PPL Corporation (NYSE:PPL) shares were trading modestly higher after beating third-quarter estimates and unveiling an expanded growth plan.
Adjusted earnings came in at 54 cents per share, exceeding the analyst estimate of 53 cents. Revenue rose approximately 11.5% year over year to $2.497 billion, topping the consensus estimate of $2.421 billion.
2026 And 2027 Earnings Outlook
For 2026, PPL tightened its adjusted EPS outlook to $1.92-$1.96 from its previous forecast of $1.90-$1.98. The revised midpoint compares with the analyst estimate of $1.95.
PPL forecast 2027 EPS of $2.06-$2.14, with a $2.10 midpoint, an 8.2% increase over its 2026 EPS forecast midpoint of $1.94.
CEO Vincent Sorgi said strong third-quarter results keep the company on track to meet or exceed the $1.94 midpoint. He also highlighted rising demand across PPL’s service territories and improving long-term growth opportunities.
Higher Growth Targets And Expanded Capital Plan
PPL raised its annual EPS growth target to 7%-9% through at least 2030 from 6%-8% previously, based on its 2026 ongoing EPS forecast midpoint. Growth is expected in the upper half of the range.
The company also increased its 2027-30 capital plan by $2 billion to $25 billion, primarily to include an additional natural gas combined-cycle unit in Kentucky. The investments are expected to drive average annual rate base growth of 10% from 2026 through 2030.
PPL expects approximately $3.0 billion in additional equity financing, beyond more than $1.5 billion already executed through forward sales agreements in 2025 and 2026.
The company maintained its FFO/CFO-to-debt target of 16%-18% and expects annual dividend per share growth of 4%-6%, toward the lower end of the range.
Additional Generation Investment Opportunities
PPL sees $12 billion-$16 billion in potential generation investment opportunities across Pennsylvania and Kentucky through 2032, supported by rising electricity demand, particularly from data centers.
Kentucky
The development pipeline reached 14.7 GW through 2032, including 12.8 GW in data center opportunities. Approximately 2.3 GW is covered by signed reimbursement agreements, up 1 GW from the previous quarter.
PPL estimates that 4 GW of additional peak demand could materialize by 2032, of which its updated capital plan supports 2.4 GW.
The remaining 1.6 GW could require $6 billion-$7 billion in additional investment through 2032, including $3.5 billion-$4.5 billion during 2027-2030. If realized, this opportunity could lift annual EPS growth to more than 9% through 2030.
Pennsylvania
PPL Electric Utilities’ data center pipeline grew for the 11th consecutive quarter to 35.3 GW, including 11.4 GW under signed electric service agreements and 8.5 GW under construction.
Invitium Energy Advances QTS Data Center Project
PPL’s 51%-owned joint venture with Blackstone Infrastructure, Invitium Energy, sees $6 billion-$9 billion in potential generation investment through 2032, based on reservation agreements for 5 GW of combined-cycle gas turbines.
Invitium agreed to key commercial terms with QTS for approximately 2 GW of generation capacity for its Salem Township, Pennsylvania data center project. The proposed agreement includes a 20-year initial term, multiple five-year renewal options and cost reimbursement protections, subject to customary conditions.
The generation mix is expected to include two natural-gas plants, fuel cells and battery storage. Fuel cells and batteries could come online as early as 2029, followed by gas-fired units in 2032 and 2033.
PPL Stock Price Activity: PPL shares were up 1.07% at $36.38 on Friday.
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