PPL Misses EPS Estimates, Raises 3-Year Infrastructure Investment Plan To $20 Billion

PPL Corporation PPL shares are trading lower after the company reported fourth-quarter FY24 operating revenue growth of $2.211 billion.

The company beat the consensus of $2.048 billion. Meanwhile, adjusted EPS was 34 cents and missed the consensus of 37 cents.

Electricity sales rose by 1% year over year (Y/Y), with the PA Regulated segment up 1.4% Y/Y and the KY Regulated segment increased by 0.6% Y/Y.

Operating income decreased to $377 million from $390 million in the prior year quarter. 

PPL’s net cash provided by operating activities in the year, totaled $2.34 billion, versus $1.758 billion a year ago.

PPL completed more than $3 billion in infrastructure investments, according to CEO Vincent Sorgi.

Dividend Boost: PPL disclosed a 6% increase in its quarterly common stock dividend, raising it from $0.2575 to $0.2725 per share.

The higher dividend will be payable on April 1, 2025, to shareholders of record as of March 10, 2025.

Outlook: PPL expects 2025 EPS of $1.75-$1.87 vs. consensus of $1.83.

PPL extended its 6% to 8% annual EPS and dividend growth targets through at least 2028. Company brass expects EPS growth to be in the upper half of the range.

PPL also raised its planned infrastructure investments to $20 billion for the 2025–2028 period. That’s up from the previous $14.3 billion planned for 2024–2027.

These investments are expected to drive an average annual rate base growth of 9.8% through 2028, compared to 6.3% under the prior plan.

The company is targeting $4.3 billion in infrastructure investments for 2025.

PPL anticipates achieving cumulative annual O&M efficiencies of at least $150 million in 2025, compared to its 2021 baseline.

This progress builds on the success of its 2023–2024 transformation initiatives and the implementation of scalable technologies across its operations.

Investors can gain exposure to the stock via Virtus Reaves Utilities ETF UTES and The Advisors Inner Circle Fund II Cullen Enhanced Equity Income ETF DIVP.

Price Action: PPL shares are down 1.07% at $34.15 at the last check Thursday.

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