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Public Service Enterprise Group (NYSE:PEG) reported solid first-quarter 2025 results on April 30, with non-GAAP operating earnings of $1.43 per share, supporting the company’s maintained full-year guidance that represents approximately 9% growth over 2024. The utility’s stock was down 1.97% in premarket trading despite the strong performance, trading at $80.00.
Quarterly Performance Highlights
PSEG reported Q1 2025 net income of $1.18 per share and non-GAAP operating earnings of $1.43 per share. Total (EPA:TTEF) PSEG net income reached $589 million, up from $532 million in Q1 2024, while non-GAAP operating earnings grew to $718 million compared to $657 million in the same period last year.
The company’s regulated utility business, PSE&G, delivered net income of $546 million, up from $488 million in Q1 2024, while PSEG Power & Other reported $43 million, slightly down from $44 million in the prior-year period.
As shown in the following earnings breakdown from the presentation:
The company provided a detailed reconciliation of the year-over-year EPS change, highlighting positive contributions from transmission ($0.11) and distribution margin ($0.20), partially offset by higher operation and maintenance expenses.
PSEG’s nuclear fleet continued to demonstrate exceptional operational performance, achieving a capacity factor of 99.9% in Q1 2025, up from 96.8% in Q1 2024. Total nuclear generation increased to 8,355 GWh from 8,201 GWh in the prior-year period.
Strategic Initiatives
PSE&G invested approximately $0.8 billion in Q1 as part of its planned $3.8 billion capital program for 2025, which remains on track and on budget. The company began investment in its Clean Energy Future - Energy Efficiency II Program (CEF-EE II), representing approximately $2.9 billion in approved spending over a six-year period.
The utility’s customer base continues to grow, with both residential electric and gas customer counts increasing by approximately 1% for the trailing 12 months ended March 31, 2025. This growth serves as a driver of margin expansion under the Conservation Incentive Program (CIP).
As detailed in the company’s quarterly highlights:
On the regulatory front, PSE&G filed a request for an annual revenue increase of $53 million for investments under the Gas System Modernization Program (GSMP) II Extension. Additionally, in April, the New Jersey Board of Public Utilities approved an annual revenue increase of approximately $9 million for investments under the Infrastructure Advancement Program (IAP), effective May 1, 2025.
Forward-Looking Statements
PSEG maintained its 2025 non-GAAP operating earnings guidance of $3.94-$4.06 per share, representing an approximate 9% increase at the midpoint over 2024 results. The company also reaffirmed its long-term non-GAAP earnings growth outlook of 5%-7% for the 2025-2029 period.
The guidance reflects several key drivers, including new distribution base rates, clause-based investment recoveries, and higher PSE&G rate base, which increased by approximately 12% at year-end 2024 compared to year-end 2023.
PSEG’s total capital program is forecasted to be $22.5-$26 billion for 2025-2029, with more than 90% allocated to regulated activities. This investment is expected to support PSE&G’s rate base compound annual growth rate (CAGR) of 6%-7.5% over the same period.
The company highlighted that around 90% of its projected non-GAAP operating earnings over the 2025-2029 period will come from PSE&G, underscoring the strategic shift toward its regulated business as the primary growth driver.
Financial Position
PSEG maintains a solid financial position with strong credit ratings from major rating agencies. The company reported total long-term debt outstanding of $5.86 billion at the parent level and $15.89 billion at PSE&G, with a consolidated debt-to-capitalization ratio of 59%.
In March, PSEG issued $600 million of 4.90% Senior Notes due March 2030 and $400 million of 5.40% Senior Notes due March 2035, further strengthening its capital structure.
The company reported approximately $4.6 billion of total available liquidity as of March 31, 2025, providing ample flexibility to execute its robust capital plan without the need to issue equity or sell assets.
PSEG also announced a 5% increase in its quarterly dividend, raising the annualized indicative rate to $2.52 per share for 2025. This increase reflects the company’s commitment to delivering shareholder value while maintaining financial strength to support its long-term growth strategy.
Full presentation:
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