PPL Corporation · Earnings release

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PPL Corporation reports first-quarter 2025 earnings

•Announces 2025 first-quarter reported earnings (GAAP) per share of $0.56.

•G1Reaffirms 2025 ongoing earnings forecast range of $1.75 to $1.87 per share with a midpoint of $1.81 per share.

•G2Reaffirms 6% to 8% annual EPS and dividend growth targets through at least 2028; expects to achieve EPS growth in the top half of targeted growth range.

ALLENTOWN, Pa. (April 30, 2025) - PPL Corporation (NYSE: PPL) today announced first-quarter 2025 reported earnings (GAAP) of $414 million, or $0.56 per share, compared with first-quarter 2024 reported earnings of $307 million, or $0.42 per share.

Adjusting for special items, first-quarter 2025 earnings from ongoing operations (non-GAAP) were $444 million, or $0.60 per share, compared with $402 million, or $0.54 per share, a year ago.

"We're off to a strong start in 2025, with year-over-year growth in the first quarter reflecting our continued strong financial discipline and operational execution, along with a return to more typical seasonal weather patterns,” said PPL President and Chief Executive Officer Vincent Sorgi.

"Across PPL, we're focused on creating utilities of the future and leveraging technology, talent and strategic partnerships to modernize our energy networks, better meet the evolving needs of our customers, and deliver increased value for all stakeholders.

"Looking forward, we're well-positioned to build on this success throughout the year, and sustained strong interest from data center developers in Pennsylvania and Kentucky further highlights the critical role we continue to play in powering progress and innovation."

Today the company reaffirmed its 2025 ongoing earnings forecast range of $1.75 to $1.87 per share with a midpoint of $1.81 per share.

In addition, the company reaffirmed its projection of 6% to 8% annual earnings per share (EPS) and dividend growth through at least 2028, with EPS growth expected to be in the top half of the targeted range. The company's projected growth is based off its 2025 forecast midpoint of $1.81 per share.

First-Quarter 2025 Earnings Details

As discussed in this news release, reported earnings are calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP). “Earnings from ongoing operations” is a non-GAAP financial measure that is adjusted for special items. See the tables at the end of this news release for a reconciliation of reported earnings (net income) to earnings from ongoing operations, including an itemization of special items.

(Dollars in millions, except for per share amounts)

1st Quarter

Change

Reported earnings

$

$

%

Reported earnings per share

$

$

%

1st Quarter

Change

Earnings from ongoing operations

$

$

%

Earnings from ongoing operations per share

$

$

%

First-Quarter 2025 Earnings by Segment

1st Quarter

Per share

Reported earnings

Kentucky Regulated

$

$

Pennsylvania Regulated

Rhode Island Regulated

Corporate and Other

Total

$

$

1st Quarter

Special items (expense) benefit

Kentucky Regulated

$

—

$

—

Pennsylvania Regulated

—

Rhode Island Regulated

—

Corporate and Other

Total

$

$

1st Quarter

Earnings from ongoing operations

Kentucky Regulated

$

$

Pennsylvania Regulated

Rhode Island Regulated

Corporate and Other

Total

$

$

Key Factors Impacting Earnings

In addition to the segment drivers outlined below, PPL’s reported earnings in the first quarter of 2025 included net special item after-tax charges of $30 million, or $0.04 per share, primarily attributable to PPL's IT transformation, a Rhode Island Energy settlement related to an energy efficiency program matter that occurred prior to PPL's ownership of the company, and integration and related expenses associated with the acquisition of Rhode Island Energy. Reported earnings in the first quarter of 2024 included net special item after-tax charges of $95 million, or $0.12 per share, primarily attributable to integration and related expenses associated with the acquisition of Rhode Island Energy.

Kentucky Regulated Segment

PPL’s Kentucky Regulated segment primarily consists of the regulated electricity and natural gas operations of Louisville Gas and Electric Company and the regulated electricity operations of Kentucky Utilities Company.

