PPL (0KEJ) AI Stock Analysis

Company Guidance

Management reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 per share (midpoint $1.94) after reporting Q2 ongoing earnings of $0.33 (GAAP $0.30; $0.03 special items) and said it is on pace to achieve at least the midpoint with stronger H2 supported by Pennsylvania (rate increase $275M effective July 1) and Rhode Island (rates expected Sept. 1) outcomes. The company expects to deploy ~ $5.0 billion of capital in 2026 (≈$2.3 billion deployed through Q2, ~30% above prior year), projects $23 billion of capital needs through 2029 supporting >10% average annual rate base growth, and reaffirmed long‑term targets of 6–8% annual EPS growth through at least 2029 (CAGR near the top end), 4–6% annual dividend growth and FFO/debt of 16–18%. Management highlighted sizable upside: about 32 GW of signed data‑center agreements (+3.5 GW q/q) with >11 GW under ESAs, >6.5 GW under construction and two sites beginning service (ramping to ~2 GW by 2031); the Invitium JV with 8–14 GW of developable sites, >5 GW of CCGT in the PJM queue and >5 GW of CCGT reservations (5 GW ≈ $12.5–$15.0 billion at $2,500–$3,000/kW with PPL’s 51% share), batteries possibly contributing earnings in 2029–2030 and CCGTs by 2031–2032; and a Kentucky pipeline of 13.7 GW (11.6 GW data center, 2.1 GW other) with ~1.3 GW of reimbursement agreements (up from ~0.9 GW) and a 3.7 GW probability‑weighted expected new load by 2032—together with Kentucky/Invitium upsides that could drive an incremental $10–$12 billion (and incremental KY projects of ~$3.5–$4.0 billion) of investment through 2032.