Core Insights - PSEG Long Island has achieved the highest customer satisfaction ranking among business customers in the East Large Segment according to the J.D. Power 2025 Electric Utility Business Customer Satisfaction Study, marking a significant improvement over the past 11 years [1][3] Customer Satisfaction - The company ranked 1 in four key categories: Digital Channels, People, Cost, and Information Provided, as rated by business customers in the J.D. Power survey [3] Customer Base - PSEG Long Island serves approximately 1.2 million electric customers, including over 130,000 commercial customers [3] Programs and Incentives - The company offers various programs for business customers, such as free energy assessments, economic development grants, bill credit programs, energy efficiency rebates, and incentives for electric vehicles and chargers [4] - PSEG Long Island has provided over $2.8 million in economic development initiatives since 2018 to support local business owners [5] Main Street Revitalization Grants - The Main Street Revitalization program has awarded nearly $2 million in grants to 72 businesses, resulting in the creation of approximately 1,200 new jobs [6] - The program incentivizes businesses to undertake renovation or expansion projects to stimulate local economic growth [6] Additional Support Programs - The Vacant Space Revival program offers up to $10,000 in electric bill discounts for new businesses during their first year, with over $400,000 distributed to more than 170 new businesses since 2018 [7] - Local business groups can also apply for improvement and beautification grants of up to $10,000 under the CommunityThrive Program [8][9] Energy Efficiency Initiatives - PSEG Long Island's Energy Efficiency group provides significant rebates for various energy-saving measures, helping business owners reduce costs and carbon footprints [10]

Core Insights - Nuclear energy is emerging as a vital solution for clean and reliable energy, particularly as the world shifts away from fossil fuels [2][9] - Innovations in nuclear technology, such as small modular reactors (SMRs) and portable microreactors, are enhancing the safety, efficiency, and accessibility of nuclear power [3][9] - The nuclear energy sector is supported by government initiatives and growing demand for stable energy sources, particularly from data centers and AI technologies [19][21] Uranium Miners - Cameco Corp. is one of the largest uranium producers globally, operating high-grade mines in Canada, the U.S., and Kazakhstan, positioning itself to meet rising global demand [7] - Denison Mines Corp. focuses on high-grade uranium projects in the Athabasca Basin, with its Wheeler River Project being a significant asset for low-cost production [8] - NexGen Energy is advancing the Rook I project in Canada, aiming for innovative mining techniques to enhance efficiency and environmental responsibility [10] Nuclear Industrials - Oklo Inc. is developing ultra-compact micro-reactors for remote locations and industrial sites, utilizing recycled nuclear fuel for sustainability [11] - BWX Technologies specializes in nuclear components and services, focusing on advanced reactors and small modular reactor technology [12] - Centrus Energy Corp. supplies low-enriched uranium and is developing high-assay, low-enriched uranium for advanced reactors, positioning itself strategically in the fuel supply chain [13] Nuclear Utilities - Constellation Energy Corp. is the largest producer of carbon-free energy in the U.S., operating nuclear plants and exploring partnerships for next-generation technologies [14] - Public Service Enterprise Group operates nuclear plants in the U.S. and is committed to a low-carbon future, supporting regional power demands [15] - PG&E Corp operates California's last nuclear power plant, the Diablo Canyon Power Plant, ensuring a stable, low-emission power supply [16]

Core Insights - Public Service Enterprise Group Incorporated (PSEG) reported third-quarter 2025 adjusted earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $1.01 by 11.9% and reflecting a 25.6% increase from the prior year's figure of 90 cents per share [1][8] - Total operating revenues reached $3.23 billion, surpassing the Zacks Consensus Estimate of $2.73 billion by 18.2% and increasing 22.1% from $2.64 billion in the previous year [2][8] Revenue and Sales Performance - Electric sales volume totaled 11,804 million kilowatt-hours, a decline of 1% year over year, while gas sales volume decreased by 7% to 404 million therms [3] - Residential electric sales volume was 4,539 million kilowatt-hours, down 2% from the prior year, and commercial and industrial sales volume was 7,181 million kilowatt-hours, reflecting a 1% decline [3] - Other sales amounted to 84 million kilowatt-hours, up 18% from the previous year [4] Financial Highlights - Operating income was $855 million, a 33.4% increase from $641 million in the year-ago period [5] - Total operating expenses rose to $2.37 billion, up 18.5% from the previous year [5] - Interest expenses increased to $253 million, reflecting an 11.5% year-over-year rise [5] Segment Performance - The PSE&G segment reported net income of $515 million, up from $379 million in the third quarter of 2024 [6] - Adjusted operating income for the PSEG Power & Other segment was $107 million, down from $141 million in the prior-year quarter [6] Financial Position - Long-term debt as of September 30, 2025, was $22.54 billion, compared to $21.11 billion as of December 31, 2024 [7] Guidance and Outlook - PSEG narrowed its 2025 EPS guidance to a range of $4.00-$4.06, compared to the previous guidance of $3.94-$4.06, with the Zacks Consensus Estimate currently at $4.03 per share [10]

