PPL (PPL) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 20, 2026

AI-Generated Deep Dive Summary

PPL Corporation (PPL) reported strong financial results in its Q4 2025 earnings call, highlighting significant EPS growth and a robust outlook for the coming years. The company delivered ongoing diluted EPS of $1.81 per share, reflecting a 7.1% year-over-year increase and aligning with prior guidance. For 2026, PPL projects an ongoing EPS range of $1.90 to $1.98, representing a midpoint growth rate of 7.2%. The company also reaffirmed its long-term target of achieving an annual EPS compound annual growth rate (CAGR) of 6%-8% through at least 2029. A key highlight was PPL's decision to raise its quarterly cash dividend by nearly 5%, increasing it to $0.285 per share, or $1.14 annually. This move supports the company's updated dividend growth target of 4%-6%. Additionally, PPL maintained a disciplined approach to its dividend payout ratio, keeping it within the 50%-60% range. The company also announced significant capital expenditures, with $4.4 billion invested in 2025 and a new $23 billion plan for 2026–2029, up from the previous $20 billion. PPL emphasized its strong balance sheet health, maintaining a target FFO-to-debt ratio of 16%-18% through the planning period. The company also secured favorable rate base growth projections, with an annual CAGR of 10.3% expected through 2029, driven by investments in electric transmission and distribution systems. Kentucky and Pennsylvania are key focus areas, with nearly 80% of new generation rate base already approved by regulators. The earnings call underscored PPL's strategic initiatives to meet growing demand, particularly from data centers and economic development projects. In Pennsylvania, the company reported a significant increase in its advanced-stage data center pipeline, reaching 25.2 gigawatts, while Kentucky saw similar growth with over 8 gigawatts attributed to data centers. These developments position PPL to benefit from rising energy demands tied to digital infrastructure. PPL also highlighted its joint venture with Blackstone to build and operate generation specifically for data centers, though no hyperscaler agreements were announced during the call. The company

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Originally published on The Motley Fool on 2/20/2026