Public Service Enterprise Group

1) Financial Results & Guidance
- PSEG reported Q2 2026 net income of $0.67 per share and non-GAAP operating earnings of $0.86 per share, compared to $1.17 and $0.77 respectively in Q2 2025.
- First-half results show net income of $2.15 per share and non-GAAP operating earnings of $2.41 per share.
- Full-year non-GAAP operating earnings guidance reaffirmed at $4.28 to $4.40 per share.
- The company anticipates a 6% to 8% annual growth in non-GAAP operating earnings through 2030.

2) Operational Highlights
- PSE&G successfully managed a significant storm restoration, reconnecting approximately 380,000 customers within 24 hours.
- Peak summer load reached 10,446 megawatts, the highest in 14 years.
- Clean Energy Future programs have generated over $1 billion in annual customer savings since inception, benefiting nearly 525,000 customers.
- PSEG Nuclear achieved a capacity factor of 92%, supplying 7.8 terawatt-hours of carbon-free generation.

3) Regulatory & Strategic Developments
- PSEG plans to file a base rate case by year-end 2026, aligning with New Jersey's affordability goals and regulatory changes.
- The New Jersey Board of Public Utilities (BPU) is reviewing storm response and will receive a comprehensive report from PSEG.
- The BPU's recent report suggests potential reforms such as multiyear rate plans and performance-based rates, which PSEG supports.
- PSEG is exploring opportunities for new nuclear development and has engaged in discussions regarding the Power New Jersey Act.

4) Challenges & Headwinds
- The absence of Zero Emission Certificate programs, which ended in May 2025, impacted financial results despite higher market prices and generation.
- Potential loss of the 50 basis point RTO incentive could represent an annual headwind of $40 million in net income starting January 2027.
- Inflation has increased operational costs, reflected in rising distribution O&M expenses.

5) Investor Considerations & Outlook
- PSEG's solid balance sheet supports a $24 billion to $28 billion capital investment program over the next five years without needing to issue new equity.
- The company is focused on maintaining sustainable dividend growth while pursuing opportunities in nuclear and competitive transmission projects.
- The call lacked specific updates on hedging activities beyond 2026 and detailed timelines for the BPU's Phase 2 process.

Bottom line: PSEG's strong operational performance and reaffirmed earnings guidance position it favorably for continued growth, despite regulatory challenges and the absence of certain revenue streams. The company's proactive approach to capital investment and regulatory alignment enhances its long-term value proposition for shareholders.