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PSEG: PSEG's Earnings Beat Expectations with Strong Operational Performance

Public Service Enterprise Group Incorporated (PSEG) reported non-GAAP operating earnings of $0.72 per share for the fourth quarter, beating analyst estimates of $0.711. The company's full-year 2025 non-GAAP operating earnings were $4.05 per share, at the high end of the guidance range of $4.00 to $4.06 per share. Revenue growth was driven by a 1.8% reduction in the average monthly bill for PSE&G residential electric customers starting June 1, and a 7% increase in the rate base to approximately $36 billion at year-end 2025.

PEG

USD 85.85

-0.14%

A-Score: 5.2/10

Publication date: February 26, 2026

Full Report

Author: Analystock.ai

šŸ“‹ Highlights
  • Net Income & Non-GAAP Earnings: $0.63/share net income Q4 2025; $4.22/share full-year 2025; non-GAAP operating earnings $0.72/share Q4 and $4.05/share full-year.
  • Dividend Increase: 2026 dividend rate raised to $2.68/share, a $0.16/share (6.3%) increase from prior guidance.
  • Capital Investment: $3.7B spent in 2025; 2026 planned investment at $4.2B; 2026ā€“2030 capex plan of $22.5ā€“25.5B targeting 6ā€“7.5% annual rate base growth.
  • Rate Base Growth: Ended 2025 at $36B, 7% higher than 2024; projected 6ā€“7.5% annual growth through 2030 driven by infrastructure investments.
  • Nuclear Hedging & Margin: 95% of 2026 nuclear output hedged; gas margin increased $0.07/share in 2025 due to GSMP II and customer growth.

Operational Highlights

PSEG's appliance service business responded to nearly 2,000 no-heat calls per day during the fourth quarter, and the electrical systems performed well, with a comparatively small group of customers affected. The company invested approximately $1 billion during the fourth quarter, and for the full year 2025, capital spending totaled approximately $3.7 billion, with continued investments in infrastructure modernization, energy efficiency, and distribution reliability and resiliency investments supporting growing customer demand.

Guidance and Outlook

PSEG's 2026 guidance is based on the investment program at PSE&G and expected nuclear output realizing market prices that exceed the nuclear PTC threshold. The company is approximately 95% hedged for the remainder of 2026. The full-year 2026 non-GAAP operating earnings guidance is $4.28 to $4.40 per share, 7% higher at the midpoint over 2025 results. Analysts estimate next year's revenue growth at 4.1%.

Valuation

Based on the current stock price, the P/E Ratio is 20.28, and the Dividend Yield is 2.94%. The ROE is 12.6%, indicating a relatively stable return on equity. With a Net Debt / EBITDA ratio of 5.68, PSEG's debt levels appear manageable. As per Daniel J. Cregg, "We are proud to have delivered on meeting or exceeding our earnings guidance for the 21st year in a row." The current valuation metrics suggest that the market has priced in a relatively stable outlook for PSEG, with a moderate growth rate expected in the future.

Growth Prospects

PSEG's 2026 to 2030 regulated capital investment plan amounts to $22.5 to $25.5 billion, expected to produce a compounded annual growth in PSE&G's rate base of 6% to 7.5% through 2030. The company is well-positioned to benefit from its infrastructure modernization and energy efficiency investment program, with opportunities to contract existing output and planned uprates, as well as incremental regulated capital investment.

PSEG's A-Score