On February 25, 2025, Public Service Enterprise Group Inc (PEG, Financial) released its 8-K filing detailing the company's financial results for the full year and fourth quarter of 2024. Public Service Enterprise Group is a holding company for a regulated utility, PSE&G, and other nonregulated businesses, including nuclear power generation and clean energy projects. PSE&G provides regulated gas and electricity delivery services in New Jersey to a combined 4.3 million customers and operates the Long Island Power Authority system.

Performance Overview and Challenges

Public Service Enterprise Group Inc (PEG, Financial) reported a net income of $3.54 per share and non-GAAP operating earnings of $3.68 per share for 2024. These results exceeded the annual estimated earnings per share of $3.66. The company's performance is significant as it marks the 20th consecutive year of meeting or exceeding management's non-GAAP operating earnings guidance. However, challenges such as higher interest and depreciation expenses due to increased investment balances were noted, which could impact future profitability.

Financial Achievements and Industry Importance

The company initiated a 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share, with a midpoint increase of approximately 9% over 2024 results. This guidance reflects the company's strategic focus on operational excellence and predictable earnings growth. Public Service Enterprise Group Inc (PEG, Financial) also raised its 2025-2029 capital spending plan to $22.5 billion - $26 billion, up by $3.5 billion from the prior plan, emphasizing its commitment to infrastructure development and clean energy initiatives.

Key Financial Metrics

Public Service Enterprise Group Inc (PEG, Financial) reported a strong balance sheet, enabling the funding of its robust 5-year capital program without the need to issue equity or sell assets through 2029. The company's PSE&G segment benefited from new electric and gas base distribution rates, which went into effect on October 15, 2024, and contributed to higher gas revenues in the fourth quarter. The New Jersey Board of Public Utilities approved a multi-party settlement of PSE&G’s base electric and gas distribution rate case, providing a distribution rate base of $17.8 billion with an unchanged return on equity of 9.6%.

Segment Performance and Strategic Initiatives

PSEG Power & Other segments showed improvement in energy margin during the second half of 2024, aided by the federal nuclear production tax credit, which reduced zero-emission certificate amounts earned by New Jersey nuclear units. The company also announced a $0.12 per share increase in its annual common dividend to an indicative rate of $2.52 per share for 2025, demonstrating confidence in its growth trajectory and commitment to financial discipline.

Analysis and Outlook

Public Service Enterprise Group Inc (PEG, Financial) continues to demonstrate strong financial performance and strategic foresight, positioning itself well within the regulated utilities industry. The company's focus on infrastructure investment, clean energy projects, and operational excellence is expected to drive future growth. The extension of its 5% - 7% non-GAAP operating earnings CAGR for 2025-2029 further underscores its commitment to delivering value to shareholders.

“PSEG posted strong operating and financial results for the fourth quarter, completing the full year of 2024 having achieved several strategic and regulatory objectives,” said Ralph LaRossa, chair, president, and CEO of PSEG.

For more detailed financial information and insights, visit the full 8-K filing.

Explore the complete 8-K earnings release (here) from Public Service Enterprise Group Inc for further details.