Exelon Corporation Q2 FY26 Earnings Analysis

- Exelon expects adjusted operating earnings growth near the top end of the 5% to 7% range starting in 2026. - The revised 4-year capital plan totals $41.7 billion through 2029, with an emphasis on disciplined execution and advancing economic and energy priorities. - Rate base growth is projected at 7.9% annually over the next 4 years, driven largely by accelerating transmission investments. - Transmission rate base is anticipated to grow 16% through 2029, responding to reliability needs and large load interconnections. - Earnings guidance for 2026 is $2.81 to $2.91 per share, aiming for midpoint or better. - Exelon plans to deploy approximately $10 billion of capital in 2026, supporting long-term economic growth and customer benefits. - They maintain a focus on cost management to keep expense growth below inflation and target no more than 2% adjusted O&M growth through 2029.

- Exelon expects adjusted operating earnings growth near the top end of the 5% to 7% range beginning in 2026. - For 2026, Exelon projects operating earnings of $2.81 to $2.91 per share, with a goal of achieving midpoint or better. - First quarter 2026 adjusted operating earnings were $0.91 per share, slightly exceeding expectations. - Second quarter earnings are expected to be approximately 15% of the full-year earnings guidance midpoint. - Exelon targets a consolidated 9% to 10% ROE in 2026. - The company aims to maintain stable financial flexibility and strong credit metrics, targeting approximately 14% equity ratio over the planning period through 2029. - Long-term, Exelon plans capital investments of $41.7 billion over 4 years, supporting growth and operational performance. - The company remains committed to disciplined execution amid evolving market dynamics to sustain growth.

- Revised 4-year capital plan targets $41.7 billion total investments through 2029. - Approximately $10 billion planned for deployment in 2026. - $1.1 billion project deferrals and reductions in PECO and BGE distribution. - $1.5 billion incremental transmission investments to support project realignment and data center interconnections. - Transmission rate base expected to grow at 16% through 2029. - Transmission organization led by Carim Khouzami pursuing competitive transmission bids and partnerships to build contracted generation. - Committed to disciplined capital execution focused on cost control and efficiency with $350 million of cost savings targeted in 2026-2027. - Balancing capital deployment with customer affordability and system reliability. - Regulatory filings ongoing, including Pepco Maryland base rate case supporting infrastructure investments. These investments support reliability, growth, and economic development across Exelon's diversified portfolio.

- Through 2029, Exelon plans to fund a revised $41.7 billion capital plan. - Funding breakdown: approximately $21.8 billion from internally generated cash flow, $13.1 billion of utility-level debt, $3.4 billion of holding company debt. - Equity funding is expected to be about $3.4 billion, representing approximately 40% of the incremental capital plan from last year and less than 2% of Exelon's annual market cap. - As of early 2026, about 43% ($2.3 billion) of planned long-term debt financing has been completed, with successful execution of all expected debt issuances. - Approximately 37% of equity needs have been secured, including $850 million for 2026 and over $400 million for 2027, using forward contracts under the ATM program. - Exelon remains focused on maintaining financial flexibility and strong credit metrics, targeting approximately 14% credit ratings at Moody’s and S&P.

- Exelon's revised 4-year capital plan includes $41.7 billion of investment, reflecting a rebalance with $1.1 billion of project deferrals and reductions in PECO and BGE distribution, and $1.5 billion of incremental transmission investment. - Annualized rate base growth is maintained at 7.9% over the next 4 years. - Transmission rate base is expected to grow at 16% through 2029, driven by reliability requirements and large load interconnections. - The company continues pursuing competitive transmission bids, including in MISO. - There are $12 billion to $17 billion of growth opportunities outside the planning period, primarily in transmission and generation. - Over 800 generation projects, totaling 20 gigawatts, have applied for interconnection in PJM, though only 19% currently reach operation. - Exelon is actively managing its portfolio to pivot as needed based on market and regulatory conditions.