PSEG Q2 2025: Strong Financials, Reaffirmed Guidance, and Strategic Nuclear Capacity Securing

PSEG reports Q2 2025 net income of $1.17 per share and non-GAAP operating earnings of $0.77 per share, up 34.8% and 22.7% YoY, respectively. The company maintains its 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share, a 9% increase over 2024. Nuclear generation increased to 7.5 TWh, up 0.5 TWh YoY, and the company secured 3,500 MW of nuclear capacity in the PJM's 2026/2027 auction.

Title: PSEG's Q2 2025 Earnings Beat Expectations, Stock Declines Pre-Market

Public Service Enterprise Group Inc. (PSEG) reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.77, compared to the forecasted $0.71. This resulted in an EPS surprise of 8.45%. Revenue also exceeded predictions, reaching $2.8 billion against the expected $2.48 billion, marking a 12.9% surprise. Despite these positive results, PSEG’s stock saw a pre-market decline of 0.6%, reflecting a broader market trend or investor sentiment. Key Takeaways PSEG’s Q2 2025 EPS of $0.77 exceeded forecasts by 8.45%. Revenue hit $2.8 billion, beating expectations by 12.9%. Pre-market stock price fell by 0.6%, despite strong earnings. PSEG reaffirmed its 2025 earnings guidance of $3.94 to $4.06 per share. Investments in clean energy and infrastructure continue to be a focus. Company Performance PSEG demonstrated robust performance in Q2 2025, with net income per share increasing to $1.17 from $0.87 in the same quarter last year. The company’s commitment to clean energy and infrastructure improvements is evident, as it invests heavily in projects like the Clean Energy Future Energy Efficiency program and nuclear plant upgrades. The growth in net income from PSEG Power and Other segments highlights the company’s strong position in the energy sector. Financial Highlights Revenue: $2.8 billion (12.9% above forecast) Earnings per share: $0.77 (8.45% above forecast) Net income: $332 million for PSE&G, $253 million for PSEG Power and Other Total available liquidity: $3.6 billion Earnings vs. Forecast PSEG’s earnings per share of $0.77 beat the forecast of $0.71 by 8.45%, a significant surprise that underscores the company’s operational efficiency and strong market position. Revenue also surpassed expectations by 12.9%, reaching $2.8 billion compared to the anticipated $2.48 billion. Market Reaction Despite the positive earnings report, PSEG’s stock experienced a pre-market decline of 0.6%, trading at $89.6. According to InvestingPro analysis, the stock’s RSI indicates overbought territory, while trading patterns show historically low volatility. This movement may reflect broader market trends or investor caution, as the stock remains below its 52-week high of $95.22. The stock has delivered a solid 20.2% return over the past year. Outlook & Guidance PSEG reaffirmed its 2025 non-GAAP operating earnings guidance, projecting earnings between $3.94 and $4.06 per share. Analyst consensus shows mixed sentiment, with a moderate buy recommendation and price targets ranging from $70 to $103. The company continues to focus on significant capital investments, with a five-year spending plan of $21-24 billion, and anticipates a rate base compound annual growth rate (CAGR) of 6-7.5% through 2029. Executive Commentary CEO Ralph LaRosa emphasized the company’s commitment to balancing customer needs with affordability. He stated, "We are here for our customers, but we also know that there’s challenging times from an affordability standpoint." LaRosa also highlighted the company’s adherence to its guidance, saying, "We have not come off of the fact that our guidance remains at the PTC floor with our 5 to 7%." Risks and Challenges Market volatility affecting stock performance. Regulatory changes in the energy sector. Potential delays in infrastructure projects. Economic pressures impacting customer affordability. Competition in the clean energy market. Q&A During the earnings call, analysts inquired about potential legislative solutions for generation build in New Jersey and explored opportunities in data centers and large load inquiries. The company also addressed challenges in the PJM capacity market and discussed possible governance changes. Full transcript - Public Service Enterprise Group Inc (PEG) Q2 2025: Rob, Event Operator: Ladies and gentlemen, thank you for standing by. My name is Rob, and I’m your event operator today. I would like to welcome everyone to today’s conference, Public Service Enterprise Group’s Second Quarter twenty twenty five Earnings Conference Call and Webcast. At this time, all participants are in listen only mode. Later, we will conduct a question and answer session for members of the financial community. As a reminder, this conference is being recorded today, 08/05/2025, and will be available for replay as an audio webcast on PSEG’s Investor Relations website at https:investor.pseg.com. I would now