PPL Corporation

PPL Corporation is targeting 6-8% annual earnings growth through 2029, with growth expected to trend toward the upper end, as it leans on operating efficiency to control costs while expanding its infrastructure investment program. In the second quarter of 2026, other operations and maintenance expenses fell 6.84%, reflecting lower underlying costs across its regulated utility operations, and Rhode Island Energy also benefited from lower operating expenses during the quarter. On Sept. 24, 2026, PPL Electric secured up to $71.5 million in U.S. Department of Energy funding to modernize 29.3 miles of transmission infrastructure using advanced technologies to increase capacity and improve reliability. The company's $23 billion capital investment plan through 2029 focuses on modernizing infrastructure and deploying advanced technology, which is expected to improve operational efficiency and reduce maintenance requirements. The Zacks Consensus Estimate points to 2026 and 2027 EPS rising 7.73% and 8.35% year over year, respectively, while PPL's debt-to-capital stands at 57.46% versus the electric power industry's 62.33%.

PPL Electric Utilities has been selected to receive up to $71.5 million in federal funding from the U.S. Department of Energy to support the Montour Grid Resilience and Advanced Reconductoring Project, a modernization of an existing 230-kilovolt transmission corridor. The funding comes through the DOE's Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) Program. The project will rebuild approximately 29.3 miles of existing transmission line, replacing aging infrastructure with advanced technologies to strengthen reliability, enhance available capacity and support growing energy needs in the Susquehanna Valley, Greater Lehigh Valley and Northeast Pennsylvania. It will deploy advanced conductors, using a combination of Aluminum Conductor Steel Supported (ACSS) and Aluminum Conductor Composite Core (ACCC) conductors on targeted segments, along with dual optical ground wire to expand the corridor's fiber network and demonstrate Distributed Acoustic Sensing technology. PPL Electric Utilities President Christine Martin said the funding will help the company modernize critical infrastructure and minimize costs for customers, while U.S. Secretary of Energy Chris Wright said the investments will get more out of existing infrastructure and deliver affordable, reliable power. Over the coming months, PPL Electric will work with the DOE to negotiate and finalize the terms of the award.

PPL Corporation reported a 6% sequential increase in its Kentucky economic development pipeline to 13.7 gigawatts of potential load growth in its second-quarter 2026 update, comprising 11.6 gigawatts from data centers and 2.1 gigawatts from manufacturing and other projects. Projects backed by signed reimbursement agreements rose to 1.3 gigawatts from roughly 0.9 gigawatts in the first quarter of 2026. PPL's probability-weighted forecast points to 3.7 gigawatts of new load by 2032, more than double the amount in its 2025 Certificate of Public Convenience and Necessity filing, and the company may file a new CPCN by year-end for resources including the 266 megawatts Lewis Ridge project, 400 megawatts of deferred batteries and additional natural-gas generation. Those projects could represent $3.5 billion to $4 billion of incremental investment between 2027 and 2032, part of PPL's roughly $23 billion investment plan through 2029 that supports annual rate-base growth of 10.3% and earnings per share growth at the upper end of its 6-8% target. The Zacks Consensus Estimate implies 2026 and 2027 EPS increases of 7.18% and 8.32%, respectively, while PPL's debt-to-capital of 57.46% sits below the electric power industry's 61.32% and its shares have fallen 12.8% over the past six months versus an 11.1% industry decline.

PPL Corporation reported second-quarter earnings that kept its long-term growth story intact, with reported earnings jumping 26% to $230 million, or $0.30 per share, while ongoing earnings rose to $0.33 per share from $0.32 a year earlier. The company reaffirmed its full-year guidance of $1.90 to $1.98 per share and repeated its target of 6% to 8% annual earnings growth through 2029. PPL now sees as much as $12 billion in additional generation investment opportunity across Pennsylvania and Kentucky by 2032, driven by a data center boom. In Pennsylvania, the pipeline of prospective large-load customers reached 31.8 gigawatts in advanced planning, with over 11 gigawatts under signed service agreements and 6.5 gigawatts under construction, while Kentucky's pipeline grew to 13.7 gigawatts, 11.6 of which is tied to data centers. The company also highlighted its 51%-owned joint venture with Blackstone Infrastructure, Invitium Energy, which has secured land for 8 to 14 gigawatts of new generation and holds reservation agreements for over 5 gigawatts of gas turbines, representing $12.5 billion to $15 billion of potential spending at the joint-venture level. However, core ongoing earnings growth was modest at 3%, and cash on hand fell from $1.07 billion to $332 million, while long-term debt climbed to $19.79 billion, reflecting the cost of funding future growth.

PPL Corporation's cash generation is improving, supported by higher earnings and operating performance, providing greater financial flexibility for its ongoing infrastructure investments. In the first six months of 2026, PPL generated $1.14 billion of operating cash flow, up 2.24% from $1.12 billion in the year-ago period, and its operating cash flow increased 4.67% sequentially to approximately $583 million in the second quarter of 2026 compared with $557 million in the first quarter. The company aims to invest approximately $23 billion in regulated capital investments through 2029, supporting average annual rate-base growth of 10.3%, and expects earnings per share of $1.90 to $1.98 in 2026 with 6% to 8% annual EPS growth through 2029. PPL's debt-to-capital ratio currently stands at 57.46%, lower than the electric power industry's 61.32%, and its shares have risen 2.9% in the past month against the industry's 2.5% decline.

