PGE 2025 Q2 Earnings Stable Net Income Growth Despite Revenue Decline

PG&E (PCG) reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company experienced a decline in revenue, missing analyst expectations, but maintained stable earnings per share (EPS) compared to the previous year. PG&E adjusted its full-year 2025 GAAP EPS guidance downward, reflecting caution amid ongoing financial challenges. Non-GAAP core EPS guidance was reaffirmed, suggesting confidence in the company's underlying performance. Despite the revenue miss, PG&E is focused on delivering stable energy and enhancing infrastructure, supporting long-term growth.

Revenue

PG&E reported a total revenue decline of 1.5% in 2025 Q2, amounting to $5.90 billion from $5.99 billion in 2024 Q2. The electric segment generated $4.41 billion, while the natural gas segment contributed $1.48 billion, reflecting the overall decrease.

Earnings/Net Income

PG&E's EPS remained stable at $0.24 in 2025 Q2, consistent with 2024 Q2 figures. However, the company experienced a 4.8% increase in net income, reaching $549 million compared to $524 million in the previous year. The stable EPS indicates consistent financial performance.

Price Action

The stock price of PG&E saw a modest increase of 0.14% on the latest trading day, a 2.11% rise over the past week, and a 0.21% gain month-to-date.

Post Earnings Price Action Review

The strategy of purchasing PCG shares following a revenue increase on the financial report release date and holding for 30 days has historically yielded a 33.99% return over the past three years. However, this performance fell short of the broader market benchmark return of 72.92%, suggesting missed opportunities for greater gains while focusing on PCG's post-revenue raise performance. Despite its lower return compared to the benchmark, the strategy highlights a targeted approach to leveraging specific financial metrics. Investors should consider the broader market conditions and potential growth drivers when implementing similar strategies. Furthermore, the company's ongoing focus on operational safety, affordable energy, and infrastructure resilience may contribute positively to future stock performance.

CEO Commentary

"PG&E's story of progress continues to unfold with another solid quarter of performance. We're delivering energy safely to our customers every day. We've stabilized bills over the past year and expect them to be down in 2026," said Patti Poppe, CEO of PG&E Corporation. The company emphasized its commitment to operational safety, maintaining affordable energy, and enhancing infrastructure resilience. It also highlighted the successful connection of over 3,300 new electric customers and 2,000 electric vehicle charging ports to the grid, framing these achievements as part of a broader strategy to bolster sustainable load growth and customer satisfaction.

Guidance

PG&E Corporation updated its full year 2025 GAAP EPS guidance to a range of $1.26 to $1.32 per share, down from the previous range of $1.29 to $1.35. The company reaffirmed its non-GAAP core EPS guidance at $1.48 to $1.52 per share. Factors impacting GAAP earnings include unrecoverable interest expenses estimated between $350 million and $400 million after tax, along with costs related to wildfire management and regulatory compliance. The overall outlook reflects cautious optimism as the company navigates ongoing financial and operational challenges while focusing on its long-term capital investment strategies.

Additional News

PG&E Corporation announced plans to expand its renewable energy portfolio through strategic acquisitions, aiming to bolster its sustainable energy offerings. The company recently appointed a new Chief Financial Officer, who brings extensive experience in energy sector financial management, signaling a strengthened leadership team. Additionally, PG&E has been actively involved in community engagement initiatives, focusing on promoting energy efficiency and safety awareness across its service areas. These efforts align with PG&E's commitment to enhancing infrastructure resilience and maintaining customer satisfaction amid evolving regulatory landscapes. The company also launched a new dividend program to return value to shareholders, further reinforcing its financial stability and long-term growth strategy.