second-quarter 2026
Filed Aug 7, 2026PPL Corporation Delivers Solid Second-Quarter 2026 Earnings; Reaffirms Guidance and Long-Term Growth Outlook
Second-quarter reported earnings increased 26 % and ongoing earnings per share increased 3 % year over year, while PPL reaffirmed its 2026 ongoing earnings forecast range of $1.90 to $1.98 per share.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Reported earnings, second quarterGAAP | $230 million | – | 26 % |
| Reported earnings per share, second quarterGAAP | $0.30 per share | – | 20 % |
| Reported earnings, first six monthsGAAP | $682 million | – | 14 % |
| Reported earnings per share, first six monthsGAAP | $0.90 per share | – | 13 % |
| Earnings from ongoing operations, second quarternon-GAAP | $247 million | – | 3 % |
| Earnings from ongoing operations per share, second quarternon-GAAP | $0.33 per share | – | 3 % |
| Earnings from ongoing operations, first six monthsnon-GAAP | $725 million | – | 6 % |
| Earnings from ongoing operations per share, first six monthsnon-GAAP | $0.96 per share | – | 4 % |
| Net special-item after-tax charges, second quarterGAAP | $17 million, or $0.03 per share | – | – |
| Net special-item after-tax charges, first six monthsGAAP | $43 million or $0.06 per share | – | – |
| Kentucky Regulated reported earnings per share, second quarterGAAP | $0.18 per share | – | $0.01 per share |
| Kentucky Regulated reported earnings per share, first six monthsGAAP | $0.53 per share | – | $0.06 per share |
| Pennsylvania Regulated reported earnings per share, second quarterGAAP | $0.17 per share | – | $0.02 per share decrease |
| Pennsylvania Regulated reported earnings per share, first six monthsGAAP | $0.42 per share | – | – |
| Rhode Island Regulated reported earnings per share, second quarterGAAP | $0.01 per share | – | – |
| Rhode Island Regulated reported earnings per share, first six monthsGAAP | $0.06 per share | – | – |
| Corporate and Other reported earnings per share, second quarterGAAP | ($0.06) per share | – | – |
| Corporate and Other reported earnings per share, first six monthsGAAP | ($0.11) per share | – | – |
| Kentucky Regulated earnings from ongoing operations per share, second quarternon-GAAP | $0.18 per share | – | – |
| Kentucky Regulated earnings from ongoing operations per share, first six monthsnon-GAAP | $0.51 per share | – | $0.03 per share |
| Pennsylvania Regulated earnings from ongoing operations per share, second quarternon-GAAP | $0.18 per share | – | – |
| Pennsylvania Regulated earnings from ongoing operations per share, first six monthsnon-GAAP | $0.43 per share | – | – |
| Rhode Island Regulated earnings from ongoing operations per share, second quarternon-GAAP | $0.03 per share | – | – |
| Rhode Island Regulated earnings from ongoing operations per share, first six monthsnon-GAAP | $0.12 per share | – | – |
| Corporate and Other earnings from ongoing operations per share, second quarternon-GAAP | ($0.06) per share | – | – |
| Corporate and Other earnings from ongoing operations per share, first six monthsnon-GAAP | ($0.10) per share | – | – |
2026 outlook
- Noteongoing earnings forecast range of $1.90 to $1.98 per share with a midpoint of $1.94 per share
- Note6% to 8% annual earnings-per-share (EPS) growth through at least 2029
- Notecompound annual growth near the top end of that range compared with 2025 actual ongoing earnings
- Notestronger earnings growth beginning in 2027 and continuing through 2029
- Noteone or more commercial agreements by the end of 2026
What drove it
- Higher retail rates effective January 1, 2026 supported Kentucky Regulated earnings.
- Increased returns on capital investments supported Kentucky Regulated earnings for the first six months of 2026.
- PPL expects stronger earnings growth in the second half of 2026, supported by improved rate recovery and capital tracking mechanisms that enable timely recovery of investments.
- PPL Electric Utilities’ data center pipeline grew to 31.8 gigawatts (GW) in advanced stages of planning, with over 11 GW under signed electric service agreements and more than 6.5 GW under construction.
