PPL raises long-term EPS growth outlook after strong third quarter

Third-quarter earnings and 2026 forecast

PPL reported third-quarter 2026 GAAP earnings of $367 million, or $0.49 per share, compared with $318 million, or $0.43 per share, in the third quarter of 2025. After adjustments for special items, earnings from ongoing operations reached $411 million, or $0.54 per share, up from $355 million, or $0.48 per share, a year earlier.

For the first nine months of 2026, reported earnings were $1.05 billion, or $1.38 per share, compared with $915 million, or $1.23 per share, in the same period of 2025. Earnings from ongoing operations were $1.14 billion, or $1.50 per share, compared with $1.04 billion, or $1.40 per share.

PPL narrowed its 2026 ongoing earnings forecast to $1.92 to $1.96 per share. The company said it is on track to achieve at least the midpoint of $1.94 per share. Its 2027 earnings forecast ranges from $2.06 to $2.14 per share, with a midpoint of $2.10, which PPL said represents an 8.2% increase over its projected 2026 ongoing earnings midpoint.

Higher growth target and expanded capital plan

PPL increased its long-term annual EPS growth target to 7% to 9% through at least 2030, measured from the midpoint of its 2026 ongoing earnings forecast. Annual growth is expected to be in the top half of that range. The previous plan targeted annual EPS growth of 6% to 8%.

The company’s capital plan for 2027 through 2030 totals $25 billion, $2 billion more than its prior 2026 to 2029 plan. PPL said the increase primarily reflects an additional natural gas combined-cycle unit to support large-load growth in Kentucky. The investments are intended to strengthen reliability and resilience, modernize energy networks, replace aging infrastructure and support growing customer demand.

PPL projects the plan will produce average annual rate base growth of 10% from 2026 through 2030. The company said its approved large-load tariffs are designed to ensure that large-load customers driving incremental infrastructure needs bear the associated costs, helping protect existing customers.

Data center demand creates additional generation opportunities

Beyond the updated business plan, PPL identified $12 billion to $16 billion of potential additional generation investment through 2032 in Pennsylvania and Kentucky. In Kentucky, the economic development pipeline in the service territories of Louisville Gas and Electric and Kentucky Utilities reached approximately 14.7 GW through 2032, including 12.8 GW associated with data center opportunities.

PPL estimates that additional generation needed to serve the remaining 1.6 GW of demand with a probability of success of 50% or greater could represent $6.0 billion to $7.0 billion of incremental investment between 2027 and 2032. If realized, the investment could raise PPL’s projected compound annual EPS growth to 9%+ from 2026 to 2030.

In Pennsylvania, PPL Electric Utilities’ data center pipeline reached approximately 35.3 GW in advanced stages of planning, including 11.4 GW under signed electric service agreements and 8.5 GW under construction. Invitium Energy, PPL’s joint venture with Blackstone Infrastructure, agreed to key commercial terms with QTS for approximately 2 GW of generation capacity for the QTS Salem Township data center project. The term sheet includes a 20-year initial term and provisions for multiple five-year renewals, but remains nonbinding and subject to customary conditions precedent.