PPL (1PPL) Q3 2026 Earnings Report

The call was strongly positive. Management reported higher earnings, raised its long-term EPS growth outlook, expanded the capital plan, highlighted substantial data center and generation opportunities, and announced the Invitium-QTS collaboration. The main challenges were higher depreciation, operating and interest costs, some regulatory items requiring additional rate cases, the remaining execution steps for the QTS agreement, and the need for additional equity funding.

PPL raised its long-term annual EPS growth target to 7% to 9% through at least 2030, with growth expected to be in the top half of that higher range in each year beginning in 2027; its $25 billion capital plan from 2027 through 2030 supports 10% compound annual rate base growth from 2026 through 2030, while planned O&M growth is roughly 0.5% annually through 2030, the FFO to debt target is 16% to 18%, and annual dividend growth is targeted at the low end of the 4% to 6% annual dividend growth range. PPL narrowed its 2026 ongoing earnings forecast range to $1.92 to $1.96 per share and is on track to achieve at least the midpoint of $1.94 per share; for 2027, it forecasts earnings of $2.06 to $2.14 per share with a midpoint of $2.10 per share, representing 8.2% growth from the midpoint of its current 2026 ongoing earnings forecast. Rate base is projected to grow from about $33 billion this year to nearly $48 billion in 2030, a 10% compound annual rate, with approximately $3 billion of equity needs through 2030 and a payout ratio expected to be about 50% by 2030; additional capital investment opportunities could reach a total of $12 billion to $16 billion through 2032, including $3.5 billion to $4.5 billion through 2030 in Kentucky, which could increase EPS CAGR to over 9% through 2030, and at least $6 billion to $9 billion of potential future investment from Invitium Energy through 2032.