like to turn the conference call over to Carolina Chan. Please go ahead. Carolina Chan, Investor Relations, PSEG: Good morning, and welcome to PSEG’s second quarter twenty twenty five earnings presentation. On today’s call are Ralph LaRosa, Chair, President and CEO and Dan Craig, Executive Vice President and CFO. The press release, attachments and slides for today’s discussion are posted on our IR website at investor.pseg.com and our 10 Q will be filed later today. PSEG’s earnings release and other matters discussed during today’s call contain forward looking statements and estimates that are subject to various risks and uncertainties. We will also discuss non GAAP operating earnings, which differs from net income as reported in accordance with Generally Accepted Accounting Principles or GAAP in The United States. We include reconciliations of our non GAAP financial measures and disclaimer regarding forward looking statements on our IR website and in today’s material. Following our prepared remarks, we will conduct a thirty minute question and answer session. I will now turn the call over to Ralph LaRosa. Ralph LaRosa, Chair, President and CEO, PSEG: Thank you, Carlotta, and thanks to all of you for joining us this morning to review PSEG’s second quarter twenty twenty five results and to discuss our outlook for the business over the rest of the year. PSEG delivered another quarter of solid operating and financial performance and PSE and G is on track to execute on its full year $3,800,000,000 regulated investment program to maintain reliability. PSE and G also benefited from a full quarter of regulatory recovery of and on over $3,000,000,000 of previously invested capital, which was approved in October 2024 settlement of our electric and gas distribution base rate case. PSEG’s results also reflect the positive impact of higher output from our nuclear generating fleet which benefited from the absence of a Spring Hope Creek refueling outage experienced last year. During the past quarter, we also continued to prioritize meeting our customers’ expectations on both the reliability and affordability fronts. In late June, we successfully operated through three consecutive days of 100 degree plus temperatures prompting high electricity usage that set a summer peak load of 10,229 megawatts on June 24, the highest system load we have experienced since 2013. The value of our infrastructure resilience and storm restoration efforts benefited customers during a series of intense heat, wind, and rainstorms providing yet another validation of our investments in the system to maintain reliability, which also improves the customer experience. Our utility crews in New Jersey and on Long Island are working tirelessly to safely keep the lights on, restoring service to interrupted customers on a timely basis, redirecting employees from nonemergency work to focus on emergent service requests, and deploying mutual aid to reinforce our local crews to restore service to customers even faster. During the four day heat storm in June, PSE and G crews restored service to 99% of storm interrupted customers within twenty four hours. I could not be more proud of our team’s work and these results. Turning to our affordability focus, given the warmer than normal summer thus far, higher electricity usage is expected to result in higher customer bills. In addition, our customers are seeing the electric rate impact of last year’s PJM capacity auction, which is just now translating into summer utility bills. PSE and G has responded by partnering with the New Jersey Board of Public Utilities to implement initiative, providing all residential customers with deferred billing during two high usage summer months, shifting collection of the deferral to lower electric usage months with no interest charged to customers. The utility has also extended shutoff protections for income qualified residential customers and suspended electric reconnect fees through September 30. In addition, PSE and G is processing two sets of upcoming state funded residential energy assistance payments that will also reduce eligible customer bills. We also continue to connect our customers in need of payment assistance with all available resources, including our award winning energy efficiency programs to help lower usage. Last month, PJM released the results of his latest capacity auction, which priced within a FERC approved price collar at $329 per megawatt day for the twenty twenty six to twenty twenty seven energy year. Despite this latest increase in capacity prices, we anticipate a near flat impact on customer electric bills when this latest price is feathered into the BGS supply rates in June 2026. This assumes other supply related costs remain the same, preserving the reduction from other charges expected to come off the bill. As we’ve discussed on prior calls, the resource adequacy challenges in New Jersey