Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 are $0.50, and $1.14 for the first nine months of 2025, with full-year guidance narrowed to a range of $1.49 to $1.51, reflecting a 10% increase over 2024 [4] - The 2026 EPS guidance range is introduced at $1.62 to $1.66, indicating a 9% increase from the 2025 midpoint [4] - The five-year capital plan through 2030 is set at $73 billion, supporting average annual rate base growth of 9% [4][15] Business Line Data and Key Metrics Changes - The company has achieved a 35% reduction in CPUC-reportable ignitions year-to-date compared to 2024, with zero structures destroyed in high fire-risk areas for three consecutive years [6] - PG&E has constructed and energized 1,000 miles of underground power lines in high fire-risk areas, which is considered the most effective mitigation strategy [7][35] - The company is deploying advanced sensor capabilities, with an additional 8,500 sensors installed this year, building on the previous year's rollout [8] Market Data and Key Metrics Changes - The data center pipeline remains robust at over 9.5 gigawatts, with modest net attrition in applications since June, but growth in projects at the final engineering stage [10] - The service area is positioned as a prime location for data centers, benefiting from proximity to the technology sector in Silicon Valley [11] Company Strategy and Development Direction - The company is focused on collaborating with state agencies to mitigate climate-driven wildfire risks, with a report expected to inform legislative action in 2026 [5] - PG&E's strategy includes a disciplined approach to capital allocation, prioritizing investment-grade ratings and maintaining a dividend payout ratio of 20% by 2028 [17][46] - The company emphasizes a performance playbook aimed at waste elimination to improve outcomes for customers and investors [18] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the effectiveness of their physical risk mitigation strategies and the positive momentum from recent legislative actions [21] - The company plans conservatively, ensuring readiness to deliver consistent results despite a challenging regulatory environment [55] - Management highlights the importance of the upcoming CEA report and its potential impact on future policy and operational strategies [32] Other Important Information - The company has achieved non-fuel O&M savings exceeding targets for three consecutive years, with a goal of a 2% reduction for the current year [19] - Fitch has upgraded the company's parent rating to investment grade, with expectations for further upgrades from other agencies contingent on regulatory progress [20][46] Q&A Session Summary Question: Updates on SB 254 process - Management provided milestone dates for the SB 254 process, including stakeholder abstracts due November 3 and final recommendations by January 30 [24] Question: Cost of capital case status - The proposed decision on the cost of capital is expected in November 2025, with management confident in their case [25] Question: Policy reform recommendations for phase two - Management discussed the improvements from phase one of SB 254 and the governor's commitment to a comprehensive approach to wildfire risk [31] Question: Undergrounding decision timeline - The final recommendations on the 10-year undergrounding procedure are on the agenda for the upcoming commission meeting, with management advocating for undergrounding in high-risk areas [34] Question: Credit rating conversations - Management is in discussions with Moody's and S&P, with progress on phase two being a significant trigger for potential upgrades [46] Question: O&M cost target adjustments - Management expressed confidence in meeting the 2% reduction target but is not considering raising it at this time [48] Question: 2026 EPS guidance comfort level - Management reassured that they plan conservatively and are prepared to deliver consistent results despite uncertainties [55] Question: CRC energy storage microgrid project - Management is excited about the CRC project and plans to replicate similar installations in other communities [56]

Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 are $0.50, and $1.14 for the first nine months of 2025, with full-year guidance narrowed to a range of $1.49 to $1.51, reflecting a 10% increase over 2024 [5][17] - The 2026 EPS guidance range is introduced at $1.62 to $1.66, indicating a 9% increase from the 2025 midpoint [6] Business Line Data and Key Metrics Changes - The company has achieved significant operational and maintenance (O&M) cost savings, contributing $0.05 for the quarter and $0.08 year-to-date, with ongoing unit cost reductions [18] - The five-year capital plan remains at $73 billion, supporting average annual rate base growth of approximately 9% from 2026 to 2030 [20] Market Data and Key Metrics Changes - PG and E's data center pipeline remains robust at over 9.5 gigawatts, with modest net attrition in applications but growth in projects at the final engineering stage [14] - The company has constructed and energized 1,000 miles of power lines underground in high fire risk areas, marking a significant milestone [10] Company Strategy and Development Direction - The company is focused on mitigating climate-driven wildfire risks and enhancing safety measures, with a commitment to undergrounding as a key strategy [7][10] - The capital investment plan includes projects to improve safety, reliability, and resiliency, while enabling economic growth through capacity upgrades [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the effectiveness of their wildfire risk mitigation strategies, noting a 35% reduction in reportable ignitions year-to-date compared to 2024 [7][8] - The company is optimistic about the legislative process regarding wildfire fund reforms and the potential for constructive outcomes in 2026 [39][42] Other Important Information - The company aims to maintain a dividend payout ratio of 20% by 2028, which will provide financing flexibility and support investment-grade ratings [23] - Fitch has upgraded the company's parent rating to investment grade, reflecting improved credit metrics [26] Q&A Session Summary Question: Updates on SB 254 process - Management indicated that stakeholder abstracts are due November 3, with full submissions by December 12, and final recommendations by January 30 [30][31] Question: Cost of capital case status - Management confirmed that they are awaiting the proposed decision expected in November 2025 [33] Question: Policy reform recommendations for April - Management highlighted significant improvements from Phase 1 of SB 254 and expressed optimism about the governor's commitment to wildfire risk management [39][41] Question: Undergrounding decision timeline - Management confirmed that final recommendations on the ten-year undergrounding procedure are on the agenda for the upcoming commission meeting [44] Question: Credit agency conversations - Management reported ongoing positive discussions with Moody's and S&P, with a focus on progress in Phase 2 as a potential trigger for upgrades [65] Question: O&M cost target adjustments - Management expressed confidence in meeting the 2% reduction target but is not currently considering raising it [68] Question: Comfort with 2026 EPS guidance - Management reassured that they plan conservatively and are prepared to deliver consistent results despite regulatory uncertainties [75] Question: Storage project as a blueprint - Management is excited about the CRC Energy Storage microgrid project and plans to replicate similar installations in other communities [76] Question: Dividend payout ratio beyond 2028 - Management confirmed the plan to maintain a 20% payout ratio through 2030 [80]

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2025 THIRD QUARTER EARNINGS Delivering For Customers AND Investors October 23, 2025 1 Forward-Looking Statements Planning For Wide-Ranging Wildfire Policy Reform… This presentation and the oral remarks made in connection with it contain statements regarding PG&E Corporation's and Pacific Gas and Electric Company's (the "Utility") future performance, including expectations, objectives, and forecasts about operating results (including 2025 and 2026 non-GAAP core earnings), debt and equity issuances, refinanci ...

Core Insights - The U.S. stock market is at a critical inflection point, influenced by a government shutdown and economic uncertainty, while the utility sector is experiencing a resurgence due to AI and data-driven infrastructure [1][2] Utility Sector Performance - The utility sector is witnessing record electricity demand, primarily driven by data centers, which is expected to enhance load growth and top-line growth for major utilities in Q3 [2][6] - U.S. power demand increased by 2.3% year-over-year through September, largely attributed to growth in data center hubs [7] Earnings Outlook - The total earnings for the utility sector are projected to decline by 2.4% despite a revenue growth of 5.8% in Q3 [10] - PG&E Corp is expected to report earnings of 46 cents per share on revenues of $6.55 billion, indicating a year-over-year bottom-line growth of 24.3% and top-line improvement of 10.2% [10] - CenterPoint Energy is anticipated to report earnings of 46 cents per share on revenues of $1.98 billion, suggesting a year-over-year bottom-line growth of 48.4% and top-line improvement of 6.6% [11] Financial Considerations - The utility sector is capital-intensive, and while recent Federal Reserve rate cuts may provide some relief, the cost of debt for funding infrastructure projects remains a critical concern [8][9] - Higher interest expenses may have negatively impacted the sector's bottom line, necessitating close monitoring of how utilities manage their balance sheets and growth funding [9][13] Investment Opportunities - The current environment presents a timely opportunity for ETF investors to evaluate funds positioned to benefit from the utility sector's performance amid electrification and AI expansion [3][14] - ETFs such as Utilities Select Sector SPDR Fund, Vanguard Utilities ETF, and others provide exposure to the sector's long-term growth story while mitigating risks associated with individual companies [14]

PG&E (PCG) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.64%. A quarter ago, it was expected that this utility holding company would post earnings of $0.33 per share when it actually produced earnings of $0.31, delivering a surprise of -6.06%.Over the last four quarters, the comp ...

