Executive Summary

Q2 2025 delivered stronger year-over-year results: GAAP EPS $1.17 and non-GAAP operating EPS $0.77, with consolidated revenue $2.805B; both operating EPS and revenue exceeded Wall Street consensus for the quarter. Management reaffirmed full-year non-GAAP operating EPS guidance of $3.94–$4.06 (+9% y/y at midpoint) .
Utility segment (PSE&G) benefited from new electric and gas base rates implemented in Oct-2024; nuclear output increased 0.5 TWh y/y, supporting gross margin, while a fall Hope Creek refueling will dampen H2 results; zero emission certificates ended May 31, partly offset by higher PJM capacity revenues .
The PJM auction cleared at $329/MW-day for 2026/2027; management expects a near-flat bill impact in June 2026 given supply-rate mechanics, and implemented a Summer Relief Initiative ($30 credits in July/August; $10/month recovery Sept–Feb) to mitigate 2025 affordability concerns .
Strategic demand tailwind: large-load inquiries (primarily data centers) surged to >9,400 MW as of June 30, 2025 (up from 6,400 MW in Mar-2025), with multi-year nuclear contracting optionality and Salem uprate plans supported by legislation preserving nuclear PTC and permanent bonus depreciation .
Potential stock catalysts: sustained estimate beats on utility rate base growth; clarity on multi-year nuclear offtake agreements; legislative/regulatory progress on NJ resource adequacy; and execution on nuclear uprates and Hope Creek 24-month fuel-cycle conversion .

What Went Well and What Went Wrong

What Went Well

Non-GAAP operating EPS and revenue beat consensus; reaffirmed 2025 guidance with confidence. “Solid base to confidently deliver on our full-year 2025 non-GAAP Operating Earnings guidance of $3.94 to $4.06 per share” (CEO LaRossa) .
PSE&G margin uplift from full-quarter base rates and robust operations through extreme heat: 99% of storm-interrupted customers restored within 24 hours; summer peak load reached 10,229 MW, highest since 2013 .
Nuclear fleet production rose to ~7.5 TWh in Q2; capacity factor 88.8% in Q2 (94.3% YTD) with PTC downside protection preserved; Salem uprate and Hope Creek 24-month cycle initiatives underway .

What Went Wrong

Affordability headwinds as PJM capacity price increases rolled through BGS supply rates; utility implemented deferrals and moratoria to mitigate near-term bill spikes .
H2 2025 drag expected from Hope Creek refueling outage and cessation of NJ ZEC awards as of May 31, reducing nuclear gross margin (partly offset by higher capacity revenues) .
Retail electric sales softness y/y in Q2: total -4% (residential -7%, C&I -2%), reflecting weather and usage patterns; THI hours were 14% below Q2-2024 .

Financial Results

Consolidated Performance vs Prior Periods and Consensus

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$2.423	$3.222	$2.805
Operating Income ($USD Billions)	$0.600*	$0.813*	$0.833*
EBIT Margin (%)	24.8%*	25.2%*	29.7%*
GAAP EPS ($)	$0.87	$1.18	$1.17
Operating EPS (non-GAAP) ($)	$0.63	$1.43	$0.77

Values with asterisk (*) retrieved from S&P Global.

Q2 2025 vs Wall Street Consensus (S&P Global)

Metric	Consensus	Actual
Operating EPS (non-GAAP) ($)	0.698*	0.77
Revenue ($USD Billions)	2.482*	2.805

Values with asterisk (*) retrieved from S&P Global.

Segment Breakdown

Segment ($USD Millions)	Q2 2024	Q2 2025
PSE&G Net Income / Non-GAAP Operating Earnings	$302	$332
PSEG Power & Other Net Income	$132	$253
PSEG Power & Other Non-GAAP Operating Earnings	$11	$52
Total PSEG Net Income	$434	$585
Total PSEG Non-GAAP Operating Earnings	$313	$384

KPIs

KPI	Q2 2024	Q2 2025
Nuclear Generation (GWh)	7,007	7,511
Nuclear Capacity Factor (%)	82.7%	88.8%
THI Hours – Actual	5,879? —	5,043 (-14% y/y)
Retail Electric Sales (Total, million kWh)	9,869? —	9,455 (-4% y/y)

Note: THI and retail sales comparisons as disclosed; Q2-2024 THI hours baseline provided for y/y delta .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Non-GAAP Operating EPS	FY 2025	$3.94–$4.06 (Q1 reiterated)	$3.94–$4.06	Maintained
Regulated Capex	FY 2025	~$3.8B (Q4/Q1)	~$3.8B	Maintained
Regulated Capex (5-year)	2025–2029	$21–$24B (raised in Q4)	$21–$24B	Maintained
Rate Base CAGR	2025–2029	6%–7.5%	6%–7.5%	Maintained
Nuclear Generation	FY 2025	n/a	30–32 TWh	Set/Confirmed
PTC Threshold (Reference)	FY 2025	~$44.75/MWh (indicative)	~$44.75/MWh	Maintained
Dividend	2025 Annual	$2.52 (raised in Feb)	$0.63 per quarter declared in July	Maintained run-rate

Additional operational timing: Hope Creek refueling outage scheduled Fall 2025; Hope Creek fuel cycle extension to 24 months, next refueling fall 2027 .

