PPL Corp

Earnings + 2026 outlook (reaffirmed): strong near-term delivery - Q2 2026 GAAP earnings: $0.30/share (vs $0.25 in Q2’25); special items: +$0.03/share (IT transformation/system integration). - Q2 ongoing earnings (non-GAAP): $0.33/share (slightly +$0.01 YoY), in line with expectations. - 2026 ongoing EPS forecast reaffirmed: $1.90–$1.98, midpoint $1.94. Management reiterated stronger earnings growth in 2H 2026, supported by Pennsylvania + Rhode Island rate outcomes.

Regulatory “wins” that drive the earnings ramp (plus timing-sensitive uncertainties) - Pennsylvania (PPL Electric): rate case settlement effective July 1; approved increase $275M, with <4% increase across rate classes. - Affordability context: delivery rates remain ~20% below the latest published state average even after the adjustment. - Includes a 2-year stay-out; DSIC + disciplined cost management expected to manage out-of-base-rate-case needs beyond that period. - Rhode Island: rate case on track; hearings completed mid-July, briefs filed; public meetings Aug 12–20; new rates expected Sept 1 (first base rate increase in 8 years). - Management also progressing Hold Harmless Bill Credit proposal to accelerate customer offsets. - Kentucky (LG&E/KU): awaiting KPSC decision on reconsideration request; decision requested by Aug 14. - Risk/negative: management believes there were flaws in the original decision requiring reconsideration—i.e., regulatory outcome remains a potential swing factor.

Capital spending + long-term financial targets (confidence, with an “upside option”) - 2026 capital deployment: on pace for ~$5B invested to support safe/reliable/affordable service. - Capex through Q2: ~$2.3B deployed (about 30% more than prior year through first 6 months). - Longer-term capex need: $23B through 2029, implying >10% average annual rate base growth. - Long-term targets reaffirmed (excluding Invitium): - EPS growth: 6%–8% annually through at least 2029 (CAGR expected near top of range) - Dividend growth: 4%–6% - FFO-to-debt: 16%–18% - Opportunity: management explicitly flags that these targets exclude Invitium Energy, which they see as meaningful earnings/cash-flow upside beyond the current plan.