All-Source Request for Proposals by early 2027, subject to final negotiations and Board approvals.
- Management is advancing its holding company and Washington acquisition filings.
Balance sheet and cash flow
- Full-year 2026 cash from operations guidance of $1,000 to $1,200 million.
- Full-year 2026 capital expenditures guidance of $1,655 million.
- Full-year 2026 average construction work in progress balance guidance of $780 million.
Analysis
PGE reported second-quarter 2026 GAAP net income of $68 million, or $0.59 per diluted share, compared with $62 million, or $0.56 per diluted share, in the second quarter of 2025. Non-GAAP net income was $74 million, compared with $73 million, but non-GAAP diluted EPS was $0.64 per diluted share versus $0.66 per diluted share. The non-GAAP reconciliation excluded $8 million of business transformation, optimization and acquisition expenses and reflected a $(2) million tax effect.
Demand conditions were led by industrial customers. The company said industrial load growth was 11.2%, while residential and commercial loads were relatively flat year over year. Higher cost recovery and increased energy deliveries drove total-revenue growth, though the filing did not provide a reported total-revenue amount. The company identified high-tech and data center customers as the source of industrial customer demand growth.
Expense trends were mixed. Purchased power and fuel expense increased because of expected intra-year timing differences between power cost recognition and revenue collections. Operations and maintenance expense decreased through ongoing cost management, while depreciation and interest expense increased with continued system capital investment. Full-year guidance assumes operating and maintenance expense between $810 million and $830 million, depreciation and amortization expense between $570 million and $590 million, and capital expenditures of $1,655 million.
The regulatory backdrop is central to the outlook. The OPUC-approved New Large Load Tariff took effect July 8, 2026 and included an average rate increase of approximately 30% for data center and other new large load customers while lowering rates for other customers. PGE also plans to file a 2027 general rate case next week that, as proposed, would result in an approximate 4.8% overall increase relative to currently approved prices, partly offset by net variable power costs currently forecasted to reduce customer prices by approximately 2.4% beginning January 1, 2027.
PGE reaffirmed full-year 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share. The guide is supported by an expected weather-adjusted increase in energy deliveries between 1.5% and 2.5%, cash from operations of $1,000 to $1,200 million, and an average construction work in progress balance of $780 million. Capital allocation included a quarterly common stock dividend of 55.125 cents per share, payable on or before October 15, 2026.
Management, verbatim
Affordability remains a national focus, and we have taken proactive steps to address customer cost pressures while supporting continued economic growth in our region. The approval of our large customer tariff reflects several years of legislative and regulatory work. It results in data center pricing increasing by approximately 30%, while lowering costs for all other customers.
Maria Pope, President and CEO
As we enter the second half of 2026, we are focused on operational execution, meeting the opportunities of continued customer growth, and advancing major regulatory proceedings including our holding company and Washington acquisition filings.
Maria Pope, President and CEO
Not in the filing
stated, not guessed- Total revenue amount for the second quarter of 2026
- Total revenue amount for the second quarter of 2025
- Total revenue year-over-year percentage change
- Segment revenue amounts
- Gross profit and gross margin
- Operating income
- Operating income margin
- Effective tax rate for the second quarter of 2026
- Cash from operations for the second quarter of 2026
- Free cash flow for the second quarter of 2026
- Cash and cash equivalents balance
- Debt balance
- Share repurchases
- Prior-quarter comparisons for reported earnings metrics
- Prior outlook section for comparison with actual reported results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.