Why did GAAP earnings rise in the third quarter of 2025?

The filing attributes the increase in GAAP results primarily to higher customer capital investment and net O&M savings. These were partly offset by a lower return on equity in effect during 2025 versus 2024 and the dilutive impact of the 2024 equity offering. Increased wildfire-related claims, net of recoveries, and Wildfire Fund expense also affected GAAP results.

What are the non-core items excluded from non-GAAP core earnings?

Non-core items totaled $295 million after tax, or $0.13 per share, in the third quarter of 2025. They include amortization of the Wildfire Fund contribution, bankruptcy and legal costs, investigation remedies, prior period net regulatory impact, SB 901 securitization, and wildfire-related costs, net of recoveries. Management says these items are not representative of ongoing earnings.

What drives the 2026 earnings guidance?

The company expects non-GAAP core earnings to be driven by return on customer capital investment and costs related to unrecoverable interest expense and other earnings factors, including AFUDC equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. The presentation projects 2026 weighted average rate base of $75 billion, with a 52% equity ratio and return on equity marked TBD.

What is the company's capital and financing plan?

The presentation details a $73 billion five-year capital plan for 2026 through 2030. It states that no new equity is required through 2030, targets a 20% dividend payout by 2028, and sustains FFO/Debt in the mid-teens as a key financing principle.

What wildfire policy developments could affect the company?

The presentation notes that SB 254 was signed on September 19, 2025, and that the Wildfire Fund Continuation Account provides $18 billion for future wildfires. The Wildfire Fund administrator is due to submit recommendations to the Governor and Legislature by April 1, 2026. The utilities have elected to participate in the Continuation Account.

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

01—Abstract

Summary

Summary of the 8-K filed October 23, 2025. Cited figures are marked; the original filing is the authoritative source.

PG&E Corporation and Pacific Gas and Electric Company reported third-quarter 2025 results on October 23, 2025.

GAAP income available for common shareholders was $847 million^a, or $0.37 per diluted share, versus $576 million, or $0.27 per diluted share, in the third quarter of 2024. Non-GAAP core earnings were $1,142 million, or $0.50 per diluted share, compared with $791 million, or $0.37 per diluted share, a year earlier. Non-core items totaled $295 million after tax, or $0.13 per share, in the quarter.

For the first nine months of 2025, GAAP EPS was $0.89^b and non-GAAP core EPS was $1.14, versus $0.85 and $1.06 in the prior-year period. Management narrowed its 2025 non-GAAP core EPS guidance to $1.49 to $1.51, from the prior $1.48 to $1.52 range, and initiated 2026 non-GAAP core EPS guidance of $1.62 to $1.66. The company reaffirmed at least 9% annual non-GAAP core EPS growth for 2027 through 2030 and said it is on track to meet or exceed its 2% non-fuel O&M reduction target in 2025.

The slide presentation outlines a $73 billion^c five-year capital plan for 2026 through 2030, states that no new equity is required through 2030, and targets a 20% dividend payout by 2028. Operationally, the Utility lowered residential electric rates in September 2025, reducing the typical residential electric bill by about 2.1%, and reached a milestone of 1,000 miles of undergrounded powerlines in high fire-risk areas. The presentation also highlights the Governor's signing of SB 254 on September 19, 2025, which created a $18 billion Wildfire Fund Continuation Account, and the Wildfire Fund administrator's recommendations due April 1, 2026.

02—Key points

Key Highlights

Q3 2025 GAAP EPS of $0.37 vs. $0.27 in Q3 2024; net income available for common shareholders of $847 million vs. $576 million
Q3 2025 non-GAAP core EPS of $0.50 vs. $0.37 in Q3 2024; non-GAAP core earnings of $1,142 million vs. $791 million
2025 non-GAAP core EPS guidance narrowed to $1.49 to $1.51 from $1.48 to $1.52
2026 non-GAAP core EPS guidance initiated at $1.62 to $1.66, with at least 9% annual non-GAAP core EPS growth reaffirmed for 2027 through 2030
Five-year capital plan of $73 billion for 2026 through 2030, with no new equity required through 2030 according to the presentation
Residential electric rates lowered in September 2025, reducing the typical residential electric bill by about 2.1%; further rate decreases projected for 2026
Wildfire Fund Continuation Account of $18 billion created under SB 254, which the Governor signed on September 19, 2025

03—Questions

Frequently Asked Questions

Why did GAAP earnings rise in the third quarter of 2025?
The filing attributes the increase in GAAP results primarily to higher customer capital investment and net O&M savings. These were partly offset by a lower return on equity in effect during 2025 versus 2024 and the dilutive impact of the 2024 equity offering. Increased wildfire-related claims, net of recoveries, and Wildfire Fund expense also affected GAAP results.
What are the non-core items excluded from non-GAAP core earnings?
Non-core items totaled $295 million after tax, or $0.13 per share, in the third quarter of 2025. They include amortization of the Wildfire Fund contribution, bankruptcy and legal costs, investigation remedies, prior period net regulatory impact, SB 901 securitization, and wildfire-related costs, net of recoveries. Management says these items are not representative of ongoing earnings.
What drives the 2026 earnings guidance?
The company expects non-GAAP core earnings to be driven by return on customer capital investment and costs related to unrecoverable interest expense and other earnings factors, including AFUDC equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. The presentation projects 2026 weighted average rate base of $75 billion, with a 52% equity ratio and return on equity marked TBD.
What is the company's capital and financing plan?
The presentation details a $73 billion five-year capital plan for 2026 through 2030. It states that no new equity is required through 2030, targets a 20% dividend payout by 2028, and sustains FFO/Debt in the mid-teens as a key financing principle.
What wildfire policy developments could affect the company?
The presentation notes that SB 254 was signed on September 19, 2025, and that the Wildfire Fund Continuation Account provides $18 billion for future wildfires. The Wildfire Fund administrator is due to submit recommendations to the Governor and Legislature by April 1, 2026. The utilities have elected to participate in the Continuation Account.

04—Continue

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