PPL Corporation (NYSE: PPL) on Friday reported fourth quarter earnings that surpassed analyst expectations and hiked its long-term growth outlook, citing a surge in electricity demand from data centers and increased infrastructure investment.
The Pennsylvania-based utility provider reported fourth quarter net income of $266 million, or $0.36 per share, up from $177 million, or $0.24 per share, in the same period a year earlier. On an ongoing basis, which excludes special items such as integration costs from its Rhode Island acquisition, PPL earned $0.41 per share, beating the $0.34 recorded in the prior-year quarter.
Data Center Boom Drives Expansion
A central theme of the 2025 results was the rapid expansion of data center agreements, particularly in Pennsylvania. The company revealed that signed data center agreements in its Pennsylvania service territory reached 25.2 gigawatts (GW), a 23% increase from the third quarter. As the energy landscape continues to transform at an unprecedented pace, PPL continues to evolve and adapt to meet challenges and embrace opportunities.
To support this growth, PPL unveiled a significantly expanded four-year capital plan. The company now expects to invest $23 billion in infrastructure through 2029, a $3 billion increase over its previous plan. The bulk of this increase is earmarked for electric transmission and distribution systems to support grid reliability and new large-load customers.
Operational Highlights
Full-Year Results: 2025 reported GAAP earnings were $1.59 per share, compared to $1.20 in 2024.
Cost Savings: The company achieved $170 million in annualized operations and maintenance savings since 2021, reaching its efficiency targets a year ahead of schedule.
Rate Case Progress: PPL noted the recent approval of a $233 million revenue increase in Kentucky and continues to advance a base rate case in Pennsylvania, with a decision expected in June 2026.
Segment Performance
Pennsylvania Regulated: Ongoing earnings rose to $0.21 per share in Q4, driven by higher transmission revenue and distribution rider recovery.
Kentucky Regulated: Ongoing earnings grew to $0.19 per share in Q4, primarily due to higher sales volumes from weather and returns on additional capital investments.
Rhode Island Regulated: Ongoing earnings edged up to $0.03 per share in Q4, compared to $0.02 a year prior.
PPL continues to project a Funds from Operations (FFO) to debt ratio of 16% to 18% throughout its updated plan period, maintaining its investment-grade credit ratings
2026 Guidance and Dividend Hike
PPL issued a bullish forecast for 2026, setting an earnings range of $1.90 to $1.98 per share. The midpoint of $1.94 represents a 7.2% increase over the $1.81 earned for the full year of 2025.
The company also extended its annual earnings-per-share growth target of 6% to 8% through at least 2029.
Reflecting confidence in its cash flow, PPL’s Board of Directors increased the quarterly common stock dividend by 4.6% to $0.2850 per share, payable April 1, 2026.