Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 7, 2026 · Beat 5 of last 7 quarters
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PPL's expanding data center pipeline and Invitium JV underscore accelerating AI infrastructure demand in its service territories. The company's large-load tariffs and generation development plans position it to capture incremental investment opportunities, potentially driving $10B-$12B of additional capital through 2032. This reinforces the thesis that regulated utilities with strong load growth and constructive regulatory frameworks are key beneficiaries of the AI buildout.
PPL reported Q2 2026 ongoing EPS of $0.33, up $0.01 YoY, with GAAP EPS of $0.30. Pennsylvania data center agreements grew to 32 GW, with over 11 GW under ESAs and 6.5 GW under construction; two data centers began taking service during the quarter. Kentucky's development pipeline expanded to 13.7 GW, with probability-weighted load projections of 3.7 GW by 2032, more than double the 2025 CPCN filing. The Invitium JV progressed with over 5 GW of CCGT reservation agreements and 5 GW accepted in the PJM interconnection queue. The company reaffirmed its 2026 guidance and long-term financial targets.
Management reaffirmed 2026 ongoing EPS guidance of $1.90-$1.98 (midpoint $1.94) and long-term targets of 6%-8% EPS growth through at least 2029, with CAGR near the top end. They expect stronger second-half earnings driven by Pennsylvania (rates effective July 1) and Rhode Island (rates effective September 1) rate case outcomes. The company projects $23B of capital investment through 2029, supporting over 10% average annual rate base growth. They highlighted incremental upside from Kentucky generation and the Invitium JV, which could drive $10B-$12B of additional capital through 2032. Management expects one or more Invitium commercial agreements by year-end, with potential earnings contributions from batteries or other shorter-lead-time technologies as early as 2029-2030, and more meaningful contributions from CCGTs in 2031-2032.
“The headline for this quarter is straightforward. We are executing on our current plan while creating more visible upside beyond it.”
on Quarterly summary
“Bottom line, these tariffs provide a disciplined framework to capture growth responsibly while ensuring that growth pays for growth.”
on Large-load tariffs
“We are not waiting for those ESSAs to begin that development work that we've talked about on the call today. We're running those in parallel. And so we're ready to respond very quickly in concert with the customer negotiation.”
on Invitium JV progress
Could you talk about the interaction of the Invitium JV with the bilateral process and PJM procurement? Would you have to wait for procurement to happen?
We are actively negotiating bilaterally, independent of the PJM process. We submitted proposals to maximize customer contacts, but the two are not necessarily related.
When do you expect to see the first results from the PJM capacity matching process? And how do you view this process versus bidding into the actual RBP auction?
We have not committed to bidding into the RBP auction. PJM is expected to come out with results at the end of September. Caps in the auction are well below CONE for some assets, so our focus remains on bilateral contracting.
With the longer-dated opportunities, could we see a longer planning window next time you update guidance?
That's certainly possible given the timing of earnings contributions and logistics around CCGTs. We would provide separate disclosure for the JV earnings and its impact on CAGR.