Earnings Call Themes & Trends

Topic	Q4 2024 (Prior)	Q1 2025 (Prior)	Q2 2025 (Current)	Trend
AI/Data Centers & Large Load	Inquiries rose to 4,700 MW; focus on colocation flexibility; nuclear contracting explored	Pipeline exceeded 6,400 MW; continued interest; potential 10–20% conversion	Pipeline >9,400 MW; primarily data centers; engineering response ~4 months	Accelerating demand; increasing conversion potential
Affordability & PJM Capacity	PJM auction collar; state examining options; BGS bill increases ahead	BPU-directed mitigation; decoupling CIP supports stability	Summer Relief Initiative implemented; near-flat bill impact projected for 2026	Near-term mitigation; longer-term planning ongoing
Nuclear Strategy & PTC	PTC floor anchors growth outlook; pursuing long-term contracts	Continued multi-party discussions; not contingent on FERC outcome	PTC downside preserved; bonus depreciation permanent; Salem uprate and Hope Creek fuel cycle extension	Strengthening optionality and cash-flow support
Resource Adequacy (NJ & PJM)	Governance concerns; import dependence; multiple solutions (ratebase gen, imports, competitive gen)	Advocacy for state-led solutions; FRR possibility referenced	Legislative hearings; BPU technical conference; management pushing comprehensive plan	Active policy debate; momentum for change
Customer Programs & EE	AMI program achieved; EE phase II approved	EE II roll-out; >$2.9B planned investment	EE programs delivering ~$720M annual bill savings; 465k participants	Execution and impact scaling

Management Commentary

“PSEG’s financial and operating results… provide us with a solid base to confidently deliver on our full-year 2025 non-GAAP Operating Earnings guidance of $3.94 to $4.06 per share” — Ralph LaRossa, Chair, President & CEO .
“We successfully operated through three consecutive days of 100°F… summer peak load of 10,229 MW… highest since 2013… I could not be prouder of our team’s work” — LaRossa .
“We anticipate a near-flat impact on customer electric bills when [the $329/MW-day] price is feathered into New Jersey’s default supply rates… assuming other supply related costs remain the same” — LaRossa .
“Federal tax legislation preserved the downside price protection of the nuclear production tax credit (PTC)… and permanently extends 100% bonus depreciation” — LaRossa .
“PSEG maintained 2025 non-GAAP Operating Earnings guidance of $3.94–$4.06… representing ~9% increase at the midpoint over 2024 results” — Slides .

Q&A Highlights

Resource adequacy and NJ generation options: Management emphasized the need for state-led solutions (including regulated generation, FRR, imports), highlighting PJM governance constraints and a comprehensive plan balancing reliability, affordability, environmental goals .
Data center contracting and timing: Continued interest across NJ and PA nuclear assets; flexibility desired by counterparties; potential earlier impact if selling existing output versus waiting for new builds .
Affordability measures: Clarified Summer Relief design and billing mechanics; no expectation of another sharp bill jump from the $329/MW-day result due to proxy price catch-up already embedded .
Nuclear tax framework: Preserved PTC floor and bonus depreciation benefits; bonus depreciation impacts are “around the edges” given limited unregulated capital .
Battery storage and merchant vs utility roles: Utility proposed rate-based solutions previously; current NJ procurement favors merchant; batteries are part of “all-of-the-above,” but affordability/pricing determines deployment .

Estimates Context

Q2 2025 beat: Operating EPS $0.77 vs $0.698 consensus; revenue $2.805B vs $2.482B consensus, driven by PSE&G base-rate uplift, higher nuclear generation, and favorable tax timing .
Forward estimates setup: H2 headwind from Hope Creek outage and ZEC expiry may temper near-term nuclear earnings, partially offset by capacity revenues; rate-base growth and EE recovery underpin utility trajectory .

Values retrieved from S&P Global.

Key Takeaways for Investors

Utility-driven visibility: Full-year guidance reaffirmed; PSE&G’s rate base compounding (6–7.5% CAGR) and clause recoveries support mid-high single-digit non-GAAP EPS growth beyond 2025 .
Near-term earnings composition: Expect mix shift with H2 nuclear outage and ZEC roll-off; utility margins to anchor 2025 outcomes; monitor capacity revenue realization .
Strategic optionality: Nuclear offtake contracts (data centers/AI) and Salem uprate could enhance LT growth above PTC baseline; watch legislative outcomes and FERC process for colocation flexibility .
Policy catalyst path: NJ resource adequacy proceedings and potential regulated generation framework represent meaningful equity rerating levers if resolved favorably .
Affordability execution: Summer Relief and EE programs mitigate customer bill inflation; supportive regulatory tone reduces political risk around near-term pricing spikes .
Balance sheet/liquidity: ~$3.6B total liquidity (June 30); refinancing of term loans; low variable-rate exposure (~3% total debt) improves funding predictability .
Dividend stability: Quarterly $0.63 (indicative $2.52 annual) sustained; dividend growth supported by utility cash flows and capex discipline without equity issuance .

Notes:
- Operating income and EBIT margin values marked with * were retrieved from S&P Global.
- Consensus comparisons (Operating EPS, Revenue) marked with * are from S&P Global.

Appendix: Additional Data Points

Consolidated cash from operations H1 2025: $1.527B vs $1.143B in H1 2024 .
Capitalization (June 30, 2025): Total debt $23.289B; equity $16.671B; total capitalization $39.960B .
Retail gas sales Q2: Total +28% y/y; non-firm C&I +81% .
Nuclear fuel cost Q2 2025: $49M; $6.52/MWh .

PUBLIC SERVICE ENTERPRISE GROUP INC (PEG)·Q2 2025 Earnings Summary