PPL Corporation reported that potential data center demand in its Pennsylvania service territory reached nearly 31.8 gigawatts, up 3.5 gigawatts from the prior quarter, with nearly 11 gigawatts covered by signed electric service agreements and more than 6.5 gigawatts under construction. In Kentucky, the economic development pipeline now indicates potential load growth of 13.7 gigawatts through 2032, up from 12.9 gigawatts, including 11.6 gigawatts of data center opportunities. The company plans to invest $23 billion through 2029 to modernize infrastructure and is advancing its Invitium Energy joint venture with Blackstone to develop new generation for data centers. PPL currently carries a Zacks Rank #4, or Sell.

PPL Corporation plans to invest $23 billion in its transmission and distribution network through 2029, including $8 billion in transmission and $7.2 billion in distribution, to strengthen grid reliability and support customer growth. The company expects these investments to drive 10.3% average annual rate base growth and 6-8% annual EPS growth over the period. Recently, PPL Electric Utilities received approval for new rates effective July 1, 2026, while Rhode Island Energy secured approval for more than $330 million in annual infrastructure, safety and reliability investments. PPL serves more than 3.5 million customers across Kentucky, Pennsylvania and Rhode Island through a network of more than 90,000 miles of electric and gas lines. The Zacks Consensus Estimate projects 2026 and 2027 EPS growth of 7.73% and 8.06%, respectively, and the company carries a Zacks Rank of 3, or Hold.

X-Energy is adopting a capital-light business model focused on technology licensing, fuel manufacturing, and engineering services rather than owning or building nuclear plants. The company plans to license its Generation IV Xe-100 small modular reactor technology, manufacture and sell proprietary TRISO-X fuel, and provide engineering and lifecycle support, avoiding construction and project financing risks. Its TRISO fuel creates recurring revenue from ongoing reloads over each reactor's 60-year life, and the TRISO-X facility recently received the first U.S. Nuclear Regulatory Commission Category II license for commercial advanced fuel production. X-Energy has signed an agreement with IHI for U.S.-Japan supply-chain development, announced a letter of intent with Talen Energy for deployments in the PJM market, and is collaborating with PPL Corporation subsidiaries, with its commercial pipeline representing nearly 11.5 gigawatts of potential capacity.

Meta Platforms broke ground on its first Canadian data center in Sturgeon County, Alberta, a 1 GW facility scalable to 1.8 GW representing a total investment of C$13 billion. The project is Meta's 33rd data center globally and is optimized for AI workloads. Construction will support approximately 3,000 workers at peak and more than 300 permanent operational jobs, with an additional C$60 million invested in local road and water infrastructure. The facility will consume electricity equivalent to roughly 800,000 homes, with a long-term tolling agreement with Pembina Pipeline for power from the Greenlight Electricity Centre, a new natural gas-fired plant expected to be operational in late 2030. Until then, Capital Power will supply 250 megawatts from its existing natural gas fleet, and Meta said all electricity use will be matched with clean and renewable energy, using a closed-loop liquid cooling system with no operational water consumption.

PPL Corporation benefits from a diversified energy portfolio that reduces fossil fuel dependence and generates stable cash flows through regulated utility operations. Its Kentucky operations include a balanced mix of coal, natural gas, hydro and solar generation, while its regulated utilities in Pennsylvania and Rhode Island provide reliable electricity and natural gas delivery services. The company is also evaluating advanced nuclear technology with X-energy and a 266-megawatt pumped-storage hydro project with Rye Development to support future demand for reliable, carbon-free electricity. PPL's planned $23 billion investment through 2029 will modernize infrastructure, expand clean energy generation, support 10.3% annual rate base growth and drive upper-end 6-8% EPS growth. The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 7.73% and 8.13%, respectively.

PPL has appointed Kenneth M. Hartwick to its Board of Directors as the company plans about US$23 billion of infrastructure investment through 2029. Hartwick, former CEO of Ontario Power Generation, brings experience with nuclear, gas, hydro, and solar fleets, and will serve on the People and Compensation Committee and the Finance Committee. His appointment adds governance depth as PPL pursues grid reliability and energy transition projects, including a joint venture with Blackstone Infrastructure. Investors may watch for shifts in capital allocation, project risk management, and long-term priorities in future disclosures.

PPL Corporation disclosed that data center projects in advanced planning stages reached 28.3 gigawatts in the first quarter of 2026, up 12% sequentially from 25.2 gigawatts, with nearly 10 gigawatts under signed Electric Service Agreements and about 5 gigawatts already under construction. In Kentucky, projected load growth through 2032 increased to 12.9 gigawatts from the previous 8.5 gigawatts, supported by interest from 13 new data center projects representing nearly 12 gigawatts of potential demand. Global Laser Enrichment and Toyota Motor Manufacturing announced combined investments of $2.6 billion in PPL's service territory, prompting management to raise expected new load to 3.5 gigawatts by 2032 from 1.8 gigawatts. To support this growth, PPL plans to invest about $23 billion through 2029, driving 10.3% annual rate base growth and upper-end 6-8% EPS growth.

PPL Corporation is advancing its clean energy strategy through partnerships focused on carbon-free generation and energy storage. Its regulated utilities, Louisville Gas and Electric Company and Kentucky Utilities Company, are collaborating with X-energy to evaluate deploying Xe-100 small modular reactors in Kentucky, and with Rye Development to explore the 266 megawatt Lewis Ridge Pumped Storage Project, which could begin operating around 2031. These initiatives aim to support rising electricity demand, strengthen grid reliability, and create long-term growth opportunities while advancing decarbonization objectives. PPL's debt-to-capital ratio stands at 57.40%, below the electric power industry's 60.97%, and its shares have risen 3.3% in the past month versus the industry's 2.2% growth. The Zacks Consensus Estimate projects year-over-year earnings per share increases of 7.73% for 2026 and 8.13% for 2027.