Public Service Enterprise Group Incorporated Q2 FY26 Earnings Analysis

- PSEG anticipates a 6% to 8% compounded annual growth rate (CAGR) in non-GAAP operating earnings through 2030 based on its strategic plan execution. - The 5-year regulated capital investment plan projects $22.5 billion to $25.5 billion for PSE&G through 2030, supporting 6% to 7.5% compound annual growth in rate base. - Incremental opportunities such as nuclear revenue above market prices, additional competitive transmission solicitations, and connecting several thousand megawatts of solar and battery storage could add to growth beyond the anticipated CAGR. - Residential customer growth is about 1% year-over-year, driving increased margin through distribution. - Investments in energy efficiency, gas system modernization, electrification initiatives, and load growth also support volume and revenue expansion.

- PSEG maintains full-year 2026 non-GAAP operating earnings guidance of $4.28 to $4.40 per share. - Reaffirms 6% to 8% compounded annual growth rate (CAGR) for non-GAAP operating earnings through 2030. - Growth driven by continued execution of strategic plan including regulated capital investments. - Utility 5-year regulated capital investment plan of $22.5 billion to $25.5 billion through 2030 supports: - 6% to 7.5% compound annual growth in rate base through 2030. - Incremental opportunities such as nuclear revenue, competitive transmission solicitations, and system investments for solar and battery storage. - The consistent and sustainable dividend growth includes a 6% annualized increase for 2026, marking the 15th consecutive increase.

- PSE&G's 5-year regulated capital investment plan remains $22.5 billion to $25.5 billion through 2030, supporting infrastructure modernization, energy efficiency, electrification initiatives, and load growth. - 2026 capital investment plan targets approximately $4.2 billion for the year, with about $800 million invested in Q1. - GSMP III program began in Q1 2026 with a planned $1.4 billion investment over 3 years, including $1 billion and accelerated recovery of $360 million in stipulated base. - Nuclear uprates at Salem units are planned for outages in 2027 or 2029; capital for this is included in the current plan. - License extension for nuclear units is being evaluated, with potential CapEx forecasted once NRC feedback is received; some work may extend beyond the 5-year plan. - Incremental system investments are planned to connect thousands of megawatts of solar and battery storage resources, potentially driving earnings growth beyond current forecasts. - Transmission competitive bids will be pursued selectively, with capital plan adjustments upon winning new projects.

- PSEG has ample liquidity totaling $3.9 billion at the end of March 2026, including $400 million of cash on hand. - In February 2026, PSEG entered into a $500 million 364-day variable rate term loan to support liquidity. - All revolving credit facilities totaling $3.75 billion were extended by 2 years through March 2031. - In January 2026, PSE&G issued $1 billion of secured medium-term notes (MTNs): $500 million at 4.2% due 2031 and $500 million at 5.63% due 2056, using part of the proceeds to repay $450 million MTNs maturing in March 2026. - PSEG’s financing plan supports execution of its 5-year capital spending plan primarily through regulated CapEx without the need to issue new equity or sell assets. - The company aims for consistent and sustainable dividend growth, indicating no current plans for equity fundraising.

- The transcript does not provide explicit figures or detailed data on current or expected order book or pending orders. - Discussion mainly focuses on PJM transmission open windows and competitive bidding for transmission projects. - Daniel Cregg mentioned careful assessment of opportunities during PJM transmission open windows, with plans to submit competitive bids depending on strategic fit. - There is ongoing activity to serve large loads, including data centers, with interest leveling off in New Jersey but continuing in Pennsylvania. - No specific order book numbers or pending order details were disclosed on the call.