Core Insights - In times of market volatility, investors are increasingly turning to value investing as a strategy to capitalize on discounted stock prices when others are selling off [1][3] Group 1: Value Investing Strategy - Value investing allows investors to purchase stocks at lower prices during market uncertainty, presenting opportunities for long-term gains [1] - The strategy can lead to "value traps" if not properly understood, where stocks underperform due to persistent issues rather than temporary setbacks [3] Group 2: Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio indicating better value [5] - While P/E ratios alone may not accurately reflect a stock's true value, the PEG ratio helps in assessing intrinsic value [5] - Investors should also consider other parameters alongside the PEG ratio to enhance investment outcomes [6] Group 3: Screening Criteria for Value Stocks - Effective screening criteria for identifying potential value stocks include a PEG ratio lower than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, average trading volume exceeding 50,000, and upward revisions in earnings estimates greater than 5% [6] Group 4: Selected Stocks - Fox Corporation (FOX) has a Zacks Rank of 1, a Value Score of A, and a five-year historical growth rate of 12.3% [10] - Flex Ltd. (FLEX) also holds a Zacks Rank of 1, a Value Score of B, and a five-year historical growth rate of 35.1% [12] - Suzano S.A. (SUZ) has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 52% [14] - Garrett Motion Inc. (GTX) maintains a Zacks Rank of 1, a Value Score of A, and a five-year expected growth rate of 23.1% [15]

Financial Performance - PSE&G's net income for the three months ended September 30, 2025 was $515 million, compared to $379 million for the same period in 2024, representing a 36% increase [278]. - PSEG Power's net income for the nine months ended September 30, 2025 was $403 million, up from $317 million in 2024, reflecting a 27% increase [278]. - PSEG's net income for the three months ended September 30, 2025 was $622 million, compared to $520 million in 2024, marking a 20% increase [278]. - Operating revenues for the three months ended September 30, 2025, increased by 22% to $3,226 million compared to $2,642 million in 2024 [304]. - PSE&G's operating revenues increased by $396 million (19%) for the three months ended September 30, 2025, compared to the same period in 2024, driven by changes in delivery, commodity, clause, and other operating revenues [307]. - For the nine months ended September 30, 2025, PSE&G's operating revenues increased by $895 million (14%) compared to the same period in 2024 [317]. - PSEG Power's operating revenues increased by $621 million (29%) for the nine months ended September 30, 2025, driven by changes in generation and gas supply revenues [332]. Capital Investment and Rate Base - PSEG's regulated rate base increased from approximately $30 billion as of December 31, 2023 to approximately $34 billion as of December 31, 2024 [260]. - The estimated regulated capital investment program for 2025-2029 is projected to be between $21 billion and $24 billion, with a compound annual growth rate in the regulated rate base of 6% to 7.5% [262]. - The distribution rate case settlement approved a $17.8 billion rate base and a 9.6% return on equity for PSE&G's distribution business [266]. - Capital expenditures for PSE&G during the nine months ended September 30, 2025, were $1,893 million, primarily for T&D system reliability [356]. - PSEG Power & Other made capital expenditures of $146 million during the same period, excluding $135 million for nuclear fuel [357]. Regulatory and Legislative Environment - The company is facing regulatory uncertainty due to significant increases in electricity costs, with July 2024 PJM annual capacity market auction prices approximately 10 times higher than the previous year [289]. - The New Jersey Board of Public Utilities (BPU) approved a settlement allowing PSE&G to apply a credit to residential electric customers' bills for July and August 2025, with offsets charged from September 2025 through February 2026 [291]. - The company is involved in proceedings to achieve a 50% reduction in natural gas emissions by 2030, which could materially impact operations and cash flows [285]. - The enactment of federal and state tax legislation could materially impact the company's effective