PPL Raises Long-Term EPS Growth Target to 7%–9%

The Tip Desk · November 6, 2026 · 4 min read

Ongoing earnings were $0.54 a share in the third quarter as the utility lifted its 2027–2030 capital plan to $25 billion.

PPL Corporation (PPL) raised its long-term annual earnings-per-share growth target to 7% to 9% through at least 2030, from 6% to 8% through at least 2029, and said it expects growth in the top half of the new range.

The Allentown, Pennsylvania energy company also issued a 2027 earnings forecast of $2.06 to $2.14 a share, with a $2.10 midpoint that is an 8.2% increase over its projected 2026 ongoing earnings midpoint of $1.94.

Third-quarter 2026 reported earnings were $367 million, or $0.49 a share, compared with $318 million, or $0.43 a share, a year earlier. Adjusting for special items, earnings from ongoing operations were $411 million, or $0.54 a share, versus $355 million, or $0.48 a share, a year ago.

President and Chief Executive Officer Vincent Sorgi said the results keep the company on track to meet or exceed the $1.94 midpoint of its 2026 ongoing earnings forecast. PPL narrowed that 2026 range to $1.92 to $1.96 from $1.90 to $1.98, keeping the $1.94 midpoint.

The company said the higher growth target reflects progress across its businesses and stronger economic development in Pennsylvania and Kentucky. It announced a $25 billion capital plan for 2027 to 2030, $2 billion higher than its prior 2026–2029 plan, primarily to add a natural gas combined-cycle unit for large-load growth in Kentucky. PPL projects the plan will drive average annual rate base growth of 10% from 2026 through 2030. The updated plan covers regulated utility investments and does not include Invitium Energy.

Beyond that plan, PPL said economic development in Pennsylvania and Kentucky could present $12 billion to $16 billion of potential generation investment through 2032, up from a $10 billion to $12 billion estimate in the second quarter.

In Kentucky, the Louisville Gas and Electric and Kentucky Utilities pipeline grew to about 14.7 gigawatts through 2032, including 12.8 gigawatts of data-center opportunities. About 2.3 gigawatts is under signed reimbursement agreements, an increase of 1 gigawatt from the prior quarter. The company said projects with a 50% or greater probability of success represent about 4 gigawatts of additional peak demand through 2032; generation in the updated capital plan can support about 2.4 gigawatts of that demand, and it estimates $6.0 billion to $7.0 billion of incremental investment need for the remaining 1.6 gigawatts between 2027 and 2032. About $3.5 billion to $4.5 billion of that could occur in 2027 to 2030. If realized, the company said the investment could raise projected compound annual EPS growth to 9% or more from 2026 to 2030.

In Pennsylvania, PPL Electric Utilities’ data-center pipeline grew for an 11th consecutive quarter to about 35.3 gigawatts in advanced planning, including 11.4 gigawatts under signed electric service agreements and 8.5 gigawatts under construction.

Invitium Energy, PPL’s 51% joint venture with Blackstone Infrastructure, agreed to key commercial terms with QTS for about 2 gigawatts of generation capacity to serve the Salem Township, Pennsylvania data-center project, on a 20-year initial term with five-year renewal options. The term sheet is nonbinding. Invitium also executed a cost-reimbursement agreement with QTS. The proposed portfolio includes two combined-cycle natural gas plants, with fuel cells and battery storage still being finalized; fuel cells and batteries could be online as early as 2029, with combined-cycle units expected in 2032 and 2033. Invitium supports $6 billion to $9 billion of potential future generation investment for PPL through 2032 based on executed reservation agreements for 5 gigawatts of combined-cycle gas turbines.

Kentucky Regulated ongoing earnings were $0.30 a share, versus $0.26 a year earlier, which the company attributed primarily to higher retail rates effective January 1, 2026, and higher sales volumes, partly offset by higher operating costs and depreciation. Pennsylvania Regulated ongoing earnings were $0.25 a share, versus $0.21 a year earlier, driven primarily by new distribution base rates effective July 1, 2026, and higher transmission revenue, partly offset by higher depreciation, operating costs and interest. Rhode Island Regulated ongoing earnings were $0.05 a share, flat versus a year earlier. Corporate and Other was a $0.06 drag, versus a $0.04 drag a year earlier, primarily from higher interest expense.

Reported earnings included net special-item after-tax charges of $44 million, or $0.05 a share, primarily from system and other integration-related impacts and PPL’s Rhode Island hold-harmless commitment.

PPL said it plans to fund the updated capital plan while maintaining a strong balance sheet, with about $3.0 billion of equity financing needs in addition to more than $1.5 billion already executed through forward sales in 2025 and 2026. It continues to target an FFO/CFO-to-debt ratio of 16% to 18% and annual dividend growth of about 4% to 6%, with dividend growth expected at the low end of the range to support reinvestment.