PG&E reported full‑year 2025 results that surpassed expectations, with net income of $2.593 billion and diluted earnings per share of $1.18. Operating revenue climbed to $24.935 billion, up 2.4% from $24.419 billion in 2024, driven by higher electric and natural‑gas sales. Operating income rose to $4.749 billion, reflecting continued cost‑control efforts and a 2.5% reduction in non‑fuel O&M expenses.
In the fourth quarter, PG&E’s non‑GAAP core EPS of $0.36 fell short of the consensus estimate of $0.38 by $0.02, while revenue of $6.80 billion missed the $7.05 billion estimate by $0.25 billion. The quarter’s performance was supported by steady demand in core segments but was weighed down by higher wildfire‑related claims and the impact of the 2023 Wildfire Mitigation and Catastrophic Events decision.
The company narrowed its 2026 non‑GAAP core earnings guidance to $1.64–$1.66 per share, a slight tightening from the prior $1.62–$1.66 range. Management cited stronger customer capital investment, ongoing O&M savings, and the newly established Continuation Account under SB 254 as key drivers of the upward revision. The guidance reflects confidence in maintaining flat‑to‑down customer bills while investing in wildfire mitigation and data‑center load growth.
PG&E continues to advance its wildfire‑mitigation program, completing 334 miles of undergrounding and installing 207 miles of strengthened poles in 2025, bringing the total buried mileage to over 1,210 miles. The company also reports 2 GW of data‑center capacity in final engineering and approximately 3.6 GW in final engineering, underscoring a strategic focus on high‑growth electric load. The Continuation Account is expected to further stabilize future earnings by providing a buffer for regulatory and operational uncertainties.
"Safety, reliability, and affordability will continue to be at the heart of every decision we make," said CEO Patti Poppe. "My coworkers at PG&E continue our operational progress with a focus on safety as our foundation. We've also stabilized customer bills over the past year. For the long term, we're building infrastructure for purpose that enables electric load growth and delivers affordable and resilient energy for all," she added. These remarks highlight the company’s commitment to balancing cost discipline with strategic investment.
PG&E’s financial health remains solid, with a debt‑to‑equity ratio of 1.87 and long‑term debt of $57.39 billion. Liquidity metrics show a current ratio of 0.94 and a quick ratio of 0.89, indicating modest short‑term pressure. Despite these challenges, the company’s earnings trajectory—projected to grow 9%+ annually through 2030—suggests a resilient business model that can sustain growth while managing risk.
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