Reported earnings and earnings from ongoing operations in the first quarter of 2025 increased by $0.05 per share compared with a year ago. Factors driving earnings results primarily included higher sales volumes largely due to weather, as well as other factors.

Pennsylvania Regulated Segment

PPL’s Pennsylvania Regulated segment consists of the regulated electricity delivery operations of PPL Electric Utilities.

Reported earnings in the first quarter of 2025 increased by $0.04 per share compared with a year ago. Earnings from ongoing operations in the first quarter of 2025 increased by $0.03 per share compared with a year ago. Factors driving earnings results primarily included higher sales volumes largely due to weather, as well as higher transmission revenue.

Rhode Island Regulated Segment

PPL’s Rhode Island Regulated segment consists of the regulated electricity and natural gas operations of Rhode Island Energy.

Reported earnings in the first quarter of 2025 increased by $0.01 per share compared with a year ago. Earnings from ongoing operations in the first quarter of 2025 decreased by $0.01 per share compared with a year ago. Factors driving earnings results primarily included higher operating costs and lower transmission revenues, partially offset by higher distribution revenue from capital investments.

Corporate and Other

PPL’s Corporate and Other category primarily includes financing costs incurred at the corporate level, certain non-recoverable costs resulting from commitments made to the Rhode Island Division of Public Utilities and Carriers and the Rhode Island Attorney General’s Office in conjunction with the acquisition of Rhode Island Energy, and certain other unallocated costs.

Reported earnings in the first quarter of 2025 increased by $0.04 per share compared with a year ago. Earnings from ongoing operations in the first quarter of 2025 decreased by $0.01 per share compared with a year ago. Factors driving earnings results primarily included higher interest expense.

PPL’s 2025 earnings from ongoing operations forecast range is $1.75 to $1.87 per share, with a midpoint of $1.81 per share.

Earnings from ongoing operations is a non-GAAP measure that could differ from reported earnings due to special items that are, in management’s view, non-recurring or otherwise not reflective of the company’s ongoing operations. PPL management is not able to forecast whether any of these factors will occur or whether any amounts will be reported for future periods. Therefore, PPL is not able to provide an equivalent GAAP measure for earnings guidance.

See the table at the end of this news release for a complete reconciliation of the earnings forecast.

About PPL

PPL Corporation (NYSE: PPL), headquartered in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.6 million customers in the U.S. PPL’s high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions. For more information, visit www.pplweb.com.

# # #

(Note: All references to earnings per share in the text and tables of this news release are stated in terms of diluted earnings per share unless otherwise noted.)

Conference Call and Webcast

PPL invites interested parties to listen to a live internet webcast of management’s teleconference with financial analysts about first-quarter 2025 financial results at 11 a.m. Eastern time on Wednesday, April 30. The call will be webcast live, in audio format, together with slides of the presentation. For those who are unable to listen to the live webcast, a replay with slides will be accessible at www.pplweb.com/investors for 90 days after the call.

Interested individuals can access the live conference call via telephone at 1-844-512-2926. International participants should call 1-412-317-6300. Participants will need to enter the following “Elite Entry” number to join the conference: 9677002. Callers can access the webcast link at www.pplweb.com/investors under “Events.”

# # #

Management utilizes “Earnings from Ongoing Operations” or “Ongoing Earnings” as a non-GAAP financial measure that should not be considered as an alternative to reported earnings, or net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management’s view of PPL’s earnings performance as another criterion in making investment decisions. In addition, PPL’s management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance.

Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the statutory tax rate of the entity where the activity is recorded. Special items may include items such as:

•Gains and losses on sales of assets not in the ordinary course of business.

•Impairment charges.

•Significant workforce reduction and other restructuring effects.

•Acquisition and divestiture-related adjustments.

•Significant losses on early extinguishment of debt.

•Other charges or credits that are, in management’s view, non-recurring or otherwise not reflective of the company’s ongoing operations.

