01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Public Service Enterprise Group Incorporated (PSEG) reported first-quarter 2025 net income of $589 milliona, or $1.18 per diluted share, up from $532 million, or $1.06 per diluted share, in the first quarter of 2024.
Operating revenues rose to $3.22 billionb from $2.76 billion. PSE&G contributed $546 million of net income (versus $488 million a year earlier), while PSEG Power & Other contributed $43 million (versus $44 million). The filing attributes the improvement primarily to higher earnings from T&D clause programs and the settlement of PSE&G's distribution base rate case in October 2024, partly offset by mark-to-market and NDT Fund activity.
Net gains on trust investments fell to $8 millionc from $95 million. The company's regulated capital program is estimated at $21 billion to $24 billion for 2025-2029, with a projected rate base compound annual growth rate of 6% to 7.5% from year-end 2024 to year-end 2029. Regulated rate base was approximately $34 billion as of December 31, 2024.
Long-term debt rose to $20.40 billiond at March 31, 2025 from $18.96 billion at year-end 2024, reflecting new issuances at PSEG and PSE&G. Cash flow from operations was $1.05 billion for the quarter, compared with $661 million a year earlier.
Key risks in the filing include PJM capacity market price increases affecting customer bills, pending LIPA board action on the PSEG LI operations services agreement that expires December 31, 2025, the ongoing Lower Passaic River Superfund matter, and the potential impact of the Production Tax Credit on nuclear revenues. Liquidity remained at $3.70 billion of available credit as of March 31, 2025.
02—Key points
Key Highlights
- Net income of $589 million ($1.18 diluted EPS) versus $532 million ($1.06 diluted EPS) in Q1 2024.
- Operating revenues of $3.22 billion, up from $2.76 billion; PSE&G net income of $546 million versus $488 million.
- PSEG Power & Other net income of $43 million, versus $44 million, with non-trading mark-to-market losses of $135 million after tax compared with $186 million a year earlier.
- Long-term debt increased to $20.40 billion from $18.96 billion; the quarter included $1.0 billion of PSEG senior notes and $900 million of PSE&G secured medium-term notes issued.
- Regulated capital investment program of $21 billion to $24 billion for 2025-2029, with projected rate base growth of 6% to 7.5% compound annual growth rate through 2029.
- Nuclear fleet generated approximately 8.4 terawatt hours at a 99.9% capacity factor in Q1 2025; no PTC benefit was recorded because estimated 2025 gross receipts exceed the phase-out amount.
- Quarterly dividend of $0.63 per share declared April 22, 2025, an indicative annual rate of $2.52 per share.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 30, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.22B$2.76B | +16.7% |
| Operating Expenses | $2.42B$2.08B | +16.9% |
| Operating Income | $797.00M$685.00M | +16.4% |
| Interest Expense | $241.00M$205.00M | +17.6% |
| Net Income | $589.00M$532.00M | +10.7% |
| EPS (Basic) | $1.18$1.07 | +10.3% |
| EPS (Diluted) | $1.18$1.06 | +11.3% |
| Shares Outstanding (Basic) | 498.00M499.00M | −0.2% |
| Shares Outstanding (Diluted) | 500.00M500.00M | 0.0% |
05—Questions
Frequently Asked Questions
What drove the increase in PSEG's first-quarter 2025 earnings?
The filing attributes the higher Net Income primarily to higher earnings from continued investments in T&D clause programs and the settlement of PSE&G's distribution base rate case in October 2024, combined with changes in mark-to-market and NDT Fund activity. PSE&G net income rose to $546 million from $488 million.
How is PSEG's debt position changing?
Long-term debt rose to $20.40 billion at March 31, 2025 from $18.96 billion at December 31, 2024, after PSEG issued $600 million of 4.90% Senior Notes due 2030 and $400 million of 5.40% Senior Notes due 2035, and PSE&G issued $400 million of 5.05% and $500 million of 5.50% Secured Medium-Term Notes. Commercial paper and loans fell to $400 million from $1.59 billion.
What is the outlook for PSEG's regulated investments?
For 2025-2029, the regulated capital investment program is estimated at $21 billion to $24 billion, within a total capital program of $22.5 billion to $26 billion. The company expects a compound annual growth rate in its regulated rate base of 6% to 7.5% from year-end 2024 to year-end 2029.
What are the main risks flagged for investors?
The filing highlights higher customer electricity costs from the PJM capacity auction, with PSE&G preparing a filing in response to BPU direction; uncertainty over LIPA's April 30, 2025 vote against management's recommendation to award the operations services agreement to a different provider; the continuing Lower Passaic River Superfund matter; and uncertainty about the nuclear Production Tax Credit and final U.S. Treasury guidance.
How is liquidity positioned?
As of March 31, 2025, total committed credit facilities were $3.83 billion with $3.70 billion of available liquidity. The company stated its liquidity position was expected to be sufficient to meet projected stressed requirements over a 12-month planning horizon. A potential downgrade of PSEG Power to below investment grade would require approximately $722 million of additional collateral.
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