Why did GAAP EPS guidance for 2025 come down?

The press release updated full-year 2025 GAAP EPS guidance to $1.26 to $1.32 from $1.29 to $1.35. Drivers listed include unrecoverable interest expense of $350 million to $400 million after tax, along with the amortization of the Wildfire Fund asset, SB 901 impacts, Chapter 11 reorganization costs, and wildfire-related costs. Non-GAAP core EPS guidance was reaffirmed at $1.48 to $1.52.

What do the non-core items represent, and how large are they?

Management excludes non-core items that it does not consider representative of ongoing earnings. They totaled $154 million after tax, or $0.07 per share, in both the second quarter of 2025 and the second quarter of 2024. Components include amortization of the Wildfire Fund contribution, investigation remedies, and wildfire-related costs, net of recoveries.

What does the 2027 rate case proposal mean for customer bills?

The Utility submitted its smallest General Rate Case percentage increase in a decade. If the proposal is fully approved, and based on current information and other assumptions, total residential combined gas and electric bills in 2027 are expected to be flat compared with 2025 bills. The CEO stated bills are expected to be down in 2026.

Is the five-year capital plan changing?

No. The slide presentation states the five-year capital plan of $63 billion through 2028 is unchanged, and that equity needs for it are fully satisfied. The presentation also notes at least $5 billion of additional customer beneficial investment opportunities that are not reflected in the CapEx or rate base figures.

PG&E 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.

PG&E Corporation and Pacific Gas and Electric Company furnished an 8-K on July 31, 2025 reporting second-quarter 2025 results, with a press release (Exhibit 99.1) and an earnings slide presentation (Exhibit 99.2).

GAAP earnings were $0.24^a per share for the second quarter of 2025, flat with $0.24 for the same period in 2024, and income available for common shareholders was $521 million versus $520 million. Non-GAAP core earnings were $0.31 per share ($674 million), also flat year over year. Non-core items totaled $154 million after tax, or $0.07 per share, in both periods.

The company updated its full-year 2025 GAAP EPS guidance to $1.26 to $1.32^b, down from $1.29 to $1.35 previously, citing unrecoverable interest expense of $350 million to $400 million after tax and other factors. It reaffirmed full-year 2025 non-GAAP core EPS guidance of $1.48 to $1.52, and the non-core items guidance range was raised to $470 million to $510 million after tax. The slide presentation states the five-year capital plan of $63 billion through 2028 is unchanged, that equity needs are fully satisfied, and that the data center pipeline increased to 10 gigawatts.

On the regulatory side, the Utility submitted its smallest General Rate Case percentage increase in a decade, and if fully approved, expects total residential combined gas and electric bills in 2027 to be flat compared with 2025. The Utility also reported the NRC found Diablo Canyon safe to operate for 20 more years, and it plans roughly 700 miles of undergrounding and 500 miles of other wildfire safety upgrades across 2025 and 2026.

02—Key points

Key Highlights

GAAP EPS of $0.24 for Q2 2025, flat versus $0.24 in Q2 2024; non-GAAP core EPS of $0.31, also flat year over year.
2025 GAAP EPS guidance lowered to $1.26 to $1.32 from $1.29 to $1.35; 2025 non-GAAP core EPS guidance reaffirmed at $1.48 to $1.52.
Non-core items guidance for 2025 updated to $470 million to $510 million after tax, with unrecoverable interest expense of $350 million to $400 million after tax cited as a GAAP earnings driver.
Five-year capital plan of $63 billion through 2028 unchanged; equity needs described as fully satisfied.
Data center pipeline increased to 10 gigawatts.
2027 General Rate Case proposal is the Utility's smallest percentage increase in a decade; if fully approved, 2027 residential combined bills expected flat versus 2025.
NRC found Diablo Canyon Power Plant safe and environmentally sound to operate for 20 more years.

03—Questions

Frequently Asked Questions

Why did GAAP EPS guidance for 2025 come down?
The press release updated full-year 2025 GAAP EPS guidance to $1.26 to $1.32 from $1.29 to $1.35. Drivers listed include unrecoverable interest expense of $350 million to $400 million after tax, along with the amortization of the Wildfire Fund asset, SB 901 impacts, Chapter 11 reorganization costs, and wildfire-related costs. Non-GAAP core EPS guidance was reaffirmed at $1.48 to $1.52.
What do the non-core items represent, and how large are they?
Management excludes non-core items that it does not consider representative of ongoing earnings. They totaled $154 million after tax, or $0.07 per share, in both the second quarter of 2025 and the second quarter of 2024. Components include amortization of the Wildfire Fund contribution, investigation remedies, and wildfire-related costs, net of recoveries.
What does the 2027 rate case proposal mean for customer bills?
The Utility submitted its smallest General Rate Case percentage increase in a decade. If the proposal is fully approved, and based on current information and other assumptions, total residential combined gas and electric bills in 2027 are expected to be flat compared with 2025 bills. The CEO stated bills are expected to be down in 2026.
Is the five-year capital plan changing?
No. The slide presentation states the five-year capital plan of $63 billion through 2028 is unchanged, and that equity needs for it are fully satisfied. The presentation also notes at least $5 billion of additional customer beneficial investment opportunities that are not reflected in the CapEx or rate base figures.

04—Continue

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