Statements contained in this news release, including statements with respect to future earnings, cash flows, dividends, financing, regulation and corporate strategy, are “forward-looking statements” within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: asset or business acquisitions and dispositions; pandemic health events or other catastrophic events and their effect on financial markets, economic conditions and our businesses; market demand for energy in our service territories; weather conditions affecting customer energy usage and operating costs; volatility in or the impact of other changes on financial markets, commodity prices and economic conditions, including inflation; the effect of any business or

industry restructuring; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of our facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and requirements and the related costs of compliance; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; any impact of severe weather on our business; receipt of necessary government permits, approvals, rate relief and regulatory cost recovery; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; PPL Corporation's stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in jurisdictions where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual cyberattack, terrorism, or war or other hostilities; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries.

Any such forward-looking statements should be considered in light of such important factors and in conjunction with factors and other matters discussed in PPL Corporation’s Form 10-K and other reports on file with the Securities and Exchange Commission.

Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation.

PPL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL INFORMATION(1)

Condensed Consolidated Balance Sheets (Unaudited)

(Millions of Dollars)

Assets

Cash and cash equivalents

$

$

Accounts receivable

Unbilled revenues

Fuel, materials and supplies

Regulatory assets

Other current assets

Property, Plant and Equipment

Regulated utility plant

Less: Accumulated depreciation - regulated utility plant

Regulated utility plant, net

Non-regulated property, plant and equipment

Less: Accumulated depreciation - non-regulated property, plant and equipment

Non-regulated property, plant and equipment, net

Construction work in progress

Property, Plant and Equipment, net

Noncurrent regulatory assets

Goodwill and other intangibles

Other noncurrent assets

Total Assets

$

$

Liabilities and Equity

Short-term debt

$

$

Long-term debt due within one year

Accounts payable

Other current liabilities

Long-term debt

Deferred income taxes and investment tax credits

Accrued pension obligations

Asset retirement obligations

Noncurrent regulatory liabilities

Other deferred credits and noncurrent liabilities

Common stock and additional paid-in capital

Treasury stock

Earnings reinvested

Accumulated other comprehensive loss

Total Liabilities and Equity

$

$

(1) The Financial Statements in this news release have been condensed and summarized for purposes of this presentation. Please refer to PPL Corporation’s periodic filings with the Securities and Exchange Commission for full financial statements, including note disclosure.

PPL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)

(Millions of Dollars, except share data)

Three Months Ended March 31,

Operating Revenues

$

$

Operating Expenses

Operation

Fuel

Energy purchases

Other operation and maintenance

Depreciation

Taxes, other than income

Total Operating Expenses

Operating Income

Other Income (Expense) - net

Interest Expense

Income Before Income Taxes

Income Taxes

Net Income

$

$

Earnings Per Share of Common Stock:

Basic and Diluted

Net Income Available to PPL Common Shareowners

$

$

Weighted-Average Shares of Common Stock Outstanding (in thousands)

Basic

Diluted

PPL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions of Dollars)

Three Months Ended March 31,

Cash Flows from Operating Activities

Net income

$

$

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation

Amortization

Defined benefit plans - income

Deferred income taxes and investment tax credits

Other

3

Change in current assets and current liabilities

Accounts receivable

Accounts payable

Unbilled revenues

Fuel, materials and supplies

Prepayments

Taxes payable

Regulatory assets and liabilities, net

Accrued interest

Other

Other operating activities

Defined benefit plans - funding

(5)

(5)

Other

Net cash provided by operating activities

Cash Flows from Investing Activities

Expenditures for property, plant and equipment

Other investing activities

5

Net cash used in investing activities

Cash Flows from Financing Activities

Issuance of long-term debt

—

Payment of common stock dividends

Net increase (decrease) in short-term debt

Other financing activities

Net cash provided by financing activities

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash

1

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

Cash, Cash Equivalents and Restricted Cash at End of Period

$

$

Supplemental Disclosures of Cash Flow Information

Significant non-cash transactions:

Accrued expenditures for property, plant and equipment at March 31,

$

$

Operating - Electricity Sales (Unaudited)(1)

Three Months Ended March 31,

Percent

(GWh)

Change

PA Regulated Segment

Retail Delivered

%

KY Regulated Segment

Retail Delivered

%

Wholesale(2)

%

Total

%

Total

%

(1) Excludes the Rhode Island Regulated segment electricity sales as revenues are decoupled from volumes delivered.

