Duke Energy Corporation

Duke reported second-quarter adjusted EPS of $1.43 and reported EPS of $1.38, both up from $1.25 in the prior-year quarter. Electric Utilities and Infrastructure contributed $0.15 of year-over-year EPS growth, while Gas Utilities and Infrastructure was largely flat and Other was up $0.03. Management reiterated full-year 2026 EPS guidance of $6.55 to $6.80 and reaffirmed long-term EPS growth of 5% to 7% through 2030, saying the company expects to earn in the top half of that range beginning in 2028. The company also said it is on track to reach an FFO-to-debt target of 14.5% for the year and expects 15% longer term as additional DEF minority interest proceeds are received.

Harry Sideris emphasized that Duke is benefiting from strong demand growth across its territories and from the largest regulated capital plan in the industry, with spending of more than $1 billion per month. He stressed disciplined execution, affordability, and customer protection, repeatedly saying the company will not move forward on new projects without financial protections for customers and investors. On growth, he said Duke is increasingly confident that large-load projects and economic development deals will support stronger earnings momentum, with top-half EPS growth targeted starting in 2028.

Brian Savoy said the quarter reflected strong regulated-utility growth, with reported and adjusted EPS of $1.38 and $1.43 compared with $1.25 in the prior-year period. He pointed to $0.15 of growth in Electric Utilities and Infrastructure, partly offset by higher depreciation and interest expense, while noting lower interest expense from Tennessee and Florida transaction proceeds helped the Other segment. He also highlighted that Duke is on track for a 14.5% FFO-to-debt target this year, expects 15% longer term, and has already priced $600 million under the ATM this year to proactively fund future equity needs.

Analysts focused on whether Duke might raise its growth outlook sooner, given the size of the large-load pipeline and potential $5 billion to $10 billion of incremental capital. Management said the current 5% to 7% growth range still looks right for now, with an update typically coming in the fourth quarter unless something material changes. Questions also probed Indiana affordability, a possible genco structure, new nuclear choices and timing, and gas-supply or construction bottlenecks; Duke said it shares policymakers’ affordability focus, is still evaluating genco, is keeping AP1000 and SMR options open, and sees no major supply or execution constraint at this point.