Public Service Enterprise Group Incorporated

PSEG reported second-quarter 2026 net income of $0.67 per share, down from $1.17 per share a year ago, and non-GAAP operating earnings of $0.86 per share, up from $0.77 per share last year. First-half 2026 net income was $2.15 per share and non-GAAP operating earnings were $2.41 per share. The company reaffirmed full-year 2026 non-GAAP operating earnings guidance of $4.28 to $4.40 per share. On the regulated side, PSE&G reported second-quarter net income and non-GAAP operating earnings of $342 million vs. $332 million in 2025, while PSEG Power and Other reported a net loss of $8 million vs. net income of $253 million, and non-GAAP operating earnings of $83 million vs. $52 million. PSE&G invested about $1 billion in the quarter and remains on track for about $4.2 billion of regulated CapEx in 2026. Liquidity was $3.4 billion at quarter-end, including about $200 million of cash on hand. Management also reiterated 5-year non-GAAP operating earnings growth of 6% to 8% through 2030 and a 5-year capital program of $24 billion to $28 billion.

Ralph LaRossa struck an upbeat but measured tone, emphasizing that the quarter’s results were solid and that PSEG’s operating performance and regulatory positioning are improving. He highlighted storm restoration performance, customer savings from Clean Energy Future programs, and a series of regulatory developments in New Jersey and PJM that could support future growth. He also framed the planned base rate filing as aligned with state affordability and transparency goals, and said the company sees opportunities in utility-like, contracted generation and future nuclear options, but only with appropriate risk allocation.

Dan Cregg focused on the drivers behind the quarter’s earnings bridge and the balance-sheet support for the capital plan. He said PSE&G results were helped by energy efficiency and gas system modernization, with distribution margin up $0.05 per share, while O&M, depreciation, and interest each moved adversely by $0.01 per share versus last year; PSE&G also expects to invest about $4.2 billion in 2026 and maintained its 5-year regulated CapEx plan of $22.5 billion to $25.5 billion through 2030. On the power side, he said net energy margin rose $0.08 per share on higher generation volume, capacity prices, and gas operations, partly offset by the end of ZECs and LIPA-related fees. He also noted $3.4 billion of liquidity, a $500 million 4.8% unsecured note issuance in June, and variable-rate debt at about 3% of total debt.

Analysts focused heavily on the timing and implications of the planned base rate case, the New Jersey BPU’s EO1 review, and whether the filing would reflect affordability or higher recovery needs. Management said the filing is intended to align with the state’s push for transparency and performance-based ratemaking, but it would not front-run the BPU process or disclose rate case size yet. Questions also centered on PJM’s RBA/RBP process, potential bilateral generation opportunities, and returns; management repeatedly said those opportunities are being evaluated, but they would only pursue utility-like or contracted projects with appropriate risk and declined to give return targets. Analysts also asked about data-center and large-load interest, hedging beyond 2026, VPPs, and new nuclear; management said interest exists but no big inflection yet, hedging disclosures remain unchanged, VPPs are more about policy alignment than economics, and new nuclear remains a long-term opportunity with cost-overrun risk still a key concern.