PPL Corporation (NYSE: PPL) reported its fourth‑quarter 2025 earnings, posting operating revenue of $2.27 billion and an adjusted earnings per share of $0.41. The quarterly dividend was raised to $0.2850 per share, a 4.6% increase from the prior quarter. The company’s 2026 guidance remains unchanged, with an adjusted EPS range of $1.90 to $1.98 per share and a reiterated 6%‑to‑8% annual EPS growth target through 2029. PPL also confirmed its capital‑investment plan, which is expected to drive an average annual rate‑base growth of 9.8% through 2028.
The results fell short of consensus estimates: revenue missed the Zacks consensus of $2.34 billion by 2.7%, and EPS missed the analyst consensus of $0.42 by $0.01, a 2.4% shortfall. The miss was largely attributable to a 2% reduction in operating costs, which, while improving operating income by 26.3% year‑over‑year, also limited the upside in revenue growth. The company’s operating income rose to $X (not provided in the source) as cost controls and operational efficiencies offset modest revenue shortfalls.
PPL’s business momentum is driven by a surge in electricity demand from data‑center customers. The company secured agreements totaling 25.2 GW of new data‑center capacity, a key tailwind that underpins its long‑term growth strategy. In 2025, PPL completed $4.4 billion in infrastructure investments and achieved $170 million in annualized O&M savings, exceeding its savings goals and reinforcing its focus on cost discipline and reliability.
Management highlighted the company’s adaptability in a rapidly changing energy landscape. President and CEO Vincent Sorgi noted that PPL is evolving to meet challenges and embrace opportunities, and that the firm achieved its targeted earnings and dividend growth while completing the infrastructure investments and surpassing O&M savings targets. The guidance for 2026, unchanged from the prior release, signals confidence in continued demand from data‑center customers and the ability to maintain profitability through disciplined capital allocation.
Market reaction to the earnings was muted, with PPL shares falling 3.87% in pre‑market trading. The decline was driven primarily by the revenue and EPS misses, which tempered enthusiasm despite the dividend increase and the company’s positive outlook for data‑center demand and infrastructure investment. Investors weighed the short‑term shortfall against the long‑term growth narrative presented by management.
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