Core Insights - PG&E forecasts its full-year 2026 profit to be narrowly above Wall Street expectations, driven by increasing power demand [1] Company Summary - PG&E is experiencing a surge in power demand, which is positively impacting its profit outlook for 2026 [1]

Core Insights - A wave of positive third-quarter 2025 earnings reports has boosted markets, with several major companies exceeding analyst expectations, while ongoing geopolitical developments, particularly concerning Ukraine and Russia, remain a significant focus [2]. Strong Q3 Earnings Performance Across Sectors - Hasbro (HAS) reported adjusted EPS of $1.68, beating the estimated $1.63, with revenue of $1.39 billion surpassing the forecast of $1.34 billion. The company raised its full-year adjusted EBITDA guidance to $1.24 billion to $1.26 billion from $1.17 billion to $1.20 billion, driven by growth in its Wizards of the Coast and Digital Gaming segments [3][10]. - Honeywell (HON) posted adjusted EPS of $2.82, significantly higher than the estimated $2.57, with quarterly revenue of $10.41 billion exceeding the $10.15 billion estimate. The company updated its full-year sales outlook to between $40.78 billion and $40.98 billion and adjusted EPS to $10.60 to $10.70 [4][10]. - First Citizens BancShares (FCNCA) announced adjusted EPS of $44.62, outperforming the $41.74 estimate, with net interest income of $1.73 billion above the $1.71 billion estimate and a net interest margin of 3.26%, slightly higher than the estimated 3.24% [5][10]. - TransUnion (TRU) reported adjusted net income of $216 million against an estimate of $204.3 million, with Q3 EPS of $0.49 and adjusted EPS of $1.10 versus an estimate of $1.04. Revenue for the quarter was $1,170 million, exceeding the $1,133 million estimate [6]. - CenterPoint Energy (CNP) reported adjusted EPS of $0.50, surpassing the $0.44 estimate, and reaffirmed its full-year adjusted EPS guidance of $1.75 to $1.77. PG&E (PCG) announced Q3 adjusted core EPS of $0.50, beating the estimated $0.43, and maintained its full-year adjusted EPS forecast between $1.49 and $1.51 [7]. - Atlas Copco reported Q3 adjusted EBIT of SEK 8,862 million, exceeding the estimate of SEK 8,677 million, with revenue of SEK 41,621 million slightly above the estimated SEK 41,333 million [8]. - Dow (DOW) reported Q3 adjusted EPS of -$0.19, better than the estimated -$0.29, but net sales of $9,973 million fell short of the estimated $10,185 million [9][10]. Tesla's Capital Expenditures and Geopolitical Landscape - Tesla (TSLA) recognized $238 million in expenses within its automotive segment during Q3, primarily due to charges for supercomputer assets, contract terminations, and employee terminations. The company expects full-year capital expenditures to be around $9.00 billion [11][10]. - On the geopolitical front, Ukrainian President Volodymyr Zelenskiy urged EU leaders to enhance Ukraine's long-range capabilities to counteract Russia, while Russia's Rosatom CEO warned that deteriorating Russia-U.S. relations could impact uranium supplies [12].

Core Insights - PG&E's third-quarter net income increased significantly due to rising electricity demand, which compensated for lower average residential rates [1] Financial Performance - The company reported a sharp rise in net income for the third quarter, indicating strong financial performance [1] - The increase in demand for electricity played a crucial role in offsetting the impact of reduced residential rates [1]

Core Insights - PG&E Corporation is on track to deliver solid financial results for 2025, with a focus on safety and affordable energy delivery [1][2] - The company has narrowed its 2025 non-GAAP core earnings guidance to a range of $1.49 to $1.51 per share and initiated guidance for 2026 in the range of $1.62 to $1.66 per share [3][11] - PG&E's third-quarter 2025 income available for common shareholders was $847 million, or $0.37 per diluted share, compared to $576 million, or $0.27 per diluted share, in the same period of 2024 [6][11] Financial Performance - Third-quarter 2025 non-GAAP core earnings were $1,142 million, or $0.50 per diluted share, up from $791 million, or $0.37 per diluted share, in the third quarter of 2024 [8][11] - The increase in GAAP results was driven by higher customer capital investment and net O&M savings, partially offset by a lower return on equity and increased wildfire-related claims [7][11] - Total operating revenues for the third quarter of 2025 were $6,250 million, compared to $5,941 million in the same quarter of 2024 [16] Operational Highlights - PG&E has completed significant infrastructure improvements, including 97 miles of underground powerlines and 58 miles of strengthened poles in high wildfire-risk areas [11] - The company has achieved a milestone of burying 1,000 miles of powerlines, the largest undergrounding effort by a utility to mitigate wildfire risk [11] - PG&E has successfully launched the world's first ultra-long duration hybrid battery and hydrogen energy storage microgrid in Calistoga, California [11] Customer Impact - Residential electric rates have decreased in 2025 and are expected to decline further in 2026, with a typical residential electric bill reduced by about 2.1% [2][11] - PG&E connected over 3,100 electric customers and more than 3,800 new electric vehicle charging ports to its grid, which is anticipated to help lower electricity prices for all customers [11]