Duke Energy (DUK) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EPS was $1.18, up from $0.91 in Q2 2023, driven by electric utility growth, rate increases, higher sales, and favorable weather; reported EPS was $1.13, compared to a loss of $0.32 last year.

• First half 2024 results are in line with expectations, positioning the company to achieve full-year results within the reaffirmed adjusted EPS guidance of $5.85–$6.10 and a 5%-7% long-term growth rate through 2028.

• Strong regulatory execution with ~$75 billion of investments approved or settled since 2023, supporting long-term growth and value creation.

• Economic development, especially from data centers and advanced manufacturing, is driving robust load growth in key jurisdictions.

• Advanced clean energy transition efforts, with new customer programs and regulatory filings across multiple jurisdictions.

Financial highlights

• Q2 2024 adjusted EPS was $1.18, up from $0.91 in Q2 2023; reported EPS was $1.13; six-month adjusted EPS was $2.62, up from $2.10; net income attributable to common stockholders was $886 million, up from a loss of $234 million.

• Operating revenues for Q2 2024 were $7.17 billion, up from $6.58 billion in Q2 2023; six-month revenues were $14.84 billion, up from $13.85 billion.

• Electric Utilities & Infrastructure segment income increased by $265M year-over-year, benefiting from rate increases, improved weather, and higher sales volumes.

• Gas Utilities & Infrastructure segment income declined by $19M year-over-year, impacted by higher interest, depreciation, and property taxes.

• Available liquidity as of June 30, 2024, was approximately $5.9 billion.

Outlook and guidance

• 2024 adjusted EPS guidance range reaffirmed at $5.85–$6.10, with a 5–7% annual growth rate targeted through 2028 off the 2024 midpoint.

• Projected total load growth of ~2% in 2024, with 1.5–2% annual growth expected through 2028; full financial plan update expected in February 2025.

• Long-term dividend payout ratio targeted at 60–70% of adjusted EPS; 3.7% dividend yield as of August 2, 2024.

• Company expects to recover $1.9 billion of deferred fuel costs in 2024 and return to historical average balances by year-end.

• Regulatory approvals pending for several major rate cases and resource plans, with decisions expected in late 2024 and 2025.