- The Kentucky potential economic development pipeline grew to 13.7 GW, of which 11.6 GW are tied to data center opportunities, with 1.3 GW under signed agreements.
- PPL estimates current economic development activity in Pennsylvania and Kentucky could present $10 billion to $12 billion of total investment upside through 2032.
Concerns
- Higher operating costs, higher depreciation expense and higher interest expense offset higher income in the Kentucky Regulated segment.
- Kentucky first-six-month results were partially offset by lower sales volumes.
- Second-quarter 2026 reported earnings included net special-item after-tax charges of $17 million, or $0.03 per share, primarily attributable to PPL’s IT transformation and system integration impacts.
- PPL does not expect earnings contributions from Invitium Energy, LLC to be material through 2030.
- Invitium Energy will not begin construction or make material financial commitments until it has signed ESSAs with appropriate risk profiles or cost reimbursement agreements are in place.
What to watch
- Execution of improved rate recovery and capital tracking mechanisms in the second half of 2026.
- Whether LG&E and KU file a CPCN request by the end of 2026 for additional generation beyond the 2.3 GW already being developed from prior CPCN approvals.
- Progress toward one or more Invitium Energy commercial agreements by the end of 2026.
- Potential $3.5 billion to $4.0 billion of incremental Kentucky generation investment need between 2027 and 2032.
- Potential earnings contributions from batteries or other shorter-lead-time technologies in 2029 or 2030 and combined-cycle gas turbines as early as the 2031 to 2032 timeframe.
Analysis
PPL delivered higher second-quarter earnings, with GAAP reported earnings of $230 million, or $0.30 per share, up 26 % and 20 %, respectively, from the prior-year quarter. Ongoing earnings were $247 million, or $0.33 per share, up 3 % on both measures. The smaller growth rate on the ongoing basis reflects a reduced special-item burden: second-quarter 2026 included $17 million, or $0.03 per share, of net special-item after-tax charges, compared with $57 million, or $0.07 per share, a year earlier.
Kentucky was the principal disclosed operating driver. Kentucky Regulated reported earnings increased by $0.01 per share in the second quarter, while ongoing earnings were flat. Higher retail rates effective January 1, 2026 supported results, but higher operating costs, depreciation expense and interest expense offset that benefit. For the first six months, Kentucky ongoing earnings increased by $0.03 per share, supported by retail rates and increased returns on capital investments, partly offset by lower sales volumes and the same cost, depreciation and interest pressures.
The disclosed segment earnings mix was uneven. Pennsylvania Regulated reported earnings declined by $0.02 per share in the second quarter, and its ongoing earnings were $0.18 per share versus $0.19 per share a year ago. Rhode Island Regulated ongoing earnings improved to $0.03 per share from $0.01 per share, while Corporate and Other ongoing earnings were unchanged at ($0.06) per share. The supplied filing text ends during the Pennsylvania segment discussion, limiting visibility into its stated operating drivers and the drivers for other segments.
Management reaffirmed the 2026 ongoing earnings forecast range of $1.90 to $1.98 per share, with a midpoint of $1.94 per share, and expects stronger earnings growth in the second half from improved rate recovery and capital tracking mechanisms. The longer-term growth case centers on large-load demand: PPL cited $10 billion to $12 billion of potential investment upside through 2032, while also stating that Invitium Energy contributions are not expected to be material through 2030. Near-term attention is on commercial agreements for Invitium Energy, additional Kentucky generation approvals, and execution against the reaffirmed earnings outlook.
Management, verbatim
Our solid second-quarter results demonstrate continued execution across our regulated utility portfolio and keep us on track to deliver our 2026 commitments.
Vincent Sorgi, PPL president and chief executive officer
We are benefiting from disciplined cost management, strong operational focus and timely recovery of prudent investments that strengthen service for customers.
Vincent Sorgi, PPL president and chief executive officer
Not in the filing
stated, not guessed- Period-end date
- Total revenue
- Segment revenue
- Gross margin
- Operating income
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Dividends
- Prior-quarter comparative metrics
- Revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Full Pennsylvania Regulated segment earnings-driver discussion, because the supplied filing text ends mid-sentence
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.