#United States #Newark #Earnings #PSEG #Non-GAAP

PSEG Financial Performance for 2024

On February 25, 2025, Public Service Enterprise Group (PSEG) made headlines by announcing its financial results for the full year and fourth quarter of 2024. The company reported a net income of $1.772 billion, translating to $3.54 per share. Additionally, PSEG's non-GAAP operating earnings came in at $3.68 per share, marking a significant highlight for investors.
This report comes as PSEG sets an ambitious non-GAAP operating earnings guidance for 2025, forecasting earnings between $3.94 and $4.06 per share, a notable 9% increase over 2024 results. Such guidance reflects the company’s confidence in its operational capabilities and market positioning. Featuring a robust capital spending plan ranging from $22.5 billion to $26 billion over the next five years, PSEG is significantly increasing its prior plan by $3.5 billion. These generous investments are expected to facilitate an annual growth rate of 6% to 7.5% of PSEG's rate base through 2029.

A Closer Look at the Results

PSEG’s year-end results showcased several outstanding achievements:

• - Fourth Quarter Recap: In the fourth quarter of 2024 alone, the company reported net income of $286 million, which equates to $0.57 earning per share. Non-GAAP operating earnings for the quarter saw a substantial rise, reaching $421 million or $0.84 per share, indicative of improved operational efficiencies and pricing strategies.
• - Significant Settlements: PSEG settled its first electric and gas distribution base rate case in six years, achieving a balanced outcome that helped recover prudent investments while maintaining its favorable affordability profile. The company also received approval for approximately $2.9 billion in investments under its Clean Energy Future initiative aimed at energy efficiency over the next six years.
• - Operational Enhancements: The successful completion of the Advanced Metering Infrastructure program, which saw the installation of approximately 2.2 million smart meters, was also a significant milestone for PSEG. Additionally, the company implemented new mechanisms to stabilize rates for customers while enhancing predictability in financial results.

Future Direction and Growth Plans

Looking ahead to 2025 and beyond, PSEG aims to bolster its earnings through several strategic drivers. The company expects to benefit from new base rates that will be in effect for the full year, further supplemented by environmental attribute payments from its nuclear units. However, it acknowledges the challenge of rising financing costs in the current economic climate.
With an envisioned investment of $3.8 billion focused on infrastructure modernization, energy-efficient options, electrification initiatives, and load growth, PSEG is positioning itself to meet growing customer demands and environmental standards.

Commitment to Stakeholders

Reflecting its commitment to stakeholders, PSEG has increased its annual common dividend by $0.12 per share, bringing it to an indicative rate of $2.52 for 2025. This is a testament to the firm’s sustained growth and operational excellence, marking a continued commitment to financial discipline and shareholder returns, which have remained consistent for 118 years.

PSEG continues to pursue geothermal and solar energy projects, establishing a reliable portfolio aimed at reducing carbon emissions and transitioning towards a cleaner energy future. The company’s steady focus on operational excellence positions it well for the strategic challenges and opportunities ahead, as it aims to drive future performance and profitability.

In conclusion, as PSEG reported substantial financial gains and a rigorous growth strategy moving toward 2025, this signals a robust confidence in their operational framework. With such promising outlooks, PSEG remains a substantial player in the energy sector, ensuring its investment communities of continued focus on growth and sustainability.