tax rate and cash tax position [295]. - The company anticipates increased accounts receivable and bad debt expense due to new legislation prohibiting disconnection for non-payment during summer months starting in 2026 [291]. Energy Costs and Revenue Sources - Energy costs rose by 26% to $1,133 million for the three months ended September 30, 2025, compared to $899 million in 2024 [304]. - Delivery revenues rose by $256 million, primarily due to a $251 million increase in electric and gas revenues from the settlement of the 2024 distribution base rate case [309]. - Commodity revenues increased by $226 million, mainly from higher electric basic generation service revenues of $227 million due to elevated prices [311]. - Generation revenues increased by $108 million, attributed to a $66 million rise in capacity revenue and a $51 million increase in average realized energy prices [328]. - PSEG Power's energy costs rose by $38 million, reflecting higher gas costs [329]. Cash Flow and Financial Position - Operating cash flow increased by $811 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a net change at PSE&G and higher earnings at PSEG Power [341]. - PSE&G's operating cash flow rose from $1,119 million to $1,528 million for the nine months ended September 30, 2025, an increase of $409 million attributed to regulatory deferrals and tax refunds [342]. - Total committed credit facilities as of September 30, 2025, amounted to $3.825 billion, with available liquidity of $3.274 billion [346]. - PSEG Power's uncommitted credit facilities totaled $275 million, with $166 million in letters of credit outstanding as of September 30, 2025 [346]. - The potential additional collateral required if PSEG Power loses its investment grade credit rating was approximately $683 million as of September 30, 2025 [347]. Environmental Goals - PSEG aims for net zero greenhouse gas emissions by 2030, supporting New Jersey's clean energy and climate goals [270]. Risk Management - The company is assessing strategic options to maximize long-term shareholder value, including utility capital investment programs and managing risks related to federal and state energy policies [300]. - The expected Production Tax Credit (PTC) rate for electricity generated from existing nuclear energy is up to $15/MWh, impacting the decision not to apply for the next zero emission certificate eligibility period [288]. Market Risk - From July through September 2025, the MTM VaR varied between a low of $17 million and a high of $45 million at the 95% confidence level [364]. - The average MTM VaR for the three months ended September 30, 2025, was $29 million, compared to $44 million for the year ended December 31, 2024 [364].

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Financial Data and Key Metrics Changes - PSEG reported net income of $1.24 per share in Q3 2025, down from $1.40 per share in Q3 2024, while non-GAAP operating earnings increased to $1.13 per share from $0.90 per share year-over-year [11][12] - The company narrowed its 2025 non-GAAP operating earnings guidance to the upper half of the range at $4 to $4.6 per share, up from prior guidance of $3.94 to $4.06 per share [3][18] - PSEG's balance sheet supports a five-year capital investment program of $22.5 billion to $26 billion without the need to issue new equity or sell assets [9][18] Business Line Data and Key Metrics Changes - PSEG's utility segment reported net income and non-GAAP operating earnings of $515 million for Q3 2025, driven by new electric and gas base distribution rates implemented in October 2024 [11][12] - PSEG Power and Other reported net income of $107 million in Q3 2025, down from $141 million in Q3 2024, with non-GAAP operating earnings of $50 million compared to $69 million in the prior year [14][15] - Nuclear generation was approximately 7.9 terawatt hours in Q3 2025, slightly down from 8.1 terawatt hours in Q3 2024, but year-to-date nuclear generation increased to 23.8 terawatt hours from 23.3 terawatt hours [16] Market Data and Key Metrics Changes - The capacity factors for the nuclear fleet were 92.4% and 93.7% for the quarter and nine-month period ended September 30, 2025, respectively [16] - The company noted that imports have grown to over 40% of its generation consumption, highlighting a significant reliance on external sources [6] Company Strategy and Development Direction - PSEG is focused on operational excellence and cost discipline to maintain reliability and provide value for customers, with a capital spending program aimed at modernizing New Jersey's energy infrastructure [4][5] - The company is actively collaborating with policymakers to address the supply-demand imbalance in New Jersey, emphasizing the need for additional generation supply [5][6] - PSEG is pursuing opportunities in regulated generation, unregulated generation, and renewable energy sources, including solar and battery storage [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in working with the incoming administration to address rising costs and supply issues, emphasizing