Public Service Enterprise Group (PEG) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $434 million ($0.87 per share), down from $591 million ($1.18 per share) in Q2 2023; first half 2024 net income was $966 million ($1.93 per share), down from $1,878 million ($3.76 per share) in 2023.

• Q2 2024 non-GAAP operating earnings were $313 million ($0.63 per share), down from $351 million ($0.70 per share) in Q2 2023.

• Results are in line with expectations, reaffirming full-year 2024 non-GAAP operating earnings guidance of $3.60–$3.70 per share.

• PSE&G and PSEG Power & Other performance was impacted by higher O&M, depreciation, and interest expenses, but benefited from the nuclear production tax credit.

• Electric and gas systems performed well during record heat and an earthquake, with rapid restoration and customer service.

Financial highlights

• Q2 2024 net income: $434 million ($0.87/share); Q2 2023: $591 million ($1.18/share).

• Q2 2024 non-GAAP operating earnings: $313 million ($0.63/share); Q2 2023: $351 million ($0.70/share).

• PSE&G Q2 2024 net income: $302 million ($0.60/share); Q2 2023: $336 million ($0.67/share).

• PSEG Power & Other Q2 2024 net income: $132 million ($0.27/share); Q2 2023: $255 million ($0.51/share).

• Available liquidity at end of June: $3.1 billion, including $113 million cash.

Outlook and guidance

• Reaffirmed full-year 2024 non-GAAP operating earnings guidance of $3.60–$3.70 per share.

• Five-year non-GAAP operating earnings growth outlook of 5%–7% through 2028, with a regulated capital investment plan of $18–$21 billion supporting a 5%–7.5% CAGR in rate base.

• Most 2024 gross margin increase expected in Q4 due to hedge timing.

• No new equity or asset sales required to fund the five-year capital plan.

• PSE&G expects to conclude its distribution base rate case and CEF-EE II program filing later in 2024.