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Jun 30, 2023

PPL Q2 2023 Earnings Report

PPL Corporation reported mixed results for Q2 2023, with GAAP earnings per share decreasing slightly but reaffirming its ongoing earnings forecast for the year.

Key Takeaways

PPL Corporation announced second-quarter 2023 reported earnings of $112 million, or $0.15 per share, compared to $119 million, or $0.16 per share, in the same quarter of the previous year. Ongoing earnings per share were $0.29, slightly down from $0.30 in 2022. The company reaffirmed its 2023 ongoing earnings forecast of $1.50 to $1.65 per share and projected annual earnings per share and dividend growth of 6% to 8% through at least 2026.

Reported earnings (GAAP) per share decreased to $0.15 in Q2 2023 from $0.16 in Q2 2022.

Ongoing earnings per share were $0.29 in Q2 2023, compared to $0.30 in Q2 2022.

The company reaffirmed its 2023 ongoing earnings forecast of $1.50 to $1.65 per share.

PPL is on track to achieve targeted O&M savings of $50 to $60 million in 2023 and projects at least $175 million in annual savings by 2026.

Total Revenue
$1.82B
Previous year: $1.7B
+7.5%
EPS
$0.29
Previous year: $0.3
-3.3%
Gross Profit
$707M
Previous year: $602M
+17.4%
Cash and Equivalents
$326M
Previous year: $336M
-3.0%
Free Cash Flow
-$179M
Previous year: -$105M
+70.5%
Total Assets
$38.3B
Previous year: $37.1B
+3.3%

PPL

PPL

Forward Guidance

PPL reaffirmed its 2023 ongoing earnings forecast range of $1.50 to $1.65 per share, with a midpoint of $1.58 per share. It remains well-positioned to deliver top-tier earnings per share and dividend growth of 6% to 8% a year through at least 2026 without the need for equity issuances.

Positive Outlook

  • Reaffirmed 2023 ongoing earnings forecast of $1.50 to $1.65 per share.
  • Projected annual earnings per share and dividend growth of 6% to 8% through at least 2026.
  • Targeted O&M savings of $50 to $60 million in 2023 are on track.
  • Projecting at least $175 million in annual operation and maintenance savings by 2026.
  • Nearly $2.5 billion investment in infrastructure planned for this year.

Challenges Ahead

  • Mild weather impacted year-to-date financial results.
  • Increased storm activity in service territories affected financial results.
  • Second-quarter 2023 reported earnings decreased compared with a year ago.
  • Lower sales volumes in Kentucky Regulated segment due to mild weather.
  • Lower sales volumes in Pennsylvania Regulated segment.