the need for more generation supply to meet customer demand [5][10] - The company reaffirmed its long-term non-GAAP operating earnings growth outlook of 5% to 7% through 2029, supported by capital investment programs and nuclear production tax credits [18] Other Important Information - PSEG's liquidity as of September was $3.6 billion, including $330 million in cash [17] - The company issued $450 million of secured medium-term notes in August 2025 and redeemed $550 million of notes at maturity [17] Q&A Session Summary Question: Impact of elections on data center deals - Management indicated that they expect to work with both sides of the aisle post-election and noted that data center opportunities in New Jersey have not slowed down [26][27] Question: Differences in contracting conversations between New Jersey and Pennsylvania - Management noted that while there is interest in both states, Pennsylvania has a more forward-leaning appetite for larger-scale projects compared to New Jersey [33] Question: Supply additions and stakeholder collaboration - Management expressed willingness to help the state achieve its goals in a regulated capacity and mentioned potential opportunities in gas generation and solar projects [35][36] Question: Affordability concerns and regulatory approaches - Management emphasized the importance of addressing affordability and reliability issues, indicating that both candidates for governor understand the need for more supply [56][58] Question: Future capital plans and equity needs - Management reassured that they can manage capital needs without issuing new equity, with a full update expected in the fourth quarter [108][109]

Financial Performance - PSEG's Q3 2025 Net Income was $1.24 per share, and Year-to-Date (YTD) Net Income was $3.59 per share[12] - Q3 2025 non-GAAP Operating Earnings were $1.13 per share, and YTD non-GAAP Operating Earnings were $3.33 per share, representing increases of approximately 26% and 17% respectively[12] - PSEG narrows 2025 non-GAAP Operating Earnings guidance to $4.00 - $4.06 per share (from $3.94 - $4.06 per share prior)[15] - PSE&G filed annual transmission formula rate update with FERC in October, resulting in approximately $82 million in increased annual transmission revenue effective January 1, 2026, subject to true-up[29] Capital Investment and Spending - PSE&G invested approximately $1 billion in Q3 2025 and approximately $2.7 billion YTD as part of a full-year 2025 regulated capital spending plan of approximately $3.8 billion[12, 29] - The company has a regulated capital investment program for 2025-2029 of $21 billion - $24 billion, driven by infrastructure modernization, energy efficiency, and growing customer demand[12] - Total PSEG capital program of $22.5 billion - $26 billion for 2025-2029[15] Operational Highlights - PSE&G effectively maintained high system reliability and efficient customer response times, restoring all impacted electric customers within 24 hours and over 200 gas services within a four-day period, following a July NJ state of emergency caused by a severe storm and flooding[12] - PSE&G replaced year-to-date approximately 170 miles of gas main and approximately 22,000 associated gas services to homes and businesses as scheduled under the gas main replacement program[29] - PSE&G large load inquires for new service connections rose to approximately 11,500 megawatts as of September 30, 2025[29] Nuclear Generation - Hope Creek completed a breaker-to-breaker run, operating for 499 continuous days since its last refueling outage, and recently completed work to extend its fuel cycle from 18 to 24 months[12, 34] - For 2025, total nuclear generation is forecasted to be 30-32 TWh[34]

Financial Performance - PSEG reported a net income of $622 million for Q3 2025, up from $520 million in Q3 2024, resulting in earnings per share of $1.24 compared to $1.04 in the prior year[3]. - Non-GAAP operating earnings for Q3 2025 were $565 million, an increase from $448 million in Q3 2024, translating to $1.13 per share versus $0.90 per share in the previous year[3]. - For the first nine months of 2025, net income reached $1.796 billion, up from $1.486 billion in the same period of 2024, with earnings per share increasing from $2.97 to $3.59[5]. - Operating revenues for the three months ended September 30, 2025, increased to $3,226 million, up from $2,642 million in the same period of 2024, representing a growth of 22%[27]. - Net income for the three months ended September 30, 2025, was $622 million, compared to $520 million for the same period in 2024, reflecting a 20% increase[27]. - Operating earnings (non-GAAP) for the three months ended September 30, 2025, were $565 million, up from $448 million in the prior year, marking a 26% increase[27]. - For the nine months ended September 30, 2025, operating revenues reached $9,253 million, a 18% increase from $7,825 million in the same period of 2024[30]. - The company reported a net income of $1,796 million for the nine months ended September 30, 2025, compared to $1,486 