Public Service Enterprise Group (PSEG) Reports 2024 Financial Results and 2025 Guidance
Public Service Enterprise Group (PSEG) recently released its financial results for the full year and fourth quarter of 2024. The energy company reported a net income of $1,772 million for the full year, down from $2,563 million in 2023. However, non-GAAP operating earnings came in at $1,839 million, compared to $1,742 million in the previous year. The decline in net income was mainly due to reconciling items totaling $67 million, while non-GAAP operating earnings were positively impacted by $141 million. For the fourth quarter, net income stood at $286 million, a significant decrease from $546 million in the same period last year. Non-GAAP operating earnings were $421 million, up from $271 million in 4Q2023, thanks to a $176 million favorable impact from reconciling items.
2025 Non-GAAP Operating Earnings Guidance
PSEG initiated its 2025 non-GAAP operating earnings guidance, expecting a range of $3.94 to $4.06 per share. The midpoint of this range represents a nearly 9% increase from the 2024 full-year non-GAAP operating earnings of $3.68 per share. This guidance extends PSEG’s 5% to 7% non-GAAP operating earnings compound annual growth rate (CAGR) for the 2025-2029 period, which is maintained at the Production Tax Credit threshold.
Capital Spending Plan and Rate Base CAGR
PSEG also announced an increase in its 2025-2029 capital spending plan, raising it to $22.5 billion to $26 billion. This represents a significant increase of $3.5 billion from the prior plan. The company is targeting a production tax credit (PTC) threshold and aims for a PSE&G rate base CAGR of 6% to 7.5% for the same period.
Impact on Individual Investors
For individual investors, PSEG’s strong earnings and positive guidance for 2025 could be a positive sign. The extension of the 5% to 7% non-GAAP operating earnings CAGR and the increase in the capital spending plan indicate that the company is investing in its future growth. However, it is essential to consider that the non-GAAP financial measures do not include certain items that are included in the most directly comparable GAAP financial measures. Therefore, investors should also review the GAAP financials and the reconciliation between the two to gain a more comprehensive understanding of the company’s financial performance.
Impact on the World
From a global perspective, PSEG’s financial results and guidance could have implications for the energy sector as a whole. The company’s focus on investing in growth and maintaining its earnings CAGR could set a trend for other energy companies, potentially leading to increased capital spending and innovation in the sector. Additionally, the extension of the Production Tax Credit threshold could encourage more investments in renewable energy, contributing to the global transition towards cleaner energy sources.
Conclusion
Public Service Enterprise Group reported a decline in net income for the full year and fourth quarter of 2024. However, its non-GAAP operating earnings remained strong, with positive growth expectations for 2025. The company also announced an increase in its capital spending plan and targeted a PSE&G rate base CAGR for the 2025-2029 period. Individual investors should consider both the GAAP and non-GAAP financial measures when evaluating PSEG’s performance. From a global perspective, PSEG’s results and guidance could encourage investment in the energy sector and contribute to the transition towards cleaner energy sources.
- PSEG reported a decline in net income but strong non-GAAP operating earnings for 2024
- 2025 non-GAAP operating earnings guidance is $3.94 to $4.06 per share, up nearly 9% from 2024
- Capital spending plan increased to $22.5 billion to $26 billion for 2025-2029
- PSEG aims for a PSE&G rate base CAGR of 6% to 7.5% for 2025-2029
- Individual investors should consider both GAAP and non-GAAP financial measures
- PSEG’s results and guidance could encourage investment in the energy sector and contribute to the transition towards cleaner energy sources