(2) Represents FERC-regulated municipal and unregulated off-system sales.

Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations

(After-Tax)

(Unaudited)

(millions of dollars)

KY

PA

RI

Corp.

Reg.

Reg.

Reg.

& Other

Total

Reported Earnings(1)

$

$

$

$

$

Less: Special Items (expense) benefit:

Talen litigation costs, net of tax of $0(2)

—

—

—

(1)

(1)

Acquisition integration, net of tax of ($2), $4(3)

—

—

7

(7)

IT transformation, net of tax of $1, $0, $3(4)

(1)

—

(1)

Energy efficiency programs settlement, net of tax of $0(5)

—

—

(8)

—

(8)

Office relocation and related costs, net of tax of $0, $1(6)

(1)

(1)

—

—

(2)

Total Special Items

(2)

(1)

(2)

Earnings from Ongoing Operations

$

$

$

$

$

(per share - diluted)

KY

PA

RI

Corp.

Reg.

Reg.

Reg.

& Other

Total

Reported Earnings(1)

$

$

$

$

$

Less: Special Items (expense) benefit:

Acquisition integration(3)

—

—

IT transformation(4)

—

—

—

Energy efficiency programs settlement(5)

—

—

—

Total Special Items

—

—

—

Earnings from Ongoing Operations

$

$

$

$

$

(1) Reported Earnings represents Net Income.

(2) PPL incurred legal expenses related to litigation associated with its former affiliate.

(3) Primarily integration and related costs associated with the acquisition of Rhode Island Energy.

(4) Costs associated with PPL’s restructuring and rebuilding of its IT infrastructure, organization and systems.

(5) Costs associated with a settlement agreement regarding energy efficiency programs prior to PPL's acquisition of Rhode Island Energy.

(6) Certain costs related to the relocation of corporate offices.

Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations

(After-Tax)

(Unaudited)

(millions of dollars)

KY

PA

RI

Corp.

Reg.

Reg.

Reg.

& Other

Total

Reported Earnings(1)

$

$

$

$

$

Less: Special Items (expense) benefit:

Strategic corporate initiatives, net of tax of $0, $0, $1(2)

(1)

(1)

—

(2)

(4)

Acquisition integration, net of tax of $4, $17(3)

—

—

PPL Electric billing issue, net of tax of $4(4)

—

—

—

Total Special Items

(1)

Earnings from Ongoing Operations

$

$

$

$

$

(per share - diluted)

KY

PA

RI

Corp.

Reg.

Reg.

Reg.

& Other

Total

Reported Earnings(1)

$

$

$

$

$

Less: Special Items (expense) benefit:

Acquisition integration(3)

—

—

PPL Electric billing issue(4)

—

—

—

Total Special Items

—

Earnings from Ongoing Operations

$

$

$

$

$

(1) Reported Earnings represents Net Income.

(2) Represents costs primarily related to PPL’s corporate centralization and other strategic efforts.

(3) Primarily integration and related costs associated with the acquisition of Rhode Island Energy.

(4) Certain expenses related to billing issues.

Reconciliation of PPL's Earnings Forecast

After-Tax (Unaudited)

(per share - diluted)

Midpoint

High

Low

Estimate of Reported Earnings

$

$

$

Less: Special Items (expense) benefit:(1)

Acquisition integration(2)

IT transformation(3)

Energy efficiency programs settlement(4)

Total Special Items

Forecast of Earnings from Ongoing Operations

$

$

$

(1) Reflects only special items recorded through March 31, 2025. PPL is not able to forecast special items for future periods.

(2) Primarily integration and related costs associated with the acquisition of Rhode Island Energy.

(3) Costs associated with PPL’s restructuring and rebuilding of its IT infrastructure, organization and systems.

(4) Costs associated with a settlement agreement regarding energy efficiency programs prior to PPL's acquisition of Rhode Island Energy.