million in the same period of 2024, indicating a 22% increase[35]. - The diluted earnings per share for the three months ended September 30, 2025, was $1.24, compared to $1.04 in 2024, reflecting a 19.2% increase[47]. - For the nine months ended September 30, 2025, net income reached $1.796 billion, a 20.9% increase from $1.486 billion in 2024[47]. Guidance and Outlook - The company narrowed its 2025 non-GAAP operating earnings guidance to a range of $4.00 to $4.06 per share, up from the previous range of $3.94 to $4.06[6]. - The company reaffirmed a five-year non-GAAP operating earnings growth outlook of 5% to 7% through 2029, supported by a capital investment program of $22.5 billion to $26 billion[9]. Capital Expenditures and Investments - Regulated investment for Q3 2025 was approximately $1 billion, contributing to a total of $2.7 billion over the first nine months, as part of a planned $3.8 billion capital spending program[6]. - The Long Island Power Authority approved a five-year contract extension for PSEG Long Island as the operations service provider through 2030[12]. Operational Metrics - PSEG's nuclear operations supplied 7.9 TWh of carbon-free energy in Q3 2025, enhancing financial flexibility for regulated investments[12]. - Total operating expenses for the three months ended September 30, 2025, were $2,371 million, compared to $2,001 million in the same period of 2024, an increase of 19%[27]. - Total debt as of September 30, 2025, was $23,370 million, up from $22,707 million at the end of 2024, reflecting an increase of 3%[33]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $2,577 million, compared to $1,766 million in the same period of 2024, a significant increase of 46%[35]. - Electric sales for the three months ended September 30, 2025, totaled 11,804 million kWh, a decrease of 1% compared to the same period in 2024[37]. - Total firm gas sales for the three months ended September 30, 2025, were 195 million therms, a 4% increase compared to the same period in 2024[39]. Shareholder Returns - The company paid dividends of $0.63 per share in Q3 2025, up from $0.60 in Q3 2024, resulting in a dividend yield of 3.0%[45]. - The stock price at the end of the period was $83.46, down from $89.21 in the previous year[45]. - The book value per common share increased to $34.10 in 2025 from $32.33 in 2024[45]. - The market price as a percent of book value was 245% in 2025, down from 276% in 2024[45]. Challenges and Issues - The company is actively collaborating with stakeholders to address a growing generation supply-demand imbalance in the mid-Atlantic region, which has led to nearly a 20% increase in summer electric bills[8]. - The company reported a loss of $70 million related to nuclear decommissioning trust fund activities for the three months ended September 30, 2025[50]. - Operating earnings for PSEG Power were $50 million for Q3 2025, down from $69 million in Q3 2024[50].

Core Insights - Public Service Enterprise Group (PSEG) reported a net income of $622 million for Q3 2025, up from $520 million in Q3 2024, translating to earnings per share of $1.24 compared to $1.04 in the previous year [1][5] - For the nine months ended September 30, 2025, PSEG's net income reached $1.796 billion, an increase from $1.486 billion in the same period of 2024, with earnings per share rising to $3.59 from $2.97 [2][5] Financial Performance - Q3 2025 Non-GAAP Operating Earnings were $565 million, up from $448 million in Q3 2024, resulting in earnings per share of $1.13 compared to $0.90 [1][5] - For the nine months ended September 30, 2025, Non-GAAP Operating Earnings totaled $1.667 billion, an increase from $1.418 billion in 2024, with earnings per share of $3.33 compared to $2.84 [2][5] Segment Performance - PSE&G's net income for Q3 2025 was $515 million, up from $379 million in Q3 2024, while PSEG Power & Other reported a net income of $107 million, down from $141 million [5] - Year-to-date results for PSE&G showed net income of $1.393 billion, compared to $1.169 billion in 2024, while PSEG Power & Other's year-to-date net income increased to $403 million from $317 million [5] Operational Highlights - PSEG is focused on operational excellence and cost discipline, reaffirming a five-year Non-GAAP Operating Earnings growth outlook of 5% to 7% through 2029 [4] - The company plans to invest between $22.5 billion and $26 billion over the next five years to enhance its energy infrastructure and meet growing customer demand [4] Market Context - PSEG noted a nearly 20% rise in summer electric bills due to a generation supply-demand imbalance and PJM's capacity market results [4] - The company is collaborating with state stakeholders to address resource adequacy in the mid-Atlantic region [4] Nuclear Operations - PSEG Nuclear supplied 7.9 TWh of reliable, carbon-free energy in Q3 2025, contributing to the company's financial flexibility for regulated investments [7] - The Hope Creek unit operated for 499 continuous days since its last refueling outage and extended its fuel cycle from 18 to 24 months [7]